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Automotive aftermarket in Canada worth US$ 20.92B by 2025

The Canadian Automotive Aftermarket reached a record C$ 22.61 / USD 17.6 Billion in 2018. The Automotive Aftermarket sector of Canada is growing at a CAGR of 2.5% and is expected to reach a market size of USD 20.92 Billion in 2025.

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Definition / Scope

Automotive Aftermarket is an allied market of the Automotive Industry involving the manufacturing, remanufacturing, distribution, retailing and installation of all auto parts, equipment, chemicals and accessories after the purchase of the automobile by the customer from the Original Equipment Manufacturer.

The Aftermarket encompasses parts for replacement, appearance, collision and performance, including electric propulsion. The Aftermarket provides a wide variety of spare parts at varying quality levels and pricing for all vehicle makes and models.

Consumers have the option of repairing their vehicles themselves (the "do-it-yourself" or "DIY" segment) or can take the vehicle to a professional repair facility (the "do-it-for me" or "DIFM" segment). The aftermarket helps keep vehicles on the road by providing consumers the choice of where they want their vehicles serviced, maintained, or customized.

In Canada the Automotive Aftermarket is a USD 17.6 Billion Industry that employs about 5,00,000 people.

The Automotive Aftermarket sector is the largest retail sector in Canada ahead of clothing, food, furniture, and pharmaceuticals. The automotive aftermarket encompasses production, re-manufacturing, distribution and retailing of replacement parts, tools, equipment, accessories, chemicals and services used to repair and replace automotive parts and components after their initial production. Using the NAICS codes, Statistics Canada estimates the retail value of the automotive aftermarket at C$23.1 billion (US$18.5 billion) in 2018. The Automotive Aftermarket market will experience an average annual real growth rate of 3-4 percent forecast for 2018 onward through 2025

Categories

The Aftermarket parts are categorized into two categories which includes :

Replacement parts are automotive parts built or remanufactured to replace OE parts after their wear and tear.

Accessories are parts made for comfort, convenience, safety, performance or customization and are designed for add-on after the sale of the automobile.

Market Overview

Canada represents the second largest automotive market in North America.

According to the Automotive Industries Association of Canada (AIA Canada) the Canadian Automotive Aftermarket reached a record C$ 22.61 / USD 17.6 Billion in 2018. This represents a growth of 2.5% from 2017 when the Automotive Aftermarket was C$ 22.06 Billion / USD 16.7 Billion

There are over 5000 auto parts & accessories retailers and over 25,000 auto repair and maintenance business locations in Canada. Most Canadian Automotive Aftermarket businesses over a third are located in Ontario, followed by Quebec.

The retail sale of Aftermarket auto parts into the Do-It-Yourself (DIY) market in 2018 is estimated to be C$ 3.1 Billion / USD 2.44 Billion. The Canada DIY market has had 1.1% average annual growth rate from 2014. However, the DIY market has been exceeded by the Do-It-For-Me (DIFM) parts market, which has grown at an average of 3.6% per year over the same period (2014-2018).

  • The Automotive DIY market constitutes 14% of the total retail sales, with the growth of DIFM that share is set to shrink in the coming years.
  • The overall value of Canadian Automotive sector imports grew by 9.5% in 2018 for a total value of USD 78.18 Billion
  • In 2017 the total value of Canadian imports of motor vehicles for passenger transport totalled USD 28.6 Billion
  • Canadian imports of automotive parts, systems and components totalled USD 19.7 Billion in 2018
  • In 2018 the total number of new light vehicle (passenger cars and light trucks) sales in Canada was 2.3 Million units of which 40% were US brands

Canada’s robust growth in the automotive aftermarket is due to the strong light vehicle sales over the past several years where 2.05 million vehicles were sold in 2018, up 2.6% from the 2 million sold in 2017. The most popular vehicle type is CUV, which recently replaced compact cars as the most popular.

