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The automotive e-retail market share is expected to increase by 21647.32 thousand units from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 17.49%.
This automotive e-retail market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers automotive e-retail market segmentations by product (passenger cars and two-wheelers) and geography (North America, APAC, Europe, South America, and MEA). The automotive e-retail market report also offers information on several market vendors, including Alibaba Group Holding Ltd., Asbury Automotive Group Inc., AutoNation Inc., eBay Inc., Group 1 Automotive Inc., Hendrick Automotive Group, Lithia Motors Inc., Penske Corp., Scout24 AG, and TrueCar Inc. among others.
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Based on our research output, there has been a positive impact on the market growth during and post COVID-19 era. The ease and convenience of buying cars and two-wheelers online is notably driving the automotive e-retail market growth, although factors such as cost pressure on vendors due to price sensitivity may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the automotive e-retail industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Automotive E-retail Market Driver
The ease and convenience of buying cars and two-wheelers online is a major factor driving the global automotive e-retail market share growth. The advantages and benefits associated with buying cars and two-wheelers online drive the growth of the global automotive e-retail market. The emergence of various e-commerce platforms has increased the sales of several products. Most products and services can be purchased online due to the wide penetration of e-commerce companies in various industries, such as electronics, apparel, groceries, and automobiles. Several new automotive retailers launched their e-commerce platforms in the last decade. The number of automotive retailers that sell cars increased due to a rise in Internet penetration, improvements in infrastructure, and changes in customer lifestyle. Customers prefer purchasing vehicles online due to convenience. They do not have to visit dealerships to compare vehicles, test drive their choices, and seek advice about financing options. On online platforms, customers can select vehicles, compare features and specifications, and request for a test drive. Most vendors allow customers to trade-in or sell their old vehicles. They also provide financing options such as EMIs and accept full online payments. Such benefits drive the growth of the global automotive e-retail market.
Key Automotive E-retail Market Trend
The popularity of automotive e-retail in APAC is another factor supporting the global automotive e-retail market share growth. APAC dominates global e-commerce sales. The presence of a large consumer base, the untapped of the market, improvements in infrastructure, increasing disposable incomes and improvements in socioeconomic conditions drive the growth of the e-commerce market in APAC. The popularity of automotive e-retail is increasing in the region, especially in fast-growing automotive markets such as China and India. For instance, Alibaba, an online retailer that is based in China, now provides vehicles on its online platform. Customers in China can book or buy new vehicles through the company's website. Several electric vehicle manufacturers that are in China have partnered with Alibaba to sell their vehicles online as the demand for electric vehicles is high in the country, which is the largest market in the world. In India, online retailers such as Paytm offer customers the option to book new vehicles of various brands through their online portal. Paytm offers various models of brands such as RIPL and Tata Motors Ltd. The popularity of online vehicle sales is expected to result in several e-commerce companies selling vehicles online, which will drive the growth of the market during the forecast period.
Key Automotive E-retail Market Challenge
The cost pressure on vendors due to price sensitivity will be a major challenge for the global automotive e-retail market share growth during the forecast period. Vendors are facing cost pressure, amid intense competition, to gain a competitive advantage. They are looking to attract new customers as well as increase sales by offering lower selling prices and discounts. However, such strategies of vendors are increasing cost pressure, which is a challenge for the growth of the market. Digitalization and improvements in Internet connectivity have widened the availability of options for customers, which can also be observed in the global automotive e-retail market, where price sensitivity is a major challenge due to the competitive pricing strategy of vendors. Competitive pricing is causing cost pressure on vendors and decreasing their operating margins. The management of inventory levels, operational costs, and human resources is also causing cost pressure. Cost pressure is also increasing due to intense competition. Therefore, cost pressure is a challenge for the growth of the global automotive e-retail market.
This automotive e-retail market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Technavio categorizes the global automotive e-retail market as a part of the global internet and direct marketing retail market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the automotive e-retail market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the automotive e-retail market encompasses successful business strategies deployed by the key vendors. The automotive e-retail market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The automotive e-retail market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the automotive e-retail market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of global internet and direct marketing retail market includes the following core components:
The report has further elucidated on other innovative approaches being followed by service providers to ensure a sustainable market presence.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Product
6 Customer landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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