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E-Commerce in Automotive Aftermarket Research Report: By Component (Engine Parts, Drive Transmission and Steering Parts, Suspension and Braking Parts, Equipment, Electrical Parts, Miscellaneous), Channel (Third Party Retailer, Direct to Consumer), Consumer (B2C, B2B) - Global Industry Analysis and Growth Forecast to 2030

  • Published: July 2020
  • Report Code: AT12049
  • Available Format: PDF
  • Pages: 214

E-Commerce in Automotive Aftermarket Overview

The global e-commerce in automotive aftermarket size was $38.2 billion in 2019. Moreover, the market is expected to advance with a CAGR of 23.3% during the forecast period (2020–2030). The growth of the market is majorly propelled by the increasing customer awareness about the various auto parts and their technical specifications and convenience, rising number of do-it-yourself (DIY) customers, and overall growth of the automotive aftermarket, coupled with the increasing number of vehicles in operation (VIO), rise in the average age of vehicles, and surge in the number of road accidents.

However, the growth of the e-commerce in automotive aftermarket is expected to slow down to a certain extent in 2020, as a result of the ongoing COVID-19 pandemic across the world. The epidemic led most of the COVID-19-affected countries to lock down their operations around March 2020, in order to ensure social distancing and limit the transmission of the disease. This has resulted in a restriction on the movement of non-essential items, disruption in the supply chain, as well as a visible decline in the export/import of automobile parts. This, in turn, has led to a decline in the demand in the automotive industry, including for automotive aftermarket products. However, the impact of the pandemic is expected to affect the market temporarily and be neutralized in the coming years, by a greater demand for automotive aftermarket products registered by online platforms.

E-Commerce in Automotive Aftermarket

Segmentation Analysis

Engine Parts Were Largest Component Category in Market

During the historical period (2014–2019), the engine parts category accounted for the largest share in the e-commerce in automotive aftermarket, when segmented on the basis of component. Furthermore, the category is expected to remain dominant during the forecast period, due to the continuous rise in VIO and vehicle age, which is significantly driving the aftermarket demand for engine parts.

The engine parts category is further sub-categorized, on the basis of component, into piston and piston rings, engine valves and parts, fuel injection systems and carburetors, and powertrain components and others. Among these, the powertrain components and others category accounted for the majority share in the e-commerce in automotive aftermarket for engine parts during the historical period. The growth of the category is due to the rising demand for retrofitting and recycling of used powertrain parts, such as transmissions and parts, drivetrain components, and other engine parts.

Direct-to-Consumer To Be Faster-Growing Channel Category during Forecast Period

During the forecast period, the direct-to-consumer bifurcation is projected to exhibit faster growth in the e-commerce in automotive aftermarket, on the basis of channel. The growth of the category is expected to be driven by the increasing DIY consumers, along with the shifting consumer preference to purchasing aftermarket components online, directly, pertaining to the added benefits received by consumers, such as same-day and doorstep delivery and additional discounts.

Business-to-Consumer (B2C) Category To Exhibit Faster Growth in Market during Forecast Period

The B2C bifurcation is projected to witness faster growth in the e-commerce in automotive aftermarket during the forecast period, when segmented in terms of consumer. The growth of the category is ascribed to the changing consumer purchasing behavior, from brick-&-mortar retail outlets to online shopping, and increasing technical knowledge regarding automobile parts selection, coupled with the availability of important information about the different components on online platforms.

Geographical Outlook

Asia-Pacific (APAC) – Largest and Fastest-Growing Regional Market in Industry

Globally, APAC was the largest e-commerce in automotive aftermarket during the historical period. Moreover, during the forecast period, the region is expected to remain the dominant market, advancing with the highest growth rate. APAC comprises the largest automotive industry in the world, which is involved in the production of around 50 million vehicles each year. The prosperous automotive industry in the region makes it an attractive aftermarket for vehicle parts and components.

Japan, China, India, and South Korea are among the most important automotive aftermarkets in the region. Out of them, China is the leading automotive aftermarket as well as the e-commerce in automotive aftermarket. The market in the region is majorly driven by the rapid increase in the sales of automobiles, owing to the increasing urbanization in these countries, along with a lustrous, technologically driven consumer base, which is enthusiastically adopting e-commerce services.

