Local B2B boom to peak in 2005

Australian B2B e-commerce will increase in value from $US3 billion in 2000 to a massive $66 billion by 2005.

According to the IDC senior analyst Brooke Galloway, e-marketplaces are growing at a compound annual growth rate of 188 per cent and will account for 45 per cent of the overall market value by the end of the forecast period.

Access to new markets, lower operating costs and improved supply chain management will continue to be the key drivers behind B2B e-commerce growth, but Galloway warned there are still some barriers.

"There are still inhibitors to further adoption, like lack of experience and case studies; this is in addition to security concerns, integration into existing processes and applications as well as a lack of standards," she said.

As a novelty business model, Galloway said e-marketplaces will be the most interesting to watch.

In terms of revenue, she said e-marketplaces may opt for a transaction fee-based solution or the go for the membership fees option.

Galloway said industry-specific content may help an e-marketplace obtain a better position in the quest to become a market leader and additional services such as e-business consulting may provide another revenue stream.

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