|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
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Feb. 24, 2017 04:00 AM EST Reads: 3,789
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
Feb. 24, 2017 03:00 AM EST Reads: 1,816
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Feb. 24, 2017 02:15 AM EST Reads: 13,195
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Ca...
Feb. 24, 2017 01:45 AM EST Reads: 9,540
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and micro services. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your contain...
Feb. 24, 2017 01:45 AM EST Reads: 3,776
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Feb. 24, 2017 01:30 AM EST Reads: 5,730
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
Feb. 24, 2017 01:15 AM EST Reads: 1,893
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Feb. 24, 2017 01:00 AM EST Reads: 2,538
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
Feb. 24, 2017 01:00 AM EST Reads: 1,894
Niagara Networks exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
Feb. 24, 2017 12:45 AM EST Reads: 969
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, introduced the technologies required for implementing these idea...
Feb. 23, 2017 11:30 PM EST Reads: 6,299
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Feb. 23, 2017 11:00 PM EST Reads: 7,020
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
Feb. 23, 2017 10:00 PM EST Reads: 4,610
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Feb. 23, 2017 09:15 PM EST Reads: 1,526
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Feb. 23, 2017 08:45 PM EST Reads: 1,298