North America E-commerce Automotive Aftermarket to Witness Ample Growth by 2026

Published Date: 2020-09-28

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According to the Graphical Research new growth forecast report titled “North America E-commerce Automotive Aftermarket Size By E-commerce Retail (Third Party Retailers, Direct To Customer), By Product (Parts [Braking {Brake Pads, Hydraulics & Hardware, Rotor & Drum}, Steering & Suspension {Control Arms, Ball Joints, Tie Rods, Sway Bar Links, Bushings, Bearings/Seals, Coil Springs}, Hub Assemblies, Universal Joints, Gaskets, Wipers, Filters, Lighting, Spark Plug, Tires], Accessories [Interiors, Exteriors]), By Consumer (B2C, B to Big B, B to Small B), Industry Analysis Report, Country Outlook, Application Potential, Price Trend, Competitive Market Share & Forecast, 2020 – 2026”, to Witness Vast Growth by 2026

North America e-commerce automotive aftermarket is primarily driven by increasing DIY penetration across the U.S. and Canada. Moreover, increasing sales of new and pre-owned vehicles coupled with technological innovation in the automotive industry will induce significant growth potential in e-commerce automotive aftermarket industry. Rise in the sales of electric vehicles, hybrid vehicles, and gas-based vehicles pertaining to shifting interest toward energy-efficient vehicles will fuel the automotive products penetration in e-commerce platform over the coming years.

North America E Commerce Automotive Aftermarket

Customers across the region prefer mobile over desktop for online shopping. In 2019, more than 50% of the online traffic is generated from mobile devices. Retailers are using this opportunity to increase their customer reach. Retailers are focusing on mobile wallets and integrating their websites with mobile wallets to offer effortless checkouts. Moreover, Google is supporting online stores to go mobile to achieve higher ranks in search engine outputs.

Increased data security, simplified payment, and discounts & offers for using e-wallets are encouraging this method of transaction for online shopping. PayPal, Samsung Pay, Apple Pay, Google wallet, and Stripe make check out simpler and secure. The major players are focusing on simplifying the transaction process that will increase the adoption of this technology. For instance, in June 2018, PayPal acquired Hyperwallet that allows small organizations to receive payments from online marketplace.

In the U.S., the Federal Trade Commission (FTC) is in charge of regulating e-commerce transactions. The FTC has published guidelines to help businesses navigate the factors and issues related to cross-border e-commerce transactions. These guidelines have been approved by 29 nations including the U.S., Canada, Germany, Australia, and Japan. The pointers covered under the guidelines are fair business practices, commercial e-mails, marketing, consumer privacy, and recommended practices. Some of the laws passed for regulations of e-commerce transactions are the Federal Trade Commission Act that deals with advertising & marketing and the CAN-SPAM Act of 2003 that established standards for e-mail marketing.

Third party retailers will witness over 13.5% CAGR in North America e-commerce automotive aftermarket size. Rising awareness regarding preventive maintenance of vehicles will drive the segment penetration over the forecast time span. Higher repair cost savings, optimum performance, reduction in major breakdowns, and superior vehicle performance are escalating the industry growth.

Gasket will witness over 12% CAGR with rising concerns to protect sensitive electronics and seal out air, dust, water, light, & electromagnetic interference in automobiles. Gaskets are generally available in a variety of thicknesses and durometers. The increasing adoption rate of fiberglass reinforcement materials for added dimensional stability and better tear resistance is likely to fuel segment growth. Furthermore, the demand for replacements owing to wear & tear of vehicles components over a timespan is expected to propel product sales through e-commerce portals.

Availability of high speed internet, increasing trust on internet transactions, demand for replacement & repair parts and faster delivery drive the e-commerce automotive aftermarket in South Korea. Increasing vehicle demand support the auto parts industry in the country thereby increasing demand for high quality auto parts.

Prominent manufacturers in the North America e-commerce automotive aftermarket include Alibaba Group, Amazon, Flipkart, Auto Zone, E-bay Inc., Denso Corporation, Napa Auto Parts, Bosch, Rock, and several others.