B2B e-Commerce to Pass $4 Trillion by 2005: IDC
Global business-to-business (B2B) e-commerce is growing rapidly, but maintaining such growth will require a shift in business philosophy, according to a recent report from IDC.
IDC projects that the total worldwide value of goods and services purchased through B2B e-commerce solutions will grow a staggering 73 percent per year through 2005, from $282 billion in 2000 to $4.3 trillion by 2005.
However, in order to maintain this long-term growth, businesses must focus on innovation in information exchange rather than e-commerce transactions, according to Richard Villars, vice president
for IDC's Internet and eCommerce strategies.
E-commerce solutions providers will be less affected by the purchasing slowdown than other software providers in the near term because of their accelerated adoption rate, IDC predicts.
The United states will remain the largest region for B2B
e-commerce, with purchases increasing at 68 percent annually through 2005 to $1.56
trillion, IDC said. Close behind is Western Europe, where B2B purchasing will increase at
a 2001-2005 growth rate of 91 percent to $1.46 trillion. The Asia/Pacific region is the growth leader, growing 109 percent during this time, according to the report.