Business-to-Business E-commerce Market Size, Share & Trends Analysis Report By Deployment Type (Intermediary-oriented, Supplier-oriented), By Application, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global business-to-business e-commerce market size was valued at USD 6,883.47 billion in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 19.7% from 2022 to 2030.The COVID-19 pandemic has brought about a shift in consumer preference for online shopping, creating avenues for market growth. The closure of physical stores, coupled with an increase in the number of online orders, has also positively impacted the B2B business outlook.

B2B marketplaces offer various benefits, such as digital capabilities, scalability, accuracy in analytics, and a customer-centric approach. Moreover, technological proliferation, such as the application of artificial intelligence and cloud technology, has enabled the B2B e-commerce market to offer an improved customer experience. The internet has emerged as a powerful tool for connecting sellers and buyers more efficiently. Internet capabilities have a profound impact on an organization’s value chain.

The COVID-19 pandemic has accelerated the demand for e-commerce during a period of slow economic activity. In the first half of 2020, the pandemic impacted several businesses across the globe. With stay-at-home restrictions, numerous consumers and businesses went digital to buy and sell goods and services online. Moreover, the proliferation of cloud services and web applications has boosted the demand for B2B e-commerce businesses. Manufacturers, wholesalers, and distributors have been undergoing digital transformation gradually over the years to create a sustainable future for their respective businesses. In December 2020, Amazon.com, Inc. announced that Nationwide Mutual Insurance Company, a British mutual financial institution, has expanded its partnership with AWS by selecting it as its cloud provider for the company-wide digital transformation.

Flexible payment options favor business owners. The changing B2B buyer behavior and a strong emphasis on streamlining purchasing processes are prompting B2B e-commerce companies. This, in turn, offers payment methods, such as third-party payments and mobile wallets, as part of their efforts to make B2B transactions more convenient. For instance, in December 2021, Newegg Commerce, Inc. partnered with Affirm, Inc., a payment network, to provide flexible payment options such as pay-over-time to customers shopping from Newegg.com. Paying with Affirm incurs no hidden costs or late fees and allows customers to split the purchase into simple payments over time. Affirm, Inc. provides its customers with transparency, flexibility, and control at checkout.

Businesses are expected to find account-based transfers more appealing during the forecast period, owing to their improved speed and security. Further, improvements in real-time payment technologies are likely to foster their adoption, creating a favorable environment for online business transactions. Several companies are making significant investments in automated payables and real-time payment technologies, which is expected to contribute to the segment growth during the forecast period. Factors such as favorable regulations supporting consumer protection and cross-border trade regulations are expected to boost e-commerce sales. Various government bodies worldwide are also amending and strengthening data security and privacy protection laws as part of their efforts to build consumers’ trust in B2B e-commerce platforms.

However, concerns around payment security and data privacy, coupled with the need for ongoing investments, such as technological upgrades, cap-ex investments, software licenses, implementation costs, infrastructure costs, and server provisioning costs, are expected to pose a challenge for the market growth. B2B e-commerce enhances supply chain efficiency by providing real-time data for components, such as product availability, inventory, shipment status, and production requirements. Moreover, it helps to improve communication within the supply chain, allowing OEMs to organize inventory deliveries, logistics, and other activities to ensure improved efficiency and reliability.

Deployment Type Insights

Based on deployment type, the market can be segmented into supplier-oriented, buyer-oriented, and intermediary-oriented models. The intermediary-oriented segment dominated the market in 2021, recording a revenue share of over 50.0%. This model regulates trade among manufacturers and consumers. Moreover, it frees up businesses, particularly MSMEs, from the high cost of website development, logistics, and customer support, making it a popular choice.

The supplier-oriented business-to-business e-commerce model is also expected to witness an uptake, registering a CAGR of over 15.0% from 2021 to 2030. This model is a preferred choice among local businesses seeking to venture into unfamiliar regions or countries. Dell Inc. is a classic example of a company that implements the supplier-oriented deployment model.

