IDC Research Finds Worldwide B2B Purchasing Will Increase 83% in 2001
FRAMINGHAM, MA – OCTOBER 10, 2001 – Business-to-business (B2B) ecommerce is growing at an astronomical rate. According to IDC, 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. This represents a staggering compound annual growth rate (CAGR) of 73% during the forecast.
According to IDC, 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," said Richard Villars, vice president for IDC's Internet and eCommerce Strategies. Over the next four years, B2B purchases will be focussed on products rather than services, and cultural differences will affect the adoption of B2B models in regions.
In the near term, IDC predicts 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," Villars said.
According to IDC, 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
IDC's study The Evolving eBusiness Web: B2B Market Model Forecast and Analysis, 2001-2005 (IDC #25461) analyzes the impact of the shift from creativity to innovation on the world of B2B ecommerce. It details the major global trends that are influencing the evolution of B2B business models and forecasts how these trends will affect businesses' purchasing behaviors. To purchase this report, contact Demetra Georgakopoulos at 508-935-4496 or at email@example.com.
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at www.idc.com.
IDC is a division of IDG, the world's leading IT media, research and exposition company.
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