The increasing customer awareness about various vehicle parts and their specifications and convenience, growing number of do-it-yourself (DIY) customers, along with the expansion in the overall automotive aftermarket, driven by the growing number of vehicles in operation (VIO), increasing number of road accidents, and rise in the average vehicle age, are expected to drive the growth of the global e-commerce in automotive aftermarket. The industry is expected to reach $292.6 billion in 2030, advancing with a CAGR of 23.3% during the forecast period (2020–2030).
However, the extravagant growth of the e-commerce in automotive aftermarket is projected to temporarily slow down a bit in 2020, on account of the ongoing COVID-19 pandemic across the world. The market is facing the consequences of labor shortage and hindrance in the supply chain, along with a lower demand for aftermarket components. This is expected to result in a decline in the demand in the market, as repercussions of the ongoing COVID-19 outbreak continue to affect the normalcy of operations. However, in the coming years, the situation is expected to normalize, and the online sales of automotive components in the aftermarket are expected to increase.
Equipment Category To Exhibit Fastest Growth in Market during Forecast Period
On the basis of component, the e-commerce in automotive aftermarket has five broad categories: engine parts, drive transmission and steering parts, suspension and braking parts, equipment, and electrical parts, apart from miscellaneous. Among them, the fastest growth in the market is expected to be exhibited by the equipment category. The expected growth of the category is attributed to the increasing number of DIY consumers in the market, along with the growing demand for the installation of parts and accessories that are intended to improve the vehicle performance, add comfort, enhance the look, or add more functions.
Furthermore, based on channel, the e-commerce in automotive aftermarket is bifurcated into third-party retailer and direct-to-consumer. Of the two, the third-party retailer category dominated the market during the historical period (2014–2019), and it is expected to continue dominating the market in the forecast period. The dominance of the category is attributed to the growing penetration of aftermarket sales operations through e-tailing companies, including Amazon.com Inc., Alibaba Group Holding Ltd., and eBay Inc.
Geographically, the Asia-Pacific (APAC) region dominated the e-commerce in automotive aftermarket during the historical period. Furthermore, the region is also projected to advance with the highest CAGR, to remain the largest online automotive aftermarket, during the forecast period. The market in the region is primarily driven by the massive sales of automobiles in its developing economies. Furthermore, the rise in the gross domestic product (GDP) and increase in the disposable income of the people of emerging economies, such as China and India, are the other key factors propelling the growth in vehicle sales and demand for aftermarket components in the APAC region.
Partnership Is Major Strategic Measure Taken by Players in Market
Players in the e-commerce in automotive aftermarket are building partnerships with each other to enhance their market presence. For instance, in January 2020, Alibaba Group Holding Ltd. entered into an agreement with FAW Group, with the purpose of creating the next generation of intelligent connected vehicles in China. Furthermore, under the partnership, FAW Group will use Alibaba Group Holding Ltd.’s open mobility platform, Banma Network Technology.
Similarly, in October 2019, Valeo SA and Dana Inc. entered into a partnership to launch end-to-end 48V hybrid and electric vehicle systems. The first of these was to be released in early 2020, with a major European carmaker, on series-produced cars. The systems comprise an electric motor and an inverter, designed and manufactured by Valeo SA, which together act as the ‘brain’ of the electric vehicle, by enabling it to generate voltage and alternating current from a power source of a different voltage or frequency, and the Spicer Electrified e-Gearbox developed by Dana Inc.
Browse report overview with detailed TOC on "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" at:https://www.psmarketresearch.com/market-analysis/e-commerce-in-automotive-aftermarket
Some of the major players operating in the global e-commerce in automotive aftermarket are 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., AutoZone Inc., U.S. Auto Parts Network Inc., Alibaba Group Holding Ltd., Advance Auto Parts Inc., BuyAutoParts.com, Genuine Parts Co.