The global home-shopping market size was valued at US$ 3517.7 billion in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 16.92% from 2022 to 2030. With improved internet connections and an increasing number of mobile phone users, the home shopping market has grown significantly. The home shopping market is expected to grow at a rapid pace in the coming years. This is due to the increasing demand for online shopping, as well as rise in disposable income of consumers. Online shopping provides consumers with a variety of ways to shop, such as through websites, social media, and mobile applications.
Global Home-Shopping Market: Regional Insights
Among the key regions, Asia Pacific is expected to hold a significant share of the market over the forecast period. The market in this region is expected to expand at a healthy rate. The region also has the largest market share in the personal care segment. In addition, this region has the fastest growing online purchasing market. The high internet penetration and fast delivery to practically every place in China have made the country the largest e-commerce market. This market has also seen a significant growth in mobile-based home shopping.
Europe is another region that is experiencing significant growth over the forecast period. The presence of developed countries like UK and France is one of the main factors behind the expansion of online purchasing market in Europe. In addition, new digital TV broadcasts are offering over 40 channels to consumers, providing ample opportunities for local brands to enter the market. This is expected to create new opportunities for the home shopping market in Europe.
Figure 1. Global Home-Shopping Market Value Share (%), By Region, 2021
Global Home-Shopping Market Drivers:
Increasing penetration of internet is projected to drive growth of the home-shopping market. As per the International Telecommunication Union (ITU), globally, the internet user base stood at 3.5 billion in 2017, which reached 4 billion in 2019, internet penetration in India grew from 18% in 2014 to 50.52% in 2019, as per the India Brand Equity Foundation. Similarly, as of March 2020, about 64.5% of the Chinese population had used the internet, which was earlier at 38.3% in 2011, according to the China Internet Network Information Center.
Growing government initiatives to promote e-commerce sector is again projected to augment market growth. Since 2014, the Government of India announced various initiatives, namely Digital India, Make in India, Start-up India, Skill India, and Innovation Fund. The government has also planned to set up 500,000 Wi-Fi hotspots for providing broadband service to 50 million rural citizens. The government has also allocated Rs 3,073 crore for the Digital India Mission in 2018-19.
Global Home-Shopping Market Opportunities:
Increasing adoption of AI and machine learning, virtual reality, and augmented reality in home-shopping is expected to offer significant growth opportunities for key players in the region. For instance, For example, IKEA uses VR Experience to provide an in-app virtual shopping experience. Similarly, Lenskart app (India’s leading optical prescription eyewear retail chain) and website both support the '3D Try On' feature, which shows a prospective buyer how a frame looks, like on the person’s face, to facilitate purchase decisions. Similarly, Burrow, a DTC furniture brand, uses AR to help customers visualize how their couches will fit in their living rooms.
Ecommerce companies are increasingly using newer and more convenient payment options, such as, Apple Pay, Paypal, and other financing options, that allows frictionless checkout. Moreover, key players are also adopting the subscription model for maintaining customer for a long-term value.
Home-Shopping Market Report Coverage
|Base Year:||2021||Market Size in 2021:||US$ 3517.7 Bn|
|Historical Data for:||2017 to 2030||Forecast Period:||2022 to 2030|
|Forecast Period 2022 to 2030 CAGR:||16.92%||2030 Value Projection:||US$ 10840.8 Bn|
Amazon Inc., VGL Group of Companies, Quarte Retail Inc., Ebay Inc., Sears Brand LLC, Garbarino S.A.I.C.e.I., Alibaba Group, Walmart, Majid al Futtaim(Carrefour), Jewlry Television, Desertcart, and uBuy
|Restraints & Challenges:||
Global Home-Shopping Market Trends:
Pay-per-click marketing technique is a growing trend in the global market. It gives more control over search queries and audience reach. For instance, the most recent PPC industry facts and figures from social media today reveal that 72% of marketers spend more on social ad.
A video-calling service with in-store experts is gaining popularity and this trend is expected to uplift the market growth over the forecast period. For instance, in June 2020, Currys PC World launched ShopLive, a video-calling service with in-store experts to assist while shopping online. These experts serve to replicate their assistance for customers via one-way video calls. The consumers benefit by being able to combine expert advice, a virtual in-store visit, and the convenience of being able to fact check or compare prices while shopping online without having to visit the store.
Global Home-Shopping Market Restraints:
Limited infrastructure in developing countries is expected to hinder the market growth over the forecast period. Unstable power supply, inadequate human expertise and skills, poor connectivity, and limited bandwidth restrict the deployment of e- commerce.
Increasing instances of frauds in online shopping is expected to limit its adoption among consumers. Also, delay in delivery is another key factor expected to hinder the market growth.
Figure 2. Global Home-Shopping Market Value Share (%), By Type, 2021
Global Home-Shopping Market Segmentation:
The global home-shopping market report is segmented into type and geography
Based on type, the market is segmented into Teleshopping, E-Commerce and Mobile Shopping, and Other Types. Out of which, E-Commerce is expected to dominate the global market over the forecast period and this is attributed to the advent of social media platform, smart devices, hassle-free and convenient shopping experiences, and contactless payments. The e-commerce and mobile shopping segment of the global homeshopping market recorded a revenue of USD 2,687.91 billion in 2020, and it is estimated to reach USD 7,230.92 billion by 2026, registering a CAGR of 17.89% over the forecast period (2021- 2026).
Teleshopping segment is also expected to witness significant growth in the near future and this is owing to the fact that it offer easy method of purchase, order cancellation and product return services, discounts, and product tracking facilities. The teleshopping segment of the global homeshopping market recorded a revenue of USD 283.64 billion in 2020, and it is estimated to reach USD 393.52 billion by 2026, registering a CAGR of 5.60% over the forecast period (2021-2026).
Global Home-Shopping Market: Key Developments
Global Home-Shopping Market: Key Companies Insights
The global home-shopping market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global home-shopping market are Amazon Inc., VGL Group of Companies, Quarte Retail Inc., Ebay Inc., Sears Brand LLC, Garbarino S.A.I.C.e.I., Alibaba Group, Walmart, Majid al Futtaim(Carrefour), Jewlry Television, Desertcart, and uBuy
*Definition: Home-shopping is a direct-to-consumer sales modality that involves promoting goods and services on television, the Internet, or other digital platforms. There are several billion-dollar television and e-commerce companies that operate in the industry.
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