North America E-commerce Automotive Aftermarket Size was USD 13.78 billion in 2019 and the market will grow at a CAGR of 13.7% up to 2026.
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Increasing competitiveness owing to the presence of a large number of market players will positively influence industry growth in the region. The increasing ability to directly influence installers, end-users, and DIYer through the development of digital platform allows connectivity between manufacturers and customer base. The integration of brick and click channel offering direct avenues into developed markets enables suppliers to have control over the brand value. Auto parts suppliers in the region are continuously looking for opportunities to improve customer interaction with aftermarket parts. Furthermore, technological advancements to maximize customer convenience with enhanced internet and logistics infrastructure and promote online shopping will increase the number of online distribution sites. The above-mentioned factors will, in turn, encourage the e-commerce automotive aftermarket industry over the forecast time span.
The disruption in value chain due to closure of several manufacturing facilities and warehouses across the U.S. and Canada due to the COVID-19 pandemic may hamper shorth-term demand, logistics infrastructure, and product inventory in the near term. Nevertheless, distinct services offered by online channel distributors with respect to service, repair, and replacement will surge market size.
Based on the retail, the third-party retailers segment accounted for a dominant share of around 95% in the market and is likely to grow at a significant rate by 2026. The growth in the segment can be attributed to the emergence of online shopping platforms, such as Amazon, eBay, Pep Boys, and Rock Auto, across the region. Factors including same-day delivery; fiscal benefits, such as EMI; and the availability to compare product specification will remain as the key driving factors for demand in the segment.
The rising preference for Do-It-Yourself (DIY) among consumers will drive the industry growth. The presence of multiple brands to compare features, pricing, and customer reviews regarding the product will propel third-party retailers growth. High investments by e-retailers due to increasing consumer spending on online shopping will open new avenues for industry growth over the coming years.
Shifting preferences of manufacturers and consumers toward light, compact, and cost-effective components in automobiles will propel the market growth of hub assemblies. Consumer preference for quality & performance of hub assemblies to reduce friction and boost the overall fuel efficiency will surge product sales over the forecast period. Furthermore, ongoing technological advancements with respect to the usage of composite materials and lightweight replaceable parts that require minimum service & repair will positively influence product penetration in the region. In addition, an increasing demand for replacement of several automotive accessories such as brake pads, hydraulics & hardware, and rotor & drums in aging vehicles will provide a strong business outlook for the e-commerce automotive aftermarket over the anticipated timeframe.
The B to small B consumers segment is set to witness over 13.5% CAGR in North America e-commerce automotive aftermarket as it mainly includes equipment suppliers who buy basic automotive components. Manufacturers of sub-assembly systems and electronic components are among the major consumers in the B to small B distribution segment. High profit margins and quick delivery along with easy availability of parts are the key factors, driving the B to small B consumers segment. Additionally, reduced complexity in product purchases including RFQs and quotations will provide a positive outlook for the e-commerce automotive aftermarket industry growth in the near future.
The industry demand is led by the increasing DIY penetration in the U.S. and Canada over recent years. The availability of a large number of digital channel platforms is predominantly enhancing customer reach and affecting consumer purchasing decisions positively in the region. In addition, increasing trends to review product feedback, obtaining distributor information, and post-purchase offered services by product manufacturers are the key trends fueling the U.S. e-commerce automotive aftermarket size. Furthermore, increasing trends toward DIY in the U.S. with customers preferring selection of the product for the vehicle will surge the industry growth in the near term.
Cost-effective product availability, compatibility with vehicles, and real-time tracking of the product delivery status are the key trends encouraging competition in the market over recent years. Some of the prominent industry players propelling the industry are U.S. Auto Parts Network, Inc., Alibaba Group, Amazon, Auto Zone, eBay Inc., Sears, Denso Corporation, Napa Auto Parts, Bosch Group, and Advance auto parts.