E-Commerce Automotive Aftermarket Research Report: 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 Size and Demand Forecast to 2030

Market Overview

The e-commerce automotive aftermarket size stood at $78,631.4 million in 2021, and it will advance at a CAGR of 10.4% during 2021–2030, primarily due to the increasing number of DIY customers. Other major driving factors for the market are the convenience offered by online shopping channels and growing market.

In 2020, the value of the top five markets, namely the U.S., China, Germany, Japan, and the U.K., declined by 6.4%, 5.3%, 6.6%, 5.4%, and 6.7%, respectively, from 2019, due to the COVID-19 pandemic. On the other hand, the sale of automotive aftermarket parts via online channels increased in 2021 owing to the growing digitization. As people remained indoors most of the time, vehicle owners opted for online channels to book vehicle maintenance and repair services and buy aftermarket components.

Increasing Average Age of Vehicles To Drive Market Growth

With the increasing average age of vehicles, the market is expected to witness significant growth in developing regions, such as APAC and LAMEA. For instance, the average age of vehicles in China was ~5.8 years, whereas in the U.S., it was ~12.1 years, in June 2020. This rise in the average age of vehicles is mainly due to car loans, which stretch for up to 5–6 years, and better-quality vehicles, which themselves last longer. Moreover, according to the Department of Transport of the U.K., the average age of cars has risen from 6.7 years in 1994 to 8.6 years in 2020.

Developing markets, including China, India, and Brazil, are expected to witness a further rise in the average age of vehicles during the forecast period, which will drive the market growth. Aftermarket component manufacturers will compete to gain new customers with varying methods, such as an e-commerce presence and wide product portfolios.
Along with the increasing average age of vehicles, the changing preferences of consumers and rising rate of customizations in vehicles will further strengthen the market growth globally.

B2B Sales Were Higher than B2C Sales in 2021

The B2B category dominated the market in 2021 with more than 73% revenue share. This was owing to the provision of easy payment options, heavy discounts on bulk buying, and doorstep delivery of heavy parts on online channels, thus reducing logistics costs, to attract B2B consumers. In addition, the growing economies and disposable incomes have promoted people’s engagement in online automobile component buying activities. There is likewise a boom in online automobile dealings, which has elevated automobile ownership, thus driving the requirement for substitute parts and offering an impetus to the market growth in the B2C bifurcation.

Hot Revenue Pocket

• The availability of a wide range of products and hassle-free transactions with timely delivery are resulting in a shift to the online purchasing of automotive replacement parts from getting them at the traditional brick-and-mortar stores. A large number of e-retailers, such as Alibaba Group Holding Ltd., Amazon.com Inc., and Wal-Mart Stores Inc., offer automotive components, thus making the access easy for consumers.
• Vehicle compatibility requirements and the specifications of the products and services offered in the market make it trivial and complicated for regular customers to evaluate them and estimate their cost 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.
• Furthermore, e-commerce allows for extensive research and comparison on prices, features, compatibility, specifications, delivery times, offers, and other aspects, which makes it easier for DIY and do-it-for-me (DIFM) customers to compare products from multiple online sources; this is not always possible at brick-and-mortar stores. These additional advantages are driving the market.
• DIY vehicle owners and auto enthusiasts take up the task of upgrading their vehicles themselves. While mechanics and maintenance and service centers have traditionally been the core customer base for auto parts suppliers, DIY enthusiasts have lately come to account for a significant percentage of the aftermarket component sales through e-commerce platforms. The automotive aftermarket is expected to benefit from the customer base now including car owners and enthusiasts, apart from maintenance and service centers.

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With Rising Number of DIY Consumers, Direct-to-Consumer Category To Witness Faster Growth

The direct-to-consumer bifurcation is expected to witness the faster growth in the market during the forecast period, at a CAGR of 10.8%. This will be owing to the increasing number of DIY consumers and rising consumer preference to purchase aftermarket components online, directly from the manufacturer, to avail same-day, doorstep delivery, additional discounts, and other benefits.

Moreover, e-commerce platforms provide flexibility and convenient shopping experiences. This mode allows for extensive research and comparison on prices, features, delivery speed, special offers, and other aspects. All of these key elements or differentiators make it simple for DIY and DIFM customers to compare products from multiple online sources, which can become tedious at brick-and-mortar stores. Therefore, people are rapidly shifting from conventional means of shopping for replacement vehicle parts to getting them online.

APAC Generates Highest Revenue in Market

In 2021, APAC held the major revenue share, of around 38%, in the market. The market in APAC is mainly driven by the fact that the region is the largest automotive industry in the world, producing around 50 million vehicles each year. The rise in the GDP and the increase in the disposable income of the people in emerging economies, such as China, India, and South Korea, are the key factors propelling vehicle sales and, consequently, the online purchase of aftermarket components in the APAC region.

Among them, China is the leading in the market as well as the e-commerce aftermarket. Online automotive component sales here are majorly driven by the rapid increase in the demand for automobiles, owing to the rapid urbanization, and a technologically driven consumer base, which is enthusiastically adopting e-commerce services.

Some of the major players operating in the APAC market are DENSO CORP., Mando Corp., Alibaba Group Holding Ltd., Aisin Seiki Co. Inc., Hitachi Automotive Systems Ltd., and Mitsubishi Electric Corp.

Market Players Are Engaging in Mergers and Acquisitions to Gain Competitive Edge

The major companies offering replacement auto parts via online platforms are involved in mergers and acquisitions in order to stay ahead of their competitors. For instance:

• In June 2021, South Korean retailer Shinsegae Group's E-Mart Inc. announced plans to acquire an 80% stake in eBay Inc.’s South Korean business for $3.0 billion (KRW 3.4 trillion), in order to expand its presence in the e-commerce market of the country.
• In June 2021, Adevinta acquired eBay's Classifieds Group for $2.5 billion in cash, 540 million shares, and a total transaction value of around $13 billion at current stock market prices.
• In February 2021, Continental AG acquired a minority stake in German–U.S. startup Recogni, for its expertise in autonomous driving technology. The startup is working on a new chip architecture for object recognition in real time, based on artificial intelligence, which it expects to roll out in 2026.

Key Players in Global E-Commerce Automotive Aftermarket Are:

• Robert Bosch GmbH
• Meritor Inc.
• Amazon.com Inc.
• eBay Inc.
• AutoZone Inc.
• Genuine Parts Co. Inc.
• CarParts.com, Inc.
• BUYAUTOPARTS LLC
• Advance Auto Parts Inc.
• Alibaba Group Holding Ltd.

Market Size Breakdown by Segments

The e-commerce automotive aftermarket report offers comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Component

• Engine Parts
  • Pistons and piston rings
  • Engine valves and parts
  • Fuel injection systems and carburetors
  • Powertrain components and others
• Drive Transmission andSteering Parts
  • Gearboxes
  • Wheels
  • Steering systems
  • Axles
  • Clutch assembly systems
• Suspension andBraking Parts
  • Brake calipers
  • Brake pads
  • Suspension systems
• Equipment
  • Headlights and lighting components
  • Wiper 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

• B2C
• B2B

Geographical Analysis

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