e-commerce automotive after Market

The global e-commerce automotive aftermarket market is expected to grow from US$ 57,301.1 million in 2022 to US$ 1,60,985.4 million by 2028. It is estimated to grow at a CAGR of 18.8% from 2022 to 2028.

The APAC region boasts a strong automotive industry, with China and India being key players in the global automotive manufacturing industry. In 2020, India produced 3,394,446 cars, while China emerged as the world's largest producer of passenger cars and commercial vehicles, with 25,225,242 units produced, according to statistics from countryeconomy.com. The region's growing demand for the e-commerce automotive aftermarket market can be attributed to the expansion of the passenger car and commercial vehicle manufacturing industries. Furthermore, the increasing adoption of electric vehicles (EVs) is another factor driving the growth of the APAC e-commerce automotive aftermarket market.

According to the Automotive Federation Report by the Association of Southeast Asian Nations (ASEAN), total vehicle sales in ASEAN member states reached 2.45 million in 2020, supported by population growth and economic development. The uptake of EVs is also likely to increase due to concerns about pollution and support for eco-friendly modes of transportation. ASEAN has implemented favorable policies to promote the adoption of EVs, with the International Renewable Energy Agency forecasting that 20% of all vehicles on the road in Southeast Asia, including 59 million 2 and 3-wheelers and 8.9 million cars, will be electric by 2025.

In addition, the APAC region has seen a growing trend of EV adoption, with several ASEAN countries taking steps to increase the use of electric vehicles. For example, Brunei Darussalam launched its first climate change policy in 2020, aiming to increase the share of EVs in total vehicle sales to 60%. This trend is expected to further drive the growth of the e-commerce automotive aftermarket market in the region, especially for products that optimize luxury and sports cars with advanced safety features and fuel efficiency.

Furthermore, the surge in the e-commerce automotive aftermarket market in China can be attributed to the country's rapidly growing e-commerce industry, advancements in social media, and increasing availability of mobile payment options. The major players in China include Alibaba, Amazon, Tmall, and JD.com. As the automotive e-commerce industry continues to grow, it is expected to support the growth of the e-commerce automotive aftermarket market in APAC.

Impact of COVID-19 Pandemic on APAC E-commerce Automotive Aftermarket Market

The COVID-19 pandemic initially impeded product inventories and demand in China, India, and South Korea, as manufacturing facilities and warehouses were locked down. In the first half of FY 20-21, the turnover of the automotive industry in India declined by 34%, as reported by the Automotive Component Manufacturers Association of India. However, with the economy reopening, automobile sales improved every month in the second quarter of 2021. Additionally, as a result of the ongoing COVID-19 crisis, the latter months of 2020 witnessed an exponential increase in online orders and transactions in the APAC e-commerce business. The automotive sector's growth led to a continuous expansion for car aftermarket components in e-commerce marketplaces in APAC. The e-commerce sales of such components grew due to the rising demand for automotive aftermarket components, favorably benefiting the e-commerce automotive aftermarket sector.

The e-commerce automotive aftermarket market is categorized by product type, including braking (such as brake pads, hydraulics and hardware, and rotor and drum), steering and suspension (such as ball joints, tie rods, sway bar links, bearings/seals, and others), and other components like hub assemblies, universal joints, gaskets, filters, spark plugs, and more. The market is further divided into two consumer types, B2B and B2C. In terms of geographical segmentation, the global e-commerce automotive aftermarket market is divided into five significant regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM).

To determine the e-commerce automotive aftermarket market size, both primary and secondary research methods have been employed. Extensive secondary research has been carried out using internal and external sources to gather qualitative and quantitative information related to the market. The research process also involves obtaining an overview and forecast for the e-commerce automotive aftermarket market, considering all market segments. Additionally, primary interviews were conducted with industry experts such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants, including valuation experts, research analysts, and key opinion leaders, specializing in the e-commerce automotive aftermarket market.

Alibaba Group Holding Limited, Amazon.com, Inc., AutoZone, Inc., Shopee365, CATI S.p.A., eBay Inc., LKQ Corporation, The Pep Boys, CarParts.com, Inc., and Denso Corporation are among the key players operating in the e-commerce automotive aftermarket market.