Leading Subsector imports in 2018

  • Trucks and other vehicles for the transport of Goods amounted to USD 17.2 Billion
  • Motor Vehicles for Passenger Transportation, other than buses/public transportation totalled USD 30.1 Billion
  • Parts and Accessories of Motor Vehicle Bodies amounted to USD 5.7 Billion
  • Gearboxes and parts were estimated to be USD 3.0 Billion
  • Motor Vehicles parts amounted to USD 4.1 Billion
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Key Metrics

Metrics Value Explanation
Base Year 2018 Researched through internet


Market Risks

Improving Average Shelf Life of Automobiles

OEMs advancements in technology such as improvements in powertrain technology, rust prevention, lubricants and superior products led to significant improvements in reliability and durability resulting in significant improvements in average shelf life of the automobiles, resulting in erosion of aftermarket sales margin

Cost Factor

Auto parts manufacturers must have the production capacity and economies of scale to produce large quantities of products at low prices. Additionally, large-scale auto part production requires advanced manufacturing facilities, which have high set-up costs. Moreover, with the onset of tighter fuel economy regulations, spending on research and development is high for certain products, such as air conditioning units and exhaust systems.

Tough Competition from Overseas OEMs

Auto parts manufacturers, depending on the product produced, contend with tough competition from Overseas manufacturers. For Instance, imports accounted for more than half of domestic demand in 2018.

Moderate Economic Growth

According to Toronto-based Royal Bank of Canada (RBC) forecasts Canada’s gross domestic product (GDP) growth to decrease to 1.7% in 2019, from 2% in 2018. Along with the headwinds of oil and interest rates, that outlook is based on a consumer slowdown, and modest increases in business investment and exports. The Slowdown in the economy is set to forecast its shadow on the Automotive Aftermarket.

Poor Growth in Car Sales

The Rising inflation rate witnessed in December 2018 at 2.0% compared to 1.7% in the previous month and an Higher Interest rate of 1.75% which is the highest in almost a decade, dating back to December 2008 is expected to detoriate the growth of new car sales to less than 1% CAGR till 2025. This is expected to affect the growth of the Automotive Aftermarket in Canada.

Top Market Opportunities

Increased Awareness amongst Consumers

The Steady growth of Automobile Sales and increased awareness among consumers regarding preventive maintenance is expected to have a positive influence on the growth of the Automotive Aftermarket in Canada.

Higher Concentration of Light Trucks and SUVs

The Canadian Vehicle Portfolio has a higher concentration of Light trucks and SUVs owing to their high residual value and functionalities. This trend offers more revenue opportunities for the aftermarket players as light trucks and SUVs have higher priced parts, thereby increasing the value per parts and services.

Consolidation among parts distributors

As the aftermarket continues to mature, more consolidation is expected. Among the various aftermarket players, the highest pressure for consolidation currently is on the parts distributors that need to reach critical mass and leverage economies of scale (e.g. size of customer access and purchasing volume). By contrast aftermarket players are looking into consolidation related activities to secure and further their position in the aftermarket. Parts distributors and buying groups are pursuing M&A activities to increase their size and establish an international footprint.

OEMs expanding their aftermarket activities

As the age of vehicles are increasing the OEMs aftermarket business has been put under pressure because their aftermarket business in older segments drastically decreases and other players claim the majority of the share. While 50% of the Canadian passenger cars younger than 2 years are serviced in the OEM network, this number significantly reduces to less than 15% in vehicles older than 8 years. Although the aftermarkets is one of the strategic focus areas of many OEMs for a few years now, the level of activity and focus on aftermarket has increased recently. Some OEMs are starting to solidly occupy one or more spaces within the aftermarket value chain by, for example, creating their own networks of non-car brand-specific repair shops. Others are responding to vehicle age-driven market share declines by introducing second service formats and second brands or remanufactured parts to compete with independent players and keep customers in their network longer. OEMs are also investing in customer experience optimization efforts and introducing differentiated service offerings by, for example, leveraging vehicle connectivity to “loyalize” their customers and “automate” decision making related to service and repair.

