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The e-commerce automotive aftermarket in U.A.E from $318.2 million in 2020 to $634.4 million by 2025, at a 14.8% CAGR between 2020 and 2025

·3-min read

U. A. E E-Commerce Automotive Aftermarket Research Report: By Component (Tire, Lubricant, Battery, Car Parts), Channel (Third Party Retailer, Direct-To-Consumer), Consumer (B2C, B2BB, B2SB), Service Provider (Automobile Dealerships, Franchise General Repairs, Specialty Shops, Locally Owned Repair Shops/Body Shops, Tire Shops) - Industry Analysis and Growth Forecast to 2025.

New York, May 27, 2021 (GLOBE NEWSWIRE) -- announces the release of the report "U.A.E. E-Commerce Automotive Aftermarket" -

From around 194,000 in 2017, vehicle sales in the U.A.E. rose to 263,000 units in 2019. The growing automotive industry will be a key enabling factor for the growth of the e-commerce automotive aftermarket in U.A.E from $318.2 million in 2020 to $634.4 million by 2025, at a 14.8% CAGR between 2020 and 2025. As more vehicles are sold, the demand for their replacement components will also rise.

Moreover, the U.A.E. e-commerce automotive aftermarket is being driven by the increasing internet penetration in the country. Online shopping websites allow customers to compare various products on one platform, avail of heavy discounts and other offers, pay electronically, and have the products delivered at their doorstep.

The COVID-19 pandemic has impacted the U.A.E. e-commerce automotive aftermarket in a number of ways. Most importantly, factory shutdowns have led to the low production and sales of vehicles and their replacement parts. Moreover, movement restrictions reduced the number of vehicles on roads, which led to a decrease in the incidence of road accidents, in turn, the need for auto repairs and overhauling.

The product bifurcation led the U.A.E. e-commerce automotive aftermarket in the past, based on type. The rising number of do-it-yourself (DIY) customers is pushing up the sale of auto parts in the country. Considering the conveniences offered by online shopping platforms, residents are rapidly shifting to them from traditional brick-and-mortar stores.

In the coming years, the highest value CAGR in the product sub segment of the U.A.E. e-commerce automotive aftermarket, on the basis of consumer, of 15.2%, is expected to be witnessed in the business-to-small-business (B2SB) category. With the burgeoning tourist count in the country, the demand for passenger vehicles has risen, which has encouraged many small auto parts retailers to proliferate. However, being small-sized businesses, they often do not possess all the parts, which is why they buy them online.

The tire category, based on component, will keep holding the largest share in the service sub segment of the U.A.E. e-commerce automotive aftermarket in the near future. With the rapid urbanization and industrialization, passenger car and commercial vehicle sales are picking up in the country. Thus, the rising demand for automotive tires, coupled with the lack of time to get them replaced at garages, is driving the popularity of online service providers that not only deliver the tires to the customers but also install them for vehicle owners.

The most-prominent players in the U.A.E. e-commerce automotive aftermarket are Inc., Ubuy Inc., Noon E Commerce (,Majid Al Futtaim Holding (Carrefour), and Carbox Auto Parts.
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