The Indian e-commerce market is expected to grow 37 percent to $20 billion in 2015 from $11 billion now, said Motilal Oswal Securities.
Rapidly growing internet population and increased online shoppers will be growth drivers for the CAGR of 37 percent over 2013-15.
The report said currently online travel dominates the e-commerce market but in the future, e-tailing will drive the growth, PTI reported.
Online travel constituted 71 percent of the e-commerce market in India, followed by e-tailing with 16 percent. Travel has grown at a CAGR of 32 percent over 2009-13.
E-tailing will be the biggest growth driver, with expected CAGR of over 60 percent to $7 billion in 2016 from $1.7 billion in 2013.
Within e-tailing, fashion is likely to be the driving segment. Fashion e-tailing will grow to between $3 billion and $6 billion by 2016 from $559 million in 2013.
Heavy discount on online sales is a direct reflection of the industry’s competitive intensity.
The report said the amount of money raised by Flipkart, lately Snapdeal, and that committed by Amazon is all yet to be invested, indicating that we may not be anywhere near the end of round-the-clock discount seasons at online stores.