Application Insights

Based on applications, the market has been segmented into home & kitchen, consumer electronics, industrial & science, healthcare, clothing, beauty & personal care, sports apparel, books & stationary, and automotive. The home & kitchen segment was valued at a market size of USD 1,511.13 billion in 2021, accounting for the largest share of the overall B2B e-commerce market in the same year. The impact of COVID-19 and the rising popularity of online shopping have contributed to the segment growth. 

The consumer electronics segment also witnessed significant growth in 2021. This growth can be attributed to the increasing demand for consumer electronics, particularly smartphones and laptops, along with other wearables during the COVID-19 pandemic. The segment is expected to register a CAGR of over 18.0% from 2022 to 2030. The increasing trend of remote work has encouraged consumers to invest in electronic products. Moreover, the increasing use of Augmented Reality (AR) technology to enable customers to visualize products in real-time is enabling businesses to enhance their online shopping experience.

Regional Insights

Asia Pacific accounted for over 65.0% of the revenue share in 2021 and is expected to grow steadily compared to other regions during the forecast period. Vendors in this region are focused on developing services in alignment with the latest technologies that support their business, marketing, and operational strategies in the long run. Meanwhile, North America is expected to record a healthy growth rate, which can be attributed to the presence of giants such as Amazon.com, Inc. and eBay Inc. in the region. Governments in North America have laid down security laws to protect their customers’ personal and transaction information.

In addition, state and federal data security and privacy protection laws require e-commerce businesses to state their privacy policies clearly before collecting personal information from their customers. These factors help businesses to offer enhanced shopping experiences to online consumers, in turn driving the market growth. Moreover, the continued rollout of various B2B web applications is also contributing to the growth of the North American B2B e-commerce market. B2B web applications are vital for several aspects of B2B e-commerce, including tracking leads and monitoring sales activities. However, increasing concerns over data security and privacy protection, owing to rising incidents of cyberattacks, is likely to hamper the growth of the regional market.

Key Companies & Market Share Insights

The key players that led the global B2B e-commerce market in 2021 include Amazon.com, Inc.; ChinaAseanTrade.com; DIYTrade.com; eBay Inc.; eworldtrade.com; Flexfire LEDs; Flipkart.com; IndiaMART InterMESH Ltd.; KOMPASS; and Quill Lincolnshire, Inc. Inorganic growth strategies such as geographical expansion, partnerships, mergers & acquisitions are undertaken by the key players to compete in the market. For instance, in December 2021, Newegg Commerce, Inc. partnered with Affirm, Inc., a payment network, to provide flexible payment options such as pay-over-time to customers shopping from Newegg.com. Paying with Affirm incurs no hidden or late fees and allows customers to split the purchase into simple payments over time. Affirm, Inc. provides transparency, flexibility, and control at checkout to their customers.

The global business-to-business e-commerce market is fragmented, with several large, small, and medium-sized vendors. The COVID-19 pandemic has propelled many organizations in the B2B business to seek online platforms as an alternate option to meet their customers’ requirements. This trend is expected to continue in the near future. Local companies are focusing on new product developments and strategic collaborations with leading technology vendors to extend the capabilities of their existing solutions. Some of prominent players in the global business-to-business e-commerce market include

• Amazon.com, Inc.

• ChinaAseanTrade.com

• DIYTrade.com

• eBay Inc.

• eworldtrade.com

• Flexfire LEDs

• Flipkart.com

• IndiaMART InterMESH Ltd.

• KOMPASS

• Quill Lincolnshire, Inc.

 Business-to-Business E-commerce Market Report Scope

Segments Covered in the Report 

The report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the business-to-business e-commerce market report on the basis of deployment type, application, and region.

• Deployment Type Outlook (Revenue, USD Billion, 2018–2030)

  • Supplier-oriented

  • Buyer-oriented

  • Intermediary-oriented

• Application Outlook (Revenue, USD Billion, 2018–2030)

  • Home & Kitchen

  • Consumer Electronics

  • Industrial & Science

  • Healthcare

  • Clothing

  • Beauty & Personal Care

  • Sports Apparel

  • Books & Stationery

  • Automotive

  • Others

• Region Outlook (Revenue, USD Billion, 2018–2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Rest of Europe

  • Asia Pacific

    • China

    • India

    • Japan

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Rest of Latin America

    • Middle East & Africa (MEA)