Description
The B2B ecommerce market is more than 1.5 times the size of the B2C market, but in contrast to the UK being the most developed B2C market in Europe, the B2B sector remains somewhat underdeveloped. It has also faced very different challenges to the consumer market, including Brexit, and was exposed to very different influences from COVID-19 before sharing the current inflation challenges, but also facing supply chain disruptions.
There are significant variations in the use of ecommerce between different industries, but virtually all sectors demonstrate the growing importance of the sales channel, and technological advances are extending the ecommerce potential reach. Some sectors, notably construction, remain relatively small to the size of the industry.
Website sales have also opened geographical opportunities to SMEs that were previously realistically unobtainable, yet it is the larger businesses and enterprises that have proportionally gained the most through ecommerce. Paradoxically, the opportunities opened by ecommerce have also favoured the micro-companies, and it is other small businesses that are seen to underperform.
Key issues covered in this Report
- How the B2B ecommerce market has performed in the unprecedented disruptions of Brexit, the COVID-19 pandemic and now supply chain disruption and high inflation.
- The market and technology drivers impacting the market.
- The segmentation of B2B ecommerce between EDI and website sales.
- The major variations in both current penetration and prospects of end-use markets.
Expert Analysis from a B2B Specialist
Macroeconomic developments have tempered the B2B eCommerce market, but there remain strong prospects for growth. The technology behind the sales channel is becoming increasingly capable and sophisticated offering new opportunities to extend market reach. While the UK is seen as one of the largest B2C eCommerce markets, there is evidence to suggest the B2B sector is currently underdeveloped despite being far larger than the B2C sector.
Terry Leggett
Principal Analyst
Table of Contents
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Overview
- Key issues covered in this Report
- Products covered in this Report
-
Executive Summary
- The five-year outlook for B2B ecommerce
- Figure 1: B2B ecommerce outlook, 2023-27
- The market
- Market background
- Figure 2: Market size of ecommerce, 2017-22 (£ billion)
- Market size and forecast
- Figure 3: Market size for B2B ecommerce, 2013-27 (£ billion)
- Market segmentation by channel
- Figure 4: Segmentation of B2B ecommerce market, by channel, 2017-22 (£ billion)
- Business sector segmentation
- Figure 5: Segmentation of B2B ecommerce sales, by business sector, 2022 (£ billion)
- Varied prospects by sector
- Companies and brands
- Hugely diverse sector
- Figure 6: Proportion of businesses making website sales, by industry sector, 2021 (%)
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- Figure 7: Proportion of businesses making website sales, by size of company, 2021 (%)
- The five-year outlook for B2B ecommerce
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Issues and Insights
- B2B ecommerce and SMEs
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- Figure 8: Comparison of the proportional importance of website sales and overall sales, by size of company, 2021 (% of total)
- Figure 9: Other small business market share, by sector of the economy, 2022
- Is B2B ecommerce under-used in the UK?
- Figure 10: International comparison of proportion of companies making B2B ecommerce purchases, 2023 (%)
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- Figure 11: Proportion of businesses making ecommerce purchases, by sector, 2021 (%)
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Market Size and Performance
- The wider ecommerce sector
- Figure 12: Market size of ecommerce, 2017-22 (£ billion)
- B2B activity
- Figure 13: Market size for B2B ecommerce, 2017-22 (£ billion)
- Figure 14: Segmentation of B2B ecommerce market, by channel, 2017-22 (£ billion)
- The wider ecommerce sector
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Market Forecast
- A growth area
- Figure 15: B2B ecommerce outlook, 2023-27
- Variation in prospects by end-use sector
-
- Figure 16: Market forecast for B2B ecommerce, 2022-27
- A growth area
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Market Segmentation
- The role of B2B
- Figure 17: Role of B2B in the ecommerce market, 2017-22 (£ billion)
- B2B channels
- Figure 18: Segmentation of B2B ecommerce market, by channel, 2017-22 (£ billion)
- Business sector segmentation
- Figure 19: Segmentation of all ecommerce sales, by business sector, 2022 (£ billion)
- Figure 20: Segmentation of B2B ecommerce sales, by business sector, 2022 (£ billion)
- The role of B2B
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Segmentation: Manufacturing
- Background
- Figure 21: Breakdown of the manufacturing sector turnover, by size of company, 2022 (£ billion)
- eCommerce trends
- Figure 22: Development of manufacturing ecommerce sales, 2017-22 (£ billion)
- Figure 23: Segmentation of ecommerce sales in the manufacturing sector, by channel, 2017-22 (£ billion)
- The B2B sector
- Figure 24: Role of B2B in the manufacturing ecommerce market, 2017-22 (£ billion)
- Background
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Segmentation: Utilities
- Background
- eCommerce trends
- Figure 25: Development of utilities ecommerce sales, 2017-22 (£ billion)
- Figure 26: Segmentation of ecommerce sales in the utilities sector, by channel, 2017-22 (£ billion)
- The B2B sector
- Figure 27: Role of B2B in the utilities ecommerce market, 2017-22 (£ billion)
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Segmentation: Construction
- Background
- Figure 28: Breakdown of the construction sector turnover, by size of company, 2022 (£ billion)
- eCommerce trends
- Figure 29: Development of construction ecommerce sales, 2017-22 (£ billion)
- Figure 30: Segmentation of ecommerce sales in the construction sector, by channel, 2017-22 (£ billion)
- The B2B sector
