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Innovation To Drive eBusiness Investment
2001-10-09 admin
Astronomical growth for B2B ecommerce
10 October 2001
Business-to-business (B2B) ecommerce is growing at an astronomical rate: the total worldwide value of goods and services purchased by businesses through ecommerce solutions will catapult from $282 billion in 2000 to $4.3 trillion by 2005, according to IDC.
This represents a compound annual growth rate of 73% during the forecast.
According to the analysts the key to continued growth will be the shift in business
philosophy from creativity to innovation.
"Innovation in information exchange between companies rather than basic ecommerce transactions will be much more important to long-term ebusiness success" says Richard Villars, vice president
for IDC's Internet and eCommerce Strategies.
Over the next four years, B2B purchases will be focused on products rather than services, and cultural differences will affect the adoption of B2B models in regions.
In the near term the analysts predict faster-than-expected adoption by volume
procurement managers will protect ecommerce solutions from the potential
purchasing slowdown currently affecting many businesses.
"While overall purchasing may diminish or remain flat, the percentage purchased via online solutions will continue to increase at a significant rate" .
The United States will remain the largest region for B2B ecommerce, with purchases increasing at a 2001 /2005 CAGR of 68% to $1.56 trillion.
Close behind is Western Europe, where B2B purchasing will increase at
a 2001-2005 CAGR of 91% to $1.46 trillion. Asia/Pacific is the growth leader
with a CAGR of 109% during this time.
Worldwide B2B Growth Highlights:
· 83% growth in 2001 to $516 billion
· 78% growth in 2002 to $916 billion
· 2001-2005 CAGR of 73% to $4.3 trillion in 2005
www.idc.com
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