Business-to-Business E-commerce Market Size, Share & Trends Analysis Report By Deployment Model (Intermediary-oriented, Supplier-oriented), By Application, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global Business-to-Business e-commerce market size was valued at USD 6.64 trillion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 18.7% from 2021 to 2028. The COVID-19 pandemic brought about a shift in consumer preference for online shopping, creating avenues for growth. An increase in the number of orders, consumer behavior changes, supply chain disruptions, and closure of physical stores has impacted the B2B e-commerce business outlook. While retail sales dipped in 2020, e-commerce sales witnessed a surge. Several B2B businesses are now focused on moving their customer online.

North America captured around 14% of the overall B2B e-commerce revenue in 2020. In 2020, the regional market witnessed a slight dip; however, soon recovered in the second half of the same year. North America may reach pre-Covid levels by early 2022, as business near normal. Business buyers in the region have embraced e-commerce for procurements.

A significant portion of B2B sales in North America encapsulated run-to-mill purchases involving simple transactions with customers requiring no value-added services or the purchase being a mere reorder. However, the complexity of products or services offered by B2B vendors acts as a significant barrier to the B2Be-commerce penetration. As technology proliferates, the market will witness a surge over the forecast period. Further, the ongoing pandemic has forced several businesses to move online to cater to customers worldwide. Businesses are still exploring ways viable online channels based on the industry, location, and competition.

While the coronavirus outbreak created havoc worldwide, limiting physical contact while ensuring business continuity became the top priority for businesses. Therefore, several business-to-business vendors encouraged their customers to shop online. For instance, Fastparts, a distributor of agriculture machinery parts trying to open a web store to cater the customer requirements.

Deployment Type Insights

The intermediary segment dominated the market with a revenue share exceeding 50% in 2020. Intermediaries are organizations that regulate trade between manufacturers and end customers. This deployment model enables the seller to reduce costs in hosting a website, logistics, and customer support. The intermediary model is a boon for scaling businesses and will play a pivotal role in favoring the intermediary-oriented segment growth in the Business-to-Business (B2B) e-commerce market.

The supplier-oriented B2B e-commerce model is projected to register a CAGR exceeding 15% from 2021 to 2028. Cisco Connection Online is a classic example of a supplier-oriented business-to-business model. A model such as this helps customers capture information about suppliers in an unfamiliar region or country. For instance, Dell sells over 85% of its computers to businesses through a supplier-oriented model.

Application Insights

The home and kitchen segment captured the highest revenue share of over 15% in 2020. The segment remained immune to the COVID-19 impact. The demand for small appliances and other kitchen products gained traction in 2020, as people spent more time at home. However, localized lockdowns posed a challenge to B2B vendors in terms of fulfilling the orders.

The demand for consumer electronics through online channels also witnessed an uptick during the pandemic. The segment registered a CAGR exceeding 17.0% from 2021 to 2028. Pre-pandemic plans, including travel, home renovations, took a halt with consumers focusing on purchasing durables and electronics, including laptops, smartphones, ACs. Remote working further led consumers to invest in electronics that supported the new work-from-home scenario. All these factors drove the demand for consumer electronics in the first half of 2020, a trend expected to last for the next couple of years.

Regional Insights

Asia Pacific emerged as a dominant regional market capturing over 60% of the overall B2B revenue share in 2020. An increase in the number of B2B vendors paved for e-commerce growth in the region. The pandemic has forced several businesses to move online creating opportunities for the growth of B2B e-commerce. Vendors in the region are now undertaking efforts to build technology that supports their business, marketing, and operational strategies in the long run.

Followed by Asia Pacific, North America is anticipated to register strong growth over the forecast period. The prevalence of big giants like Amazon.com Inc., eBay Inc. among others has already established strong B2B sales channels in the regions. However, the pandemic has forced several other businesses to shift to the online business model to capture as well as cater to a wider audience. Same-day-delivery, more immersive shopping experience will go a long way in creating demand for B2B vendors on online platforms. The advances in Artificial Intelligence (AI) and cloud technology will further help drive customer experience, creating avenues for growth in the e-commerce space.

Key Companies & Market Share Insights

On a worldwide level, the market is highly fragmented with a mix of small, medium, and large-sized enterprises moving their businesses online. The pandemic resulted in a massive shift, with several businesses seeking online platforms as an alternate option to meet customer requirements. Over the long term, the COVID-19 pandemic is likely to keep impacting the way organizations conduct business, and online commerce will be the go-to strategy for most B2B vendors.

A few key players operating from across different parts of the globe include Walmart; Amazon.com, Inc.; ChinaAseanTrade.com; Flipkart.com; Alibaba. Collaborations and partnerships will help local vendors cater to global markets at a faster rate. Some of the prominent players operating in the global Business-to-Business e-commerce market are:

• Amazon.com, Inc.

• eBay Inc.

• Flipkart.com

• IndiaMARTInterMESH Ltd.

• ChinaAseanTrade.com

• KOMPASS

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 2017 to 2028 in each of the sub-segments. For 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, 2017 - 2028)

  • Supplier-oriented

  • Buyer-oriented

  • Intermediary-oriented

• Application Outlook (Revenue, USD Billion, 2017 - 2028)

  • Home & Kitchen

  • Consumer Electronics

  • Industrial & Science

  • Healthcare

  • Clothing

  • Beauty & Personal Care

  • Sports Apparels

  • Books & Stationary

  • Automotive

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa