Four Disruptive Trends Transforming the Auto Industry
From a creeping crawl to a speeding bullet, the automobile has rapidly improved—and so have consumer demands.
The Ford Model T revolutionized the industry, and consumer demand catapulted it into one of the longest production runs in history.
However, consumers gradually began to desire more than just one reliable, wallet-friendly option. Today, numerous models are discontinued each year—and new features are frequently introduced to keep up with changing preferences.
This infographic from AutoTRADER.ca, Canada’s largest automotive marketplace, explores some current trends shaping the auto industry: luxury trucks, electric vehicles, millennial habits, and online research.
1. The Rise of Luxury Trucks
Most people associate trucks with off-roading and rugged work. But over the years, they’ve become much more—consumers are starting to see them as status symbols.
In addition to power, luxury trucks have features that maximize comfort and style:
- Spacious seating
- Large chrome wheels
- Advanced safety features
- Rear-seat touch screen entertainment
- Motorized tailgates and running boards
- Panoramic sunroofs
While most vehicle segments have seen a decline in the market, luxury trucks have grown in market share.
|Year||$80-$100K truck listings (% of overall truck listings)|
High-end trucks offer both functional strength and premium features, and continue to drive growth in the auto industry.
2. Electric Vehicles: A Small but Growing Market
Electric vehicle (EV) listings are growing from low initial numbers, and their overall market share is still limited. However, the demand for EVs is growing rapidly—from 2017 to 2018, AutoTRADER.ca’s EV market doubled.*
Note: AutoTRADER.ca’s EV market excludes hybrids.
On top of that, EVs are selling faster. In 2018, it took 15 days for an EV listing to turnover, compared to 27 days in 2016.
What has caused this surge in popularity?
- Environmental Impact: EVs are nearly five times more efficient at converting stored energy than traditional cars.
- Lower Costs: On average, battery EVs save Canadian households about 71% in annual fuel and maintenance.
- Less Traffic: Certain areas like British Columbia, Ontario, California, and New York offer high-occupancy vehicle (HOV) lane access to single-occupant EVs.
As various regions take steps to remove gas-powered vehicles from the roads, the EV market will continue to expand.
3. Millennial Purchasing Habits
While many think that millennials aren’t buying cars, the data tells a different story. In the first quarter of 2018, millennials accounted for all new vehicle sales growth in the North American auto industry.
Millennials are still buying vehicles—they’re just waiting longer than previous generations did. Cash-strapped millennials are up to nine times more likely to delay a vehicle purchase until they’re triggered by a life change such as switching jobs, getting married, or having children.
Main Purchase Trigger by Generation
|Want to change from existing vehicle||Life change||Other|
Note: numbers may not sum to 100 due to rounding.
To help with purchase decisions, millennials refer to video content and draw on personal networks. They also prefer to visit online marketplaces over physical dealerships.
4. Online Research
Millennials aren’t the only ones turning to the internet for help: roughly eight in ten buyers use online sources to help them simplify the decision-making process.
Automotive marketplaces are the most popular resource—used by 77% of online buyers. What makes them so popular?
- Pricing guidelines give buyers confidence in the fair market price they can expect to pay
- Comparison tools help buyers choose the body type, make, and model of their next vehicle
- Reviews by owners and industry experts provide unbiased opinions
- Location-based searches help buyers find local listings from dealers and private sellers
All of this easily accessible information has made online marketplaces the go-to source for consumers’ automobile needs.
A Trusted Guide
To keep up with rapid change in auto industry trends, Canadians can depend on autoTRADER.ca.
AutoTRADER.ca is Canada’s most trusted place to buy and sell cars, and is a one-stop shop for:
- Industry news
- Reviews and advice
- Valuation and car buying tools
- Price comparisons
- The largest selection of new and used vehicles nationwide
Armed with autoTRADER.ca’s transparent and unbiased advice, Canadians can confidently find their perfect vehicle.
Brace for Impact: Industries on the Verge of CBD Disruption
Brace for Impact: Industries on the Verge of CBD Disruption
It seems as though cannabis is on everyone’s lips these days.
More specifically, the conversation centers around a major chemical compound found inside the plant—cannabidiol, or more widely known as CBD.
CBD’s far-reaching therapeutic benefits are propelling the global CBD market, which could hit $20 billion by 2024. However, industries like alcohol and pharmaceuticals are being directly threatened by this rapid rise.
Today’s infographic from CannaInsider explores how CBD is disrupting these industries, and the latter’s strategies to curb this effect.
Who will emerge unscathed?
CBD Market Spreading like Wildfire
A growing stream of robust research highlights CBD’s benefits in combating certain health conditions, such as:
- Chronic pain
- CBD for fitness: Incorporating CBD into a workout routine can boost performance, endurance, and recovery. Product types include pre-workout coffee, supplements, and post-workout smoothies.
- CBD for pets: Proven benefits such as anti-inflammatory properties are driving sales of CBD treatments for pet health. By 2022, this market could be worth over $1 billion.
- DNA-specific strains: Companies are testing people’s saliva to recommend specific strains that are tailored to their specific needs.
- Odorless cannabis: More pure, less harsh odorless cannabis will soon be available, allowing consumers to smoke in stealth mode.
- Grow your own: Cannabis consumers can cultivate their own plants at home, and even control the process from their smartphone.
Nearly every product segment, from pet health to beverages, is experiencing a CBD infusion to take advantage of these therapeutic effects.
This surge in popularity presents significant opportunities to create an entirely new consumer base. Emerging consumers seek CBD products for various applications, such as self-care, socializing, and fitness.
Going Head to Head with Big Players
The alcohol, tobacco, and pharmaceutical industries are bracing for impact, as the new variety in CBD products and formats threaten their market share.