Market Drivers

e-retail

e-retail penetration in the Canadian Automotive Aftermarket is expected to grow at a CAGR of 8.6% between 2018 to 2025. The growth is due to the strong penetration of Internet/smartphone usage and online discounts. Increasing age of vehicles in Canada coupled with shifting consumer preference towards online purchase of auto components will primarily drive the e-retail growth over the forecast timeframe (2018-2025). Changing style preferences of consumers and increasing customizations in vehicles will further strengthen the industry penetration. Steering and suspension is anticipated to dominate the e-commerce automotive aftermarket share. This can be credited to rising demand of components such as control arms, coil springs, and bearings. Availability of numerous options at reasonable price and choice will positively impact the product demand.

Electric Vehicles

Despite the incentives of C$ 14,000 offered for the purchase of Electric Vehicles in Ontario coming to an end, Electric Vehicles (EVs) in Canada are projected to grow at a CAGR of 27.6% between 2018 and 2025. The electric vehicle market in Canada is growing at a superfast rate and now eight percent of all new cars bought in Canada are EVs.

Autonomous Vehicles

The adoption of Advanced Driver-Assistance Systems (ADAS) / AVs is estimated to grow at a CAGR of 44% by 2025. The increased adoption of ADAS and autonomous vehicles will come with as the more emphasis is put on their safety and green technology. Regular wear items, such as tires and brake pads, are likely to record declining replacement rates. Maintenance trends are anticipated to evolve as these vehicles will require less but more advanced maintenance, such as over-the-air (OTA) and app updates.

Telematics

The penetration of on-board diagnostics (OBD) dongles in Canada is currently estimated to be penetrated at 1-2% and is estimated to penetrate to 14% by 2025. The rise in in-vehicle communication options is one of the key factors triggering the growth of the market.

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Market Restraints

Reduction in Competition

The increased use of information technology in automobiles has created opportunities for manufacturers to reduce competition faced by dealers in the market for automotive repair and maintenance. Manufacturers have economic incentives to reduce competition, including the ability to get dealers to purchase parts from the manufacturer. Reduction of competition in automotive service and repairs can be expected to result in higher prices, less convenience, and less innovation for consumers.

Price Erosion

There are two types of depreciation faced by dealers which includes value erosion which occurs as a result of aging assets and holding costs which is as a result of accumulation of expenses from general operating overhead, including floorplan inventory investment and cost of capital (including interest rates) that erode margin and make a dealership less profitable than it could be.

Counterfeit Parts

Bearing the marks of legitimate brands, counterfeit components are typically not made to the specifications of original equipment manufacturers. Counterfeit parts can result in poor performance and even catastrophic failure. According to estimates from the Federal Trade Commission, the current market for counterfeit parts is approximately USD 12 billion annually. This can be problematic for consumers who elect to use independently owned and operated automotive repair shops.

Vulnerable Software

The fact that driverless cars depend on a bunch of software applications further opens up the possibility of vulnerability to counterfeit and fraudulent parts. An organized criminal group can tend to create counterfeit parts with pre-installed backdoors of vulnerabilities and sell them to consumers. This possibility opens up new dangers to consumers apart from faulty airbags or subpar brake pads. Organized criminals and Governments can exploit backdoors to access the location history, intercept communications or gather other personally identifiable information.

Industry Challenges

Insufficient R&D Capability and Investment

Low levels of domestic R&D capacity and technological upgrading push firms to a reliance on cost-based competition focused on constraining overall labour costs. Canadian companies currently invest approximately 3.4% of total sales revenue in R&D, as opposed to approximately 6.5% in USA.

