Internet commerce is on the rise an explosive rise. According to IDC, nearly 1 billion people, about 15% of the world`s population, will be using the Internet by 2005. Their use will fuel more than $5 trillion in Internet commerce, a staggering 70% compound annual growth rate (CAGR) from Internet spending of $354 billion in 2000.
"With the dot-com stock crash and US economic doldrums so much in the news, it`s easy to lose sight of the explosive growth in Internet usage and commerce taking place below the surface," said John Gantz, IDC`s Chief Research Officer. "More than 100 million new users come onto the Web every year, and corporate volume purchasing over the Web is just getting cranked up. Add to that the proliferation of mobile phones and other Internet access devices that will allow people to access the Internet anytime, anywhere, and you have a scenario for explosive growth."
According to IDC, Internet use will be widespread, not dominated by a single region. In 2000, the US accounted for 34% of Internet users, with Europe at 29%, Asia/Pacific (excluding Japan) at 16%, Japan at 10%, and the rest of world (ROW) at 11%. However, growth in Internet use in Asia/Pacific and ROW especially in Latin American countries will quickly outpace growth in more developed countries such as the US, Canada and major European nations. By 2005, the balance of Internet users will completely shift, with Asia/Pacific rivalling Europe for the most Internet users while the United States slips to third place.
Today, the United States accounts for just under half (46%) of total e-commerce. By 2005, however, its share will dip to 36%. "The US share in 2005 is actually more in line with its position in the offline economy, representing the shift in e-commerce from an emerging market to a more mainstream industry," said Carol Glasheen, vice president of IDC`s Global Market Models and Demand-Side Research program. Growth in e-commerce in all regions will be healthy, but Asia/Pacific and Western Europe will grow the fastest between 2000 and 2005.
IDC`s recently published report The Global Market Forecast for Internet Usage and Commerce: Based on Internet Commerce Market Model, Version 7.1 (IDC #B24538) analyses the e-commerce industry. Forecasts are provided for the number of users accessing the Internet, the number of buyers, and the amount of e-commerce that will be conducted through 2005. These forecasts cover the following regions: the United States, Western Europe, Asia/Pacific, Japan, and ROW. Usage forecasts are also segmented by large or medium-sized business, small business, and home, government, education and mobile users.
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International Data Corporation (IDC)
BMI-T has established a long-standing business relationship with the International Data Corporation (IDC). With research centres in over 40 countries and more than 500 research analysts and 3 900 clients worldwide, IDC provides a global market perspective on IT market and technology trends. As the exclusive South African partner of IDC, BMI-T has instant access to IDC`s formidable knowledge base and consulting skills, and is positioned to offer African clients access to the full range of IDC `s global research.
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BMI-TechKnowledge Group (BMI-T)
BMI-TechKnowledge (BMI-T) is Africa `s leading supplier of market intelligence and knowledge-based consulting in the areas of IT, telecommunications and broadcasting.
Formed over fourteen years ago, BMI-T provides its clients with an unmatched and comprehensive range of unbiased market knowledge. BMI-T conducts more than 20 000 market research business-to-business and business-to-consumer interviews and more than 100 focus group projects every year.
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