The European B2B eCommerce market size was valued at USD 1,847 billion in 2021 and is projected to reach USD 11,262 billion by 2030, registering a CAGR of 22.3% during the forecast period (2022-2030).
Business-to-business e-commerce, or B2B E-commerce, is the buying and selling of products and services between companies over the Internet. It refers to exchanging products and services between companies through electronic means. Wholesalers, manufacturers, distributors, and other B2B sellers can save time and money by processing orders online. Companies offering both traditional storefronts and online marketplaces are included here.
The transitional change in B2B e-commerce purchasing behavior is crucial to propelling the market. Other reasons expected to contribute to the market's expansion over the next few years include the increasing popularity of business-to-business (B2B) e-commerce and the adoption of B2B models by major e-commerce players. On the other hand, the market's restricted visibility is seen as a potential obstacle. However, during the predicted period, the market will benefit from integrating value-added services from B2B e-commerce and B2B platforms.
Small and medium-sized enterprises (SMEs) thrive in developing countries, proving their importance to the economy. B2B e-commerce not only enables SMEs to compete on a global scale but also allows them to contact customers in outlying areas. An e-commerce network connects buyers and sellers worldwide in the business world. The online marketplace facilitates the beginning of new business relationships and strengthens established ones between sellers and buyers. As a result, many small and medium-sized enterprises (SMEs) around the globe are embracing and migrating to B2B platforms.
Compared to B2C e-commerce, the B2B sector is much more limited. Due to customers' propensity for impulse purchases and exceptional consuming patterns, business-to-consumer (B2C) e-commerce enjoys a large customer base. In contrast, business-to-business (B2B) e-commerce serves a relatively niche market. Younger generations tend to prefer business-to-business online transactions. However, many corporate purchasers need to learn what they're missing out on by not using B2B platforms. Baby boomers and members of Generation X in emerging markets are stubbornly devoted to tried-and-true commercial purchasing practices because they consider these more reliable and trustworthy. Several regions' populations are acquainted with business-to-consumer (B2C) e-commerce sites because of their prevalence, but the B2B marketplace is still largely uncharted.
Integration of order fulfillment software has helped B2B E-commerce businesses improve their awareness of order fulfillment operations, including the status of order confirmations, on-time delivery performance, and other aspects of order management, as digital technologies have become more widely used.
Even when working with numerous partners, such as logistics providers, forwarders, and express companies, modern technology allows businesses and their customers to monitor order delivery from beginning to finish. To boost client satisfaction and loyalty, B2B e-commerce firms are increasingly adopting such technologies to automate the entire supply chain.
The B2B eCommerce market is segmented based on the category of supply and end-user.
Based on the supply category, the market is segmented into Office Supplies, FMCG, IT Products, Industrial and MRO, and Janitorial and Sanitation.
The FMCG segment dominated the market and is expected to grow at a CAGR of 21.9% during the forecast period.
Based on End-User, the market is segmented into agribusiness, automotive, construction, information technology, telecom and media, transportation and logistics, retail and distribution, and others.
The retail and distribution segment dominated the market and is expected to register a CAGR of 22.9% over the forecast period.
Europe is a significant revenue contributor and is expected to grow at a CAGR of 22.3% during the forecast period. In accordance with the European Retail eCommerce Consumer Forecast and trends, European manufacturers and services have experienced consistent online sales growth. By 2025, the total value of online sales in Europe is anticipated to exceed USD 1.8 trillion. This B2B online spending increase in Europe is attributable to increased demand for packaged and bulk products, complex items, business/digital services, and replacement machine parts. This upward trend indicates "optimism" in the European business outlook for B2B revenue growth over the next few years through 2025, as B2B-focused businesses will encounter slightly better economic conditions than their B2C customers.
Most B2B cross-border e-commerce transactions occur within the borders of the European Union, accounting for 70%. In the European region, business websites are the most popular marketing instrument for acquiring new customers and guiding visitors toward a sale.
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