The online retail market in India alone is set to become the third-largest online retail market by scale by 2030 with an annual gross merchandise value (GMV) of $55 billion in CY21 and $350 billion in CY30, according to the report by a market research firm RedSeer.
The digital economy includes 60 percent of travel, 40 percent of non-grocery retail, 30 percent of education, 25 percent of food and beverages services, and 6 percent of pharma/ grocery, RedSeer said.
"Today, over 50 percent of customers say they use online services because of convenience. With Covid, digital services have undoubtedly served the customers very well. The next wave of entrepreneurs will create innovations which will make the Indian model successful globally," said Anil Kumar, Founder, and CEO of RedSeer.
According to the data released by RedSeer Consulting, 88 percent of the online shoppers that will be added between 2020-2030 will be from Tier II+ cities.
Further, more than $7 billion cumulative incremental online retail transactions to be added from Tier II+ city customers over CY20-30, while easily more than $150 billion cumulative incremental online retail GMV to be added from Tier II+ city customers over CY 20-30.
"Covid has caused an inflection in e-commerce penetration across city tiers, lowering costs of servicing tier-II and other smaller cities," the findings showed.
Additionally, 'kiranas' are expected to achieve approximately achieve $1.5 trillion sales by CY30.
E-Logistics in India has become the fastest-growing market globally with over three billion shipments in 2020. The new-age logistics players are expected to deliver 2.5 billion D2C shipments by 2030.
With the rise of e-commerce, the need for specialized delivery services emerged, which led to the overall growth of the logistics segment.