The research reveals that, while this year’s Internet B-to-B trade will only represent three percent of the total US B-to-B non-service market or $336 billion, the on-line volume will grow twenty-fold over the next five years, opening the doors for new business models such as net markets and coalition markets.
In a statement, the company said:
“Currently, the direct channel, a model of one seller to many buyers, dominates 92 percent of the Internet B-to-B market. However, in 2005, 35 percent of the internet B-to-B trade volume will be conducted via a net market, a model of many buyers and many sellers, or through a coalition market, comprised of a consortium of buyers or sellers. Net markets can completely disrupt current channels and alter how companies and industries conduct business. While many factors can power net market penetration in a given industry, the degree of fragmentation and price volatility remain as two critical drivers.“