Manufacturing Industries Most Ready to Expand B2B E-Commerce

Strategy Briefing

About This Report

Dec 2018

Although the growth of B2B e-commerce is expected to accelerate over the coming years, not all industries are equally suitable and prepared for embracing digital selling. The manufacturers most ready to launch their digital selling activities include those in high-tech goods, machinery, pharmaceuticals, medical devices, rubber, plastics and transport equipment. However, the benefits and obstacles that respective companies will face depend on the relative power they have within the market.

Want to find out more about this report?
Request more information
Why buy this report?

Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.

Your Recently Viewed Reports

Manufacturing Industries Most Ready to Expand B2B E-Commerce

Key findings

B2B e-commerce reaches USD4 trillion

The global B2B e-commerce market amounted to around USD4 trillion in 2017, and is expected to continue growing at a rapid pace, with manufacturing industries leading growth.

The readiness to adopt B2B e-commerce depends on the current B2B and demand for investment goods, the complexity of supply chains and ICT spending

The manufacturers most ready to launch their digital selling activities include those in high-tech goods, machinery, pharmaceuticals, medical devices, rubber, plastics and transport equipment. However, the benefits and obstacles that companies are likely to face depend on their relative market power with respect to their buyers.

Small companies can generate substantial benefits from emergence in e-commerce, especially within rubber, plastics and machinery

Producers of machinery, rubber and plastics are among the most prepared to digitalise their sales channels, as they have strong investment demand, simple supply chains and the necessary IT infrastructure. Machinery producers are expected to be pushed into e-commerce due to intensifying competition with their peers, while rubber and plastics companies will be incentivised by their strong buyers.

Large companies can also benefit from emergence in e-commerce, especially within high-tech goods, medical products and transport equipment

E-commerce helps big corporations to cost-effectively address the needs of the wide range of smaller buyers (in the case of pharmaceuticals, medical devices and high-tech goods). Alternatively, it can help to strengthen the relationships among companies that have strong market power (transport equipment). 

Introduction

Scope
Key findings

Industries Most Ready to Expand B2b E-Commerce

E-commerce: the future for manufacturing
E-commerce: identifying the industries which are most ready
Determinants of readiness to expand B2B e-commerce
Measuring readiness for B2B e-commerce: 2017 indicators
Manufacturing industries most ready to start B2B e-commerce (1)
Manufacturing industries most ready to start B2B e-commerce (2)
Fragmentation determines e-commerce market dynamics
Fragmentation of suppliers most ready for e-commerce
How fragmentation determines e-commerce dynamics

E-Commerce Gains for Fragmented Suppliers

E-commerce market dynamics for fragmented sup p liers
SMEs are more likely to use established digital trading platforms
Rubber and plastics: small companies cater for big buyers
Pushed into e-commerce by the needs of strong buyers
Covestro: plastics SME capitalises on big marketplaces
Machinery: satisfying a diverse consumer base
The pluses and minuses of e-commerce for machinery
Not all SMEs can succeed in e-commerce: the case of Germany

E-Commerce Gains for Concentrated Suppliers

E-commerce market dynamics for large suppliers
Transport equipment: ensuring mutual cooperation
The embracing of e-commerce by transport equipment producers
Obstacles to going digital: the case of Hellenic Aerospace Industry
High-tech goods: the most ready to emerge in e-commerce
Pharmaceuticals and medical devices: big players with small buyers
E-commerce: the possibility of additional revenue streams
Johnson & Johnson: success in obtaining additional revenues

Conclusion

The top industries most ready for B2B e-commerce
E-commerce gains depending on market power