Supply Chains to Dominate in B2B

Jupiter: B2B online trade will rise to $6.3 trillion by 2005

NEW YORK -- October 2, 2000 -- BUSINESS WIRE  B2B commerce will experience astounding growth over the next five years, rising to $6.3 trillion in 2005 from $336 billion this year, according to a new study released by Jupiter Research.

Jupiter predicts that online supply chains will dominate the B-to-B commerce landscape and advises businesses to boldly adopt new models for buying and selling as online B-to-B commerce swells from three percent to 42 percent of total B-to-B domestic trade over the next five years.

"The online trading tidal wave is about to sweep across US business, and the companies that don't invest now will end up struggling to keep their heads above water," said John Katsaros, vice president of Jupiter Research. "We expect unified, online supply chains to become the norm, and companies that don't invest aggressively to build or participate will be unable to compete effectively."

The study, US Business-to-Business Trade Projections, examines the trading activities of 12 major industries in detail, and concludes that five of them -- aerospace and defense, chemicals, computer and telecommunications equipment, electronics, and motor vehicle and parts -- will conduct more than half their total B2B buying and selling online by 2004.

In addition, the Jupiter report found that the computer and telecommunications space will become the largest online B2B market in terms of sales topping $1 trillion in 2005; Jupiter forecasts that four other industries will top the $500 billion by 2005. These five industries and their estimated growth include the following:

    Industry 2000-2005
  • Computer/Teleco Equipment $90 - $1,028
  • Food and Beverage $35 - $863
  • Motor Vehicles and Parts $21 - $660
  • Industrial Equipment and Supplies $20 - $556
  • Construction and Real Estate $19 - $528