E-Commerce Automotive Aftermarket Size, Share & Trends Report

E-Commerce Automotive Aftermarket Size, Share & Trends Analysis Report By Replacement Parts (Lighting, Engine Parts, Braking Systems, Transmission & Steering), By End Use, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Jul, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68039-396-6
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 154

Report Overview

The global e-commerce automotive aftermarket size was valued at USD 53.78 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 14.6 % from 2021 to 2028. The rising need for people and independent retailers to access more affordable automotive parts for sale in the aftermarket offers an impetus to the market. Traditional automotive retailers are also adopting e-commerce sales channels to increase revenue generation and offer better product offerings to customers. This ongoing trend of pure-play retailers deploying e-commerce strategies is projected to fuel the growth of the market.

U.S. e-commerce automotive aftermarket size, by replacement parts, 2017 - 2028 (USD Billion)

The ongoing trend of customizing and designing automotive interiors and exteriors according to their desires and interests further offers an impetus to market growth. Discretionary products such as lighting and accessories are often bought for personalization purposes. This reduces the issues related to installation costs and speed of delivery, thereby reducing the impact of choosing and installing the wrong products. These accessories are easier to ship due to their small size, enabling shoppers to install them in a DIY fashion.

The COVID-19 pandemic has resulted in significant disruption of the e-commerce aftermarket. COVID-19 reduced automotive manufacturing and product development activities in several places in the world due to lockdown implementations by several regional governments. Additionally, global restriction of supply chain activities, shutting down of businesses, and reduced sales have promoted traditional players to deploy e-commerce sales channels for automotive equipment. This trend has resulted in more efficient sales and which, when coupled with traditional sales practices, is expected to offer promising growth opportunities over the forecast period.

The lighting segment captured the highest growth rate over the forecast period and is expected to capture nearly 7% revenue share over the forecast period. This can be attributed to the ongoing demand of customers to attach customized lighting setups in their automobiles for enhanced aesthetic and functionality purposes. Lighting systems attributes such as being less bulky, cost-effective, easy installation, several buying options, and a well-established supply chain leads to effective continual business practices for automotive lighting solutions providers. Additionally, the emergence of new lighting technologies such as higher temperature resistance and more energy-efficient lighting and their easy availability is offering an impetus to market growth.

Replacement Parts Insights

The transmission and steering segment captured the highest revenue share of 22.7% in 2020. This can be attributed to the upsurge of motor vehicles and the subsequent requirement to replace broken down and old parts. There has also been an increase in the average age of vehicles, subsequently facilitating the need to maintain and upgrade to new replacement parts. This ensures optimum fuel efficiency and utilization, ensure maneuverability and effortless driving, and mitigate costs associated with parts change as levied by the company.

The market by transmission and steering replacement parts has been segmented into clutch assembly systems, gearbox, axles, wheels, and tires. The tires segment captured the highest revenue share and is expected to maintain its dominance over the forecast period. This can be accredited to the need for high-quality, fully treaded tires in all automotive vehicles to ensure safety and easy motility. Electrical parts captured significant revenue share in 2020 and are expected to capture a growth rate of 14.1%. The segment consists of the starter motor, spark plugs, battery, and others. Batteries captured the highest revenue share in 2020, owing to the need to regularly replace batteries in automobiles due to corrosion of battery components. Furthermore, Absorbent Glass Mat (AGM) batteries cannot be recharged and replaced after a stipulated time, leading to market growth.

End-use Insights

The business-to-consumer segment captured the highest revenue share of 65.3% in 2020. This can be attributed to several factors such as easy access to buying options, convenience, and better prices. Furthermore, increasing economies and rising disposable income have further promoted people's engagement in e-commerce automotive replacement parts buying activities. There is also an increase in online car dealings, which has increased car ownership, thus increasing the requirement for replacement parts. This is offering an impetus to market growth.

Global e-commerce automotive aftermarket revenue share, by end use, 2020 (%)

The business-to-business segment captured significant revenue share in 2020 and is expected to witness a substantial growth rate over the forecast period. Business firms that engage in the revamping and customization of automotive designing and interior upgrades are significant contributors to market growth. Several business firms also act as distributors by procuring automotive replacement parts online and supplying them to the local market, thereby helping them control the demand-supply chain in a given region.

