Global digital marketplace grows rapidly

The global internet-based digital marketplace has reached a "tipping point" and will enjoy double-digit growth rates until at least the end of this decade, industry expert IDC predicts.

"The tipping point is being driven by increased consumer sophistication, commercial maturity, and technology readiness," said IDC research manager for the IDC Digital Marketplace program, Rachel Happe.

"This will jumpstart a new wave of adoption and growth, particularly in rich media content and social networking applications."

Happe added that, with close to US$2 trillion (A$2.4 trillion) exchanged in online transactions for goods and services in 2006, businesses operating in the digital marketplace as well as in the traditional economy cannot afford to be ignorant when it comes to the economic ecosystem of the internet.

However, she went on to warn that some businesses are successfully leveraging this ecosystem to achieve phenomenal growth, while others are struggling to adapt quickly enough to maintain their current size.

IDC's report noted that the internet is creating a virtual environment rich in participation, content and revenue for all businesses, not just those operating online.