E-Commerce Automotive AfterMarket Research Report and Outlook by 2028

The global market for e-commerce in the automotive aftermarket is projected to expand significantly, increasing from US$ 57,301.1 million in 2022 to US$ 160,985.4 million by 2028. This growth represents a compound annual growth rate (CAGR) of 18.8% over the forecast period from 2022 to 2028.

The Asia-Pacific (APAC) region is home to a robust automotive sector, with China and India playing pivotal roles in the global automotive manufacturing landscape. In 2020, India manufactured 3,394,446 vehicles, while China solidified its position as the leading producer of both passenger cars and commercial vehicles, with an impressive output of 25,225,242 units, as reported by countryeconomy.com. The rising demand for the e-commerce automotive aftermarket in this region is largely driven by the growth of the passenger car and commercial vehicle production industries. Additionally, the increasing popularity of electric vehicles (EVs) is a significant factor propelling the expansion of the e-commerce automotive aftermarket in APAC.

According to the Automotive Federation Report from the Association of Southeast Asian Nations (ASEAN), vehicle sales across ASEAN member countries reached 2.45 million in 2020, bolstered by population growth and economic advancement. The adoption of EVs is anticipated to rise, driven by environmental concerns and the push for sustainable transportation options. ASEAN has enacted supportive policies to encourage EV adoption, with the International Renewable Energy Agency predicting that by 2025, 20% of all vehicles in Southeast Asia, including 59 million two- and three-wheelers and 8.9 million cars, will be electric.

Moreover, the trend of EV adoption is gaining momentum in the APAC region, with several ASEAN nations implementing measures to boost electric vehicle usage. For instance, Brunei Darussalam introduced its inaugural climate change policy in 2020, aiming to elevate the proportion of EVs in total vehicle sales to 60%. This trend is expected to further stimulate the growth of the e-commerce automotive aftermarket, particularly for products that enhance luxury and sports vehicles with advanced safety features and improved fuel efficiency.

Additionally, the rapid growth of the e-commerce automotive aftermarket in China can be linked to the country's booming e-commerce sector, advancements in social media, and the increasing prevalence of mobile payment solutions. Major players in the Chinese market include Alibaba, Amazon, Tmall, and JD.com. As the automotive e-commerce sector continues to flourish, it is anticipated to further bolster the e-commerce automotive aftermarket in the APAC region.

Effects of the COVID-19 Pandemic on the APAC E-commerce Automotive Aftermarket

The COVID-19 pandemic initially disrupted product inventories and demand across China, India, and South Korea, as manufacturing plants and warehouses faced lockdowns. In the first half of FY 20-21, the automotive sector in India experienced a 34% decline in turnover, according to the Automotive Component Manufacturers Association of India. However, as the economy began to reopen, automobile sales showed consistent improvement each month during the second quarter of 2021. Furthermore, the ongoing pandemic led to a significant surge in online orders and transactions within the APAC e-commerce sector during the latter part of 2020. The growth of the automotive industry contributed to a continuous increase in the demand for aftermarket car components through e-commerce platforms in APAC, positively impacting the e-commerce automotive aftermarket sector.

The e-commerce automotive aftermarket is segmented by product type, which includes braking components (such as brake pads, hydraulics, and rotors), steering and suspension parts (including ball joints, tie rods, and bearings), as well as other components like hub assemblies, universal joints, gaskets, filters, and spark plugs. The market is also divided into two consumer categories: B2B (business-to-business) and B2C (business-to-consumer). Geographically, the global e-commerce automotive aftermarket market is segmented into five key regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM).

To assess the size of the e-commerce automotive aftermarket, both primary and secondary research methodologies have been utilized. Comprehensive secondary research has been conducted using both internal and external sources to gather qualitative and quantitative data relevant to the market. This research process also includes an overview and forecast for the e-commerce automotive aftermarket, taking into account all market segments. Additionally, primary interviews have been conducted with industry experts, including VPs, business development managers, market intelligence managers, national sales managers, and external consultants, such as valuation experts, research analysts, and key opinion leaders specializing in the e-commerce automotive aftermarket.

Key players in the e-commerce automotive aftermarket include Alibaba Group Holding Limited, Amazon.com, Inc., AutoZone, Inc., Shopee365, CATI S.p.A., eBay Inc., LKQ Corporation, The Pep Boys, CarParts.com, Inc., and Denso Corporation.