Global Automotive E-Commerce Market Size, Share, Forecast Report, 2020-2027
The global E-commerce industry is in a state of expansion with consolidation. More consumers are buying digitally, and worldwide retail E-commerce sales are rising. At the same time, the major international players such as Amazon and Alibaba are widening their reach by buying up smaller local platforms, especially in flourishing e-commerce markets.
The automotive e-commerce market is driven by numerous factors such as aging vehicle fleet, growth of global e-commerce industry, and digitization of channels and interfaces. Factors such as higher price transparency, and greater diversity of parts also support its growth. Rise in internet penetration, per capita income of the consumers, and the number of online shoppers also add to the growth.
The increased influence of digital transformation is also reshaping the global automotive industry. Automotive aftermarket is also witnessing a gradual shift from traditional legacy systems to the digitalized world powered by Big Data, Predictive Analytics, Mobility and IoT. Digitalization allows aftermarket players to further increase the automotive aftermarket’s value as connectivity helps them move closer to the end customer and generate big data. Digitization allows for substantial improvements in the value chain and decreased lead times for workshops and customers. With a shorter value chain, the margin of distributors and middlemen will be divided among customers, parts manufacturers, and online players. The reduction in trade steps has led some players to expect lower and more stable margins.
The market is expected to witness growth opportunities as the major players in the market are collaborating with parts and repair information systems for promoting their automotive e-commerce business. Providers are also offering repair manuals and repair webinars for enabling the customers for proper installation of the automotive parts. E-tailers also offer professional customer hotline for ensuring that the right parts are ordered. However, the identification of damaged parts and installation of the online purchased parts are expected to hinder the market growth. Also, the players witness certain challenges due to the options of variable payment methods, same day delivery policies, and handling the return request of the customers. Thus, the automotive e-commerce market is expected to expand at ~6% CAGR during the forecast period.
Some of the key players in the global automotive e-commerce market include Amazon.com, Inc. (U.S.), eBay Inc. (U.S.), Taobao (China), Tmall.com (China), and Alibaba Group Holding Limited (China). Wal-Mart Stores, Inc. (U.S.), JD.com, Inc. (China), Snapdeal (India), Denso Corporation (Japan), and American Tire Distributors Holdings, Inc.(U.S.) are among others.