U.A.E. E-Commerce Automotive Aftermarket Share, Size, Future Demand, and Emerging Trends
U.A.E. E-Commerce Automotive Aftermarket Share, Size, Future Demand, and Emerging Trends
Blog Article
Market Overview
In 2023, the U.A.E. E-Commerce Automotive Aftermarket achieved a total worth of USD 503.1 million. This market is expected to have a CAGR of 16.3% from 2024 to 2030, during which it will grow from USD 1,444.2 million.
The prominent drivers of market expansion include customer awareness and convenience which are on the rise, the fast-growing number of do-it-yourself (DIY) customers, the increased number of road accidents, and the other one - the selling of more vehicles than ever.
Enhanced information specificity together with the promoted convenience play a critical role when it comes to the online automotive industry. The 24/7 accessibility of a wide range of goods coupled with alike experiences such as purchase hassles, and timely delivery as per consumers’ preference, find their way to online parts purchasing platforms, and those that sell traditional brick and mortar stores.
The extremely large number of e-sellers of automotive parts like Amazon.com Inc. and Noon.com on their platforms is aimed at making it easy for customers to buy automotive stuff. Likewise, the suitability criteria for vehicles to be listed on this platform and store requirements are so that the products and services available at these physical stores are this that they are rendered difficult for common customers to understand and calculate the cost estimations for the services they are deriving from it.
Key Insights
- In 2023, the product category generated revenue the more than USD 0.3 billion.
- The surge in DIY customers has directed to a rising need for numerous automotive items bought online, contributing to a larger industry share.
- The rise of DIY culture in the field of vehicle customization has contributed to the market growth significantly since few do-it-yourself automobile enthusiasts take control of automotive upgrade tasks on their own.
- There are also a few impacts on the market that are worth mentioning such as a huge number of road accidents and the rising number of vehicles.
- The service category is expected to experience faster growth at a CAGR of 16.5% during the forecast period.
- The emergence of DIY culture in vehicle customization has further supported market growth, as enthusiasts take up vehicle upgrade tasks themselves.
- The tire category had a key industry revenue share of approximately 40% over the projection period.
- Fast urban development, industrial growth, and infrastructure development have led to the augmented need for tires for commercial and passenger vehicles.
- Technical improvements have eased online tire services, where customers can buy tires online and have them delivered and installed at their doorstep.
- The lubricants category is projected to experience the highest CAGR of 16.8% over the projection period.
- The automotive aftermarket e-commerce of the UAE suffers from a moderate degree of fragmentation where more than one player and external vendors are involved in selling automotive-based goods and services via internet gateways.
- The major movers in the market have availed themselves of strategic measures of tailormade strategic purpose to strengthen their competitive position and explore the hidden potential.
- This advancement and expansion of internet use combined with e-commerce trend growth in the country have brought about U.A.E. e-commerce auto aftermarket expansion and increased the competitiveness of this sector.
Source: P&S Intelligence Report this page