Internet commerce to hit $5 trillion in by 2005

Nearly one billion people, about 15% of the world's population, will be using the Internet by 2005, driving revenues towards a staggering $5 trillion, analyst house IDC reports.

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By  Matthew Southwell Published  June 10, 2001

Nearly one billion people, about 15% of the world's population, will be using the Internet by 2005, driving revenues towards a staggering $5 trillion, analyst house IDC reports. An annual growth rate of 70% will lift Internet spending from the comparatively lowly level of $354 billion achieved in 2000.

"With the dot-com stock crash and U.S. economic doldrums so much in the news, it's easy to lose sight of the explosive growth in Internet usage and commerce taking place below the surface," said John Gantz, IDC's chief research officer. "More than 100 million new users come onto the Web every year, and corporate volume purchasing over the Web is just getting cranked up. Add to that the proliferation of mobile phones and other Internet access devices that will allow people to access the Internet anytime, anywhere, and you have a scenario for explosive growth."

According to the research, Internet usage will not be dominated by a single region as growth in Internet use in Asia/Pacific and Latin American countries will quickly outpace growth in more developed countries such as the United States, Canada, and major European nations. In fact, by 2005, it is predicted that the balance of Internet users will completely shift, with Asia/Pacific rivaling Europe for the most Internet users while the United States slips to third place.

Until then, the current dominance of the United States in terms of Internet usage is reflected by the fact that it accounts for just under half (46%) of total e-commerce. However, by 2005, its share will dip to 36% as other nations develop their own e-commerce initiatives.

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