The European internet population continues to grow at a healthy rate and new research suggests that it is on target to top 200 million by the end of 2003.
The
IDC study
One Europe? Internet Usage and eCommerce in Western, Central and Eastern Europe 2002-2006 highlights the fact that increased connectivity is moving the European epicenter further to the east.
The UK has now crossed the symbolic 50% penetration mark but Germany remains the powerhouse in terms of numbers and is in a position to influence the developing online markets of Central and Eastern Europe (CEE). Poland is Germany’s main trading partner and with a population of 38 million has the potential to become one of Europe’s top seven internet nations.
According to the research, there were 184 million internet users in Europe at the end of 2002. There remains a clear disparity between the east where penetration is just 13% and the west where it averages out at 43%. However, steps are being taken to address this imbalance and DSL broadband is now available in a number of former eastern bloc countries (see DSL To Drive CEE Broadband Subscriptions).
IDC notes that the market for broadband services in Western Europe more than doubled in 2002. Prices remain high but it predicts that connections will surpass 20 million this year as internet users are lured by premium content and applications.
Businesses and organisations have pioneered internet usage across Europe and this has led to an upsurge in B2B ecommerce activity. IDC believes that total ecommerce in Western Europe will exceed $261 billion in 2006 as companies change the way they do business with cutomers, partners and suppliers.
“The initial wave of B2B ecommerce was started by visionary ‘sell-side’ organisations that explored the internet’s abilities as a sales channel. However, roles are now reversed, and purchasing organisations currently drive B2B ecommerce growth,” said Daniel O’Boyle Kelly, research director at IDC’s European Internet expertise centre.
On the downside, online buying among consumers has not reached the critical mass that might have been envisaged given the rapid growth of the internet population. The study found that by the end of 2002, approximately 29% of web users in Western Europe and 11% in CEE had made online purchases during a six month period.
