According to our new research study, titled "E-Commerce Automotive Aftermarket Market Forecast to 2028 - COVID-19 Impact and Global Analysis -by Product Type, Consumer Type, and Geography," the E-commerce Automotive Aftermarket Market is projected to reach US$ 1,60,985.4 million by 2028 from US$ 57,301.1 million in 2022. The market is estimated to grow at a CAGR of 18.8% from 2022 to 2028.
The e-commerce automotive aftermarket market in North America is expected to be driven by a rising number of e-commerce providers during the forecast period. With an increasing number of vehicle owners in North America choosing to maintain their existing cars rather than purchasing new ones, the availability of parts information online has contributed to the digital transformation revolution in the industry. The US Environmental Protection Agency (EPA) and other federal agencies have also established stringent guidelines for developing auto parts materials, which encourages manufacturers to focus on producing high-quality products and increases market growth by ensuring that high-quality products reach customers. Some of the key players in the e-commerce automotive aftermarket market in North America are US Auto Parts Network, Inc., Alibaba Group, Amazon, AutoZone, eBay Inc., Sears, Denso Corporation, Napa Auto Parts, Bosch Group, and Advance Auto Parts.
As technological advancements continue to alter digital communication, B2B sales, and retail, the automobile industry is still evolving. The emergence of e-commerce automotive aftermarket companies, such as Alibaba, eBay Motors, and Amazon Marketplace, has revolutionized the car sales experience for customers in this market. These platforms offer customers the ideal solution for non-mission-critical and discretionary components, providing a wide range of similar products, reviews, and fast delivery at affordable prices. Automotive sector players have already begun to adjust to this shift towards customer-centricity, further driving the growth of the e-commerce automotive aftermarket market.
Several leading automotive companies, including Porsche North America, Tesla Inc., Lynk & Co., and Rivian Automotive Inc., have adopted online platforms to sell their automobiles and aftermarket products directly to consumers. In addition, dealerships have also recognized the advantages of e-commerce in vehicle sales, as demonstrated by the Findlay Automotive Group's development of a fully digital car purchasing program for clients who prefer to shop from home. The increasing number of digital retailers catering to customers in the e-commerce automotive aftermarket market, such as Carvana Inc., Vroom, Shift Technologies Inc., and eBay Motors, is putting pressure on manufacturers and dealers who are reluctant to embrace e-commerce sales. All these factors contribute to the growth of the e-commerce automotive aftermarket market.
Impact of COVID-19 Pandemic on E-commerce Automotive Aftermarket Market
The COVID-19 pandemic disrupted Chinese component exports and large-scale production in Europe, resulting in the closure of over a dozen vehicle assembly facilities in the US. However, the pandemic also created a new e-commerce landscape where brands and retailers have an unprecedented opportunity for profitable growth. The digital economy experienced a significant surge during the pandemic as people embraced social distancing and preferred online platforms for their purchases. As a result, 67% of customers changed their shopping habits.
Additionally, as consumers adapted to the new reality of the COVID-19 outbreak, they continued to make purchases from e-commerce websites and online marketplaces. This led to a significant increase in the number of businesses selling auto parts online in Brazil, Spain, and Japan, as consumers increasingly shift towards digitalization. The pandemic's impact on the sector has also led to increased competition and acquisitions as companies seek to recover from the drop in global product demand. Despite the pandemic's negative effects on many industries worldwide, the e-commerce automotive aftermarket can aid market recovery by offering clients improved safety and convenience in purchasing.
The study's key findings reveal that the global e-commerce automotive aftermarket market has been divided into five primary regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). The North America and Europe e-commerce automotive aftermarket markets are driven by technological advancements, the presence of major players, a higher rate of new technology adoption, improved manufacturing infrastructure, and favorable economic conditions. Additionally, the increased average vehicle age by more than 24 months is a contributing factor to the success of the automotive aftermarket. As a result, these factors have led to a rise in demand for e-commerce automotive aftermarket products in these two regions.
Moreover, the e-commerce automotive aftermarket market in North America is expanding due to the continued production of commercial vehicles. The sustained production of commercial vehicles in the region has aided the growth of the automotive industry in North America.
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