Business-to-business electronic commerce in the Asia-Pacific region (excluding Japan) will more than double each year to reach a transaction value of $US995.8 billion in 2004, according to a new study.
The Asia-Pacific will make up 13.6 per cent of the global total of $US7.3 trillion in business-to-business e-commerce sales transactions forecast for that year, market researcher GartnerGroup said in a statement issued last week. The 155 per cent average annual growth, from a level of $9.2 billion in 1999, will cause fundamental changes to the way companies in the region conduct business with the world, GartnerGroup said.
As in North America and Europe, the rapid growth in the region is being fuelled by waves of Internet-centric investment and IT spending focused on operating cost reduction, according to the statement.
Many of the region's B2B e-commerce marketplaces have emerged in response to market retrenchment in the manufacturing and trade sectors during Asia's 1997-98 recession.
A primary driver for B2B e-commerce will be "e-market makers" - organisations that develop Internet-based business-to-business e-marketplaces composed of buyers and sellers within a particular industry, geographic region or affinity group, according to GartnerGroup.
In the Asia-Pacific, e-market makers are projected to account for $581 billion in non-financial electronic sales transactions in 2004, representing 29 per cent of the overall value of the market in the region.