Market Research Future (MRFR), in comprehensive research report, forecast the Global Automotive E-commerce Market to expand at a compound annual growth rate (CAGR) of 24.8% between 2022 and 2030.
The global automotive e-commerce market, according to MRFR, is growing at a rapid pace, mainly due to the rising sales of vehicles and demand for OEM technologies. E-commerce business offers an attractive prospect for new and old car sales. Besides, the growing consumer awareness about the advertising potential and the ease & speed that ecommerce platforms offer substantiate the market size.
With the spurring rise in the automotive sector and economic growth worldwide, the market value is estimated to escalate further over the next few years, MRFP highlighted in the report. Matured industry players make strategic investments to drive research and development activities and expansion plans.
The rise in global economy OEMs and MRO service outsourcing are major driving forces driving the automotive e-commerce industry. The report also cited the rising availability of online warehouse distributors and automotive stores as one of the reasons for the significant growth of the automotive e-commerce. Technological upgrades and the development of many e-commerce platforms push the growth of the market.
“Today, consumers prefer buying automobiles and components online. Simultaneously, major international players such as Amazon and Alibaba are expanding their global platforms by buying up smaller local platforms, especially in emerging markets. Furthermore, the growth of the global e-commerce industry and digitization of channels and interfaces push the market revenues. The rise in internet penetration, per capita income of the consumers, and the number of online shoppers positively impact market growth”.Market Research Future
According to the report, digitization has allowed substantial improvements in the value chain and decreased lead times for workshops and customers. With the shortening value chain, the margin of distributors and middlemen can be divided among customers, parts manufacturers, and online players. Also, the reduction in trade steps has enabled the market players to expect lower and more stable margins, the authors underscored.
The report points out that the onset of coronavirus affected the automotive e-commerce market severely. Supply chain bottlenecks influenced the factory decisions of automakers and OEMs. Manufacturers struggled with shortages of several body parts & key raw materials and decided to restrict production. Also, the pandemic obstructed sales of new automobiles in the automotive e-commerce market.
However, the automotive e-commerce market is rapidly returning to normalcy, witnessing the steadily increasing demand. The value of the automotive e-commerce market would pick up further following the uplift of the lockdown in many countries, the report stated.
The market is segmented into components, vehicle types, consumers, and regions. The component segment is bifurcated into infotainment & multimedia, engine components, tires & wheels, interior accessories, electrical products, and others.
The vehicle type segment is bifurcated into heavy commercial vehicles (HCVs), light commercial vehicles (LCVs), and passenger cars. The consumer segment is bifurcated into B2B and B2C. The region segment is bifurcated into Asia Pacific, North America, Europe, and the Rest-of-the-World.
The regional analyses show that Europe dominates the global automotive e-commerce market. The rising adoption of e-commerce platforms with greater flexibility and customization features in addition to increasing online sales of automotive components drive the market growth. The growing inclination of consumers towards purchases from international markets where the low-cost components and a wider range of products or brands are available boosts the market size.
List of the companies profiled in the global Automotive E-Commerce Market research report included: eBay Inc. (US), Amazon.com, Inc. (US); Taobao (China); Alibaba Group Holding Limited (China); Tmall.com (China); Wal-Mart Stores, Inc. (US), among others.