The Australian e-commerce in automotive aftermarket was valued at USD 1,503.5 million in 2022, and this number is expected to reach USD 3,822.2 million by 2030, advancing at a CAGR of 12.2% during 2022–2030, as per P&S Intelligence. The industry is motivated by the comfort provided by online shopping platforms, snowballing number of do-it-yourself customers, and the rising automotive aftermarket.
In 2022, the third-party retailer category had the largest revenue share of 69.1%, based on the channel. This growth can be credited to the presence of an extensive range of products and simple transaction processes armed with timely delivery resulting in a swing to the online buying of automotive replacement parts from getting them at the old brick-and-mortar stores.
Furthermore, in 2021 garage owners had the largest share of 45.6% in Australian e-commerce in automotive aftermarket. This is primarily because of the ease, affordability, and easy availability offered to vehicle owners by such entities.
A huge number of e-retailers, including Wal-Mart Stores Inc., Amazon.com Inc., and Alibaba Group Holding Ltd., provide automotive apparatuses on their portals, therefore making accessibility simple for customers.
Customers’ leaning toward an all-online automotive aftermarket channel is not clear, click-and-mortar vending is trending in e-commerce in the automotive industry. This model contains old-style retailers who have an online existence, hence enabling consumers to place an order for the components and pay for them online and pick them up at the physical store. This working model joins e-commerce into brick-and-mortar stores, consequently mutually removing each other’s weaknesses.
According to the Macrotrends, the city populace in the country in 2020 was above 22.1 million, a 1.43% surge from 2019, and 22.2 million in 2021, a 0.32% growth from 2020. This rapid development, armed with the snowballing per-capita income, is boosting the rise in vehicle ownership.
Therefore, VIO is constantly rising, making sufficient demand for aftermarket components. As per the CEIC, the number of registered vehicles in Australia accounted for 19,229,139 in December 2020.
Furthermore, with the growing average life of a vehicle, the automotive aftermarket would experience considerable development in the country. The increase in the average age of the vehicles is primarily because of car loans, which can last for up to 5–6 years, and improved-quality vehicles, which themselves last for longer periods.
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