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Preface
Emerging trends in auto care
The original Auto Care 2014 E-tailing in the Automotive Aftermarket report answered questions about how big
e-tailing was, how fast it was growing and why it was experiencing this growth. This study set out to revisit the
e-tailing growth and trajectory and understand what can be learned from other industries.
The auto care industry is facing significant disruptions that present both challenges and potential opportunities
for the market players. Telematics, otherwise known as the wireless transmission of vehicle data, is a perfect
example of such a disruption. When cars can use telematics to recommend a location for servicing, 58
percent of customers today would follow those recommendations. Furthermore, automatic driver-assistance
systems (ADAS) and autonomous driving could reduce collisions, cutting parts demand by $1-5B by 2030.
Pure electric vehicles (xEVs) could compose over 10 percent of vehicles by 2030, requiring significantly
less spend on maintenance. By the same year, 2-3 percent of cars will be used for shared mobility in 2030,
resulting in two-times the mileage, one-quarter of the vehicle age, and a different demand profile.
On the corporate side, the North American auto care industry averaged 138 merger and acquisition (M&A)
transactions each of the past three years, almost four times more than 10 years ago. With market disruptions
looming on the horizon, we expect the market consolidation to continue unabated for the foreseeable future.
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