The Middle East and Africa B2B eCommerce market size was valued at USD 472 billion in 2021 and is projected to reach USD 2,293 billion by 2030, registering a CAGR of 19% 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.
Due to the region's high purchasing power and high per capita income, it is anticipated that the B2B e-commerce market in the Middle East and Africa will experience substantial growth. Additionally, constructive e-commerce regulations in Gulf Cooperation Council (GCC) nations are likely to stimulate the expansion of the B2B e-commerce market in advanced economies.
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 Middle East and Africa 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 18.7% 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 19.7% over the forecast period.
Middle East and Africa is a significant revenue contributor and is expected to grow at a CAGR of 19% during the forecast period. Dubai is one of the leading cities for successful startup businesses. Dubai Traders Online, a B2B e-commerce marketplace that operates exclusively in the UAE, is among the most prominent in the region.
Gulf Business, a Middle Eastern B2B marketplace, operates in Saudi Arabia, Bahrain, Oman, Qatar, Kuwait, and the United Arab Emirates. The website offers an extensive selection of products for Middle Eastern nations only.
In Africa, B2B e-commerce is expanding exceptionally, with many new developments. AFRIMART, the continent's first B2B e-commerce platform, was introduced in July 2018 to create new business opportunities for regional SMBs. MaxAB, an Egyptian B2B e-commerce startup founded in 2018, received USD 6.2 million in initial funding. The funds were used to develop a digital platform for managing the procurement and dispatch of grocery products to shops in North African nations. Similarly, Kenya's Sokowatch, a USD 4.5 Mn seed-funded startup that operates primarily in Uganda, Rwanda, and Tanzania, is tackling logistics head-on. The company has created a B2B e-commerce supply chain that enables retailers in Africa's informal markets to operate efficiently with large FMCG suppliers, such as Unilever, and Procter and Gamble. Consequently, the increasing number of B2B startups in Africa will contribute to expanding B2B e-commerce in the continent.
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