U.A.E E-Commerce Automotive Aftermarket Research Report: By Component (Tire, Lubricant, Battery, Car Parts), Channel (Third Party Retailer, Direct-To-Consumer), Consumer (B2C, B2BB, B2SB), Service Provider (Automobile Dealerships, Franchise General Repairs, Specialty Shops, Locally Owned Repair Shops/Body Shops, Tire Shops) – Industry Analysis and Growth Forecast to 2025

U.A.E. E-Commerce Automotive Aftermarket Overview

The U.A.E. e-commerce automotive aftermarket was valued at $318.2 million in 2020, and is expected to grow at a CAGR of 14.8% during the forecast period (2020–2025). The major factors responsible for the growth of the market include increasing customer awareness and convenience, surging number of do-it-yourself (DIY) customers, increasing number of road accidents, and rising vehicle sales, in the country.

The COVID-19 pandemic has negatively impacted the U.A.E. e-commerce automotive aftermarket. Due to the temporary hindrance in supply chain coupled with reducing demand for automotive products in the country, the market has been witnessing a slowdown. Moreover, since the outbreak of the COVID-19 pandemic, automakers, suppliers, and third-party sellers have been struggling to keep in line the assembly and trading of vehicles and related components and services, owing to the restriction in movement of goods and services.

Rise in DIY Culture Supported Product Category in Generating Largest Market Revenue

Based on type, the product category dominates the U.A.E. e-commerce automotive aftermarket, in terms of revenue. The largest share of the category is attributed to the emergence of DIY culture in vehicle customization among customers and enthusiasts, taking up the vehicle upgradation tasks by themselves. Along with this, the other factors that have positive impact on the market include a large number of road accidents and rise in vehicle sales.

Surging Demand for High-Performance Vehicles Is Supporting Lubricant Category to Witness Fastest Growth

On the basis of components in the product type, the lubricant category is expected to witness the highest CAGR during the forecast period in the U.A.E. e-commerce automotive aftermarket. This can be ascribed to the rising need to improve performance of vehicles, and thus, it is necessary for owners to get the vehicles serviced at regular interval for smooth running of the vehicles. Therefore, the demand for lubricants, such as engine oils, transmission fluids, and brake fluids, is expected to rise in coming years, mainly due to the fact that these lubricants increase vehicles’ fuel efficiency, improve performance, and reduce harmful emissions.

Due to Increasing Vehicle Upgradation, Business-to-Consumer (B2C) Category Contributed Largest Share to the Market in 2020

On the basis of consumer, the B2C category in the U.A.E. e-commerce automotive aftermarket generated the largest revenue in 2020. This is attributed to the increasing trend of DIY and the rising number of tourists in the country. These have increased the demand for passenger vehicles, which has further accelerated the establishment of small businesses, leading to the growth of the market in this category.

Specialty Shops Category in Service Type to Witness Fastest Growth, Owing to Higher Scope of Price Negotiations

On the basis of service providers, the specialty shops category, in service type, is expected to witness the highest CAGR in the U.A.E. e-commerce automotive aftermarket, during the forecast period. Being specific product centers, these stores save the time of shoppers, as the customers can directly visit the stores specific to the needed products. Along with the presence of multiple brands and higher scope of price negotiations, the preference for these stores is going to rise in coming years.

Click-&-Mortar Retailing Is a Key Market Trend

While the consumer preference toward an online e-commerce automotive market platform is not conclusively clear at the moment, the current trend in the U.A.E. e-commerce automotive aftermarket is an increasing preference among customers toward the click-and-mortar retailing, implying traditional retailers with an online presence, which allows the consumers to buy online and pick up from the stores. Click-&-mortar retailing combines the e-commerce platforms with the brick & mortar stores and businesses, thereby mutually justifying the drawbacks exclusive to either. This way e-commerce platforms allow retailers to create an online presence and upload their inventory online, making it easier to reach customers.

Customer Awareness and Convenience Are Boosting the Market Growth

Increased customer awareness and better convenience act as a major driver for the U.A.E. e-commerce automotive aftermarket. Factors including availability of a wide range of products and hassle-free transaction, timely delivery as per the consumer preference, and a wide range of discounts and offers, result in shift to online parts purchasing from traditional brick & mortar stores. Large number of retailers are now started to sell automotive components online for better accessibility of the products for the consumers. Along with this, the allowance to do extensive product research, comparison, and understand specifications on online portals, makes it a more viable platform for the customers.

