E-commerce Automotive Aftermarket size is likely to exceed USD 135 billion by 2026; according to a new research report by Global Market Insights, Inc.
OEMs are focusing on business expansion by establishing the aftermarket network in emerging nations. The e-commerce channel enhances the product visibility and offers transparent pricing. Continuous technological development and growing customer expectations for economical price and quality products will fuel industry growth. The consumers are increasing their inclination towards digital service-based business models. The market players are upgrading their model based on product buying behavior. E-tailers are further improving their consumer base by conducting studies pertaining to consumer buying behavior and improving the product offering.
The e-commerce automotive aftermarket from direct to customer segment will witness around 16% CAGR through 2026. Development of mobile-friendly user interface is increasing e-commerce sales channels across consumers. Customers can look for multiple brands and enable simplified & customized usage. Moreover, some portals provide customer access in offline mode as well, thereby propelling the market growth.
Increasing manufacturers on online portals to support accessories segment growth
The accessories segment is expected to account for over 23% e-commerce automotive aftermarket share with growing registration of manufacturers on online portals. The increasing popularity of vehicle customization, rising inclination toward enhanced driving experience, growing focus toward better aesthetic appeal, and convenience will trigger the accessories growth. Furthermore, manufacturers are introducing e-commerce sites that offer a connection between service technicians and suppliers to improve industry foothold.
B to small B consumers primarily include equipment suppliers that buy basic and majorly used automotive replacement components. Manufacturers of sub-assembly systems and electronic components are among major consumers in the B to small B distribution. Superior profit margins and quick delivery along with ability to easily compare and buy parts are the key factors driving the B to small B distribution segment. Furthermore, reduced complexity in purchases including RFQs and quotations will provide a positive outlook for industry growth.
Asia Pacific e-commerce automotive aftermarket size is projected to expand at more than 15% CAGR up to 2026 owing to presence of multiple industry players. The region has multiple e-tailers including, platforms such as Alibaba and India mart. Increasing awareness regarding online distribution channel amongst small & medium manufacturers in emerging economies is accelerating the revenue generation.
Major automotive OEMs introducing e-commerce platform for consumers
In March 2019, Mahindra & Mahindra announced its genuine spare parts to be available on M2ALL.com. The company partnered with online stores in order to provide its customers with convenience. Similarly, United Pacific Industries, based in the U.S., launched a classic car parts e-commerce website to expand its reach. The company boasts a portfolio of over 6,000 parts of vehicles as old as 1932. Industry participants are enhancing delivery services to offer products more quickly to a wider audience. Key e-commerce automotive aftermarket players include Alibaba Group, Amazon, Arch Auto parts, Autoanything, Advance Auto Parts, AutoZone, Bosch, CARiD, Denso Corporation, Ebay, Flipkart, and O’Rielly Auto Parts.