Market for E-commerce Apps Ready to Explode

The worldwide e-commerce applications market is expected to reach almost $17 billion by 2006, more than tripling last year’s figures, according to IDC.

The Framingham, Mass.-based research firm reports that the primary reasons for the growth are a demand for high-performance applications, a growing emphasis on verticalized solutions and the growing acceptance of Web services.

“Many companies that previously were dabbling in e-commerce realize that it is important for them to reinvest in new e-commerce technologies in order to make a stronger impact,” said Albert Pang, research manager for IDC’s e-Commerce Applications program. “E-commerce applications vendors will also begin concentrating on vertical markets to gain traction and achieve differentiation in the marketplace.”

IDC reports that extended e-commerce application environments will be among the most innovative uses of Web services, which will address performance problems that have hampered the growth of e-commerce.

Some vendors are beginning to expose applications components as Web services and are already experiencing acceptance of their approach, according to IDC’s recently released Worldwide e-commerce Applications Market Forecast and Analysis 2002-2006, With Vendor Market Shares report.

More and more companies are using their e-commerce sites as a way to capture and consolidate data from customers, suppliers and business partners, according to IDC. Because of this, unified commerce will be an important factor in the e-commerce applications market. Successful vendors, IDC says, will add enhancements and establish alliances with technology partners to enable their customers to create and access a unified set of data.

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