E-Commerce in Automotive Aftermarket

Trends & Drivers 

Click-&-Mortar Retailing Is a Major Trend in Market

The current trend in the e-commerce in automotive aftermarket is the increasing preference among customers toward click-&-mortar retailing, practiced by traditional retailers with an online presence, which allows customers to buy online and pick up at the store. Click-&-mortar retailing integrates e-commerce platforms with brick-&-mortar stores and businesses, thus mutually mitigating the drawbacks exclusive to either. E-commerce platforms allow retailers to establish an online presence and upload their inventory and product listings online, thereby making it easier for them to reach customers. This also makes the purchasing experience smooth and convenient for customers, since they do not have to physically look for certain products, traveling from store to store. They can simply look the product up online and reach the store just to buy it. This retail model integrates the comfort offered by e-commerce, while eliminating the waiting period and delivery times.

E-Commerce in Automotive Aftermarket

Growing Customer Awareness and Convenience

The improving customer awareness, along with better convenience, acts as a major driver for the e-commerce in automotive aftermarket. Factors such as the availability of a wide range of products and hassle-free transactions, with timely delivery as per the consumer preference, are resulting in the shift in the purchase of automobile parts to online platforms from traditional brick-&-mortar stores. A large number of e-retail players, such as Alibaba Group Holding Ltd., Amazon.com Inc., and Wal-Mart Stores Inc., are involved in selling automotive components on their portal, thus offering easy access to consumers. Moreover, vehicle compatibility requirements and specifications of the products and services available in the automotive aftermarket, make it quite complicated for regular customers to evaluate the product and estimate the cost of the services, against the value they would be deriving out of them.

Hence, to avoid purchasing overpriced products, customers are opting for e-commerce automotive aftermarket platforms, because of the freedom allowed to them to navigate through the product offerings, without getting affected by the sales tactics one needs to be wary of during an offline purchase, thereby bridging the trust deficit between the retailer and the customer.

E-Commerce in Automotive Aftermarket Report Coverage
Report Attribute Details
Historical Years 2014-2019
Forecast Years 2020-2030
Base Year (2019) Market Size $38.2 billion
Forecast Period (2020-2030) CAGR 23.3%
Report Coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Impact of COVID-19 on the Market, Company Share Analysis, Companies’ Strategical Developments, Product Benchmarking, Company Profiling
Market Size by Segments Component, Channel, Consumer, Geography
Market Size of Geographies U.S., Canada, Germany, France, Italy, U.K., Spain, Japan, China, India, South Korea, Brazil, Mexico, U.A.E.
Secondary Sources and References (Partial List) Automotive Aftermarket Suppliers Association (AASA), Automotive Component Manufacturers Association (ACMA), Automotive Industries Association of Canada (AIA Canada), Automotive Parts Manufacturer's Association (APMA), China Association of Automobile Manufacturers (CAAM), Fédération des Industries des Equipements pour Véhicules (FIEV), Japan Auto Parts Industries Association (JAPIA) Note: Above listed references and organizations are partial; the detailed and complete list is available in the final report

 

Increasing Number of DIY Customers

The growing number of DIY customers is also proving instrumental in the e-commerce in automotive aftermarket advance. With an increasing trend of vehicle customization, the automotive aftermarket is witnessing the emergence of a DIY culture, as customers and enthusiasts are taking up the task of upgrading their vehicles by themselves. While mechanics and maintenance and service centers have traditionally been the core customer base, DIY enthusiasts have lately accounted for a significant percentage of aftermarket sales through e-commerce platforms. The market is expected to benefit from such customer base now, including car owners and enthusiasts, apart from maintenance and servicing centers.

Growth of Automotive Aftermarket

The growth of the overall automotive aftermarket across the globe is having a direct impact on the advance of the e-commerce in automotive aftermarket. The development of the automotive aftermarket is driven by a number of factors, such as the increasing number of VIO, coupled with the rapid urbanization and growing per capita income. For instance, in 2015, the total number of vehicles in use was 1.28 billion, globally, which increased to 1.57 billion by the end of 2018. Furthermore, the increasing average age of vehicles is also expected to drive the market growth, significantly, in developing regions including APAC and Latin America, Middle East, & Africa (LAMEA).

