The Large and Rapidly Growing U.S. On-Demand Economy
The research firm BIA/Kelsey estimates that in 2016 local U.S. on-demand economy generated $34 billion in revenue.
They are forecasting this will grow to $57 billion in 2017.
BIA/Kelsey is an analyst firm focusing on the local advertising and marketing marketplace. Because of this, they have a relatively narrow definition of the on-demand economy.
They only include consumer transactions that could be sold by on-demand marketplaces and services to U.S. households.
In terms of the potential on-demand consumer market, BIA/Kelsey estimates the 2017 U.S addressable market will reach $758 billion. This means they believe on-demand companies targeting consumers and households will serve about 7% of their potential market in 2017.
Needless to say, this means there are enormous growth opportunities for the firms in this sector.
It’s important to note that these numbers do not include the market for on-demand services targeted at businesses. This sector is likely at least the same size as consumer/household market, and likely bigger.
This means the total U.S. addressable market for on-demand economy companies is likely greater than $1.6 trillion dollars. This is about 10% of the entire U.S. economy.
On-demand is fundamentally changing how business is done and these numbers reflect this.
The picture is courtesy of Small Biz Technology, a site we follow closely to keep up what’s happening with, not surprisingly, small business technology.