How Fast Is the Online Retail Market Growing? Forecast Through 2029

November 6, 2025 by The Business Research Company

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How Much Will The Online Retail Market Grow From 2024 To 2029?

The digital commerce sector has experienced substantial expansion over the past few years, projected to expand from a value of $7,129.17 billion in 2024 to $7,865.98 billion in 2025, reflecting a consistent annual growth rate of 10.3%. This upward trajectory that occurred in the earlier period stems primarily from a confluence of factors, including expanding worldwide access to the internet, greater utilization of mobile phones, heightened consumer demand for ease of purchasing, broader availability of electronic transaction methods, and the increased capital deployment made by pioneering online retail ventures.

Anticipation is high for substantial expansion in the digital commerce sector over the subsequent few years, with projections indicating it will reach a valuation of $11,501.61 billion by 2029, driven by a consistent compound annual growth rate (CAGR) of 10.0%. This upward trajectory throughout the projection timeframe is fueled by several key factors: heightened consumer desire for tailored shopping experiences, broader implementation of artificial intelligence and machine learning technologies, increasing acceptance of search methods utilizing speech and visuals, expansion of next-day delivery options, and greater incorporation of augmented reality (AR) and virtual reality (VR) tools. Significant developments anticipated during this forecast window encompass progress in automated delivery mechanisms, breakthroughs in generative artificial intelligence (AI) capabilities, evolutions within voice-activated commerce, enhancements in shopping environments featuring immersive AR and VR, and novel solutions providing supply chain clarity via blockchain technology.

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Which Major Forces Are Accelerating The Online Retail Market Growth?

The increasing utilization of electronic methods for financial exchanges, encompassing internet-based platforms, mobile applications, and proximity payment technologies, is projected to fuel the expansion of the e-commerce sector in the future. This surge in digital payment uptake is mainly attributable to the extensive proliferation of mobile devices, which renders electronic transactions more convenient and readily usable for consumers. Such systems significantly benefit online retailers by facilitating rapid, protected, and smooth payment processes, thereby elevating overall customer contentment; moreover, they streamline the purchasing conclusion, decrease instances where shoppers leave items in their digital baskets, and enhance transactional productivity for merchants. As an illustration of this trend, data from the European Central Bank—the central monetary authority for the EU nations, headquartered in Germany—revealed that during the initial six months of 2023, contactless card transactions climbed by 24.3%, reaching 20.9 billion transactions from the same period in 2022, while the aggregate monetary worth accompanying these payments rose even more sharply, by 25.9%, culminating at 0.5 trillion euros (equivalent to $545.27 billion) in January 2024. Consequently, the expanded integration of digital payment solutions serves as a primary catalyst propelling the advancement of the online retail industry.

Which Segment Is Projected To Grow The Fastest In The Online Retail Market?

The online retail market covered in this report is segmented –

1) By Product: Groceries, Apparels And Accessories, Personal And Beauty Care, Footwear, Other Products

2) By Model: Business To Business (B2B), Business To Consumer (B2C), Consumer To Consumer (C2C)

3) By Portal: Third Party Marketplaces, Direct-To-Consumer (D2C) Brands Or Own Website

Subsegments:

1) By Groceries: Fresh Produce, Dairy Products, Beverages, Snacks And Packaged Foods, Meat And Seafood, Staples

2) By Apparels And Accessories: Men’s Clothing, Women’s Clothing, Kids’ Wear, Bags And Wallets, Belts And Ties, Watches And Jewelry, Sunglasses And Eyewear

3) By Personal And Beauty Care: Skincare Products, Haircare Products, Fragrances And Perfumes, Oral Care, Grooming Kits, Makeup And Cosmetics, Bath And Shower Products

4) By Footwear: Men’s Footwear, Women’s Footwear, Kids’ Footwear, Sports Shoes, Casual Shoes, Formal Shoes, Slippers And Sandals

5) By Other Products: Electronics And Gadgets, Home And Kitchen Appliances, Books And Stationery, Toys And Games, Fitness And Sports Equipment, Furniture And Home Décor, Pet Supplies

How Are Technological Trends Impacting The Online Retail Market?

Leading entities within the digital sales sector are channeling efforts into creating sophisticated functionalities, exemplified by artificial intelligence mechanisms designed for tailoring the shopping journey, with the goal of refining how consumers locate merchandise and elevating their overall interaction. These intelligent recommendation systems leverage AI to meticulously examine individual conduct, stated likes, and purchasing trends, thereby enabling the presentation of more pertinent product suggestions and fostering greater user involvement. To illustrate this, in the third month of 2025, the American online commerce giant, Amazon.com Inc., rolled out a preliminary version of Interests, a feature underpinned by artificial intelligence. This addition is intended to deepen personalization, boost the duration users spend engaging with the site, and ultimately streamline the online purchasing process to be more instinctive and pleasant. The Interests utility persistently reviews products available in Amazon’s extensive inventory and proactively suggests items that correspond closely to an individual’s unique inclinations, leisure pursuits, and past acquisitions, presenting these tailored recommendations to shoppers through a visual interface reminiscent of the Pinterest format, enabling users to track particular areas of interest.

Which Firms Hold The Largest Market Share In The Online Retail Market?

Major companies operating in the online retail market are Walmart Inc., Amazon.com Inc., Apple Inc., Costco Wholesale Corporation, JD.Com Inc., The Kroger Co., Alibaba Group Holding Ltd., Albertsons Companies Inc., Best Buy Co. Inc., Adidas AG, Coupang Inc., Rakuten Group Inc., Zalando SE, eBay Inc., PUMA SE, Shopify Inc., Flipkart Internet Private Limited, Etsy Inc., Groupon Inc., Bata Limited

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How Is The Online Retail Market Performing Across Different Regions?

Asia-Pacific was the largest region in the online retail market in 2024. The regions covered in the online retail market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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