The automotive aftermarket growth is also impacted by the increasing number of road accidents across the world. As stated by the World Health Organization (WHO), about 1.3 million accidents happen on roads every year, across the globe. In many developing countries, the accidents rate is extremely high, mainly due to poor road conditions, thus creating a high demand for aftermarket components, in case of normal wear & tear or road accidents. Thus, all such factors collectively contribute to the growth of the automotive aftermarket, which, in turn, is expected to drive the online sales of aftermarket components.

Market Players Entering into Partnerships and Collaborations to Gain Competitive Edge

The global e-commerce in automotive aftermarket is fragmented in nature, with the presence of market players such as DENSO CORP., Robert Bosch GmbH, Delphi Technologies PLC, and Valeo SA.

In recent years, players in the industry have entered into numerous partnerships and collaborations, in order to stay ahead of their competitors. For instance:

  • In March 2020, U.S. Auto Parts Network Inc. (CarParts.com), an e-commerce automotive parts supplier specializing in collision, repair, and maintenance parts, entered into a partnership with Front Row Motorsports (FRM), for the 2020 NASCAR Cup Series. As an outcome of the partnership, U.S. Auto Parts Network Inc. will be the primary partner of veteran driver Michael McDowell, in the NASCAR Cup Series.
  • In November 2019, Advance Auto Parts Inc. entered into a multi-year partnership with NASCAR, beginning with the 2020 season. Furthermore, Advance Auto Parts Inc. will be featured as the primary sponsor on the No. 12 Ford Mustang driven by Ryan Blaney, for four races, in the NASCAR Cup Series.
  • In July 2019, DENSO CORP. entered into a joint venture with Smiths Manufacturing (Pty) Ltd., a subsidiary of Metair Investments Ltd., under the name DENSO Sales South Africa (Pty) Ltd. The joint venture was formed with the intention to sell automotive aftermarket products and services in Southern Africa. This joint venture is 51% owned by DENSO CORP. and 49% owned by Smiths Manufacturing (Pty) Ltd. DENSO Sales South Africa is selling repair parts and accessories and offering services such as repairs, for passenger cars and commercial vehicles, in South Africa and neighboring countries.

Some of the Key Players in the E-Commerce in Automotive Aftermarket Include:

  • DENSO CORP.
  • Robert Bosch GmbH
  • Delphi Technologies PLC
  • Valeo SA
  • ZF Friedrichshafen AG
  • Continental AG
  • HELLA GmbH & Co. KGaA
  • Meritor Inc.
  • Amazon.com Inc.
  • eBay Inc.
  • U.S. Auto Parts Network Inc.
  • Alibaba Group Holding Ltd.
  • Advance Auto Parts Inc.
  • BuyAutoParts.com
  • Genuine Parts Co.

E-Commerce in Automotive Aftermarket Size Breakdown by Segment

The research offers market size of the global e-commerce in automotive aftermarket for the period 2014–2030.

Based on Component

  • Engine Parts
    • Pistons and piston rings
    • Engine valves and parts
    • Fuel injection systems and carburetors
    • Powertrain components
  • Drive Transmission and Steering Parts
    • Gearboxes
    • Wheels
    • Steering systems
    • Axles
    • Clutch assembly systems
  • Suspension and Braking Parts
    • Brake calipers
    • Brake pads
    • Suspension systems
  • Equipment
    • Headlights and headlights components
    • Wipers and washer systems
    • Dashboard instruments
  • Electrical Parts
    • Starter motors
    • Spark plugs
    • Electric ignition systems
    • Batteries
  • Miscellaneous

Based on Channel

  • Third Party Retailer
  • Direct to Consumer

Based on Consumer

  • Business to Consumer (B2C)
  • Business to Business (B2B)

Geographical Analysis

  • North America E-Commerce in Automotive Aftermarket
    • U.S.
    • Canada
  • Europe E-Commerce in Automotive Aftermarket
    • Germany
    •  U.K.
    •  France
    •  Italy
    •  Spain
  • Asia-Pacific (APAC) E-Commerce in Automotive Aftermarket
    • China
    •  Japan
    •  South Korea
    •  India
  • Latin America, Middle East, and Africa (LAMEA) E-Commerce in Automotive Aftermarket
    • Brazil
    • Mexico
    •  U.A.E
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