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Source: DMReview.com

The Forecast for Business-to-Business E-Commerce

While business-to-business electronic commerce accounted for just four percent of all B2B spending in 2001, online activity will rise steadily over the next five years and comprise 36 percent of all spending by 2006, reports Jupiter Media Metrix Inc., a New York-based research firm.

E-commerce will account for 7 % of B2B spending in 2002, 12 % in 2003, 20 % in 2004 and 29 % in 2005, Jupiter projects. Online spending is expected to total $793 billion this year, with a projected increase to $5.4 trillion in 2006.

Among the industries that will move the largest share of commerce online is computer and tel-com equipment. The sector, which had eight % of its B2B trading occurring online last year, will increase its penetration to 15 % in 2002, 30 % in 2003, 41 % in 2004, 52 % in 2005 and 60 % in 2006, Jupiter projects.

Other industries making major moves to B2B e-commerce are aerospace and defense, which will conduct 54 % of its trading online by 2006, up from 11 % in 2001; motor vehicles and parts, with online penetration jumping from 10 % last year to 50 % in 2006; metals and mining, going from six % in 2001 to 43 % in 2006; and chemicals, increasing from seven % in 2001 to 39 % in 2006.

 


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