The number of UK consumers shopping via the Internet is set to increase by 10 million to nearly 25 million by the end of the decade, according to research conducted by Datamonitor and released by e-payments firm PayPal.
PayPal says currently around one in five Internet purchases is "new spending" and not made at the expense of the high street and by the end of the decade £3.2bn will be spent online that would not have been spent at traditional retailers.
According to the report each shopper will spend an average £48 per transaction on Internet purchases by 2010.
Datamonitor also found that two-thirds of UK consumers will have broadband by 2010 and the increased speed and ease of 24-hour online shopping will drive the new spending.
Nearly half of respondents (43%) said price was the most important factor when making an Internet purchase - with 49% of electrical and 53% of music purchases made online due to reduced costs.
Commenting on the research, Neil Edwards, head of financial planning and analysis, PayPal UK, says: "With the safety and security of online shopping firmly established with the UK public, factors like price and convenience will drive more shoppers to make purchases that wouldn't have happened anywhere else."
Research released by the Association for Payment Clearing Services (Apacs) last month found that more than half of all UK adults made an online purchase during 2005.