The surging vehicle sales, increasing number of DIY customers, growing customer awareness and convenience, and rising number of road accidents are some of the major drivers boosting the growth of the U.A.E. e-commerce automotive aftermarket. Due to these factors, the market is projected to reach $634.4 million by 2025, growing at a CAGR of 14.8% during the forecast period (2020–2025). Further, initiatives of the government to propel e-commerce industry and increase in digitization due to rising internet penetration drive the growth of the market.
The outbreak of COVID-19 has negatively impacted the U.A.E. e-commerce automotive aftermarket. The pandemic has brought the disruption in supply chain, which after combined with lower demand of automotive products in the U.A.E. has made significant negative impact on the market. Moreover, due to the restriction in movement of goods and services, the automakers, third party sellers, and suppliers are finding it difficult to maintain the trading and assembly of vehicles and related products and services.
Based on type, the U.A.E. e-commerce automotive aftermarket is categorized into product and service, out of which the service category is expected to witness the fastest growth during the forecast period. This can be attributed to the increase in internet penetration rate in the country, which is aligning with the fact that more app-based service providers are coming up in the market; time scarcity, and more consumers are resorting to e-commerce services.
Further, on the basis of component, the product type is categorized into tire, lubricant, battery, and car parts. Among these, the tire category holds the largest share in the U.A.E. e-commerce automotive aftermarket, in terms of revenue. This is attributed to the rise in sales of sport utility vehicles (SUVs) for off-roading, coupled with increase in number of tourists leading to higher demand for vehicles for various transportation and leisure purposes. Thus, this category is further expected to dominate the market during the forecast period.
Major players have been involved in taking various strategic measures, such as acquisitions and partnerships, and website, product, and service launches, to gain a competitive edge and improve their position in the U.A.E. e-commerce automotive aftermarket. For instance, in October 2020, Mastercard Inc. and Amazon.ae announced the strategic partnership for the country. Under this partnership, the customers will be offered exclusive access to the enhanced shopping experience. Additionally, it is expected to uplift the online orders by rolling out different discounts and other benefits.
Similarly, in March 2020, the Dubai Economy Solutions of the U.A.E., launched new e-commerce platform service for assisting small and local companies in selling their goods online. These companies include home businesses, small and medium enterprises (SMEs), and large companies.
Some of the major players of the U.A.E. e-commerce automotive aftermarket include AKSA Trade LLC, Noon.com, Amazon.ae, Auto Parts East FZCo. (APEC), AutoPlus Dubai, Ubuy.com, Barma Auto Parts LLC, Carrefouruae.com, Ebay.com, and GiveMeAutoParts.com.