High Custom duty

The custom duty on specified spare parts/accessories of motor vehicles, motor cars, and motorcycles has been raised from 7.5% to 15%. Now, there is also a 5% increase in the imported duty, on truck and bus radial tyres. The 10% increase in excise duty, i.e. from 5% to 15%, on Completely Knocked Down (CKD) vehicle kit along with a 5 percent additional increase in excise duty to 25 percent on Completely Built Unit (CBU) vehicles, are reflecting on the market price of luxury cars as most of them are either CKD or CBU. The imposition of the duties is leading all premium brands in the market to increase prices across lines, in the range of 3.5% to 5%.

Inventory Challenges

The Automobile Aftermarket players manufacture parts and components of different models, with a few of these models in production for more than a decade, To serve such an industry, the aftermarket industry handles a large variety of parts in different sizes. This can be an inventory management nightmare.

Shortage of skilled labor

There is a requirement of skilled professionals for the automotive aftermarket, as there is less number of certified professionals in the domain this comes as a challenge for the growth of the market.

Technology Trends

Modular Architecture

OEM’s are adapting to mega platforms/ modular architecture where design and parts are standardized across the globe. Aftermarket industry stands to benefit as costs associated with manufacturing of unique parts will reduce substantially.

e-retailing

The increasing number of e-commerce platforms and rising collaboration between e-commerce platform providers and brick & mortar stores is one of the prominent factors driving the e-commerce automotive aftermarket. Another prominent factor growth driver of the e-commerce automotive aftermarket is e-tailers acting as service aggregators to provide price and quality assurance to customers. E-commerce platforms are increasingly being opted by customers due to the availability of multiple brands at competitive prices, and also because the platform serves product specifications and varied product requirement of customers. Owing to this, service aggregator e-commerce platforms is likely to stoke the growth of e-commerce automotive aftermarket.

Electrification

Electrification is fast gaining pace in Canada. Electric Vehicles (EVs) in Canada are projected to grow at a CAGR of 27.6% between 2018 and 2025. The electric vehicle market in Canada is growing at a superfast rate and now eight percent of all new cars bought in Canada are EVs.

3D printing

Automakers and suppliers are adopting 3D Printing, a technology that can make custom parts on demand and has the potential to mass produce parts. Many automakers now use 3D printing to make prototype parts for vehicle development, as well as tools and assembly aids for manufacturing operations. Several car companies are looking into making production parts with 3D printers in the next five years. Some automakers currently produce handfuls of small replacement parts, typically interior trim pieces. 3D printing enables efficient fabrication performance and reduction of emission toxicity.

Regulatory Trends

The regulations introduced for monitoring Automotive Aftermarket in Canada includes

CASIS - The Canadian Automotive Service Information Standard

The Canadian Automotive Service Information Standard (CASIS) provides a framework for Canadian automobile manufacturers to share their service, training and repair information with the automotive aftermarket industry on a level equivalent to that of their authorized dealers.

The CASIS provides access to OEM information and tools to any service provider on a national basis and regardless of association affiliation. As a consequence of which consumers will have broader availability of facilities either authorized OEM dealerships or independent shops – in which to have their non-warranty vehicle service conducted.

VSP – Vehicle Security Professional Program

The Vehicle Security Professional program is a data exchange system initiated and designed co-operatively by automakers and independent auto repair community in co-operation with the insurance and law as a part of the Canadian Automotive Service Information Standard (CASIS) agreement.

It allows the aftermarket to access security-sensitive information related to automobiles (i.e.- key codes, immobilizer reset information and similar types of information) while protecting the safety and security of consumers and the integrity of automobile security systems.

The various initiatives adopted by the Government of Canada for supporting the growth of the Automotive Aftermarket include:

Automotive Innovation Fund

The Automotive Innovation Fund (AIF) was established to provide automotive firms $250 million over five years to support strategic, large-scale research and development (R&D) projects to build innovative, greener, more fuel-efficient vehicles.

The AIF supports Canada’s environmental agenda in advancing Canadian capabilities in fuel-efficient automotive technologies and greenhouse gas reduction. The Fund demonstrates the government’s commitment to implementing Canada’s Science and Technology (S&T) Strategy in an automotive context. The AIF also provides an important complement to the Government’s agenda to support industry competitiveness, outlined in a plan called Advantage Canada: Building a Strong Economy for Canadians.

