Driven by strong growth in e-commerce, digital commerce in India is expected to touch Rs2.1 lakh crore by end of this year, growing 68 per cent from December 2015, a report has said. The digital commerce market has grown at a CAGR of 30 per cent between December 2011 and December 2015. It was valued at Rs125,732 crore by the end of December last year, the IAMAI-IMRB report said.
Online travel continued to account for 61 per cent share of the market at Rs76,396 crore. This is further expected to grow at a CAGR of around 40 per cent to reach Rs1,22,815 crore by end of 2016.
Online non-travel, comprising segments like e-tailing, financial service and matrimony and classifieds accounted of Rs49,336 crore at the end of December, 2015. The report said online hotel bookings have seen a substantial movement growing 165 per cent year-on-year to Rs5,200 crore in December last year from Rs1,965 crore in the year-ago period.
Spending on online railway ticket booking has also grown at around 34 per cent from Rs16,200 crore in 2014 to Rs21,708 crore in 2015. E-tailing, which grew 57 per cent y-o-y, saw mobile phone and accessories (Rs14,109 crore), PCs (Rs4,726 crore), consumer durables (Rs6,452 crore), apparel and footwear (Rs 7,142 crore) continue to dominate the category.
Financial services market grew at a CAGR of about 17 per cent between 2012 and 2015, it said. “The market reached close to Rs5,231 crore in terms of transactions as of December 2015. The demand for online utility payment is expected to reach Rs6,068 crore by December 2016,” it added.
Other online services market that include booking movie tickets and tickets for other events, online commuting or cab hire, online grocery and food deliver, stood at Rs3,823 crore in December 2015, up from Rs2,025 crore in the previous year. Also, demand for other online service is expected to grow at a CAGR of 36 per cent to reach Rs5,207 crore by December 2016, the report said.