Recently, one of our fellow Zmags employees was a little too committed to our mission for fast ecommerce when she was pulled over for speeding this past week. This got me thinking about how a need for speed is becoming one of ecommerce top demands. Specifically, in the automotive ecommerce market, online consumer trends are expected to increase in the next ten years. The ecommerce automotive aftermarket industry is about to go at full throttle and we have gathered the statistics to prove it.
According to Global Market Insights, Inc., the automotive ecommerce industry is expected to surpass $30 billion by 2025. Trends show the automotive aftermarket industry to grow in both business-to-business (B2B) and business-to-consumer (B2C) marketplaces. And by 2025, the global ecommerce automotive aftermarket will generate a demand for more than 1 billion units. Interestingly, the average age of a car is about 11.33 year while the growth of this number has increased more than 10% in the past five years. So why is the digital market growing if consumers are holding on to their cars longer? It’s actually because older care makes require more repairs and maintenance, thereby necessitating more aftermarket parts.
By 2035, projected ecommerce share of parts is expected to increase from 20 to 30%. With this increase, digital channels will also be increasing their influence on customers’ journey. This up and coming market will need to focus on creating online communities and reviews where prospects can evaluate their purchase decisions. This industry is influenced by several factors including an aging vehicle fleet, growth of global ecommerce industry, and digitization of channels and interfaces. The ecommerce automotive aftermarket products’ share will be increased by a factor of three, from a current 6% to almost 20% within the next 10 years. These products include software, services, and hardware like telematic devices, driver monitoring software, and fleet management, respectively.
Regionally, Europe is expected to see the most froth in the automotive ecommerce market due to the continent’s growth in ecommerce. Customers are switching to online purchasing because of the greater flexibility, personalization, and customization of the automotive parts. Ecommerce automotive aftermarket is gaining more trust with consumers since more buyers realize that purchasing over-seas have multiple benefits. These customer benefits include lower costs and a wider range of products or brands.
The boom of ecommerce leads to increased simplicity cross channels and over the past decade, this consolidation has shifted the power dynamic in the industry. Being able to sell directly to the end buyer through digital platforms, has increased the reliability in automotive aftermarket businesses. With the automotive ecommerce market exploding, now is clearly the time for digital marketers to rev their engines and invest in innovative new ways to sell to a growing audience.