Investment in Infrastructure

With a total investment of C$ 33 Billion / USD 25.19 Billion the Building Canada plan of the Canadian Government makes strategic investments on infrastructure investments that contributes to a growing economy. This plan is the largest federal commitment to public infrastructure in over 50 years. The Building Canada Plan includes the $8.8-billion Building Canada Fund for investments in critical national priorities, such as the core National Highway System, clean water, sewage treatment, public transit, and green energy.

Training and Skill development of workforce

The Red Seal Program facilitates the interprovincial mobility of skilled trades-people, who successfully meet national standards in their trade, recognized by all jurisdictions. In 2018 5,260 Red Seals were issued to tradespeople in the automotive aftermarket.

Other Key Market Trends

According to AIA Canada the average age of a light vehicle in Canada is 9.6 years pushing more of them into the prime replacement period for expensive repairs.

The Autonomous and Electric Vehicles adoption in Canada are growing at a faster rate with Advanced Driver-Assistance Systems (ADAS) / AVs is estimated to grow at a CAGR of 44% by 2025 and Electric Vehicles (EVs) in Canada are projected to grow at a CAGR of 27.6% between 2018 and 2025. Regular wear items, such as tires and brake pads, are likely to record declining replacement rates. Maintenance trends are anticipated to evolve as these vehicles will require less but more advanced maintenance, such as over-the-air (OTA) and app updates.

Market Size and Forecast

Canada represents the second largest automotive market in North America.

The Canadian automotive aftermarket sector is estimated to generate total revenues of $17.6 Billion in 2018, representing a compound annual growth rate (CAGR) of 2.5% between 2018 and 2025. It is expected that the Canadian Automotive Aftermarket is expected to reach a market size of USD 20.92 Billion in 2025

The components segment is expected to be the sector's most lucrative in 2017, with total revenues of $14.6 Billion, equivalent to 81.6% of the sector's overall value

The surge in automotive aftermarket growth experienced in 2018 is attributed to the increase in light vehicle sales in the two years prior. This would suggest that as car ownership rises in the region the aftermarket should continue to experience growth.

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Market Outlook

The Canadian Automotive Aftermarket reached a record C$ 22.61 / USD 17.6 Billion in 2018. The Automotive Aftermarket sector of Canada is growing at a CAGR of 2.5% and is expected to reach a market size of USD 20.92 Billion in 2025.

The Canadian Automotive Aftermarket recorded a Compounded Annual Growth Rate of 2.5%. Canadian automotive aftermarket market is expected to generate huge revenues in the near future with the increase in the sales of parts and accessories. This sector is more positive in the recent years and in terms of revenue. The growth in automotive aftermarket has increased the demand for light automobile sales in the recent years and this trend may continue in the next few years. This will also increase a rise in car ownership in Canada and the aftermarket will witness a continuing growth over the coming years.

Key Stats

The retail sale of Aftermarket auto parts into the Do-It-Yourself (DIY) market in 2018 is estimated to be C$ 3.1 Billion / USD 2.44 Billion. The Canada DIY market has had 1.1% average annual growth rate from 2014. However, the DIY market has been exceeded by the Do-It-For-Me (DIFM) parts market, which has grown at an average of 3.6% per year over the same period (2014-2018).

The Automotive DIY market constitutes 14% of the total retail sales, with the growth of DIFM that share is set to shrink in the coming years.

Parts and Accessories of Motor Vehicle Bodies amounted to USD 5.7 Billion

Gearboxes and parts were estimated to be USD 3.0 Billion

Motor Vehicles parts amounted to USD 4.1 Billion

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Distribution Chain Analysis

The Distribution Chain of Automotive Aftermarket is as a collection of collaboration among the following players

Parts Manufacturers

Produce parts and other goods made for automobiles and trucks:

  • OE parts manufacturers - parts are made for (original equipment – OE part) new vehicle assembly and whose products may also be sold in the aftermarket
  • Aftermarket parts manufacturers

Remanufacturer/Rebuilder

a rebuilder of motor vehicle engines and hard parts, selling to distributors and repair shops.