RegionalInsights

North America dominated the global market in 2020 with a revenue share of 30.5%. The high revenue share can be attributed to the penetration of a highly organized e-commerce ecosystem that facilitates automotive equipment manufacturers to engage in e-commerce specific aftermarket sales. The rising economy and increasing disposable income in the U.S. promote people to integrate better equipment into their automobiles, further encouraging market growth. The U.S. Environmental Protection Agency and other federal bodies have also laid down strict guidelines regarding materials for auto parts development which promotes manufacturers to focus on high-quality products, thereby regulating the market growth by ensuring that good quality products reach the customer.

Europe is expected to witness substantial growth over the forecast period. The segment captured a revenue share of 28.8% and is expected to expand at a CAGR of 13.5% from 2021 to 2028. An extensive automotive ecosystem in countries such as France, Germany, and the U.K. offers people the opportunity to set up new businesses related to automotive replacement parts. The European Union (EU) has laid down guidelines that simplify e-commerce activities and require the approval of only the home state under the country of origin, thus simplifying the process of setting up e-commerce-based business ventures. Furthermore, a well-defined supply chain industry in countries such as Sweden, Netherlands, and Denmark ensures efficient e-commerce activities, thereby providing growth avenues for the e-commerce aftermarket.

Key Companies & Market Share Insights

Significant companies in the automotive aftermarket sector have started diversifying their service offerings and inculcating e-commerce sales channels to improve revenue generation practices. Auto parts sellers have started increasing investments in B2B interface, merchandising, and e-commerce functionality to improve and enhance their service offerings. For instance, in February 2018, Advance Auto Parts Inc. completed a cross-banner visibility initiative. This has helped the company’s customers and its associates to view inventory in geographically diverse locations.

The COVID-19 pandemic has also promoted companies to embrace e-commerce sales channels. Adopting e-commerce as a sales channel has helped several regional and local players to ensure continual business practices. This has also opened up new distribution channels for equipment manufacturers and distributors, promoting traditional players to indulge in new revenue generation practices. Furthermore, the ability to access data in real-time and minimize losses due to the involvement of intermediaries is driving the market growth. Some of the prominent players operating in the global e-commerce automotive aftermarket are:

  • Advance Auto Parts, Inc

  • Alibaba Group Holding Limited

  • Amazon.com, Inc.

  • AutoZone Inc.

  • CARiD

  • E-bay Inc.

  • Flipkart Private Limited

  • NAPA Auto Parts

  • O’Reilly Auto Parts

  • RockAuto, LLC

  • U.S. Auto Parts Network, Inc.

E-Commerce Automotive Aftermarket Report Scope

Report Attribute

Details

Market size value in 2021

USD 55.55 billion

Revenue forecast in 2028

USD 143.90 billion

Growth Rate

CAGR of 14.6% from 2021 to 2028

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Replacement parts, end use, region

Regional scope

North America; Europe; Asia Pacific; South America; MEA

Country scope

U.S.; Canada; Mexico; Germany; U.K.; France; China; Japan; India; Brazil.

Key companies profiled

Advance Auto Parts, Inc.; Alibaba Group Holding Limited; Amazon.com; Amazon.com, Inc.; AutoZone Inc.; CARiD; E-bay Inc.; Flipkart Private Limited; NAPA Auto Parts; O’Reilly Auto Parts; RockAuto, LLC; U.S. Auto Parts Network, Inc.

Customization scope

Free report customization (equivalent up to 8 analyst working days) with purchase. Addition or alteration to country, regional, and segment scope.

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Segments Covered in the Report

This report provides forecasts for revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the global e-commerce automotive aftermarket report based on replacement parts, end use, and region:

  • Replacement Parts Outlook (Revenue, USD Billion, 2017 - 2028)

    • Engine Parts

      • Piston and Piston Rings

      • Engine Valves and Parts

      • Fuel Injection Systems

      • Power Train Components

    • Transmission and Steering

      • Clutch Assembly Systems

      • Gearbox

      • Axles

      • Wheels

      • Tires

    • Braking Systems

      • Brake Calipers

      • Brake Pads

      • Rotor and Drums

      • Brake Disk

    • Lighting

      • Headlamps

      • Tail lamps

      • Others

    • Electrical Parts

      • Starter Motor

      • Spark Plugs

      • Battery

      • Others

    • Suspension Systems

    • Wipers

    • Others

  • End-use Outlook (Revenue, USD Billion, 2017 - 2028)

    • Business to Business

    • Business to Customer

  • Regional Outlook (Revenue, USD Billion, 2017 - 2028)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • Japan

      • India

    • South America

      • Brazil

    • Middle East and Africa (MEA)

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