Online Automotive Parts and Accessories Sales in the US Industry Market Research Report Now Available from IBISWorld
Los Angeles, CA (PRWEB) August 12, 2013 -- The Online Automotive Parts and Accessories Sales industry has experienced growth for more than a decade as consumers have increasingly shifted spending online. According to IBISWorld Industry analyst Brandon Ruiz, “recognizing this trend, traditional brick-and-mortar retailers have entered the online realm in an attempt to bring back sales taken by retailers that sell exclusively online, such as Amazon.com”. IBISWorld expects total revenue for the Online Automotive Parts and Accessories Sales industry to increase at an annualized rate of 11.1% to $2.5 billion in the five years to 2013, including a 9.8% increase in 2013 alone. Industry revenue growth slowed during the recession as many consumers held off on repairs and maintenance. Conditions largely rebounded in 2010, however, as pent-up demand lifted revenue. Additionally, an increased number of motor vehicle registrations aided growth because more cars on the road translates into a larger market opportunity for industry operators. Moreover, the average age of the US vehicle fleet increased in the five years to 2013 as consumers postponed new car purchases; since older cars typically need more maintenance than newer cars, this trend benefits industry operators. In 2011, revenue surged with many retailers (e.g. AutoZone) that operate in both the offline and online marketplaces reporting stronger online demand.
The industry is expected to continue growing over the next five years, as sales continue to shift online and increased disposable incomes result in greater sales of replacement auto parts. However, increased competition from large online marketplaces, national auto parts retailers and wholesale aftermarket auto parts distributors is expected to limit growth. Although the industry caters to the do-it-yourself market, these consumers still seek professional advice for automotive repairs and upgrades. “To compete, online automotive parts and accessories retailers are expected to offer more online services, including tutorials, auto repair software and live customer service representatives”, says Ruiz. Over the long-term, as consumers increasingly search for auto repair advice online, the advantage held by auto parts stores will diminish.
Market share concentration within the Online Automotive Parts and Accessories Sales industry is low. The industry is generally fragmented, with a high number of enterprises operating in the United States. The industry's largest companies carry vast product offerings aimed at appealing to the needs of any consumer. Product ranges generally vary from universal parts and components to specialty accessories fit for a specific vehicle make and model. The remaining smaller firms in the industry compete at a niche level, catering to consumers with specific or unique performance parts that are generally not found at larger, generic online automotive parts retailers. Nevertheless, over the past five years, some heavy merger and acquisition activity has added to the industry's concentration level. For example, US Auto Parts Network acquired Automotive Specialty Accessories and Parts Inc. and its subsidiary Whitney Automotive Group Inc. This move helped US Auto Parts Network expand into products for all-terrain vehicles, recreational vehicles and motorcycles. Over the next five years, IBISWorld expects industry concentration to grow as the industry's largest firms continue to acquire specialty retailers.
For more information, visit IBISWorld’s Online Automotive Parts and Accessories Sales in the US in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
This industry retails automotive parts and accessories online, excluding tires. Automotive parts are used to replace worn parts, enhance the performance of a vehicle or maintain a vehicle's condition.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld, 310-866-5042, [email protected]
Share this article