Warehouse Distributors

stocks inventory of parts and goods purchased from manufacturers, then sells to automotive jobbers, retailers or directly to repair shops.

Program Group/Distribution

a group of warehouse distributors/businesses purchasing, selling and marketing under a common name. Program groups may be large organizations that purchase parts directly from parts manufacturers, offer warehouse distribution access as well as marketing, training and other services.

Jobbers

purchases products from distributors then sells and delivers to repair shops

Auto Service Center

companies that specialize in specific auto maintenance and repair service, i.e., transmissions, brakes, air conditioning/radiators

Service Stations

gas stations with at least one repair bay in operation. They purchase their parts from their parts stores, car dealers, distributors, and the internet

General Garages/Independent Service Providers/Service Outlets/Repair Shops

businesses usually owned by an individual or partners that sell repair and maintenance services to vehicle owners. May belong to a program buying/marketing group.

Vehicle Dealers

companies selling new vehicles to consumers or commercial vehicles to businesses. They normally perform almost all of the warranty services on vehicles they sell. Dealers also perform maintenance and repair on vehicles no longer under warranty. Dealers are considered the main competitors to the aftermarket industry repair segment of the industry.

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Competitive Landscape

The Automotive Aftermarket in Canada is highly fragmented with local dealers and Independent Aftermarket players dominating the market. The large manufacturers such as OEMs (Original Equipment Manufacturers) and OES (Original Equipment Suppliers) are focusing on Merger & Acquisitions for the consolidation of the sector.

The Industry players adopting latest technologies such as the introduction of automated vehicles would likely increase the number of vehicles on the road as they would offer mobility options to individuals who previously did not have a licence. However, since connected vehicles allow the dealer to gather data about vehicle performance, owners are likely to bypass traditional aftermarket businesses and take their vehicles to the dealership for maintenance. Connected vehicles could also go longer between regular maintenance appointments.

e-retailing is another growth venture which offers promising future for the Automotive Aftermarket. The parts manufacturers, OEMs and OESs must embrace technology to post continued growth.

Competitive Factors

A synergy of these key underlying factors: Availability, Value proposition, Service and Brand Equity are essential for success in Automotive Aftermarket industry.

Availability: Leaner supply chain and efficient inventory management are ways to ensure that products are available at the right time and at the right place. Leaner supply chain: can be achieved by identifying-reducing-eliminating supply chain bottlenecks and adopting efficient Transport Management System (TMS). To this effect, some manufacturers are now revisiting their business models by favoring online selling channels to traditional selling.

Inventory management: caters to uncertain market demands, streamlines inventory flow and ensures that Stock Keeping Unit (SKU) strikes a balance between stock deficit and stock surplus.

Value proposition: Value proposition in this context relates to good quality at best price such that the customer perceives value for the product. Quality: Over engineering is a common problem seen in foreign players in this market; complying with Asian standards and lowering their technical specs will still meet the quality requirements of the region.

Price: competitiveness can be achieved by decentralizing warehouses, maintaining minimum trade layers, by keeping the packaging design minimalistic etc.

Service: Service excellence has become the kingpin in achieving greater customer satisfaction. By improving customer relationships, firms are coming up with innovative service solutions to secure customer retention.

Customer Relationship Management (CRM): Engaging current and potential customers through varied means to understand their needs, and device service products accordingly. By providing meaningful touch points like informed and efficient service representatives, group forums where common FAQ’s are addressed, customer experience can be enhanced.

Innovative solutions: like Do-It-Yourself (DIY), tailoring services to individual customer needs, improving service levels at Do-It-For-Me (DIFM) outlets, transferring routine maintenance hassles like service reminders, door to door service etc.[18]over to the firm rather than the customer.

