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The automotive aftermarket e-retailing market size is forecast to increase by USD 74.38 billion, at a CAGR of 15.94% between 2023 and 2028. The market's growth is influenced by several key factors. The increasing vehicle lifespan is driving the demand for replacement vehicle parts, as older vehicles require more maintenance and repairs. Additionally, the convenience of purchasing automotive products online is contributing to market expansion, making it easier for consumers to access a wide range of products from the comfort of their homes. Furthermore, there is a growing demand for vehicle customization, as more consumers seek to personalize their vehicles to match their preferences and lifestyles. These factors combined are propelling the market forward, highlighting the evolving needs and preferences of vehicle owners.
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The Market encompasses the sale of vehicle parts, accessories, and logistics services through online platforms in the automobile industry. Key product categories include engine components, electrical products, interior and exterior accessories, infotainment-multimedia, powertrain, tires and wheels, and aftermarket accessories. The market's growth is driven by increasing internet penetration, customer demand for convenience, and personalizing and designing options. Mobile commerce plays a significant role in the market's expansion, enabling consumers to shop for vehicle parts and accessories from anywhere at any time. Delivery speed and transport are critical factors in the success of e-commerce players in this sector. Logistics firms ensure timely and efficient delivery of goods, enhancing customer satisfaction. The market for tires and wheels, a significant segment, benefits from advancements in technology and the growing popularity of customization. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing vehicle lifespan leading to vehicle parts growth drives the market growth. The automobile aftermarket sector is experiencing significant growth due to several factors, with the increasing age of vehicles being a major contributor. This trend is resulting in larger vehicle populations in prominent automotive markets. In the US, for instance, the average age of passenger cars and light trucks surpassed 11 years in 2023. This figure is even higher in Canada, leading to a substantial vehicle population and, consequently, a burgeoning demand for automotive aftermarket parts.
Moreover, the digital transformation of the automotive industry is another significant factor driving market growth. The rise of Internet Retail and e-commerce platforms has made it easier for customers to purchase vehicle parts and accessories online. This shift towards online platforms caters to the growing DIY culture and the demand for aftermarket components, performance components, and personalization choices. Hence, such factors are driving the market growth during the forecast period.
Aftermarket e-retailing gaining popularity in the automotive aftermarket is a primary trend in the market. The automobile aftermarket sector is undergoing a significant digital makeover, with Internet Retail playing a pivotal role in its expansion. E-commerce platforms are revolutionizing the way vehicle parts and accessories are bought and sold, shifting consumer behavior towards online platforms.
Moreover, the product offerings in the automotive aftermarket now encompass a wide range of items, from essential replacement parts to specialized performance components, catering to the diverse needs of customers. The Age of Vehicle and the requirement for maintenance and repairs continue to drive demand for aftermarket parts. Digital marketing strategies, such as targeted online advertising and personalized product recommendations, are increasingly being adopted to reach customers. The DIY culture is also fueling the growth of online sales, as customers seek out affordable aftermarket components and tools for their Passenger Cars and Off-Road Vehicles. Hence, such factors are driving the market growth during the forecast period.
High price sensitivity leading to margin pressure on e-retailers is a major challenge hindering the market. In the automobile aftermarket sector, the shift to e-retailing through Internet Retail platforms is a significant trend. The increasing age of passenger cars and off-road vehicles necessitates regular maintenance and repairs, leading to a growing demand for aftermarket parts and accessories. However, the high cost of these components and services poses a challenge for customers.
Moreover, the complexity of modern vehicles, the rise in labor rates, and the increasing prices of automotive parts, including steel and aluminum components, contribute to the escalating repair costs. Despite these challenges, the automotive aftermarket industry is undergoing a digital makeover. Online platforms offer a wide range of aftermarket components, performance parts, and personalization choices for customers. Hence, such factors are hindering the market growth during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
1A Auto Inc: The company offers auto parts such as tail lights, brake kits, and headlight assemblies.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The wheels and tires segment is estimated to witness significant growth during the forecast period. The automotive aftermarket sector has undergone a significant digital makeover, transforming traditional brick-and-mortar stores into thriving e-retail platforms. Internet Retail has emerged as a dominant force in the automobile aftermarket industry, with e-commerce becoming the preferred choice for customers seeking vehicle components, accessories, and maintenance solutions.
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The wheels and tires segment was the largest segment and was valued at USD 11.84 billion in 2018. Online platforms offer a vast array of aftermarket components, including performance components, personalization choices, specialized components, and even tools for DIY enthusiasts. The Age of Vehicle plays a crucial role in the demand for aftermarket components and accessories. As vehicles age, the need for maintenance and repairs increases, driving growth in the market for brakes, filters, spark plugs, engine components, floor mats, seat covers, and other automotive components. Hence, such factors are fuelling the growth of this segment, which in turn drives the market growth during the forecast period.
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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The Market encompasses the sale of Powertrain components, Tires, Wheels, and Aftermarket accessories through digital channels. Logistics firms play a crucial role in ensuring the timely delivery of these products, which include engine components, tires and wheels, and electrical items. The proliferation of Mobile commerce and high Internet penetration have significantly expanded the market's reach.
Moreover, smartphones have become essential tools for customers, enabling them to personalize and design their vehicles through online platforms. Interiors and exteriors can be customized to individual preferences, enhancing the automobiles' overall appeal. Delivery speed and efficient transport are essential factors, with Tires and Wheels being priority items due to their frequent replacement needs. Hence, such factors are driving the market growth during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The Automotive Aftermarket refers to the sale of vehicle parts and services following the original sale of a vehicle. E-Retailing in this sector has gained significant traction due to the convenience it offers to customers. Online platforms enable consumers to access a wide range of automotive parts and services from various suppliers, enhancing the customer experience. Key components of the Market include vehicle types, parts types, sales channels, and regions. The market landscape depends on Interior accessories, Electrical and electronics products, Smartphone, customer service, personalising and designing. Vehicle types encompass passenger cars and commercial vehicles. Parts types consist of engine parts, transmission parts, brake systems, electrical parts, and others. Sales channels include company-owned websites and third-party marketplaces. Regions include North America, Europe, Asia Pacific, and the Middle East & Africa. The market landscape depends on Returns and Exchanges, Customer Trust, diagnostic tools, wrenches, jacks, OEMs, and Electrical Products. Marketing strategies for Automotive Aftermarket E-Retailing include competitive pricing, customer loyalty programs, and efficient supply chain management. Effective use of digital marketing channels, such as social media and search engine optimization, can also help reach a larger customer base. Additionally, offering technical support and installation services can differentiate businesses in the competitive market.
Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.94% |
Market growth 2024-2028 |
USD 74.38 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
13.39 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 35% |
Key countries |
US, Germany, France, the UK, and China |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
1A Auto Inc., Advance Auto Parts Inc., Alibaba Group Holding Ltd., Amazon.com Inc., AutoZone Inc., Buy Auto Parts, CarParts.com Inc., Cummins Inc., Delticom AG, DENSO Corp., eBay Inc., Genuine Parts Co., HELLA GmbH and Co. KGaA, Icahn Automotive Group LLC, LKQ Corp., PARTS iD Inc., Robert Bosch GmbH, RockAuto LLC, The Reinalt Thomas Corp., and Walmart Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Customer Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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