- Figure 31: Role of B2B in the construction ecommerce market, 2017-22 (£ billion)
- Background
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Segmentation: Wholesale
- Background
- Figure 32: Breakdown of the wholesale sector turnover, by size of company, 2022 (£ billion)
- eCommerce trends
- Figure 33: Development of wholesale ecommerce sales, 2017-22 (£ billion)
- Figure 34: Segmentation of ecommerce sales in the wholesale sector, by channel, 2017-22 (£ billion)
- The B2B sector
- Figure 35: Role of B2B in the wholesale ecommerce market, 2017-22 (£ billion)
- Background
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Segmentation: Retail
- Background
- Figure 36: Breakdown of the retail sector turnover, by size of company, 2022 (£ billion)
- eCommerce trends
- Figure 37: Development of retail ecommerce sales, 2017-22 (£ billion)
- Figure 38: Segmentation of ecommerce sales in the retail sector, by channel, 2017-22 (£ billion)
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- Figure 39: European comparisons of the role of retail website sales, (% of retail sales)
- The B2B sector
- Figure 40: Role of B2B in the retail ecommerce market, 2017-22 (£ billion)
- Background
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Segmentation: Logistics
- Background
- Figure 41: Breakdown of the transport and storage sector turnover, by size of company, 2022 (£ billion)
- eCommerce trends
- Figure 42: Development of logistics ecommerce sales, 2017-22 (£ billion)
- Figure 43: Segmentation of ecommerce sales in the logistics sector, by channel, 2017-22 (£ billion)
- The B2B sector
- Figure 44: Role of B2B in the logistics ecommerce market, 2017-22 (£ billion)
- Background
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Segmentation: Accommodation and Food Service
- Background
- Figure 45: Breakdown of the accommodation and food service sector turnover, by size of company, 2022 (£ billion)
- eCommerce trends
- Figure 46: Development of accommodation and food service ecommerce sales, 2017-22 (£ billion)
- Figure 47: Segmentation of ecommerce sales in the accommodation and food service sector, by channel, 2017-22 (£ billion)
- The B2B sector
- Figure 48: Role of B2B in the accommodation and food service ecommerce market, 2017-22 (£ billion)
- Background
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Segmentation: Information and Communications
- Background
- Figure 49: Breakdown of the information and communications sector turnover, by size of company, 2022 (£ billion)
- eCommerce trends
- Figure 50: Development of information and communications ecommerce sales, 2017-22 (£ billion)
- Figure 51: Segmentation of ecommerce sales in the information and communications sector, by channel, 2017-22 (£ billion)
- The B2B sector
- Figure 52: Role of B2B in the information and communications ecommerce market, 2017-22 (£ billion)
- Background
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Segmentation: Other Services
- Background
- eCommerce trends
- Figure 53: Development of other services ecommerce sales, 2017-22 (£ billion)
- Figure 54: Segmentation of ecommerce sales in the other services sector, by channel, 2017-22 (£ billion)
- The B2B sector
- Figure 55: Role of B2B in the other services ecommerce market, 2017-22 (£ billion)
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Market Drivers
- The economic situation
- Inflation is the key concern for consumers and brands…
- …and despite government support, energy prices are still a major concern
- Rising interest rates mean that the pressure will move up to middle- and higher-income households
- High inflation and rising interest rates will compound the impact of the slowing recovery
- Consumer spending power will be curbed
- Unemployment is at a near 50-year low
- Consumers’ financial wellbeing has fallen from the highs of 2021…
-
- Figure 56: Household financial wellbeing index, 2009-22 (index)
- …and most people are feeling the effects of price rises
- Geopolitical situation
- Global digitisation continues to grow
- Figure 57: Worldwide internet usage, by region, 2022 (millions and %)
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- Figure 58: Worldwide internet penetration, 2000-22 (% of world population)
- UK digital development
- Internet users
- Social media impact
- Digital banking development
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- Figure 59: The future of digital banking, by age, 2022-27 (% of people)
- Corporate internet reliance
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- Figure 60: Percentage of companies and charities with digital services, 2022 (% of companies and % of charities)
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Industry Structure
- A vast sector
- Industry segmentation
- Figure 61: Development of the dedicated retail sales via mail order or internet sector, 2017-22 (number of businesses)
- Figure 62: Financial structure of the dedicated retail sales via mail order or internet sector, 2022 (number of businesses)
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- Figure 63: Proportion of businesses making website sales, by industry sector, 2021 (%)
- Marketing channels
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- Figure 64: Segmentation of website sales, by channel, 2021 (£ billion)
- Size of business
- Figure 65: Proportion of businesses making website sales, by size of company, 2021 (%)
- Figure 66: Segmentation of website sales, by company size, 2021 (£ billion)
- Exports
- Figure 67: Segmentation of website exports, by company size, 2021 (£ billion)
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Appendix – Data Sources, Abbreviations and Supporting Information
- Abbreviations
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Appendix – Forecast Methodology
- Market forecast and prediction intervals
- Figure 68: Market forecast for B2B ecommerce, 2022-27 (£ billion)
- Market drivers and assumptions
- Market forecast and prediction intervals
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Further Sources and Contacts
- Trade magazines
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