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B2B E-Commerce Market Predicted to Hit $1.5 Trillion by 2004

A new industry report says that the B2B e-commerce market in the United States will grow to approximately $1.5 trillion by 2004 from a base of $39 billion in 1998.

The report from investment banking firm Goldman, Sachs & Co. is entitled "B2B: 2B Or Not 2B?"

While the business-to-consumer (B2C) market has been growing rapidly and received much attention, business-to-business commerce over the Internet is poised for equally explosive growth, the report says.

The report, written by a team of analysts led by Rakesh Sood, identifies and discusses the new businesses that will be spawned as a result of the mainstream penetration of the Internet.

New business opportunities will likely emerge in two distinct sectors: e-commerce infrastructure and actual conduct of B2B commerce over the Internet.

Results of survey upon which the report is based (The Goldman Sachs B2B Survey 1.0) suggest that IT managers and financial officers are increasingly becoming vocal proponents of B2B implementation.

And small businesses will be an important driver of the B2B market, the report says. As more small businesses access the Internet and set up corporate Web pages, they will increasingly employ the Internet to execute their business strategy.

Leading B2B industries include Computer Hardware and Software; Aerospace/Defense; Electronics; Chemicals; Motor Vehicles and Parts; and Medical Equipment and Transport.