Amongst several factors that drive the growth of the automotive aftermarket e-retailing market, the prime among them is the convenience of purchasing automotive products online. This eventually drives the market to grow at an accelerated CAGR of 20% till 2025.
According to the recent market study by Technavio, a leading global technology research and advisory company, the Automotive Aftermarket E-retailing Market Share is expected to increase by $ 56.74 billion from 2020 to 2025.
The report finds that convenience is an essential parameter for retail customers in the automotive industry. Vendors in the automotive industry and aftermarket e-retailing market give preference to technology. This is because it provides convenience and simplifies the process of purchasing automotive products. E-retailing has generated high interest in the customer segment in recent years, particularly in developed countries with organised aftermarkets, the report said.
The last decade witnessed tremendous growth of the e-commerce industry in developed countries, such as the US, China, and the UK. The primary reason for this growth has been the convenience of shopping, which has led to the broader scalability of businesses across the globe. Regions that offline stores did not serve have become accessible through online sites.
The automotive aftermarket eRetailing market is observing changing trends and developments in terms of the growing popularity of online channels. E-commerce platforms play an essential role in the rapid revenue growth in the automotive aftermarket. The expanding product portfolio includes automotive products, ranging from replacement parts to oils sold through online commercial sites.
The report provides a detailed analysis of drivers & opportunities, top winning strategies, competitive scenario, future market trends, market size & estimations, and significant investment pockets, the research and advisory company said.
According to the report, North America will register the highest growth rate of 36% among the other regions. The US is the key market for automotive aftermarket E-retailing. However, market growth in North America will be slower than the market's growth in other regions.
The automotive aftermarket e-retailing market is fragmented, and the vendors are deploying organic and inorganic growth strategies to compete in the market.
The automotive aftermarket e-retailing market in North America is expected to garner significant business opportunities for the vendors during the forecast period. The US is the key market for automotive aftermarket e-retailing in North America. However, market growth in this region will be slower than the market growth in the South American, APAC, and MEA regions, the report observed.
The growing population of vehicles will facilitate the automotive aftermarket e-retailing market growth in North America over the forecast period, the research and advisory company noted.
Courtesy: Technavio.