Revenues in the worldwide Internet commerce application market are increasing at a blazing pace. In 1998, they soared 154% to $444 million. In 1999, they will jump another 280% and near $1.7 billion. This data comes from a new report from International Data Corporation (IDC), Internet Commerce Software Applications Market Review and Forecast, 1998-2003.
"A big factor behind the steep growth in the worldwide Internet commerce application market is the increased availability of these products over the past year," said Albert Pang, research manager with IDC`s eCommerce Software research program. "At the inception of e-commerce, sites had to rely on their own development teams just to build a simple shopping cart or add fraud prevention and export control features to their transaction engines. Now they can buy products to add these functions."
Netscape, with 9.5% of the market, owns the largest share of Internet commerce application revenues. "Netscape has done it better, faster, and earlier than anybody else in the market and is likely to remain one of the leading vendors in the coming year," Pang said. In 1998, Netscape was able to offer its customers an assortment of Internet commerce applications to help them incorporate such features as Internet shopping catalogs, electronic procurement, and bill presentment into their Web sites.
During the next one to two years, IDC believes the United States will present vendors with the largest opportunity as many companies scramble to develop an e-commerce site. However, within a year or so, international sales will start to pick up as more multinational firms start offering their products and services online to global audiences. According to IDC, Europe is a market to watch. "As companies try to improve their efficiency and competitiveness within the European Union, they will be more likely to start using Internet software to participate in e-commerce," Pang said.
IDC splits the Internet applications software market into three segments: Internet commerce sales and marketing applications, Internet commerce procurement and order management applications, and Internet commerce customer service and support applications. IDC expects the procurement and order management applications segment to consistently provide the biggest opportunities for vendors. By 2003, this segment will account for $8.5 billion of the market`s overall $13.1 billion.
IDC`s Internet Commerce Software Applications Market Review and Forecast, 1998-2003 (IDC #B18593) report presents five-year forecasts by market segment and region. The report examines key trends and discusses leading vendors and their major customer wins. The report is based on surveys of more than 90 vendors. To order a copy of the report, contact Cheryl Toffel at 1-800-343-4952, ext. 4389 or at ctoffel@idc.com.
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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.
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