Explosive growth of the Internet will thrust Internet purchases sky high. In recent market research, International Data Corporation reports the amount of commerce conducted over the World Wide Web will top a staggering $1 trillion by 2003.
“Because of the increase in the number of people who make purchases over the Web, the growth of the average transaction size, and the adoption of the Web as a viable vehicle for business procurement, Internet commerce will grow substantially,” said Carol Glasheen, director of primary research and market models at IDC.
According to IDC, the number of users who make purchases over the Web will jump from 31 million in 1998 to more than 183 million in 2003. Furthermore, there is ample opportunity to expand the 183 million as it will represent only 36% of all Web users.
Although the number of Web users is increasing in many foreign countries, Internet commerce is currently U.S.-centric. In 1998, 56% of Web users resided outside the United States; however, non-U.S. Internet commerce accounted for only 26% of worldwide spending. By 2003, IDC estimates 65% of Web users will be international, and the United States will account for less than half of worldwide Internet commerce.
“There are several reasons for the U.S. focus today,” Glasheen said. “For example, home PC penetration and the percentage of business PCs that access the Internet are much lower outside the United States. Additionally, the smaller number of users and slightly smaller transaction sizes outside the country generate smaller amounts of commerce. But this is changing as Europe and other regions quickly accept the Web.”
IDC’s report, The Global Market Forecast for Internet Usage and Commerce (IDC #B19262), sizes the market for Internet commerce, including the number of users and devices accessing the Web, the value of commerce transactions per user, and the number of pages on the Web from 1995 to 2003. The forecast is segmented by region (the United States, Canada, Western Europe, Asia/Pacific, Japan, and the rest of world) and user segment.
The market sizings and forecasts included in the report come from IDC’s Internet Commerce Market Modela, which is based on more than 40,000 primary research interviews annually in 31 countries and on IDC’s supply-side forecasts for PCs, network computers, modems, and other technologies. This model offers a unique perspective on the Internet and provides a detailed understanding of Web demographics and behaviors.
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International Data Corporation is the information technology industry’s most comprehensive resource on worldwide IT markets, trends, products, vendors, and geographies. IDC provides data, analysis, and advisory services to the world’s leading IT suppliers as well as IS professionals in finance,
insurance, entertainment, advertising, consumer goods, and publishing. IDC’s research and opinions are based on the results of more than 300,000 end-user surveys, in-depth competitive analysis, broad technology coverage, and strategic analysis. IDC is committed to providing global research with local content through its 500 analysts in more than 40 countries worldwide. Additional information on IDC can be found on its Web site at http://www.idc.com.