Business-to-Business E-Commerce Market Size, Share & Trends Analysis Report By Deployment Model (Supplier-oriented, Buyer-oriented), By Application, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global business-to-business e-commerce market size was valued at USD 5.7 trillion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 17.5% from 2020 to 2027. Due to on-going pandemic COVID-19, there is rising inclination among customers towards online shopping since brick and mortar shops are closed. Major economies, such as the U.S, China, India, and Italy, are severely affected due to the pandemic. Hence, an evident impact on the market is projected in regions such as Europe and North America. For instance, as per data provided by Emarsys and GoodData revenue earned is up by 37% and orders are up by 54% since January in the U.S.

Rising inclination of enterprises towards e-commerce platforms to mark their online presence coupled with ease of carrying out business are some factors that are anticipated to drive the market growth. Business-to-business (B2B) e-commerce helps businesses reduce costs and improve efficiency by automating labor-intensive and manual processes and offering customer self-service options. Moreover, B2B eCommerce platforms automate the trading processes and increases opportunities for businesses to collaborate with suppliers and distributors.

B2B eCommerce platforms enable buyers and sellers to place and manage orders from mobile devices as per their convenience. Moreover, B2B e-commerce includes a wide range of intercompany transactions that include wholesale trade, as well as purchases of manufactured components and parts. Thus, owing to the several benefits offered, such as reduced infrastructure and overhead cost of businesses coupled with eliminating the need for intermediaries is expected to uplift the growth prospects of the market over the forecast period.

Additionally, the rapidly changing business environment and trend of digitization are projected to positively influence the B2B e-Commerce market growth over the forecast period. One of the most significant changes resulting from the use of the internet is the way in which business is conducted. Several companies operating around the globe are adopting online platforms to carry out their business activities in order to reach a mass audience. Thus, changing business trends towards online platforms is bolstering the market growth.

However, fraudulent or unauthorized transactions are anticipated to restrain market growth. Business to business e-Commerce mostly involves online transactions and one of the major concerns faced by the industry is payment security. Also, vulnerability faced by several payment gateways in terms of security breaches/cyberattacks is anticipated to challenge market growth. Moreover, the companies operating in the market need to focus on developing efficient delivery infrastructure to avoid late deliveries or loss of packages.

Deployment Insights

In terms of revenue, the intermediary-oriented segment dominated the business-to-business e-commerce market with a share of 58.4% in 2019. The intermediary oriented model consists of platform that allows buyers and sellers to communicate and conduct business with each other. Thus, intermediary platforms earn profit through successful transactions that are done by buyers and suppliers. Some key companies carrying out their businesses through intermediary oriented platform include Alibaba.com; Amazon.com, Inc.; and eBay Inc.

Meanwhile, the supplier-oriented segment is projected to witness a considerable CAGR of over 17.0% during the forecast period.  This growth is attributed to presence of a large number of suppliers on a common online platform. Moreover, a number of supplier’s set-up an online marketplace to create an efficient channel to sell to a large number of businesses. Thus, owing to presence of multiple suppliers offering wide range of products is anticipated to drive the segment growth.

Application Insights

In terms of revenue, the home and kitchen segment dominated the market with a share of 20.9% in 2019, attributed to increasing demand of this product among end-users which has eventually resulted in growing demand for these products among suppliers/ buyers. Based on application, the market has been classified into home and kitchen application, consumer electronics, industrial and science, healthcare, clothing, beauty, and personal care, sports apparel, books and stationery, automotive, and others.

Meanwhile, consumer electronics segment is projected to witness substantial CAGR of over 16.5% during the forecast period. As B2B eCommerce platform opens several avenues for the sale of electronic products as suppliers and buyers can compare an extensive portfolio of products, avail discounts, and apply for easy returns. Similarly, the clothing segment is also anticipated to witness significant growth.

Regional Insights

Asia Pacific dominated the market with a share of 66.4% in 2019. The growth is accredited to the increasing number of business to business e-commerce companies in the region. Moreover, growth of online suppliers and buyers throughout the region is due to the spread of internet connectivity owing to the rising adoption of smartphones., According to GSMA, it is estimated that the number of smartphone devices in Asia Pacific is expected to reach 3,900 billion by 2025.

North America is expected to witness substantial CAGR of over 16.0% from 2020 to 2027. This growth is attributed to the presence of major players such as Amazon.com, Inc.; eBay Inc.; and Walmart. These companies are integrating various advanced features such as chatbots, same-day delivery, in their online platforms. Moreover, the B2B e-commerce market is expected to witness rise in demand over the forecast period, attributed to the proliferation of cloud services and successful B2C experiences that are driving demand for B2B e-commerce.

Key Companies & Market Share Insights

The market is highly fragmented owing to the presence of several small and medium sized companies operating globally. The major global players operating in the market include Amazon.com, Inc.; ChinaAseanTrade.com; DIYTrade.com.; and Flipkart.com. Companies are particularly focusing on mergers, acquisitions, and joint ventures or collaborations to hold a competitive position.

Moreover, the players are focusing on enhancing their market presence by adopting various growth strategies to help them expand their business geographically and enhance their offerings in a particular region. Additionally, companies are focused on providing an enhanced user experience as part of their growth strategy. Some prominent market players include:

• Amazon.com, Inc.

• eBay Inc.

• Flipkart.com

• IndiaMART InterMESH Ltd.

Business-to-Business E-Commerce Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2016 to 2027 in each of the sub-segments. For the purpose of this study, Grand View Research has segmented the global business-to-business e-commerce market report based on deployment type, application, and region:

• Deployment Type Outlook (Revenue, USD Billion, 2016 - 2027)

  • Supplier-oriented

  • Buyer-oriented

  • Intermediary-oriented

• Application Outlook (Revenue, USD Billion, 2016 - 2027)

  • Home & Kitchen

  • Consumer Electronics

  • Industrial & Science

  • Healthcare

  • Clothing

  • Beauty & Personal Care

  • Sports Apparels

  • Books & Stationary

  • Automotive

  • Others

• Regional Outlook (Revenue, USD Billion, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa