E-Commerce Automotive Aftermarket To Generate Revenue Worth $191,545.7 Million by 2030
- Published: March 2022
The e-commerce automotive aftermarket is driven by the convenience offered by online shopping channels, increasing number of DIY customers, and growing automotive aftermarket. Because of these factors, the industry is projected to generate $191,545.7 million revenue in 2030, advancing at a CAGR of 10.4% during 2021–2030.
Moreover, click-and-mortar retailing integrates e-commerce platforms with brick-and-mortar stores and businesses, thus mutually mitigating the drawbacks exclusive to either. Such 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 store to store. They can simply look the product up online and reach the store to pick it up. This is why the click-and-mortar concept has captured an over 40% share of the e-commerce sales in the automotive aftermarket.
Equipment Category To Witness Fastest Growth
The equipment category is expected to witness the fastest growth during the forecast period (2022–2030). This will mainly be due to the increasing number of DIY consumers and growing demand for parts and accessories to improve vehicle performance, add comfort, enhance the look, and add more functions to the vehicle.
Moreover, the third-party retailer category accounted for the higher market value in 2021. This can be attributed to the growing aftermarket sales through e-tailing companies, such as Amazon.com Inc., Alibaba Group Holding Ltd., and eBay Inc.
Geographically, APAC held the largest share in the global e-commerce automotive aftermarket in 2021. The market in the region is primarily driven by the increasing automotive production in emerging economies. The rise in the GDP and increase in the disposable income of the people in emerging economies, such as China and India, are the key factors propelling vehicle sales and, consequently, the demand for aftermarket components in the APAC region.
Partnership Are Most-Effective Strategic Measures Taken by Players
Players in the global e-commerce automotive aftermarket industry are involving in partnerships to gain a significant position. For instance, in September 2020, Aeva Inc. and ZF Friedrichshafen AG announced their partnership for sensor production. Under the partnership, Aeva is responsible for core sensing functionality, performance, and algorithms, while ZF is producing an automotive-grade sensor for carmakers.
Similarly, in March 2020, U.S. Auto Parts Network Inc. (CarParts.com) entered into a partnership with Front Row Motorsports (FRM) for NASCAR Cup Series 2020. During the partnership, U.S. Auto Parts Network Inc. was the primary partner of veteran driver Michael McDowell in the NASCAR Cup Series.
The major players operating in the global e-commerce automotive aftermarket include Robert Bosch GmbH, DENSO CORPORATION, Valeo SA, ZF Friedrichshafen AG, Continental AG, HELLA GmbH & Co. KGaA, Meritor Inc., Amazon.com Inc., eBay Inc., AutoZone Inc., Genuine Parts Co. Inc., CarParts.com, Inc., BUYAUTOPARTS LLC, Advance Auto Parts Inc., and Alibaba Group Holding Ltd.