Percentage of business conducted online

In 2025, the percentage of business conducted online is projected to reach 29.9%. Growth in online business activity has continued as internet infrastructure and data capacity have advanced, supporting wider adoption of online services, e-commerce, and digital business platforms across the United States economy. Expanding internet capability and the ongoing proliferation of cloud computing have driven down service costs, enabling both consumers and businesses to transition more operations online. The steady rollout of new applications, particularly through mobile devices, has further facilitated online transactions and contributed to a sustained increase in this business environment driver.

From 2020 to 2025, a persistent rise in the share of business activity conducted through online channels was observed, building on structural shifts during the COVID-19 pandemic and from earlier years. The outbreak of the COVID-19 pandemic in 2020 caused an abrupt increase in online business activity as requirements for social distancing and movement restrictions limited in-person interactions, resulting in a 7.9% jump in business conducted online in 2020. Although growth in the percentage of online business activity slowed in 2021 as the economy began to reopen, the effects of the pandemic, such as adoption of hybrid and flexible work arrangements and the widespread adoption of online shopping, have anchored higher levels of online commerce. Ongoing shifts in consumer preferences, the growing importance of digital advertising, and the decline of traditional media have further reinforced this trend. E-commerce platforms and digital service providers continued to gain greater market share as businesses aimed to capture broader revenue opportunities and respond to consumers' increasing demand for digital solutions. The importance of mobile devices has also increased, with mobile applications enabling more seamless purchases and boosting the role of online sales compared with pre-2019 levels.

Broader macroeconomic factors, such as the affordability of internet access, have underpinned the trend. The role of digital transformation as a cost-reduction measure continued to incentivize companies to invest in online channels. Expansion of internet reach into new demographic groups and regions has also contributed modestly to growing the share of business activity conducted online. Overall, the percentage of business conducted online grew at an annualized rate of 4.3% between 2020 and 2025 and is estimated at 29.9% by the end of the current period.