The digital commerce market, which grew at a compounded annual growth rate (CAGR) of 30 per cent during December 2011-16, is estimated to reach Rs.220,330 crore by the end of 2017, a recent report said here on 21 June.

According to the Digital Commerce Report 2016, published by the Internet and Mobile Association of India (IAMAI) and IMRB Kantar, the market reached Rs.168,891 crore by the end of December 2016.

The report pointed out that the online travel industry grew strongly with 56 per cent share, with domestic air ticket and railways booking continuing to be among top contributors, while share of online non-travel improved over the previous year to reach 44 per cent. 

"Hotel booking has seen a substantial growth of 60 per cent, from Rs.5,200 crore in December 2015 to Rs.8,320 crore in December 2016," the report said.

"Domestic air tickets booking is the highest contributor in this segment and has grown 20 per cent from Rs.31,619 crore to Rs.38,160 crore in 2016." 

The online travel market, which was valued at Rs.95,198 crore in December 2016, is expected to reach close to Rs.118,598 crore by December 2017, it said.

The report highlighted that e-tailing maintained a strong performance with 59 per cent growth, with mobile phone and accessories being the top contributors. 

"The other product category that registered sharp growth is apparel, personal health care products and accessories, collectively accounting for 60 per cent of the overall spend in e-tail segment. The e-tail segment is expected to reach around Rs.94,964 crore by December 2017," it added. 

Other findings of the report included the growth of online utility services market, such as payment for DTH (direct-to-home), telephone bills and electricity bills, registered close to 20 per cent between 2015 and 2016.

"The (online utility services) market reached close to Rs.6,277 crore in terms of overall online transactions as on December 16. The segment is expected to reach Rs.7,532 crore by December 2017," the report said.

The online service market, that included online bookings done for entertainment, online grocery and online food delivery, reached close to Rs.4,170 crores in December 2016.

Online food delivery was the top contributor within this segment with a market value of Rs.2,040 crore. This growth is expected to continue in future and the market is expected to reach Rs.4,587 crores by December 2017, the report added.