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B2B E-commerce Market Size Worth USD 18,771.4 Billion by 2027 | CAGR 14.1%

As per the research study conducted by Astute Analytica, the Global B2B E-commerce Market is growing at a CAGR of 14.1% during the forecast period of 2021-2027. The market bags an opportunity of US$ 11,242.5 Bn during the study period and is forecast to reach US$ 18,771.4 Bn by the end of the year 2027.

Transactions of sale of goods between businesses through any of the online platform is called B2B E-commerce. A B2B transaction involve manufacturers, wholesalers, or retailers but it does not involve transactions to consumers. 

B2B sellers are keenly focusing on offering personalized services, tailored specifically to the needs of individuals. B2B merchants rely on third-party and their performance to drive things forward. Third-party delivery usually uses different software to provide fast shipping services. Third-party delivery companies are constantly focusing on boosting their operations to provide better consumer experiences. For instance, recently, Ryder System and Gatik signed a multiyear agreement to develop new business models and technologies to advance their delivery logistics.

Some of the market dynamics influencing the growth of the global B2B e-commerce market are:

  • Drivers andRestraints: Increased emphasis on digital sales channels helped the B2B industry to draw out increased sales and provided ease to buyers as well. With rapid technological advancement, personalised and specialized B2B marketplace is growing rapidly. It is creating a high-level impact on the overall profits of the industry. COVID-19 is changing the way B2B buyers and sellers interact. Border restrictions have resulted in temporary suspension of movement of transport of goods, which has put unprecedented haul on shipping and hampered business trade. The actual flow of goods and the mobility of products affects the entire supply chain, leading to operational inefficiency, reduced sales, and loss of brand image.
  • Opportunities and Trends: There is a growth opportunity of US$ 11,242.5 Bn in the B2B E-commerce market during 2021-2027. Augmented Reality (AR) and Virtual Reality (VR) are gaining a keen attention in the world right now. Moreover, there are some untapped opportunities for B2B E-Commerce in AR & VR. Many B2B buyers are unwilling to trade-off online buying practices for traditional ones. There are increased opportunities for businesses to ramp up sales and provide better customer experience. Adoption and ease by new payment modes will attract new buyers and increase transactions between B2B buyers and sellers, resulting as high impact in business profits.

Regional Analysis

Global B2B E-commerce Market is estimated at US$ 7528.9 Bn in the year 2020 with key dominance from the Asia Pacific B2B e-commerce industry, accounting for more than 60% of the total B2B e-commerce sales. The region is also evaluated to record the highest CAGR across all regions during the forecast period. The e-commerce boom in the region was aided by an increase in the number of B2B sellers. However, North America is expected to rise rapidly over the projection period with a CAGR of 9.8% during the period 2021-2027. This is due to the presence of large corporations such as eBay Inc., Amazon.com Inc. and others has built strong B2B sales channels in the regions. China is leading the B2B E-commerce Market with the highest CAGR of 16.7% compared to all other countries in the APAC region. Whereas, Germany is at the bottom of the list with the lowest CAGR of 8.6% only in Europe.

COVID-19 Impact on the B2B E-commerce Trade

Due to COVID-19 pandemic traditional sales channels such as distribution branches faced a long closure and hauls at different locations across the globe. The supply chain was completely disrupted due of suspension of production and transportation. The global prices of raw materials and intermediate supplies have risen.

In the recent years, the importance of digital channels for B2B companies has grown significantly and experienced a sharp increase since the beginning of the COVID-19 crisis. While some industries have faced difficult times, others have seen huge opportunities stemming from new use cases driven by the pandemic. In the year 2020, E-commerce experienced unprecedented growth. Various B2B activities are becoming increasingly dependent on digital solutions. E-commerce has rapidly became the preferred mode for the survival of retail businesses. Small-scale companies migrated to online operations to remain relevant and profitable. Considering the current scenario, analysts at Astute Analytica believes that the negative effect of COVID-19 was observed on businesses which failed to adopt E-commerce platforms. Hence, the B2B industry witnessed a sudden surge in overall size during 2020. 

Competitors in the market

With the emergence of e-commerce platforms, the market providers are progressing towards increased adoption of e-commerce channels. With market share of four major players of the market close 57.40%, the market is considered to be oligopoly in nature and is projected to hold the similar nature for the long-term. This is due to major market players expected to hold their dominant market position in the future. For instance, Alibaba holds the highest market share of 30.1% in 2020 and is expected to hold its dominant position by 2027, globally. It has been anticipated  that the company is aggressively focusing on expansion strategies in the recent times. For instance, in Oct 2021, Alibaba expanded its logistic network in Hong Kong to increase its consumer reach and support around 1.8 million additional customers. Moreover, in November 2021, Alibaba launched the "Global Digital Trade Accelerator for MSMEs in Developing Countries" to help Micro, Small and Medium Businesses in utilizing eCommerce platform opportunities.

Some of the key players in the market are:

  • Amazon
  • eBay Inc.
  • Flipkart
  • e-worldtrade
  • Global Source
  • IndiaMart
  • Thomasnet
  • ChinaAseanTrade
  • DIYTrade
  • EC21
  • InterMESH Ltd.
  • KellySearch
  • Other prominent players

Market Segmentation Overview

The Global B2B E-commerce Market is segmented on the basis of Type, Payment Mode, Enterprise Size and Region. Under the enterprise size segment, Small & Medium Enterprises hold about 80% share of the market in 2020. Majority of SMEs are adopting B2B e-commerce to shape up their businesses and efficiently controlling company's tasks and activities along with local and global trading partners and suppliers. However, the large enterprise segment is growing rapidly at a CAGR of 16.6% owing to the fact that B2B E-commerce offers business predictability to big enterprises that in turn help them in strategizing their expansion. The hospitality segment under different types is a noteworthy segment with a CAGR of 15.2% due to continuous increase in demand for the hospitality products. Also, hotel B2B sales are becoming increasingly computerized and promotes sale programs like ‘book with flexibility’ that further increases the growth opportunities in this segment.

By Type

  • Cleaning supplies
  • Hospitality Products
  • Industrial & MRO
  • IT Products
  • Office supplies
  • Pantry Products
  • Others

By Payment Mode

  • Credit card
  • Net banking
  • Mobile wallet apps
  • Others

By Enterprise Size

  • Small & Medium Enterprises
  • Large Enterprises

By Region 

  • North America
    • The U.S.
    • Canada
    • Mexico
  • Europe
    • The UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
    • Poland
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia & New Zealand
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa (MEA)
    • UAE
    • Saudi Arabia
    • South Africa
    • Rest of MEA
  • South America
    • Argentina
    • Brazil
    • Rest of South America

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