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The automotive e-commerce market is poised to grow by USD 142.22 billion accelerating at a CAGR of 21.55% between 2023 and 2028. The market is experiencing significant growth, driven by several key trends and factors. The first is the increasing penetration of smartphones and the internet, enabling consumers to research and purchase automotive products online. Another growth factor is the availability of multiple payment modes, providing convenience and flexibility to customers. However, challenges persist, such as the widespread availability of counterfeit automotive parts, which can negatively impact consumer trust and safety. To mitigate this, industry players are focusing on implementing robust authentication and verification processes to ensure the authenticity of products sold through their platforms. Overall, the automotive e-commerce market is poised for continued growth, driven by these trends and the increasing convenience and accessibility of online shopping.
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The market share growth by the passenger car segment will be significant during the forecast period. The passenger car segment dominates the global market. Due to increasing Internet penetration, original equipment manufacturers in the industry and retailers have started selling their products like passenger cars online, which will lead to the accelerated growth of the global market during the forecast period.
The passenger car segment shows a gradual increase in the market share of USD 21.45 billion in 2018. In buying passenger cars through online shopping platforms from a wide selection of brands and models in many countries that range between entry-level and high-end luxury vehicles. Accordingly, the growth of the world market is projected to be driven by a passenger vehicle segment over the forecast period.
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North America is estimated to contribute 39% to the growth of the global market during the forecast period. North America is set to play a crucial role in the global market, being a major contributor and a leading region for new technology adoption in the sector. It holds the title of the world's largest market by revenue, with a strong presence in passenger cars and commercial vehicles, as well as a robust foothold in the market.
The region is characterized by a significant number of do-it-yourself (DIY) customers, particularly interested in purchasing components and accessories online. North American customers possess extensive knowledge of vehicle parts, leading to a high adoption rate of aftermarket parts and accessories. The presence of organized aftermarket shops has prompted vendors to explore online retailing through forward integration.
The market is experiencing significant growth as more consumers turn to digital channels for vehicle sales and aftermarket parts. Companies like Carvana are leading the charge with their ecommerce and digital commerce platforms, offering an omnichannel approach that seamlessly blends online and offline experiences. This customer-centric approach prioritizes personalized ecommerce, streamlined operations, and a focus on customer base expansion. Digital ads, social media, and virtual showrooms are key tools in reaching and engaging customers, while customer reviews provide valuable insights into the buyer’s journey. AutoTrader omnichannel strategy, leveraging the online purchasing model and platforms like BigCommerce, facilitates comprehensive brand comparison and product information, while integrating test drive and lead generation to support family-owned businesses and third-party vehicle sales channels. Technology advancement and financial sustainability are essential for long-term success, with digital marketing and supply chain optimization playing crucial roles. Consumer attitudes towards digitization and online shopping continue to shift, making it essential for dealerships to adapt and prioritize customer satisfaction and a customized experience.
The market is thriving due to the widespread use of smartphones and increased internet access. This accessibility has enabled more people, particularly in emerging economies, to engage in online shopping for a variety of goods, including cars and components. As internet penetration and mobile phone usage continue to rise rapidly, consumers who were previously limited in accessing physical dealerships now have a broader selection of products and services online.
To reach a broader consumer base, OEMs are focusing on enhancing their online presence through investments in digital marketing and e-commerce platforms. This includes creating mobile-friendly websites and applications, along with providing easy online payment and delivery options. With internet penetration reaching 48.7% in India in 2023, the increasing prevalence of smartphones and internet access is expected to drive the growth of the global market in the forecast period.
The presence of multiple payment modes is a primary trend in the market. The development of e-commerce platforms has been aided by innovative payment technology solutions. Market players can secure their future in the market by investing in such technology. In order to continue the growth of eCommerce, such as car shopping, it is essential to develop advanced payment technologies. Payment methods are making it easy for customers to buy from the Internet, but they have also made it easier for retailers to support e-commerce.
Due to the global increase in the volume of e-payments, retailers of vehicles, parts, and accessories need to establish partnerships and adopt advanced technology to accept credit card payments as well as payments via digital wallets for purchase now, pay later transactions. The use of advanced payment technology will make a significant contribution to both retailers and buyers. It not only improves trade at the merchants' end but also provides a better customer experience by using the most current payment technology. Thus, the expansion of the global market is driven by the advantages of improved payment methods, such as quicker checkout, more purchasing options, and significant cashback offers, during the forecast period.
The widespread availability of counterfeit automotive parts is a major challenge in the market. Various companies offer low-cost copies of authentic/original components and accessories. The global market for counterfeit parts is growing due to an increase in the number of component manufacturers. However, these components are of poor quality and frequently tend to fail. This creates a poor image for genuine vendors operating in the global market, which, in turn, has an adverse impact on their e-commerce sales.
In order to purchase parts and accessories through eShopping Platforms, people must rely on electronic images. When it is delivered, the product cannot correspond to an electronic representation or a description provided on Internet channels and may not be in line with buyers' needs. Consequently, one of the major challenges that will be faced to grow the worldwide market for car retailing in the coming years is the widespread availability of fake parts on online platforms.
Advance Auto Parts Inc. - The company offers various automotive e-commerce such as auto parts, brakes, and other accessories.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
The data presented is comprehensive, reliable, and a result of extensive research - both primary and secondary. The market research reports provide a complete competitive landscape and an in-depth vendor selection methodology and analysis using qualitative and quantitative research to forecast accurate market growth. For details analysis BUY FULL REPORT.
The market research report provides comprehensive data, with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is revolutionizing the way we buy and sell vehicles and aftermarket parts. Companies like Carvana are leading the charge in digital commerce, offering an omnichannel approach that combines the convenience of online purchasing with the experience of a traditional dealership. Customer experience is a top priority, with personalized ecommerce platforms providing customized experiences based on individual preferences. Customer base expansion is achieved through streamlined operations, digital ads on social media, and virtual showrooms. Customer engagement is key, with online purchasing models allowing for customer reviews, test drives, and real-time communication with customer support. Automotive ecommerce platforms are advancing with technology to provide financial sustainability and cater to consumer attitudes toward digitization and online shopping. The buying process is simplified with virtual showrooms, online inventory, and payment options.
However, challenges remain, such as geographical restrictions, inventory costs, and supply chain management. The future of automotive ecommerce lies in the ability to provide a seamless and satisfying customer journey, from initial research to vehicle delivery and beyond. By focusing on customer satisfaction and customized experiences, companies can thrive in this dynamic market. The automotive industry is embracing the future of ecommerce, with retail sales and aftermarket parts sales shifting toward online channels. The key to success is staying ahead of the curve with technology advancements and adapting to changing consumer attitudes.
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Market Scope |
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Report Coverage |
Details |
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Page number |
162 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 21.55% |
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Market growth 2024-2028 |
USD 142.22 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
17.16 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 39% |
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Key countries |
US, China, Japan, Germany, and Canada |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Advance Auto Parts Inc., Alibaba Group Holding Ltd., Amazon.com Inc., Arch Auto Parts, AutoAnything Inc., AutoZone Inc., CARiD.com, CarParts.com Inc., CATI S.p.A., Delticom AG, eBay Inc., Flipkart Internet Pvt. Ltd., Genuine Parts Co., Icahn Automotive Group LLC, LKQ Corp., O Reilly Automotive Inc., Robert Bosch GmbH, RockAuto LLC, The Reinalt Thomas Corp., and Walmart Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Market Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for Market forecast period |
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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 Vehicle Type
7 Market Segmentation by Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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