Microsoft tops 2024 B2B Brand Valuations, NVIDIA is world’s fastest-growing B2B brand

• Top 100 most valuable B2B brands value increases 10%, a quarter trillion dollars growth in total value YoY
• ‘The biggest brand you’ve never heard of’ – China’s State Grid overtakes Amazon to become the world’s second most valuable B2B brand
• Brand Finance unveils the results of the latest B2B ranking at LinkedIn’s B2Believe event

Microsoft remains the world’s most valuable B2B brand, achieving a substantial 60% increase in B2B brand value to USD220.4 billion, according to the latest report by Brand Finance, the world’s leading brand valuation consultancy. The B2B brand value of Microsoft accounts for the majority of Microsoft’s total brand value of USD340.4 billion, which includes both B2B and B2C components.

’’The evolution of branding has led to a symbiotic relationship between B2B and B2C brand and sectors, where the actions of one significantly impact the other. Understanding this interplay is crucial for brands to navigate and succeed in today’s complex marketplace" David Haigh, CEO of Brand Finance

Year on year, the top 100 B2B brands increased 10%, a total value growth of a quarter trillion dollars.

NVIDIA emerges as the world’s fastest-growing B2B brand, achieving a remarkable 163% growth in B2B brand value to USD44.5 billion. Microsoft and NVIDIA’s growth is largely attributable to their strong footholds in artificial intelligence (AI). Microsoft’s brand is fuelled by its association with OpenAI, driving expansion in customer base and revenue streams through Azure, Microsoft 365, and LinkedIn. Meanwhile, NVIDIA’s brand value surge is propelled by innovations in AI-driven technologies like their class-leading AI platform for enterprises which have become the dominant platform in that market.

China’s State Grid has risen to become the world’s second most valuable B2B brand – overtaking Amazon - reflecting its strong financial performance and reinforced brand presence. Valued at USD 71.1 billion, State Grid’s brand value has grown 21% from last year. As a crucial player in the Chinese economy and integral to global initiatives like the Belt & Road, State Grid remains a hidden giant in the B2B space amongst Western market observers, often overlooked despite its massive influence.

Brand Finance runs drivers analysis to determine the role of sustainability in B2B customer consideration across sectors. Among B2B brands, the most pronounced driver score is for IT Services (14.1%) – other B2B sectors with pronounced roles were Oil & Gas and Logistics (8.6% each), Chemicals, Energy, and Mining (8.3%), Commercial Services (8.2%), Insurance (7.7%), and Banking (6.8%).

’’Brand Finance and IAA partners in developing groundbreaking research that moves the marketing industry forward, including the first-ever Sustainability Perceptions Index and the Global Most Valuable B2B Brands Index. The case for B2B brand as well as investment in holistic corporate sustainability strategies have been strengthened immeasurably by these indices.’’ Dagmara Szulce, Executive Director of the International Advertising Association (IAA) Global

Jim Habig, Vice President of Marketing, LinkedIn Marketing Solutions, is presenting Brand Finance’s report at the B2Believe Event in New York City. Habig said: “As stewards of the world’s largest professional network, we at LinkedIn understand the indispensable role of data in B2B marketing. The research and insights Brand Finance shares in their 2024 B2B Brands Report are an asset for B2B marketers who want to make meaningful connections and gain a competitive edge.”

The 2024 B2B report is provided in partnership with IAA and Stein IAS, a leading B2B agency.

’’The growing confidence among B2Bs in investing to drive brand strength is evident in this year’s quarter-of-a-trillion-dollar growth in brand value. Data of the depth and rigor in this report supports all B2B marketers in building the business case for brand as a value creator.’’ Craig Duxbury, Global President of Stein IAS

Note

Every year, leading brand valuation consultancy Brand Finance puts 6,000 of the biggest brands to the test and publishes over 100 reports, ranking brands across all sectors and countries. The world’s top 150 most valuable and strongest B2B are included in the Brand Finance B2B 2024 report.

Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors.

The full ranking, additional insights, charts, more information about the methodology and definitions of key terms are available in the Brand Finance B2B 2024 report.

Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, Brand Finance evaluates the strength of brands and quantifies their financial value to help organizations of all kinds make strategic decisions.

Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.

Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on over 5,000 brands, surveying more than 150,000 respondents across 38 countries and 31 industry sectors. Combining perceptual data from the Global Brand Equity Monitor with data from its valuation database enables Brand Finance to arm brand leaders with the data and analytics they need to enhance brand and business value.

Brand Finance is a regulated accountancy firm, leading the standardization of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.

Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.

Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.

Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.

Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.

The steps in this process are as follows:

1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.

2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.

3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.

4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.

5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.

6 Apply the royalty rate to the forecast revenues to derive brand revenues.

7 Discount post-tax brand revenues to a net present value which equals the brand value.

Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.

The data presented in this study form part of Brand Finance’s proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.