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Future of E-commerce Automotive After Market Size 2025

02-07-2018 06:05 AM CET | Logistics & Transport

Press release from: marketstudyreport.com

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Market Study Report adds a new report E-commerce Automotive After Market Research Report for the period of 2018-2025 that shows the growth of the market is rising at a Steady CAGR to 2025. The report spread across 400 pages with table and figures in it.

E-commerce Automotive Aftermarket is estimated to surpass USD 30 billion by 2025; according to a new research report.

Global e-commerce automotive aftermarket is expected to generate a demand of over 1 billion units till 2025. Increasing age of vehicles across the globe, specifically in developed countries coupled with shifting consumer preference towards online purchase of auto components will primarily drive the industry growth over the forecast timeframe. Changing style preferences of consumers and increasing customizations in vehicles will further strengthen the industry penetration.

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Steering and suspension is anticipated to dominate the e-commerce automotive aftermarket share over the forecast timeframe. This can be credited to rising demand of components such as control arms, coil springs, and bearings. Availability of numerous options at reasonable price and choice will positively impact the product demand. Spark plugs are expected to exhibit over 21% CAGR till 2025 owing to recommendation of vehicle manufacturers for product replacement after every 30,000 miles. Increased accident rates along with cheaper product availability as compared to its counterparts will further propel the segment's growth.

Online platforms have gained prominence among the automotive aftermarket industry players to launch their auto-parts portfolio. The manufacturers are increasingly launching their products on online platforms through third party retailers such as Amazon, and eBay or via their own online portals, positively impacting the industry growth. However, lack of efficient standardization for e-commerce businesses may lead to easy counterfeiting of products, posing a threat to the industry growth over the forecast timeframe.

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Rising production of electric and hybrid vehicles across the globe has resulted in increased complexity of the intricate parts. This has led to increased production of automotive aftermarket parts owing to proliferating Do-It-For-Me (DIFM) customers. The e-commerce automotive aftermarket players are forced to expand their portfolio, to cater to the rising demand, inducing immense potential to the industry till 2025.

Third party retailers are likely to account for highest revenue share crossing USD 29 billion by 2025. Rising popularity of these retailers such as eBay, Amazon, etc. will primarily drive the industry growth. High revenue generation can also be attributed to the distinct services. Moreover, provision of benefits such as same day delivery will further strengthen the e-commerce automotive aftermarket penetration.

Direct to customer will exhibit approximately 21% CAGR from 2018 to 2025. This can be attributed to high brand loyalty of the customers and provision of appropriate service facilities. The automotive aftermarket players such as Bosch are expanding their online platforms to enhance their visibility among the customers.

B2C will account for maximum revenue share crossing USD 13 billion over the forecast timeline. Shifting preference of customers towards online purchase of these auto-parts will primarily support the industry dominance. This can be attributed to the cost effectiveness of the online portals as compared to conventional stores. Fast query solving, and provision of technologically advanced products will further escalate the revenue generation. B to big B will exhibit over 19% CAGR owing to provision of benefits such as fast delivery services.

North America e-commerce automotive aftermarket is anticipated to exhibit a CAGR of approximately 17% by 2025. Well established internet infrastructure will pave stable growth prospects to the region's growth. Presence of prominent e-commerce leaders such as Amazon will strengthen the industry growth over the coming years. Asia Pacific is likely to exhibit considerable share of over USD 9 billion over the coming years. The substantial revenue generation can be attributed to growth in automobile industry along with rising internet penetration across the region.

Napa Auto Parts, Denso Corporation, Amazon, E-bay, Auto Zone, and Advance Auto Parts are among the prominent participants in e-commerce automotive aftermarket. Partnerships and collaborations with online aftermarket players are among the strategies adopted by the industry players to enhance their visibility. For instance, in 2016, Hella Group collaborated with online auto-parts supplier, iParts.pl in order to expand its product line.

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