|By Marketwired .||
|July 14, 2014 12:01 AM EDT||
BERLIN, GERMANY -- (Marketwired) -- 07/14/14 -- On the surface, little has changed in the European automotive aftermarket since 2012, when The Boston Consulting Group (BCG) first reported on the dynamics of the region's car-repair business. Several trends indicate that competition in the coming years will remain intense, according to a new report by BCG. The report, titled Returning to Growth: A Look at the European Automotive Aftermarket, is being released today.
Working in collaboration with the European Automobile Manufacturers' Association (ACEA), BCG surveyed executives of European automotive manufacturers and industry experts from across the aftermarket spectrum and updated the firm's comprehensive automotive-aftermarket model to reflect developments since BCG's original 2012 study. The research identified key trends that are already prompting repair providers to take action:
- The increasing complexity of cars is driving the aftermarket repair business toward greater scale and consolidation.
- Nontraditional players -- such as leasing companies, insurers, and fleet managers -- are reshaping the marketplace by steering business to their selected repair networks.
- Independent and authorized repair shops are more aggressively pursuing market share by poaching one another's customers.
- Connected vehicles are penetrating the market at an increasing rate. As the proportion of connected cars on the road grows, this trend could influence the dynamics of the after-sales service market.
"We see signs of intensifying but even competition between and within the industry's two main channels -- independent and authorized repair shops," says Nikolaus Lang, a BCG senior partner and a coauthor of the report. "In addition, telematics could strongly influence the after-sales service industry, depending on how quickly and deeply it penetrates the market."
Nontraditional Players Are Transforming the Repair Business
Nontraditional players -- including insurers, fleet operators, and leasing companies -- have entered the market and altered the competitive dynamics. Because vehicle repair and maintenance are among the highest expenses of these nontraditional players, they are moving more and more toward special-condition contracts or partnerships with networks of selected repair shops. Those contracts are not only controlling costs for nontraditional players but also increasing the business volume of their repair-shop partners.
In recent years, such partners have signed up a significant number of new customers. In Germany, for instance, partner networks established by nontraditional players captured 28 percent of accident repairs in 2012, an increase of 18 percentage points since 2003. "The trend among nontraditional players to form partner networks will continue to reshape the competitive landscape in the European aftermarket in the coming years," says Benjamin Frowein, a BCG principal and a coauthor of the report.
Telematics Is an Emerging Trend
There is clear consensus among the executives and experts interviewed for the report that connected vehicles are penetrating the market for both new and older cars at an increasing rate. But opinions vary widely on the depth and speed of penetration and on the prospects for after-sales, service-oriented connectivity. Some executives think that 15 percent of all cars on the road will be equipped with telematics by 2018. Others expect telematics penetration to grow to 35 percent of all cars on the road by then. The great variance in expert opinion suggests that the industry is highly uncertain about the speed of change, especially for retrofits.
The most common uses of telematics technology will be to perform interactive maintenance and remotely diagnose malfunctions. In the case of interactive maintenance, a telematics solution will allow continuous onboard and remote diagnostics of a car's operation. On the basis of driving performance and the car's operational state, the telematics solution will be able to determine an optimal window for maintenance, connect the vehicle owner and the maintenance provider, set up a maintenance appointment, and, if necessary, order the required parts. In this fashion, the telematics solution promises to optimize the service process, reduce costs, and enhance the customer experience.
To download a copy of the report, please go to www.bcgperspectives.com.
To arrange an interview with one of the authors, please contact Eric Gregoire at +1 617 850 3783 or [email protected].
About The Boston Consulting Group
The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 81 offices in 45 countries. For more information, please visit bcg.com.
Bcgperspectives.com features the latest thinking from BCG experts as well as from CEOs, academics, and other leaders. It covers issues at the top of senior management's agenda. It also provides unprecedented access to BCG's extensive archive of thought leadership stretching back 50 years to the days of Bruce Henderson, the firm's founder and one of the architects of modern management consulting. All of our content -- including videos, podcasts, commentaries, and reports -- can be accessed by PC, mobile, iPad, Facebook, Twitter, and LinkedIn.
The Boston Consulting Group
Global Media Relations Manager
Tel +1 617 850 3783
Fax +1 617 850 3701
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor – all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Jul. 28, 2016 12:15 AM EDT Reads: 2,222
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
Jul. 27, 2016 10:30 PM EDT Reads: 1,146
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 27, 2016 10:30 PM EDT Reads: 1,403
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, discussed how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved efficienc...
Jul. 27, 2016 10:30 PM EDT Reads: 2,011
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 27, 2016 10:15 PM EDT Reads: 1,403
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Jul. 27, 2016 10:00 PM EDT Reads: 2,658
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
Jul. 27, 2016 09:45 PM EDT Reads: 1,997
In his session at @DevOpsSummit at 19th Cloud Expo, Yoseph Reuveni, Director of Software Engineering at Jet.com, will discuss Jet.com's journey into containerizing Microsoft-based technologies like C# and F# into Docker. He will talk about lessons learned and challenges faced, the Mono framework tryout and how they deployed everything into Azure cloud. Yoseph Reuveni is a technology leader with unique experience developing and running high throughput (over 1M tps) distributed systems with extre...
Jul. 27, 2016 09:45 PM EDT Reads: 2,169
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
Jul. 27, 2016 09:30 PM EDT Reads: 303
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 27, 2016 08:00 PM EDT Reads: 2,030
We all know the latest numbers: Gartner, Inc. forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from last year, and will reach 20.8 billion by 2020. We're rapidly approaching a data production of 40 zettabytes a day – more than we can every physically store, and exabytes and yottabytes are just around the corner. For many that’s a good sign, as data has been proven to equal money – IF it’s ingested, integrated, and analyzed fast enough. Without real-ti...
Jul. 27, 2016 07:30 PM EDT Reads: 1,102
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Jul. 27, 2016 06:45 PM EDT Reads: 1,170
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
Jul. 27, 2016 06:45 PM EDT Reads: 2,064
As companies gain momentum, the need to maintain high quality products can outstrip their development team’s bandwidth for QA. Building out a large QA team (whether in-house or outsourced) can slow down development and significantly increases costs. This eBook takes QA profiles from 5 companies who successfully scaled up production without building a large QA team and includes: What to consider when choosing CI/CD tools How culture and communication can make or break implementation
Jul. 27, 2016 06:00 PM EDT Reads: 1,683
Actian Corporation has announced the latest version of the Actian Vector in Hadoop (VectorH) database, generally available at the end of July. VectorH is based on the same query engine that powers Actian Vector, which recently doubled the TPC-H benchmark record for non-clustered systems at the 3000GB scale factor (see tpc.org/3323). The ability to easily ingest information from different data sources and rapidly develop queries to make better business decisions is becoming increasingly importan...
Jul. 27, 2016 05:45 PM EDT Reads: 877