"Market Intelligence for High-Geared Performance"
The global automotive E commerce market size was USD 43.62 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with the automotive e commerce industry witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of 5.9% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 51.04 billion in 2021 to USD 202.94 billion by 2028, exhibiting a CAGR of 21.8% during the forecast period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Most OEMs are experiencing few bottlenecks in their business operations, such as supply chain disruptions, the decline in the import and export of automobile components, and restrictions on the transportation of non-essential items. The market is driven by the growth of the global e-commerce industry, increasing automotive sales, and the digitalization of interfaces and channels. In addition, the growth in per capita income of consumers and increasing penetration of the internet have led to the growth in online sales of automotive parts and components, subsequently fueling the market growth over the forecast period.
Moreover, the global automotive E Commerce Market growth is attributed to the increased demand for automotive components and parts as the aging of the vehicle fleet is increasing. Factors such as higher price transparency, the convenient shopping experience, and greater diversity of parts have driven customers to online purchases. Further, multiple online offers, low pricing strategy, coupled with the facility of comparing parts online based on guarantee, price, and specification are further fueling the growth of the market.
Growth of Automotive E Commerce Market Will Slow Down During COVID-19 Pandemic
The coronavirus pandemic has significantly affected manufacturing operations across the world. The supply chains are in jeopardy, and product shortages are becoming evident owing to lockdowns imposed in various parts of the globe. Businesses that were earlier using offline sales channels are now turning to digital operations. Though the majority of business sectors worldwide have experienced the negative effects of the pandemic, automotive e commerce can bring businesses back on track as it provides better safety and ease of purchase for customers.
Request a Free sample to learn more about this report.
Increasing E-commerce Spending on Automotive is a Prominent Trend
The emergence of automotive e commerce offers significant new sales opportunities for OEMs, dealers, and other digital car sellers. The online shopping of automotive parts and components through third-party vendors such as Amazon.com, Inc., O’Reilly Auto Parts, and Alibaba Group Holding Limited is expected to show the fastest growth in this industry over the forecast period.
Increasing Demand for Omni-channel Insights to Favor Market Growth
The availability of a broad range of automobiles and auto parts, and components online is driving the growth of the market. Today, automotive customers increasingly prefer to shop for auto industry parts and components online. Therefore, this industry is witnessing a major shift towards automotive e commerce platforms. The market is quite competitive, and the vendors are concentrating on offering services, including vehicle service appointments, used vehicle purchases, and trade-in. Furthermore, they are aiming at competitive pricing models to gain an advantage over traditional retailers. The availability of a broad range of automobiles and auto parts online and competitive pricing will considerably drive the growth of the industry.
Surging Cases of Counterfeiting of Auto Parts to Restrain Growth
The increasing availability of counterfeit auto parts and components is expected to restrict market growth. There are various manufacturers producing replicas of genuine auto parts and retailing at lower prices. The counterfeit market generally targets segments that are easy to copy and have a high turnover rate, such as tie rods, steering arms, windshields, tail lamps, headlamps, bumpers, and filters. Counterfeit auto parts demand is growing worldwide due to a surge in the number of auto part manufacturers. These components are of low-grade quality and break down very often. This builds a negative image, therefore, affecting automotive e commerce sales.
Engine Components Segment to Lead Backed by Rising Number of Aging Vehicles
Based on components, the market is segmented into infotainment and multimedia, engine components, tires and wheels, interior accessories, electrical products. The engine components segment holds the major share in the market due to the constant surge in the aging of vehicles and vehicles in operation. The auto parts covered under engine components are pistons & rings, bearings, engine block & cylinder heads, and valves & filters.
Ability to Provide Rapid Delivery Service will Propel the Third-party Vendor Segments
Based on the vendor type, this market is segmented into OEM vendors and third-party vendors. The third-party vendor type segment accounts for the major market share and is also projected to dominate the market during the forecast period. This is attributable to the ability of third-party vendors to fulfill customer expectations through rapid delivery and exceptional service network, and they are also engaged in discount programs to attract customers.
To know how our report can help streamline your business, Speak to Analyst
Passenger Car Segment to Remain at Forefront Stoked by Increasing Sales Worldwide
Based on the vehicle type, this market is segmented into passenger cars, commercial vehicles, and two-wheelers. The passenger car segment accounts for the major market share and is also projected to dominate the market over the forecast period. This is attributable to the growing sales of passenger vehicles. E-retailers use optimized and advanced search engines to improve customer experience. End-users can use such search engines to select passenger cars by applying filters on several parameters, such as vehicle specifications, price, vehicle trim, vehicle make, vehicle features, and exterior color. Most vendors also enable end-users to compare various passenger cars, which helps in the customer buying decision. All these parameters are increasing customer propensity for automotive e-retail, which is driving the segment growth.
Asia Pacific Automotive E Commerce Market Size, 2020 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
Based on the geography, the market is segmented into North America, Europe, Asia Pacific, and the rest of the world. The North American region will dominate the market due to the rising demand for hassle-free purchasing, the presence of well-developed infrastructure, the growing preference of regional consumers for online shopping, and the high demand for premium and luxury cars will considerably drive the market growth in the North American region.
In Asia Pacific, the market is expected to emerge as one of the most lucrative regional markets due to the presence of key automotive e commerce companies in the region, such as Alibaba Group, Amazon.com, Ebay Inc., and Flipkart Internet Private Limited. Government initiatives such as Digital India, and partnerships between brick & mortar stores and e-commerce platform providers, are further anticipated to boost the market. Moreover, in terms of growth, Europe is expected to become the second-fastest-growing market with a CAGR of 22.4% during 2021–2028. Europe is one of the main markets for automotive e commerce due to the growth in e-commerce.
Key Market Players to Focus on Collaborations and Partnership Strategies to Gain Competitive Edge
This market is highly competitive and fragmented in nature, with the presence of key market players such as O’Reilly Auto Parts, Amazon.com, Inc., Alibaba Group Holding Limited, AutoZone, Inc., Advance Auto Parts, Delticom AG, eBay Inc., and Walmart. The major companies are focusing on acquisitions, expansions, and collaborations strategy to strengthen their position in the automotive e commerce industry.
An Infographic Representation of Automotive E Commerce Market
To get information on various segments, share your queries with us
The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the automotive E commerce market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market over recent years.
Value (USD Billion)
By Vendor Type
By Vehicle Type
Fortune Business Insights says that the global market size was USD 43.62 billion in 2020 and is projected to reach USD 202.94 billion by 2028.
In 2020, the Asia Pacific market revenue stood at USD 13.89 billion.
The market is projected to grow at a CAGR of 21.8% and will exhibit exponential growth in the forecast period (2021-2028).
The passenger car segment is expected to lead this market during the forecast period.
The expansion of the global e-commerce industry and the increasing automobile sales are set to propel growth.
O’Reilly Auto Parts is a major player in the global market.
North America dominated the market in terms of share in 2020.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry