UK B2B e-commerce forecast to quadruple as AI and e-invoicing reshape trade

The UK’s business-to-business e-commerce market is on track for rapid expansion over the next decade, according to IMARC Group, which estimates the sector was worth $304.86 billion in 2025 and could rise to $1,214.32 billion by 2034. That implies a compound annual growth rate of 16.60% between 2026 and 2034, a pace the research firm links to digital transformation, changing procurement habits, mobile shopping, artificial intelligence and new payment technologies.

The report s...

uggests the market is being reshaped by a broader shift in how companies buy from one another. Procurement teams are increasingly moving online to simplify purchasing, improve visibility across supply chains and cut administrative costs. As cloud-based systems become more embedded in corporate operations, buyers are demanding faster access to catalogues, clearer stock information and more self-service tools that allow them to place, approve and track orders without relying heavily on traditional sales channels.

AI is becoming one of the defining features of that change. IMARC says businesses are using it for personalised recommendations, inventory forecasting, automated customer support and pricing decisions. Consumer behaviour points in the same direction: The Independent recently reported that 35% of UK shoppers had used artificial intelligence to help with buying decisions, up 39% from the year before, while 35% of retailers said they planned to invest in AI for sales and marketing. Although that survey focused on consumers rather than procurement professionals, it underlines how quickly AI-assisted purchasing is becoming normalised across commerce more broadly.

Mobile-first buying is also gaining ground. The report says procurement staff increasingly expect the same convenience in professional purchasing that they experience in consumer apps, including remote access to product data, order histories, delivery tracking and automated reordering. That shift has been helped by the roll-out of 5G, which supports faster page loading and smoother digital transactions, particularly for businesses using mobile devices to manage routine purchasing.

Payment flexibility is emerging as another competitive battleground. IMARC highlights the growing role of invoice financing, trade credit and digital wallets, and says a survey of 500 UK and European B2B purchasers found that 82% considered payment terms important or highly significant when selecting a supplier. Mastercard’s September 2026 launch of an AI-powered analytics tool for supplier payments shows how financial institutions are also trying to digitise this part of the market, using accounts-payable data to identify suppliers more likely to accept commercial cards and to improve working-capital management.

Public policy is reinforcing the direction of travel. The Department for Science, Innovation and Technology says the Digital Growth Grant awarded £11,694,000 to support UK technology start-ups and scale-ups, with a particular focus on businesses outside London. While that programme does not in itself prove a direct boost to B2B e-commerce, it reflects a wider effort by government to strengthen the country’s digital economy and support firms building the infrastructure around online trade.

The most consequential policy development, however, is the government’s roadmap for mandatory electronic invoicing. Under the plan, VAT-registered organisations will generally need to issue and receive e-invoices from 1 April 2029, using Peppol as the core interoperability standard. Structured invoice exchange is expected to make business transactions more efficient, and it is likely to encourage further investment in integrated procurement, accounting and order-management systems. For B2B platforms, that could mean e-invoicing becomes not just a compliance issue but a catalyst for deeper digital integration across the supply chain.

Competition in the sector is already intense. IMARC identifies Amazon Business, Alibaba.com, Screwfix, RS Group and eBay among the key players vying for share, with differentiation increasingly based on technology, logistics, product range and payment features. The firm says supplier-oriented platforms currently account for 39% of the market, while home and kitchen is the largest application area at 18%. London leads the regional breakdown with a 20% share, supported by its concentration of corporate headquarters, technology companies, venture capital and advanced delivery networks.

Regulatory developments may further shape the competitive landscape. The Competition and Markets Authority in October 2026 proposed designating Microsoft with strategic market status in its business software ecosystem and opened consultation on the idea. The investigation is not a final ruling, but it signals official scrutiny of the software platforms many companies rely on for purchasing, supplier management and commercial operations. That matters for B2B e-commerce because the market increasingly depends on software ecosystems that connect ordering, payment, inventory and compliance.

At the same time, the government has confirmed that from October 2027 it will extend online marketplace VAT collection responsibilities to certain sales made by UK businesses through digital platforms. The measure does not apply to business-to-business transactions, but it reflects the growing importance of tax compliance, seller verification and transaction management in digital marketplaces more generally.

Taken together, the report and the surrounding policy changes point to a market moving well beyond simple online ordering. B2B e-commerce in the UK is becoming a more integrated system of procurement, finance, logistics and compliance, with AI, mobile access and structured data exchange increasingly central to how businesses trade.

Source: Noah Wire Services