LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global automotive e-retail market to grow to 22.26 million units by 2021, at a CAGR of close to 34% over the forecast period, according to their latest report.
The research study by Technavio on the global automotive e-retail market for 2017-2021 provides a detailed industry analysis based on the product type (two-wheelers and passenger cars) and geography (the US, APAC, and Europe).
|APAC is the fastest-growing segment of the automotive e-retail market, projected to showcase a CAGR of over 52% over the forecast period. The region is expected to generate the maximum incremental growth through 2021 due to e-retailers such as Flipkart, Snapdeal, and Paytm listing various automotive vehicles on their channels.|
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Technavio analysts highlight the following three factors that are contributing to the growth of the global automotive e-retail market:
- Growth of the global e-commerce industry
- Convenience of booking a vehicle with minimum physical effort
- Low penetration of passenger cars in emerging nations
Growth of the global e-commerce industry
“The rise in Internet penetration, online shoppers, and rise in per capita income of the people are the main drivers of the e-commerce industry, and in turn the automotive e-retail market,” says Praveen Kumar, a lead analyst at Technavio for automotive services research.
China had the highest number of Internet users, while countries like Germany, the US, the UK, France, and Canada had the highest Internet penetration. The increase in the growth of e-commerce also signifies the rise in the acceptance of online shopping among people, which will drive the global automotive e-retail market.
Convenience of booking a vehicle with minimum physical effort
A vast majority of the global vehicle buyers conduct online research regarding the prices, features, and user reviews of the vehicles before making their purchase. Most of the automotive dealers ensure the availability of their information through registration and ties with online automotive search portals such as Kelley Blue Book and Edmunds.com.
The automotive e-retailers also help choose appropriate dealers, who offer vehicles with the desired features, all with minimal effort from the customers. Prospective buyers are showing an increasing preference towards completing the entire car buying process along with payment to be completed online.
Low penetration of passenger cars in emerging nations
The penetration of passenger cars in APAC is currently low when compared with other regions, presenting the unsaturated market as an opportunity for car manufacturers. When compared with penetration of up to 90% in developed countries, developing countries hardly have 20% to 30% market penetration, providing ample opportunities to market players.
“The automotive industry is expected to expand rapidly in emerging countries such as China, India, Brazil, South Korea, Indonesia, and parts of Eastern Europe. This is expected to provide huge opportunities for the automotive e-retail market,” says Praveen.
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Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, resellers, and end-users.
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