SAN FRANCISCO, July 19, 2021 /PRNewswire/ -- The global e-commerce automotive aftermarket size is anticipated to reach USD 143.9 billion by 2028, exhibiting a CAGR of 14.6% over the forecast period, according to a new report by Grand View Research, Inc. The growth can be attributed to the rising availability of automotive replacement equipment on online platforms, thereby enabling customers to access more affordable buying options. Improved supply chain activity with technology deployments such as the Internet of Things (IoT) and automation has boosted the growth of e-commerce platforms in the automotive sector. Further, rising awareness of automotive OEMs to establish an omnichannel presence promotes them to deploy e-commerce practices, thereby offering growth opportunities for the e-commerce aftermarket parts.
Key Insights & Findings:
The lighting segment is expected to register the fastest growth over the forecast period. The growth can be attributed to the ongoing trend of automobile owners to customize and install new and personalized lighting equipment for interiors and exterior uses
The business to customer segment is expected to register the highest CAGR over the forecast period owing to the rising acceptance of DIY innovation in automobiles, thereby promoting automobile users to order automotive parts replacement and self-installation
The Asia Pacific region is expected to dominate the market over the forecast period. This can be attributed to rising economic activity in China and India. The presence of several automotive parts manufacturers in China and their ability to provide affordable and attractive products are offering an impetus to market growth
The increasing automotive sales and the increasing presence of new automotive players are expected to aid the market growth. The production of new automobiles with diverse technologies facilitates the need to develop new aftermarket products. Furthermore, rising awareness amongst people to adopt electric vehicles promotes automotive companies and OEMs to develop more proficient products, which help increase the efficiency of the electric vehicle. This increasing awareness towards the adoption of electric vehicles is expected to result in higher R&D activities in product development, thereby offering promising growth opportunities to the market.
The Asia Pacific region is expected to record the highest CAGR over the forecast period. This growth is majorly fueled by China due to the increasing number of light motor vehicles in the country, facilitating an increase in the sales of automotive replacement parts. Additionally, the growing average age of the vehicle population and technological innovation in automotive manufacturing practices such as the influx of robots and automation is expected to grow the e-commerce aftermarket over the forecast period. The Chinese government also incentivizes the automotive suppliers to improve automotive aftermarket transparency and presence by enabling independent suppliers to sell Original Equipment Service (OES) parts.
E-tailers are continuously challenging traditional retailers by penetrating the market more effectively. This has led to the emergence of companies such as RockAuto and Tire Rack and also promoted companies such as Alibaba and Amazon to increase investments in the automotive aftermarket sales segment. This has led to an increase in automotive equipment sales via e-commerce channels, and the trend is expected to continue over the forecast period. Moreover, the onset of COVID-19 has promoted people to stay confined to their homes, thus encouraging them to engage in online shopping activities for earlier bought from physical stores, which will help the e-commerce automotive equipment shopping trend stay buoyant.
Grand View Research has segmented the global e-commerce automotive aftermarket based on replacement parts, end use, and region:
E-Commerce Automotive Aftermarket Replacement Parts Outlook (Revenue, USD Billion, 2017 - 2028)
List of Key Players of the E-Commerce Automotive Aftermarket
Advance Auto Parts, Inc.
Alibaba Group Holding Limited
Flipkart Private Limited
NAPA Auto Parts
O'Reilly Auto Parts
U.S. Auto Parts Network, Inc.
Check out more studies related to automotive aftermarket, by Grand View Research:
Automotive Aftermarket – Global automotive aftermarket size was valued at USD 390.10 billion in 2020. It is expected to expand at a compound annual growth rate (CAGR) of 3.8% from 2021 to 2028. The market is majorly driven by the pursuit of automobile drivers to enhance their vehicle performance in terms of exhaust sound, speed, and appearance parameters along with many other aspects.
U.S. Automotive Aftermarket – U.S. automotive aftermarket was valued at a market size of USD 75.31 billion in 2018, and is expected to register 1.8% CAGR from 2019 to 2025. The automotive industry has experienced a substantial boost in the sales of OEMs and aftermarket parts in the U.S. as the aftermarket business has created attractive margins and revenues in the emerging market.
Automotive Aftermarket Glass Market – Global automotive aftermarket glass market size was USD 3.02 billion in 2018 and is anticipated to register a CAGR of 3.8% in terms of revenue from 2019 to 2025. Increasing cases of road traffic accidents across the world coupled with high vehicle production are anticipated to boost the consumption of glass in automotive aftermarket.
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.