Huge Growth Expected in Automotive E-Tailing Market in Future

These factors are resulting in the growth of the global automotive e-tailing market, which is predicted to generate a revenue of $59.4 billion by 2023, increasing from $26.1 billion in 2016, exhibiting a 13.1% CAGR during the forecast period (2017–2023). The demand for e-tailing services has also been growing due to the rising sales of vehicles around the globe. The adoption of vehicles has majorly increased in developing countries, such as India and China, where the improved spending power of people has allowed people to buy private vehicles.

The penetration of internet has been surging all over the world. Ascribed to this, the global e-commerce has also been registering significant growth over the years. Since people find online shopping highly convenient, more and more vendors are offering their products on online platforms. The automotive industry has been benefiting from this. Customers are widely making use of internet for getting automotive components, as they are available at discounted prices.

The GDP of various countries has been rising widely since the past few years. Moreover, the number of startups in emerging economies have grown as well. This along with the entry of novel players in the e-commerce market is further predicted to result in the growth of the market during the forecast period. Governments of various countries are taking various initiatives for promoting startups. For example, governments are offering financial aid and are implementing favorable trade policies.

This study covers

  • Major factors driving the market and their impact during the short, medium, and long terms
  • Market restraints and their impact during the short, medium, and long terms
  • Recent trends and evolving opportunities for the market participants
  • Historical and the present size of the market segments and understand their comparative future potential
  • Potential of on-demand logistics services, so the market players make informed decisions on the sales of their offerings
  • Competitive scenario of various market segments across key countries in several regions for uncovering market opportunities for the stakeholders
  • Major players operating in the market and their service offerings

The companies in the industry are engaging in partnerships for expanding their consumer base in various countries. The entry of global players, such as Walmart and amazon, in emerging economies is a major trend that is being witnessed in the domain. The different components that are available on online platforms are powertrain, electrical & electronics, interior accessories, infotainment & multimedia, and tires & wheels, out of all these, the demand for interior accessories has been significantly higher in the past.

Other than this, the demand for tires and wheels from online accessories is also projected to increase considerably in the years to come. The major applications of automotive e-tailing are two-wheelers, commercial vehicles, and passenger cars. The need for e-tailing was the highest for passenger cars in the past, owing to the increasing per capita income in a number of countries. Customers prefer to buy products that are genuine and branded for personal vehicles, such as two-wheelers and cars.

Such products are more reliable and provide increased stability, as they have a longer life span contrary to products that are nor branded. Geographically, the Asia-Pacific region emerged as the largest automotive e-tailing market in the past, and is further predicted to create high demand for e-tailing in the years to come. The improving economic situation in countries including India and China is the major reason for this. Within in the region, China is leading the domain.

Hence, the market is growing due to increasing sales of vehicles, expansion of e-commerce industry, and favorable government initiatives.

Companies at various levels of the automotive industry value chain continue to make brisk business on account of the increasing demand for vehicles for personal and commercial purposes. Making their way from Europe to North America and then to Asia, the Middle East, South America, and Africa, automobiles have literally taken over the world. Now, being machines, they are prone to malfunctioning and require regular repairs and servicing, which is why even individual garages and large auto repair companies are experiencing a perpetual windfall.

As a result, auto part suppliers are witnessing increasing sales around the world. Moreover, the emergence of the online shopping concept has opened up another avenue for auto component companies to offer their products. As a result of these factors, P&S Intelligence expects the automotive e-tailing market to witness a healthy 13.1% CAGR between 2017 and 2023 (forecast period), to reach $59,485.0 million by 2023 from $26,064.0 million in 2016. With the increasing popularity of virtual shopping, auto component companies, garages, and replacement part retailers are becoming increasingly active online.

Around the world, the penetration of smartphones and the internet is growing on account of people’s rising disposable income, launch of cost-effective mobile phones, and government efforts to widen and improve their connectivity services. As a result, an increasing number of people are shifting to online shopping, in which the convenience provided by e-commerce also plays an important role. Online shopping portals allow people to look at multiple products and compare their details without going anywhere, pay via electronic methods, cash-in on heavy discounts, and have the products home-delivered.

The component segment of the automotive e-tailing market is categorized into infotainment and multimedia, tires and wheels, electrical and electronics, interior accessories, powertrain, and other auto components that are available online. Seeing the popularity of this concept, even major e-commerce companies, such as Alibaba, Amazon, and eBay, have begun offering auto parts. While most of the parts offered by the well-known e-commerce websites are genuine, there is a multitude of counterfeit products available too. Considering the reliability of genuine products, the genuine-label products category will witness the faster growth during the forecast period.

Two of the major reasons for the increasing demand for auto parts in the first place are the increasing average age of vehicles and rising number of road accidents. Due to the strong competition, automakers are improving the quality of their offerings, so they can lure customers with a longer life of automobiles. Thus, with people able to drive their automobiles for longer, they are regularly availing of repair and maintenance services.

In the same way, the increasing rate of road accidents is a key automotive e-tailing market growth driver.As the number of automobiles increases, the available space on the roads is reducing, thereby leading to traffic congestion and accidents. Moreover, people themselves don’t drive very well these days, with over-speeding, tightly cutting corners, drunken driving, and talking on the phone when the entire focus should be on the road quite common. As a result, often, road accidents bend vehicles out of shape and something breaks, thereby leading to the need for part replacement.

Therefore, owing to the high vehicle sales and accident rate, Asia-Pacific (APAC) witnessed the highest sale of auto components via online channels in the past. In addition, APAC also accounts for high internet usage and increasing smartphone adoption, which have made e-commerce vastly prosperous in recent years. This is why industry giants, such as Amazon, e-Bay, and Walmart, are increasing their presence in regional countries. Moreover, a number of auto part companies have their manufacturing plants in APAC, which leads to an easy availability of the components online.

Therefore, with the growth in vehicle sales and increasing penetration of e-commerce in the automotive aftermarket , the sale of auto components via online channels will keep rising.

The research offers historical market size of the Global Automotive E-tailing market for the period 2013 – 2016 and market forecast for the period 2017 – 2023.

GLOBAL AUTOMOTIVE E-TAILING MARKET

  • By Application – Passenger Cars, Commercial Vehicles and Two-Wheelers
  • By Product label – Genuine Label Products and Counterfeit Label Products
  • By Vendor type – OEMs and Third Party
  • By Component – Tires and Wheel, Infotainment and Multimedia, Interior Accessories, Electrical and Electronics, Powertrain and Others
  • By Region –Asia-Pacific, Europe, North America, and Rest of the World (RoW).

GLOBAL AUTOMOTIVE E-TAILING MARKET, BY GEOGRAPHY
North America Automotive E-Tailing Market

  • By Application
  • By Product Label
  • By Vendor Type
  • By Component
  • By Country – U.S., Mexico and Canada

Europe Automotive E-Tailing Market

  • By Application
  • By Product Label
  • By Vendor Type
  • By Component
  • By Country – Germany, U.K., France, Russia and Rest of Europe

Asia-Pacific Automotive E-Tailing Market

  • By Application
  • By Product Label
  • By Vendor Type
  • By Component
  • By Country –China, India, Japan and Rest of Asia-Pacific

Rest of the World (RoW) Automotive E-Tailing Market

  • By Application
  • By Product Label
  • By Vendor Type
  • By Component
  • By Country – Brazil, Chile and Rest of RoW

About PramodKr

Check Also

Best Bike Under 1 Lakh for You to Consider

One of the key mediums of commutation for millions of people is the bike. Over …

Leave a Reply

Your email address will not be published. Required fields are marked *