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.
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