Brand equity Brand awareness coupled with strong network presence improves brand equity of a firm.

Brand awareness: can be brought about by engaging consumers through online advertising which includes various channels such as social media, and email marketing. It is equally important to build awareness among trade partners from grass root level– tier 1, to repair shop/body shop as they are key advisers to the consumers; trade shows and trade magazines are a few effective ways of educating the dealer.

Network penetration: is important to ensure that at each trade level the channel partner finds value in carrying and promoting a firm’s product. This can be accomplished by incentivizing dealers for achieving sales targets.

Key Market Players

Canadian Tire Corporation, Limited is a Canadian retail company which sells a wide range of automotive, hardware, sports and leisure, and home products. Some stores also sell toys and food products. Retail operations include: Canadian Tire, the core retail and automotive service operation, which operates a large car repair garage in each store

Carquest Corporation is an American automotive parts distribution network that is currently owned and operated by Advance Auto Parts via independent retailers associated with the network. As of October 4, 2014 Advance operated 5,305 stores, 109 Worldpac branches. Advance Auto Parts and CARQUEST Auto Parts employs approximately 75,000 Team Members

Gates Corporation, based in Denver, Colorado US, is a manufacturer of power transmission belts and fluid power products. The company’s products are used in diverse industrial and automotive applications where the cost of failure is very high relative to the cost of the products. The company employs over 14,000 staff and has sales and manufacturing operations in all of the world's major markets, including North and South America, Europe, Asia, Australia, and the Middle East

Geotab Inc. is a privately held company that specializes in the area of global positioning system (GPS) fleet management and vehicle tracking, otherwise known as the telematics industry Geotab develops, manufacturers, and supplies GPS fleet management solutionsfor local and Fortune 500 companies. Geotab covers both light and heavy vehicles

The National Automotive Parts Association (NAPA), also known as NAPA Auto Parts, founded in 1925, is an American retailers' cooperative distributing automotive replacement parts, accessories and service items in North America

Amazon.com, Inc., doing business as Amazon (/ˈæməˌzɒn/), is a multinational technology company focusing in e-commerce, cloud computing, and artificial intelligence in Seattle, Washington. It is one of the Big Four or "Four Horsemen" of technology along with Google, Apple and Facebook due to its market capitalization, disruptive innovation, brand equity and hyper-competitive application process

eBay Inc. is an American multinational e-commerce corporation based in San Jose, California that facilitates consumer-to-consumer and business-to-consumer sales through its website. eBay was founded by Pierre Omidyar in the autumn of 1995, and became a notable success story of the dot-com bubble. eBay is a multibillion-dollar business with operations in about 30 countries, as of 2011

Strategic Conclusion

Canada represents the second largest automotive market in North America. The Canadian Automotive Aftermarket reached a record C$ 22.61 / USD 17.6 Billion in 2018. The Automotive Aftermarket sector of Canada is growing at a CAGR of 2.5% and is expected to reach a market size of USD 20.92 Billion in 2025.

The Shortage of skilled labor, Insufficient R&D Capability and Investment, High Custom duty, Inventory Challenges are the challenges being faced in the market.

e-retail, Electric Vehicles, Autonomous Vehicles and Telematics are the factors driving the growth of the market.

Further Reading

Appendix

  • OEM – Original Equipment Manufacturers
  • OES – Original Equipment Suppliers
  • CAGR – Compounded Annual Growth Rate
  • DIY - Do-It-Yourself
  • DIFM - Do-It-For-Me
  • RBC - Royal Bank of Canada
  • GDP - Gross Domestic Product
  • OTA - over-the-air
  • OBD- On-Board Diagnostics
  • CKD - Completely Knocked Down
  • CBU - Completely Built Unit
  • VSP - Vehicle Security Professional Program
  • CASIS - Canadian Automotive Service Information Standard
  • AIA Canada - Automotive Industries Association of Canada


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