Market Research Report
Automotive E-tailing Market - Growth, Trends, and Forecasts (2020 - 2025)
|Published by||Mordor Intelligence LLP||Product code||937990|
|Published||Content info||85 Pages
Delivery time: 2-3 business days
|Automotive E-tailing Market - Growth, Trends, and Forecasts (2020 - 2025)|
|Published: May 1, 2020||Content info: 85 Pages||
The automotive e-tailing market is anticipated to register a CAGR of over 10% during the forecast period (2020 - 2025).
The Infotainment and Multimedia Segment to Witness a Significant Share
The automotive infotainment and multimedia market has dynamic divisions, as it includes OEMs and aftermarket players. The automotive e-tailing market is at a convergent point where startups are coming up with more number of services and offers and are providing the latest technology products, such as sophisticated entertainment and information systems, without compromising on the safety quotient of the vehicle.
Consumers, especially the younger generation, are more digitally oriented, which is expected to impact the next vehicle brand purchase decision. Cars play a key role in supporting customers' needs to stay connected. Around 72% of younger millennials thought that a car is important to their social life. For example, more than 70% of younger millennials cite technology and infotainment features as a must when purchasing a car. Along with these, the higher penetration rate of mobiles is influencing the buying channels.
The online demand for infotainment and multimedia products is also getting influenced by factors, such as free shipping, more number of customer reviews about the product, and huge varieties in the product list, along with customization options. The automotive infotainment and multimedia products' demand through e-tailing is growing swiftly, as the penetration rate of IoT is gaining traction from consumers.
North America Holds a Significant Share in the Global Market
The customers in North America are using e-tailing more and approximately 70-80% of the customers in the region research online before making a part purchase. Online and mobile channels are expected to account for nearly USD 40 billion in sales for automotive parts in North America and Europe combined, by 2020.
As the sales of auto parts in the United States continue to grow, e-tailing has now become one of the most popular sales channels in the US auto parts market, over recent years. It is estimated that the sales at the major auto parts chains in the United States increased 7% year-on-year since 2016, registering a much bigger growth than the total sales of automotive vehicles in the country, which grew only 1% year-on-year, over the last decade.
The recent trend in the US auto parts market is that increasing sales are shifting from brick and mortar sellers to online e-commerce marketplaces. In early 2017, Amazon announced its entrance into the auto parts market. Amazon announced this, as the company has struck deals with various major auto parts suppliers in the country, including Robert Bosch, Federal-Mogul, Dorman Products, and Cardone Industries, in order to sell their auto parts directly through Amazon. The company has kept its auto parts prices averagely 23% less than its brick and mortar rivals, such as Autozone, Advance Auto Parts, and O'Reilly Auto Parts.
E-tailing sellers continue to expand their auto parts businesses and improve their quick on-time parts delivery services. Moreover, several niche online auto parts retailers are also doing a great work by serving the very narrow segments of the auto parts market, which may also help in boosting e-tailing auto parts sales in the United States, over the forecast period.
The automotive e-tailing market is dominated by several players, like AutoZone Inc., Alibaba Group Holding Limited, Amazon.com Inc., Walmart Inc., eBay Inc., O'Reilly Automotive Inc., and Flipkart. The market has witnessed several developments, in terms of both vehicle manufacturers establishing their own e-commerce portals and e-commerce giants acquiring local companies to expand their footprint across the world. Few such instances are mentioned below: