Digital commerce is going to be huge in India, to touch Rs 2 lakh crore by the end of 2016

The IAMAI-IMRB report has stated the digital commerce in India will touch Rs 2.1 lakh crore by December 2016, riding on e-commerce growth.

As per the study, the digital commerce will grow by 68 per cent from December 2015.

The digital commerce market has grown at a CAGR of 30 per cent between December 2011 and December 2015. It was valued at Rs 125,732 crore by the end of December last year, the report stated.

Online travel continued to account for 61 per cent share of the market at Rs 76,396 crore. This is further expected to grow at a CAGR of around 40 per cent to reach Rs 1,22,815 crore by end of 2016.

Online non-travel, comprising segments like e-tailing, financial service and matrimony and classifieds accounted of Rs 49,336 crore at the end of December, 2015.

The report said online hotel bookings have seen a substantial movement growing 165 per cent year-on-year to Rs 5,200 crore in December last year from Rs 1,965 crore in the year-ago period.

"The market reached close to Rs 5,231 crore in terms of transactions as of December 2015. The demand for online utility payment is expected to reach Rs 6,068 crore by December 2016," it added.

Other online services market that include booking movie tickets and tickets for other events, online commuting or cab hire, online grocery and food deliver, stood at Rs 3,823 crore in December 2015, up from Rs 2,025 crore in the previous year.

Also, demand for other online service is expected to grow at a CAGR of 36 per cent to reach Rs 5,207 crore by December 2016, the report said.

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