India to be the fastest growing E-Commerce Market in Asia-Pacific; Market Set To Grow to $8.8 Billion by 2016
According to the latest research by Forrester, a leading global research and advisory firm, the e-commerce market in India is set to grow the fastest within the Asia-Pacific Region at a CAGR of over 57% between 2012-16. The report, titled “Asia Pacific Online Retail Forecast, 2011 To 2016,” has been issued by Forrester Research Inc. Analyst Zia Daniell Wigder, with Steven Noble, Vikram Sehgal and Lily Varon.
The recently released report looks at growth in key e-commerce markets in the Asia-Pacific region, besides identifying key trends in each of the markets and projected market size by country over the next five years.
Forrester had written its first online retail forecast for the Asia Pacific region in October 2010. As per the company, since then, e-commerce in every market in the region has charged ahead, with growth continued unabated.
As per Wigder, “India will grow quickly off a small base. India’s eCommerce market, by far the smallest of those covered in the forecast, is poised to grow by more than five-fold by 2016 as the number of online buyers and per capita online spending increase rapidly. This market is gaining more attention as global brands look to markets that are in the early stages of eCommerce adoption but offer significant long-term potential.”
As per the report, while compound annual growth rates in the mature e-commerce markets of Japan, South Korea, and Australia will run 11% to 12% over the next five years, in the rapidly growing markets of China and India, these growth rates will be 25% and 57%, respectively.
The report also highlights the rapid growth of the e-commerce market in neighbouring China, where a CAGR of over 20% will take the market to over $350 billion. According to Wigder, “When the U.S. online retail market was roughly the same size as China’s is today, it was growing at a fraction of the pace.”
Forrester Research’s projections for Asia-Pacific e-commerce sales by country (in billions, in U.S. dollars), in 2012 and 2016.
The forecast notes e-commerce’s rapid growth in India, where sales are forecast to grow 57% annually through 2016. Wigder says e-commerce sales in India will surpass $1 billion for the first time this year and reach $8.8 billion by 2016. India’s e-commerce industry is set to grow on the back of rising demand from consumers and increasing penetration of technology. The report gives credence to the fact that E-Commerce in India is here to stay.
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