The global business-to-business e-commerce market size is estimated to reach USD 20.9 trillion by 2027, expanding at a CAGR of 17.5% during the forecast period.
In the early 2020, COVID-19 has majorly affected the e-commerce industry. Behavioral pattern of the customers has changed a lot amid lock down in countries such as U.S, Germany, Italy, Spain, India, China, and Russia. Online shopping is preferred during this phase due to constraints on public gathering. Due to social distancing, millions are turning toward the internet since social interactions are moving online and business-to-business (B2B) communications are taking place digitally. According to e-commerce industry experts, this has positively impacted the industry and several companies have witnessed a tremendous increase in demand for products.
B2B portals play a pivotal role, helping SMEs and large-scale enterprises reach remote areas, and becoming a way of doing business worldwide. These portals facilitate in establishing new trading relationships between companies in addition to supporting existing relationships. Moreover, B2B e-commerce platforms enable businesses to lower down their marketing expenses, better management of the suppliers and customers, and boosts sales engagement.
Additionally, rising proliferation of smartphones and increasing internet penetration is further creating avenues for market growth. Owing to the ease of doing business and enabling companies to track their inventory, view orders and payments on mobile phones has resulted in increased adoption of B2B e-commerce platforms. Furthermore, with increasing competition, several businesses are opting for online business models to gain a competitive edge in the market.
The market is characterized by intense competition among the major players operating in the B2B e-commerce market. These players are focusing on entering mergers and acquisitions as part of their growth strategy to hold a competitive position in the market. Also, the players operating in the market are developing unprecedented changes to their online business models to provide better customer experience for the buyers and suppliers.
For instance, in March 2019, Flipkart Pvt. Ltd. launched its internal funds of USD 60 million to USD 100 million to invest from early stage to seed innovations related to the e-commerce industry. Moreover, "E-commerce into the rural comprehensive demonstration project" is helping China to carry out e-commerce application demonstrations across eight provinces in the country.
The intermediary-oriented deployment type segment held the largest market share in 2019, attributed to rising inclination of buyers and sellers toward this type of deployment model
The supplier-oriented deployment type segment is projected to witness substantial growth over the forecast period owing to presence of number of suppliers on a common platform
The consumer electronics segment accounted for a market share exceeding 18.0% in 2019 owing to rising demand of electronics product demand among end-use consumers and easy availability of products owing to online platforms
Asia Pacific held the largest revenue share exceeding 65.0% in 2019 and is anticipated to expand at a CAGR of over 18% during the forecast period, attributed owing to the growing internet penetration and trend of online business platforms
The major players are focused on providing an enhanced user experience as part of their growth strategy