World Business on the Web Growing

World Business on the Web Growing

According to IDC, the total worldwide value of goods and services purchased by businesses through ecommerce solutions will grow from $282 billion in 2000 to $4.3 trillion by 2005. This represents a compound annual growth rate of 73% during the forecast.

According to the study, 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.

He reports that the United States will remain the largest region for B2B ecommerce, with purchases increasing to $1.56 trillion by 2005. Faster growth, though, is Western Europe, increasing at an annual growth rate of 91% to $1.46 trillion. Asia/Pacific is the growth leader with a rate 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

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