Automotive E-Tailing Market

Global Automotive E-Tailing Market Size (2024 to 2032)

The global automotive e-tailing market was valued at USD 60.41 billion in 2023 and is anticipated to reach a valuation of USD 68.17 billion in 2024 from USD 179.32 billion by 2032, growing at a CAGR of 12.85% from 2024 to 2032.

E-tailing is defined as the purchase and selling of goods through electronic media (Internet). It includes only the Business-to-Consumer (B2C) segment, where the business sells goods directly to the consumers via online platforms. E-tailing for automotive is growing due to increasing demand for automobile components as vehicle sales are growing. However, certain factors, such as fraud and security concerns, are restraining the Automotive E-tailing market's boom.

Market Drivers

The global Automotive E-Tailing Market is witnessing tremendous growth due to the growing penetration of online shopping. Besides, the increasing sales of automobiles have led to an increased demand for components and parts, hence driving the market. Moreover, the rising investments in e-tailing platforms and demand for omnichannel insights propel market growth.

Market Restraints

The major factors restricting the global automotive e-tailing market's growth are online payment frauds and counterfeit parts, prohibiting customers from purchasing automotive components online, thus curtailing demand. The lack of internet penetration in remote areas of countries like China, India, etc., is another hindrance for the global e-tailing players as the Asia-Pacific is the biggest market for vehicle manufacturing and sales. These factors could negatively affect the increasing demand for automotive e-tailing services globally and could restrict growth.

Impact of COVID-19 on Automotive E-Tailing Market

The global spread of the coronavirus pandemic has disrupted how people buy products and services and perceive e-commerce. The strict lockdown conditions across the globe and the rising concerns among consumers to go outside and purchase goods have shifted them towards digital channels. Consumers have switched from shops, supermarkets, and shopping malls to online portals to purchase products, ranging from essential commodities to branded goods. 

Since social distancing has been initiated for 2020, the scope of online purchases and online businesses is likely to surge. Many people have started to embrace the concept of online retail and the surge in FTUs (First Time Users) on e-commerce sites is visible.

REPORT COVERAGE

SEGMENT ANALYSIS

Global Automotive E-Tailing Market Analysis By Component Type

The automotive e-tailing market is at a convergent point where start-ups are coming up with more and better services and discounts and offering the latest technologically advanced products, like sophisticated entertainment and information systems, without compromising the safety quotient of the vehicle.

Consumers, especially youth, are demanding more innovations, which is likely to influence the brand purchase decision. Cars play a crucial role in supporting customers' needs to stay connected. About 72% of younger millennials thought that a vehicle is vital to their social life, and they believe infotainment features a mandatory while purchasing a vehicle. Along with these, the increasing penetration rate of mobiles is influencing the buying channels.

Global Automotive E-Tailing Market Analysis By Vendor Type

The online sales of automotive components via third-party vendors like Alibaba Group Holding Limited, Amazon.com, Inc., and O'Reilly Auto Parts are estimated to register the fastest growth during the forecast period. The increasing internet penetration coupled with the discount offered is pushing the online sales of automotive components. Low pricing strategy, multiple online offers, and the feature of comparing parts online based on specification, cost, and guarantee, are further propelling the global automotive e-tailing market.

Global Automotive E-Tailing Market Analysis By Vehicle Type

The sales of vehicle parts for the passenger car segment through online channels are expanding at a rapid pace in this market. The development can be associated with the growing sales of passenger cars worldwide, which are at present valued at about 1 billion. The surge in internet penetration, the rise in the sales of passenger cars & the existing vehicle population, and the ease and cost-efficiency of purchasing parts online are the major factors contributing to this business growth.

REGIONAL ANALYSIS

Customers in North America are using e-tailing more, and about 70-80% of the customers in the area check online before purchasing an automotive part. Online and mobile channels are estimated to value about USD 40 billion in sales for automotive parts and components in North America and Europe combined by 2020.

As auto parts sales continue to grow, e-tailing has now become one of the most popular sales channels in the USA auto parts market over recent years. It is predicted that the sales at the major auto parts chains in the United States surged 7% year-on-year since 2016, registering a much more significant growth than the combined sales of automotive vehicles in the country, which rose only 1% year-on-year over the last decade.

The Asia Pacific is estimated to be the biggest market for Automotive E-tailing and is anticipated to be heading the global market by the end of the forecast period. This expansion is associated with deepening internet penetration and the popularity of new technologies like smartphones in this region. Emerging countries such as China, Japan, and India are the primary markets for the high vehicle population in the Asia Pacific area.

KEY MARKET PLAYERS

Continental AG (Germany), Robert Bosch GmbH (Germany), AutoZone, Inc. (U.S.), Amazon.com, Inc. (U.S.), Delticom AG (Germany), Wal-Mart Stores, Inc. (U.S.), eBay Inc. (U.S.), Flipkart (India), Advance Auto Parts, Inc. (U.S.), Alibaba Group Holding Ltd. (China), O'Reilly Automotive Inc. (U.S.). These are the market players dominating the global automotive e-tailing market.

RECENT HAPPENINGS IN THE AUTOMOTIVE E-TAILING MARKET

• In May 2018, Walmart Inc. signed a deal, becoming the largest shareholder in the Indian e-commerce company, Flipkart. The company also announced that the investment would benefit India by providing quality and affordable goods for customers while creating job and supplier opportunities. The deal was completed in August 2018.
• In April 2018, Hero MotoCorp launched an e-commerce portal to retail Hero genuine parts and accessories for its two-wheeler products.
• In May 2017, Amazon announced its plans to expand its R&D centre in Cambridge, the United Kingdom, and is planning to increase employee strength.
• In April 2017, Walmart Inc. planned to increase its number of stores from 21 to 50 in India in the next three years.

DETAILED SEGMENTATION OF THE GLOBAL AUTOMOTIVE E-TAILING MARKET INCLUDED IN THIS REPORT

This research report on the global automotive e-tailing market is segmented and sub-segmented into the following categories.

By Component Type

• Infotainment  
• Interior Accessories  
• Engine Components 
• Tires   
• Electrical Products

By Vendor Type

• OEM    
• Third-Party

By Vehicle Type

• Passenger Car
• Commercial Vehicle 
• Two-Wheeler

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa