Published: July 2017 | Report Code: AT11087 | Available Format: Excel
Automotive E-Tailing refers to online selling of automotive components. The global automotive E-Tailing market comprise a wide range of automotive components including infotainment-multimedia, interior accessories, powertrain, tires and wheels, electrical and electronics products. The global automotive E-Tailing market includes transactions that are conducted over an electronic network where the buyer and merchant are not physically present. The automotive E-Tailing includes both business-to-business and business-to-consumer sales. The automotive E-Tailing market caters to the requirement of passenger cars, commercial vehicles and two-wheeler. E-Tailing market requires strong promotion and branding. The companies are updating their product portfolio to meet the growing demand of customers and differentiate from their competitors. Automotive E-Tailing need a strong distribution and logistics network for timely delivery of the product. Transparency in the online transaction is also a major part of automotive E-Tailing to maintain customer loyalty and goodwill which will help the companies to increase their revenue.
The global automotive E-Tailing market is expected to witness a CAGR of 13.1% during the forecast period, to reach $59.4 billion by 2023. Passenger cars is largest markets followed by commercial vehicles due to economic development and rise in per capita income in developing countries like India, Brazil, Chile and South Africa. The customers prefer branded and genuine products for their cars and two-wheeler as these products have longer life and stability thus genuine product market is expected to grow at higher CAGR during the forecast period. Third party vendors have larger market presence on the basis of vendor type. Tires-wheel and interior accessories contribute the major share in the market segmentation on basis of components. Asia-Pacific dominate the automotive E-Tailing market in 2016 and trend is likely to dominate the market in 2023 as well, owing to increase in vehicle sales and growth in the economy and rising penetration of mobile internet users. Additionally, the European and North American markets for automotive E-Tailing are expected to witness significant growth, during the forecast period, owing to increase in manufacturing of commercial vehicles in developed countries, such as Germany, the U.K., the U.S. and Canada.
GLOBAL AUTOMOTIVE E-TAILING MARKET, BY APPLICATION, $M (2013 – 2023)
The global automotive E-Tailing market is expected to grow significantly, during 2017 – 2023, owing to increase in global GDP, rise in per capita income and rapid growth in developing countries such as China, India, and Brazil. Increase in number of startups and entry of new player in the e-commerce industry has been an emerging trend in the market. Additionally, the government is supporting the startups by providing them financial assistance and favorable trade policies. Major automotive E-Tailing players are expanding their production base through expansion and partnerships to meet the growing demand of automotive E-Tailing. For instance, in May 2017, Amazon announced plans to expand its research and development center in Cambridge, the U.K. The company is planning to increase the employee strength to 1,500 by the end of 2017. Earlier, in April 2017, Walmart planned to increase its number of stores from 21 to 50 in India over the period of three years. Additionally, Walmart will also open 10 new stores in Telangana for which Walmart India has signed a Memorandum of Understanding (MoU) with the Telangana government.
The key driver for the growth of the global automotive E-Tailing market includes increased penetration of internet and online shopping. The automotive components are easily available on the internet at discounted price. Another factor driving the global automotive E-Tailing market is increase in vehicle sales across the globe. In Asia-Pacific, India and China has emerged as the growing countries where the vehicle sales have increased rapidly in past five years and the trend is likely to continue during the forecast period. Additionally, in North America, the U.S. and Mexico have emerged as growing markets where the vehicle sales have grown at a significantly. Tire and wheels are widely sold through e-Tailing due to which it is likely to achieve the highest CAGR in the North American region during the forecast period (2017-2023). The availability of wide range of products and hassle-free transaction with timely delivery is driving the automotive E-Tailing market in the region. Large number of e-retail players are also involved in selling automate component on their portal thus driving market. Additionally, entry of global players such as Amazon, Walmart in the developing countries is driving the global automotive E-Tailing market. Supportive government policies and 100% FDI provide new opportunities for the global players to invest in developing market such India and Brazil.
The major restraints identified in the market include high rate of online payment frauds which is happening quite often these days. Delay is delivery of automotive components another drawback which restrict the end user to opt of E-Tailing. The lower internet penetration in countries such as India, and Brazil and Chile is affecting the growth of the market in Asia-Pacific which is the largest market for vehicle production and sales.
The global automotive E-Tailing market is dominated by organized players having presence across the globe. Some of the major players involved in the market include Advance Auto Parts, Inc., Alibaba Group Holding Ltd., Amazon.com, Inc., AutoZone, Inc., Delticom AG, eBay Inc., Flipkart, O'Reilly Automotive Inc., Robert Bosch and Wal-Mart Stores, Inc.
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