The number of Internet users in the Asia-Pacific region is increasing at an unprecedented rate and is expected to surpass those in the United States by 2005, according to International Data Corp.
Internet users in the Asia-Pacific region (excluding Japan) are expected to increase from 64 million users in 2000 to over 240 million within four years. While this is more than a 30 percent compound annual growth rate, there is plenty of room for continued growth. Internet use as a percentage of the population in the region will be only 9 % by 2005, compared to 76 % for the U.S.
Worldwide Net commerce - both B2B and B2C - will hit $6.8 trillion in 2004 with some Asian-Pacific countries poised to hit hypergrowth over the next two years
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"Rapid growth coupled with a huge pool of potential users will work to ensure Asia's place at the forefront of the Internet revolution," said Douglas Jaffe, analyst with IDC Asia/Pacific's Internet Market research. "Internet users and e-commerce revenues are increasing rapidly, and the wireless Internet is poised to transform Asia into a key global growth center for m-commerce."
China, Korea and India will account for more than 72 percent of total Internet users in the Asia-Pacific region by 2005.
IDC's research also points to the PC remaining the key Web access device throughout the region. IDC expects solid PC sales growth in 2001, reflecting the continued strength of markets such as India and China. While PCs are currently dominant, smart handheld devices are also taking off in the Asia-Pacific region. The region accounts for more than 25 percent of the world's total installed base of mobile phones. Mobile subscribers will exceed 366 million in 2004, leading to a penetration rate that will far exceed that of the PC. But at present, only 2.6 percent of mobile phones are used for wireless Internet use, but IDC expects this proportion to increase to nearly 40 percent by 2005. IDC predicts Asia will become a vibrant centre for the development of the wireless economy, with m-commerce revenues forecast to exceed $36 billion by 2004.
E-commerce is expected to serve as an important engine of growth for development across the region, with revenues reaching nearly $600 billion in 2005, a compound annual growth rate of more than 101 percent from 2000, and includes growth figures for both the B2B and B2C segments.
In a separate report on B2B commerce in the region, IDC found that companies in the Asia-Pacific region will purchase more than $516 billion of direct and indirect materials through the Internet by 2005.
