Published: March 2021 | Report Code: AT12163 | Available Format: PDF | Pages: 110
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.
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.
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.
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.
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.
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.
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.
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.
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.
|Base Year (2020) Market Size||$318.2 Million|
|Forecast Period (2020-2025) CAGR||14.8%|
|Report Coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Competitive Analysis, Companies’ Strategic Developments, Impact of COVID-19, Company Profiling|
|Market Size by Segments||By Product (by component, by type, by channel, by consumer) and By Service (by service provider and by component)|
|Market Size of Geographies||U.A.E.|
|Secondary Sources and References (Partial List)||Abu Dhabi Department of Economic Development, Arabian Automobile Association, Automobile Association Middle East and North America, Department for International Trade United Arab Emirates, Department of Economic Development Abu Dhabi, Direct Selling Association UAE|
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.
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
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