Market Trends of Automotive E Tailing Industry
This section covers the major market trends shaping the Automotive E-tailing Market according to our research experts:
The Infotainment and Multimedia Segment to Hold Major Share in the Market
The automotive infotainment and multimedia market has dynamic divisions, including OEMs and aftermarket players. The automotive e-tailing market is at a convergent point where startups are coming up with more services and offers and are providing the latest technology products, such as sophisticated entertainment and information systems, without compromising on the safety quotient of the vehicle.
Infotainment and multimedia are the collection of hardware and software that provides audio and video entertainment. These infotainment and multimedia systems include applications such as dashboards, connectivity devices comprising Bluetooth, and audio-video systems. Increasing demand for advanced convenience and comfort systems will grow the infotainment and multimedia market.
Consumers, especially the younger generation, are more digitally oriented, which is expected to impact the next vehicle brand purchase decision. For example, more than 70% of younger millennials cite technology and infotainment features as a must when purchasing a car. Along with these, the higher penetration rate of mobiles influences the buying channels.
The online demand for infotainment and multimedia products is also getting influenced by factors such as free shipping, more customer reviews about the product, and huge varieties in the product list, along with customization options. The automotive infotainment and multimedia products' demand through e-tailing is growing swiftly as the penetration rate of IoT is gaining traction from consumers.
North America Region is Anticipated to Play a Significant Role in the Market
The United States is expected to hold a dominant share in the entire North American region and is likely to occupy a major market share in the overall market during the forecast period. Online and mobile channels are expected to drive demand in the region as sales of auto parts across various online mediums are picking up over recent years.
Rising demand for hassle-free purchasing, the presence of well-developed infrastructure, the growing preference of regional consumers for online shopping, and the high demand for premium and luxury cars will considerably drive the market growth in the North American region. In addition, key automotive e commerce companies in the region, such as Alibaba Group, Amazon.com, Ebay Inc., and Flipkart Internet Private Limited, further create a positive market environment.
Amazon announced its entrance into the auto parts market. Amazon announced this as the company has struck deals with major auto parts suppliers in the country, including Robert Bosch, Federal-Mogul, Dorman Products, and Cardone Industries, to sell their auto parts directly through Amazon. The company has kept its auto parts prices averagely of 23% less than its brick-and-mortar rivals, such as Autozone, Advance Auto Parts, and O'Reilly Auto Parts.
E-tailing sellers continue to expand their auto parts businesses and improve their quick, on-time parts delivery services. Moreover, several niche online auto parts retailers are also doing great work by serving the very narrow segments of the auto parts market. This may also help boost e-tailing auto parts sales in the North American region over the forecast period.
