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EDI Market Size

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by Ray Atia,

Today, EDI market size continues to grow, while 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.

Currently, 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 size 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 grow of the EDI market and 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.

Profit from EDI comes from two major areas
  1. EDI Software
  2. 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.
Today under the X12 standard there are multiple sub-standards which are supported by different industries and each time it grows.
Supported standards today are:
  • UCS - Uniform Communication Standard
  • VICS - Voluntary Interindustry Commerce Standards
  • HIPAA - Health Insurance Portability and Accountability Act
  • EDI Software packages revenues will grow at a 5 percent rate during the period as:
    1. Organizations boost deployment of SME solutions.
    2. Medium size companies implement EDI operations with their suppliers.
    3. Health Care Insurance Portability and Accountability Act (HIPAA)-grant EDI usage grows in the health-care industry.
    4. Larger companies keep their investments in their EDI operations.
  • EDI Services and support revenue will grow at a 2 percent rate during the period as:
    1. Transaction volumes increase as more SMEs and midsize hubs move to the internet
    2. HIPAA- authorize EDI usage adds to the total transaction volume
    3. EDI outsourcing services continue to grow
    4. Decrease in VAN revenues are partially offset by increase in Internet-based communications
    5. revenues

When first eCommerce started experts were starting to talk about the end of EDI, but what they didn't think about was that EDI is eCommerce!
X12 and EDIFACT are just two main 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 began.
When you look at the web businesses growth in the past 15 years and how business is being conducted back then and now, you understand 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.
In the future we will have more and more EDI Business and the EDI Transactions volume will continue to rise while the demand for EDI Services and EDI Solutions will continue to grow parallel to the market demand.

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