EDI Market Potential Print Article

by Ray Atia, ratia@amosoft.com

Around 80,000 companies in the U.S. that have a gross income of 5 to 6 million U.S.D. using EDI systems, EDI Software, and estimates are that this is just 1% of the market potential. The e-commerce market is growing exponentially, and it expected to continue to grow during the coming years. In the year of 2008 estimate are that the market will be to be worth between $3 and $7 trillion. The EDI market potential for supply chain management software packages is $12 million a month, i.e., $144 million a year.

The reason for the enormous grove of the EDI market and the e-Commerce market as well, which are bind together to bring business to the web are:
  1. Significant Reduced in costs
  2. A vast improvement over traditional methods in order management technology.
Today, EDI usage continues to grow, with ASC X12 and EDIFACT data standards remaining the dominant standards in the B2B world. Also EDI transactions volume increase globally between 5% and 10% during the last 18 months.

EDI revenues come from two major areas - EDI software and EDI services. As long as internet businesses continue to grow, the EDI industry will grow as well and same goes for the EDI Services that comes along with them. When first eCommerce started people were starting to talk about the end of EDI, but what they didn't realize is that EDI is eCommerce! X12 and EDIFACT are just two dominated file formats in the EDI industry and there for, some file format might change but the main idea of exchanging documents over the web has just began. When you look at the web businesses growth in the past 15 years and how business is being conduct back then and today, you realize that thing form of doing business can't be bitten by any other standards and it will continue to grow, however standards might change as well as the communication methods and technology.

Companies and People got used to doing business in the cost of almost nothing over the web and until something else comes along, EDI Market Potential and EDI future are safe. If EDI standard will change from X12 to some other standards, all the EDI companies will quickly begin to support new standards since this is their main business and all they will have to do is update their EDI software packages to support new standards, but the main component stay the same and since business will always need to transfer data and documents from one place another, the question is just in what methodology they will use, the rest already been established.

In the next 5 to 10 years, forecast are that EDI business and e-Commerce business will growth enormously due to the Indian and Chinese market growth and potential. Those two markets have just started to bloom and their potential is going to double and triple (and even more) the EDI and e-Commerce business. The companies that offer the best and most affordable EDI systems and services will stay in business while others will stay behind.

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