Looks like all guesses at the size of the B2B sector are low!
GartnerGroup Forecasts Worldwide Business-to-Business E-Commerce to
Reach $7.29 Trillion in 2004
E-Market Makers to be Key Driver of Business-to-Business Segment
San Jose, Calif., January 26, 2000-Business-to-business (B2B) e-commerce will grow at
aggressive rates through 2004, causing fundamental changes to the way businesses do business
with each other, according to Gartner Group, Inc. (NYSE: IT). The worldwide B2B market is
forecast to grow from $145 billion in 1999 to $7.29 trillion in 2004. By 2004, B2B
e-commerce will represent 7 percent of the forecasted $105 trillion total global sales
transactions.
"The B2B explosion is imminent, fueled by a combustible mixture of investment financing, IT
spending and opportunistic euphoria that is being funneled into start-ups and brick and mortars'
e-commerce initiatives," said Leah Knight, principal analyst for GartnerGroup's e-Business
Intelligence Services. "Collectively, they will drive short-term economic disruption but
long-term business efficiency across industries and geographies."
The catalyst for B2B e-commerce is e-market maker activity. E-market makers are projected
to facilitate $2.71 trillion e-commerce sales transactions in 2004, representing 37 percent of
the overall B2B market, and 2.6 percent of forecasted worldwide sales transactions. An
e-market maker is an organization that develops a B2B, Internet-based, e-marketplace of
buyers and sellers within a particular industry, geographic region or affinity group. Among the
best-known e-market makers are Chemdex, VerticalNet, Altra Energy Technologies, Paper
Exchange, Instill, PlasticsNet and Commerce One's Marketsite.net.
GartnerGroup analysts said e-market makers will have a critical but subtle impact on
transactions that flow through brick and mortars' sell-side initiatives. These sell-side initiatives
are defined as including extranets, B2B Web storefronts, EDI and flat file transfer over the
Internet, and related e-commerce activity allowing a seller to leverage the IP network as a
channel to its buyers.
"These brick and mortar sell-side initiatives will fuel the B2B e-commerce fire significantly, as
e-market maker valuation envy and Wall Street pressures drive brick and mortars to
accelerate sell-side e-commerce adoption," Ms. Knight said. "Valuation envy has already sped
up e-commerce adoption in the chemicals and electronics components industry, where
traditional brick and mortars are under pressure to keep up with fast-moving virtual
competitors."
The worldwide B2B market is poised for explosive growth as the market is projected to reach
$403 billion in 2000 followed by $953 billion in 2001. In 2002, the market will increase to
$2.18 trillion, and at the end of 2003 worldwide B2B revenue is forecast to reach $3.95
trillion.
GartnerGroup analysis will discuss the issues revolving around e-business during the
GartnerClarity event on February 3, 2000, at the Hudson Theatre in New York City. This
one-day think tank will study e-business models, realities and road maps. Because of the
interactive nature of this executive program, attendance is limited to 200 participants.
Additional details on the event as well as registration information is available on GartnerGroup's
Web site at gartnerclarity.com , or by calling 1-877-843-6700.
GartnerGroup analysts will provide additional analysis on the e-business market during the iEC
2000 conference February 29 - March 2, 2000 at the Jacob K. Javits Convention Center in
New York. At iEC 2000, business leaders will convene to learn winning electronic commerce
business strategies and solutions. Additional information on the conference is available at
iec-expo.com. More information on GartnerGroup's Electronic Commerce
Conference at the iEC conference is available at
tsnn.com.
The impact of e-market makers and the evolving business models surrounding the multi-trillion
dollar B2B e-commerce market will be explored in an ongoing basis in GartnerGroup's
soon-to-be-released suite of B2B e-Market Makers advisory services. Customers can
currently subscribe to GartnerGroup's e-Commerce Software Worldwide program. For more
information on these services, please call 800-419-DATA or 408-468-8009.
These programs are part of a wide range of GartnerGroup services examining the e-business
industry. These programs are designed to help senior executives, strategic planners and
investors capitalize on emerging opportunities by providing research and analysis on electronic
commerce and Internet marketplaces. Additional information on these programs is available on
GartnerGroup's Web site gartner.com.
About GartnerGroup
GartnerGroup, the world's premier business technology advisor, was founded in 1979 and is
headquartered in Stamford, Connecticut. GartnerGroup provides unrivaled thought leadership
for more than 9,600 client organizations worldwide. It achieved 1999 revenue of $734 million
and has 80 locations worldwide. GartnerGroup's 3,400 associates, including 1,200 research
analysts and consultants, help clients achieve their business objectives through the intelligent
and efficient use of technology. For more information about GartnerGroup's industry-leading
research capabilities, services and events, visit us on the Web at gartner.com. |
