E Commerce Automotive Aftermarket Market Size, Trends [2031]

Report Description

The global e-commerce automotive aftermarket market size was valued at USD 60.4 billion in 2020 and is estimated to reach USD 230.5 billion by 2028, expanding at a CAGR of 21.1% during the forecast period, 2021–2028. The growth of the market is attributed to increasing digitization, rising consumer spending, expanding urbanization, and rapid increase in global connection.

The global e-commerce business is undergoing consolidation and expansion. Consumers are increasingly purchasing digitally and global retail e-commerce sales are increasing. With the temporary closure of some physical aftermarket stores, the e-commerce automobile aftermarket saw a rapid increase in income. Consumers are becoming reliant on e-commerce for product sourcing. All automotive spare parts, tools, equipment, and services related to automobiles that are procured after periodic vehicle use through e-commerce platforms are covered by the aftermarket. E-commerce automotive aftermarket is an e-commerce platform that sells vehicle parts to Do It Yourself (DIY) customers and service professionals via the internet. Price affordability, ease of purchase and convenience, and home delivery are the key decision factors for such customers, boosting the e-commerce automotive aftermarket. The e-commerce automotive aftermarket is anticipated to be driven by rising e-commerce platforms and collaborations between e-commerce platform providers and brick-and-mortar businesses over the projected period.

Market Trends, Drivers, Restraints, and Opportunities

Drivers

• Rapid growth of the global e-commerce industry is expected to propel the market during the forecast period.
• Growing digitization of interfaces and channels and aspects including high price transparency and great part diversity are major factors boosting the market in the coming years. Digitization enables significant value chain benefits and reduced lead times for workshops and consumers.
• Increasing number of DIY consumers is expected to spur the market growth during the forecast period.
• Rising need for repair and maintenance of automotive parts, as the average vehicle age drops around the world, is projected to boost the global e-commerce automotive aftermarket market during the forecast period.

Restraints

• Lack of standardization in such e-commerce websites resulted in rising trade of counterfeit components, which is expected to hamper the market growth during the forecast period. Filters, headlamps, bumpers, windshields, tail lamps, tie rods, and steering arms are common targets for the counterfeit market, as they are easy to replicate and have a high turnover rate.

Scope of the Report

The report on the global e-commerce automotive aftermarket market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Global E-Commerce Automotive Aftermarket Market Segment Insights

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Based on e-commerce retails, the market is divided into direct to customer and third-party retailers. The third-party retailers’ segment is expected to account for a key share of the market during the forecast period, as key players of the market are promoting product availability, same-day delivery, and pick-up from physical locations.

In terms of products, the global e-commerce automotive aftermarket market is segregated into parts and accessories The parts segment is further segmented into universal joints, hub assemblies, wipers, gaskets, filters, lighting, spark plug, tires, braking, and steering & suspension. The tires sub-segment is expected to grow at a rate of around 14% during the forecast period, due to growing introduction of online portals listing major brands such as Michelin, BF Goodrich, and others. The accessories segment covers exteriors and interiors.

Based on consumers, the market is segmented into B2B and B2C. The B2C segment is projected to represent a key share of the market during the forecast period. Consumers prefer to shop in the B2C sector, particularly for tiny and easily replaceable items like brake components and accessories. The growth of the segment is attributed to access to a great collection of online material on part selection and purchase. The B2C segment is primarily driven by the availability of low-cost products. Consumers' choices have been extended by features such as compare and buy and flexible return policies, resulting in smart buying decisions.

On the basis of regions, the global e-commerce automotive aftermarket is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The e-commerce automotive aftermarket in North America is led by the US, which is anticipated to reach 13.5% CAGR during the forecast period. Existence of large firms is expected to boost the regional market by increasing competition.

Asia Pacific is predicted to be a dominant region in the global e-commerce automobile aftermarket, due to many government initiatives in developing countries such as "Digital India" and partnerships between brick-and-mortar retailers and e-commerce platform providers, which are expected to fuel the market in the region.