GartnerGroup Says Business-to-Business
E-Commerce Transactions Becoming More Global |
| GartnerGroup Forecasts Regional B2B Outlook through 2004 |
San Jose, Calif., February 16, 2000 — Worldwide business-to-business (B2B) electronic commerce was dominated by the North America region in 1999, but by 2004 the market will become a much more global marketplace, according to Gartner Group, Inc. (NYSE: IT). In 1999, worldwide B2B e-commerce reached $145 billion, and the North America region accounted for 63 percent of the market with revenue reaching $91 billion. In 2004, worldwide B2B e-commerce is projected to surpass $7.29 trillion; the North America region will account for 39 percent of the market with revenue of more than $2.84 trillion.
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"Brick and mortar B2B commerce is increasingly international by nature, and the e-enablement of business will perpetuate this trend," said Leah Knight, principal analyst for GartnerGroup's e-Business Services worldwide. "The largest e-commerce players today are all U.S.-based companies, but most generate a significant percentage of revenue internationally."
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The strongest regional growth in the B2B market can be found in Europe. B2B revenue in Europe in 1999 totaled $31.8 billion. In 2004, the European B2B market will be more than $2.34 trillion.
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"Already we're seeing some of the largest of the European companies such as BMW, Philips, KLM, Swissair, British Telecom and Deutsche Telekom aggressively adopting B2B e-commerce," said Petra Gartzen, principal analyst for GartnerGroup's e-Business Services Europe. "Now that this has the approval of the big companies, there's no stopping the tidal wave. This is one area where Europe has to catch up with the United States market rapidly, and all the signs would indicate that this will happen within the next four years."
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Because of the recession the Asia/Pacific region experienced recently, this region has been slower to adapting B2B marketplaces, although the region is moving to this business practice rapidly. In 1999, Asia/Pacific B2B revenue totaled $9.2 billion, and by 2004 the region will have B2B e-commerce revenue of $992 billion.
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"This process will see the development of powerful new e-markets and e-market makers that will fundamentally change the way organizations in the region conduct business locally and with the rest of the global economy," said Lane Leskela, principal analyst for GartnerGroup's e-Business Services Asia/Pacific. "In 2000, e-market makers in Asia/Pacific will be targeted for direct investment from commercial banks and venture capital funds expanding their e-business portfolios from the narrow focus on dot-com start-ups seen in the region to date."
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Japan was the No. 3 region for B2B e-commerce in 1999, with revenue of $11.1 billion, but the region is forecast to be surpassed by the Asia/Pacific region by 2002. The B2B e-commerce market in Japan will reach $861 billion in 2004.
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As the Internet penetrates into the Latin America region, this area will accelerate the implementation of B2B e-commerce. In 1999, the Latin America B2B market reached $1 billion, and in 2004 the market will total $124 billion.
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"Primarily, some large firms are already benefiting from their early B2B setups in Latin America. In the next two years, we expect full deployment of B2B e-commerce by the remaining large firms," said Luis Anavitarte, director of Latin America research for GartnerGroup's Dataquest. "In addition, medium- and small-size enterprises are understanding the value of B2B e-commerce, and they are starting to create B2B platforms as well."
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GartnerGroup analysts will provide additional analysis on the e-business market during the iEC 2000 conference, February 29-March 2, 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 http://www.iec-expo.com. More information on GartnerGroup's Electronic Commerce Conference at the iEC conference is available at http://www.tsnn.com/iecexpo/programlist_01.html.
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The impact of e-market makers and the evolving business models surrounding the multitrillion 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.
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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 at http://www.gartner.com/public/static/home/ggebiz.html.
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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 www.gartner.com.
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