Rising Number of DIY Customers Is a Key Driver for the Market

Keeping up with the rising trend toward vehicle customization, the U.A.E. e-commerce automotive aftermarket is witnessing the emergence of the DIY culture, as customers and enthusiasts have started taking up the task of upgrading their vehicles by themselves. This will have significant positive impact on the market in coming years. While mechanics, maintenance, and service centers have traditionally been the core customer base, DIY enthusiasts have lately comprised a significant share of the market sales through e-commerce platforms. Thus, the automotive aftermarket is expected to be highly benefited from the same.

Large Number of Road Accidents Driving the Market Growth

According to the World Health Organization (WHO), almost two people die each day on the U.A.E. roads in accidents. The increasing number of accidents in the country is leading to the rising demand for aftermarket components, in case of normal wear & tear or road accident. Further, according to the WHO, safe vehicles play a critical role in averting crashes and reducing number of accidents. Thus, it is suggested to regularly check vehicle’s overall health and do the necessary replacements for the prevention of accidents. Oil and transmission fluids and filters, brake parts, lighting, tires, and suspension systems should be checked and replaced regularly. Further, rising awareness about car’s preventive maintenance and regular check-up to reduce the number of vehicle breakdowns and road accidents is expected to fuel growth of the U.A.E. e-commerce automotive aftermarket.

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Market Players Are Engaging in Strategic Developments to Gain Competitive Edge

In recent years, players in the U.A.E. e-commerce automotive aftermarket have been actively involved in strategic developments, such as partnerships, to stay ahead in the competition.

• In October 2020, EZDubai, a strategic business community that promotes the growth of businesses through a range of facilities and smart solutions, inked strategic partnership with Noon.com to enhance and drive Dubai’s (in the U.A.E.) global rank in e-commerce and trade. The latter will be utilizing former’s range of logistics facilities and customized business solutions to further support the growth of local and small businesses.
• In October 2020, Noon.com announced the long-term strategic partnership with Mashreq, one of the financial institutions in the U.A.E., to redefine the digital experience of the customers in the country. Under this agreement, a visa card will be launched in order to offer a complete digital solution to the country’s customers. Various offers such as free delivery and extra discounts will be provided for a time period to uplift the number of orders including auto parts from the e-commerce website.

Key Players in the U.A.E. E-Commerce Automotive Aftermarket Include:

U.A.E. E-Commerce Automotive Aftermarket Size Breakdown by Segments

The U.A.E e-commerce automotive aftermarket report offers comprehensive market segmentation analysis along with market estimation for the period 2014-2025.

Market Segmentation by Type

• Product
  • By component
    • Tire
      • Passenger car
      • Light commercial vehicle (LCV)
        • Small carrier truck
        • Utility vehicle
      • Medium & heavy commercial vehicle (MHCV)
        • Small (Pickups, Tow trucks)
        • Medium (Fire truck, Motor homes, Bus)
        • Heavy (Mobile truck, Cranes, Log carriers
      • Two-wheelers
    • Lubricant
      • Engine oil
      • Brake oil
      • Gear oil
      • Grease
    • Battery
      • Passenger car
      • LCV
      • MHCV
      • Two-wheeler
    • Car parts
      • Car care products
      • Car accessories
      • Car electronics
  • By channel
    • Third party retailer
    • Direct-to-consumer (DTC)
  • By consumer
    • Business to consumer (B2C)
    • Business to big business (B2BB)
    • Business to small business (B2SB)
• Service
  • By component
    • Tire
      • Passenger car
      • LCV
        • Small carrier truck
        • Utility vehicle
      • MHCV
        • Small (Pickups, Tow trucks)
        • Medium (Fire truck, Motor homes, Bus)
        • Heavy (Mobile truck, Cranes, Log carriers
      • Two-wheelers
    • Lubricant
      • Engine oil
      • Brake oil
      • Gear oil
      • Grease
      • Others
    • Battery
      • Passenger car
      • LCV
      • MHCV
      • Two-wheeler
    • Car parts
      • Car care products
      • Car accessories
      • Car electronics
  • By service provider
    • Automobile dealerships
    • Franchise general repairs
    • Specialty shops
    • Locally owned repair shops/body shops
    • Tire shops