The percentage of alcohol consumers has dropped by 4.6% since 2000, with changing tastes at the center of this cultural shift.
New research that tracked behavioural change from 2018 to 2019 found similar results. The percentage of alcohol consumers consuming cannabis has increased from 36% to 45%, while the percentage of cannabis consumers who consume alcohol has decreased from 72% to 65%.
These behavioural shifts have influenced a significant number of alcohol industry titans to partner with cannabis companies. For example, Molson Coors is entering the cannabis space with HEXO Corp to launch CBD-infused beverages.
Similarly, declining smoking rates continue to negatively impact tobacco sales. As many tobacco giants pivot to reduced-risk-products (RRPs) such as vapes, cannabis is also catching their eye.
Most notably, Altria invested $1.8 billion for a 45% stake in global cannabis company Cronos, potentially signalling the start of many partnerships between the two industries.
The pharma industry is particularly interested in CBD’s therapeutic properties. Medical cannabis sales for 2019 will reach $5.9 billion—poaching $4 billion from Big Pharma’s bottom line.
This is triggering multinational companies to collaborate with cannabis companies at a furious pace. Partnerships—such as Novartis and Tilray—could unlock more international distribution of medical cannabis, and new pharmaceutical growth opportunities.
Continuous CBD innovations will not only impact these industries—they could enhance human capabilities and unleash our full potential.
A tsunami is unlocking new CBD sub-segments all over the world, with many offering solutions for mood and performance enhancement for both people and animals.
The Unknown Potential
Applications that will allow a personalized cannabis experience are also on the horizon:
As CBD consumption grows, many industries will need to decide to disrupt, or be disrupted.
Several other cannabinoids have also been discovered, but they have yet to be researched in depth—which means the investment potential of CBD could be just the beginning.
CRU Group: Where Macroeconomics Meet Commodities
For 50 years, the CRU Group has tracked the commodities that drive the modern world, bringing macroeconomic insights to investors for accurate pricing.
CRU Group: Where Macroeconomics Meet Commodities
Commodities are crucial to our everyday lives. From the homes we live in, to the energy we use and the food we eat—none of these would be possible without commodities.
Today’s infographic from CRU Group celebrates 50 years of commodities research and charts the prices of the materials that make our world work.
The Importance of Commodities
CRU Group has 50 years of experience in providing business intelligence on the global metals, mining, and fertilizer industries. Regularly analyzing over 50 commodities, here are CRU’s highlights on four key commodities: aluminium, copper, steel, and nitrogen.
Similarly to stocks, commodities are available for sale on the open market, and prices are susceptible to changing economic conditions.
Factors Affecting Commodity Markets
CRU Group has identified five key factors that are currently affecting commodity markets.
- China Stimulus: China’s economy has recently slowed and policy makers are using stimulus to support sustainable economic growth. However, the delivery of stimulus is different from the past, moving away from infrastructure investment and towards tax cuts for businesses and households.
- Recession: Some analysts have been warning of a recession since 2018. When the economy is in decline, commodity sectors feel the downturn more acutely, because industrial production tends to slow down and there is less demand for materials.
- Automotive Tariffs: During 2019, there was a sharp contraction in automotive sales and production, due to the threat of U.S. auto tariffs. However, the main driver is stricter auto emissions standards introduced in Europe and Asia, creating uncertainty for consumers.
- Environment: Governments continue to adopt regulations in response to rising environmental concerns. Green policies will encourage investment in renewable energy infrastructure and electric vehicles, changing the type of minerals required for these technologies.
- Rise of Asia: By 2035, 3.5 billion people will be living in Asian cities, an increase of 47% from today. These growing cities will necessitate large-scale infrastructure projects, which consume vast amounts of resources.
These five factors will drive the economic patterns of key commodities into the future.
CRU Group has been providing business intelligence on the global metals, mining and fertilizers industries for over 50 years. Regularly analyzing over 50 commodities, CRU highlights four key commodities here:
Aluminium is one of the most in-demand metals in the world by volume, second only to steel. Its lightweight, reflective, ductile and anti-corrosion properties make it the metal of choice for a range of applications. It takes four to five tonnes of bauxite ore to produce one tonne of aluminium.
Copper plays a huge role in the transition to clean energy. It is a good conductor of heat and electricity, and is also ductile and recyclable. These properties make it a crucial material in electric vehicles and renewable energy infrastructure, as well as electronic goods and construction.
In the past 5,000 years, 550 million tonnes of copper has been produced. To keep up with demand, the world will need the same amount in the next 24 years.
Steel is lightweight, flexible, tensile, and recyclable. Its versatility and cost-saving benefits make it a preferred material within the construction sector. Demand for steel across various sectors signals growth and is a good indicator of the health of the general economy.
China is responsible for 51% of the world’s steel production, and accounts for 49% of its demand.
Nitrogen is an odorless, colorless gas that makes up 78% of the earth’s atmosphere by volume. Industrial processes capture ammonia from the air and convert it to other nitrogen compounds. Urea is the most common, and is primarily used as fertilizer. The global nitrogen market is worth $62.8 billion.
How CRU Navigates Complex Commodity Markets
Commodity prices have many different drivers, from supply and demand dynamics to exchange rate movements. Volatility is a common feature to all these commodities and up-to-date pricing and information is critical.
CRU commodity specialists disentangle these forces to interpret and forecast price movements. They apply a range of modelling techniques, as well as their experience and expert judgement.
For 50 years, CRU Group has tracked the commodities that drive the modern world, bringing macroeconomic insights to investors for accurate pricing—and will continue to do so for the next 50 years.
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