The consumer segment of the electronic commerce market will increase to $26 billion by 2002, more than 14 times last year’s figure, according to a report released by eMarketer, an online business
information site.
The report states the business-to-business segment is projected to increase to $268 billion in the year 2002, from $5.6 billion in 1997 and $16 billion in 1998. That increase will be spurred by improved technology, security, user-friendly Web sites and increased worldwide penetration of PCs and modems.
The study, entitled “The 1998 eCommerce Report,” takes an in-depth look at both business and consumer segments, including dollar-size estimates, projected rates of growth, e-commerce economics, fast-growing industries, as well as the companies that are paving the way.
“Our goal with this report is to provide an up-to-the-minute snapshot of e-
commerce that is both finely defined and broad in scope,” said Sam Alfstad,
publisher of eMarketer. “What this year’s report tells us is that the e-
commerce segment of industry is healthy and
optimistic about the future, and committed to forging alliances based on
mutually beneficial needs and objectives.”
The report clearly indicates that the online world continues to be dominated
by large corporations. These Fortune 500 companies possess the monetary and
strategic resources to invest in non-revenue bearing net commerce systems, and
have well-known brand
names, global reach, and established supplier-vendor distribution networks.
As in the offline world, the top 10% of e-businesses account for more than 90% of sales over the Web, the study said. And 97% of large corporations are
connected to the net, compared to 21% of their small business counterparts.
While 33% of large corporations are conducting sales over the Internet, only
4% of small business firms are doing so.
The top four industry categories for e-commerce in the year 2000 will be
financial/insurance services, travel, and entertainment/sports and groceries, the report predicts.
eMarketer is a resource for online marketing information, statistics, and news. The service aggregates, analyzes and filters online business information, turning it into business intelligence.
For copies of the report, contact: Geoffrey Ramsey, gramsey@emarketer.com