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.
Plant-based Alternatives: 5 Ways They Benefit the Planet
Conventional meat production is responsible for 14.5% of the world’s CO2 gases. Here we visualize the benefits of plant-based alternatives.
Plant-based Alternatives: 5 Ways They Benefit the Planet
Over the past decade, people have become increasingly interested in plant-based diets. In fact, there has been a 600% increase in people turning vegan in the U.S. since 2014.
Because of this, the plant-based foods market could make up roughly 7.7% of the global protein market by 2030, with a value of over $162 billion, up from $29.4 billion in 2020.
Although initially promoted for their gambit of health benefits, recent studies have shown that switching to a plant-based diet has a list of environmental benefits too.
The following infographic by Billy Goat Brands (CSE: GOAT) (“GOAT”) explores the environmental impacts of conventional meat production and how plant-based alternatives can lessen this impact and be a viable dietary solution for the future.
Environmental Benefits of Plant-based Alternatives
Increased population growth has caused meat production to increase exponentially. The livestock sector is one of the most significant contributors to urgent environmental problems. Conventional meat production is responsible for 14.5% of the world’s greenhouse gases.
Water, land, and ocean conservation have become a major concern for livestock breeding and meat production. It also causes a loss of soil nutrients, leaving land unusable in the future.
Here are five ways in which the production of plant-based alternatives benefit the environment:
- Climate Change: The production of plant-based meats causes very low greenhouse gas emissions and can in fact reduce emissions caused by conventional meat production by 70%.
- Land Conservation: Switching to a plant-based diet could also reduce global agricultural land use from 4 to 1 billion hectares.
- Water Conservation: A plant-based diet can reduce water consumption by up to 50%, saving 14 trillion gallons of water annually.
- Cleaner Water: Creating plant-based alternatives does not require excessive spraying of chemicals and pesticides, reducing aquatic nutrient pollution.
- Ocean Conservation: Consumption of plant-based imitation fish can stop the practice of overfishing that has caused oceanic dead zones across the world.
Plant-based alternatives offer a solution to these problems. They produce minimal greenhouse gases and require a fraction of the cropland and water needed for conventional meat production.
Health Benefits of Consuming Plant-based Alternatives
Plant-based diets are considered to be naturally nutritious and healthy. For years, registered dietitians and food scientists have touted the perks of eating plants and cutting back on meat.
Here are some amazing benefits of choosing a plant-based diet:
Lower Your Blood Pressure
Several studies have shown that sticking with a plant-based diet can reduce blood pressure, reducing your risk of further health complications. A recent study also found that vegetarians had a 34% lower risk of developing hypertension than those who consume meat.
Prevent Type-2 Diabetes
Our diet and diseases like type 2 diabetes have had a long-standing link. Plant-based diets, especially when rich in high-quality plant foods, are associated with a substantially lower risk of developing type-2 diabetes by over 30%.
Provide Healthy Body BMI
Studies have shown that the mean BMI for vegans was 23.6, while for nonvegetarians, it was 28.8, which qualifies as overweight. The various fibers and antioxidants in plant-based foods reduce fatty lipids in the body and promote a healthy BMI.
Decrease Your Risk of Cancer
According to the American Institute for Cancer Research (AICR ), the best way to source cancer-protective nutrients, including fiber, vitamins, minerals, and phytochemicals, is to eat a diet rich in vegetables and fruit, grains, beans, nuts, seeds, and some animal foods.
Improve Brain Capacity
There is veritable proof that a plant-based diet may improve the cognitive functions of your body. In some rare cases, it is linked to enhancing impairments in Alzheimer’s patients and reducing the risk of dementia.
Most Popular Plant-based Alternatives
There are a variety of plant-based alternatives that are available for consumption in the market today. Meat and milk alternatives are the most popular types of current plant-based alternatives available. Many popular fast-food chains have now adopted using plant-based meats in their menus.
Similarly, in order to combat the extreme exploitation of fisheries worldwide, efforts are being made to create plant-based seafood alternatives for consumption.
Through brands like Sophie’s Kitchen, Billy Goat Brands (CSE: GOAT) gives people the opportunity to invest in companies that offer healthy and environmentally conscious plant-based alternatives for consumption.
Go to billygoatbrands.com to learn more about investing in a plant-based future today.
Visualized: The Circular Economy 101
How does a circular economy work? In this infographic, we show the benefits of a circular economy, and the key factors driving its growth.
Visualized: The Circular Economy 101
The principles of a circular economy trace back as far as 3,000 years.
Archeological evidence shows that Romans recycled trash following the eruption of Mount Vesuvius in 79 AD. Roughly 200 years later, people recycled glass during the Byzantine Empire. Fast-forward to today and circular economy strategies are projected to generate trillions in economic output by 2030.
But how does the circular economy work? This infographic from MSCI provides a guide to circular economies—from circular business models to circular technologies.
No Time to Waste
First, let’s start at the root of the problem, our current consumption trends:
- Raw Materials: Global extraction is projected to double by 2060.
- Textiles: 85% of clothing and textiles are discarded.
- Waste: Global waste is projected to rise 70% by 2050.
- Water: 80% of global wastewater is untreated or reused before returning back to the ecosystem.
To change consumption patterns and reduce waste, consumer behaviors, business models, and policies will need to change. But the big question is how?
To answer this problem, the concept of a circular economy is gaining traction.
What Is a Circular Economy?
A circular economy is centered on the idea of resources being kept as long as possible within the economic system, where materials that have undergone an entire lifecycle, from production to end stage, are returned to the economic system as an input.
Above all else, a circular economy is based on sustainable life cycles.
Circular Economy Growth
In 2019, BlackRock launched an inaugural Circular Economy fund. Since then, it has attracted $2.1 billion in investment. A number of the world’s largest asset managers have followed suit.
Policy-driven agendas are also focused on the circular economy shift:
- Paris Climate Agreement
- UN Sustainable Development Goals (SDG 12, 11, 9, 13)
- European Green Deal Circular Economy Action Plan
- 2019 African Durban Declaration
- China’s 5-Year Circular Economy Plan
- Circular economy strategies across Latin American countries
Given the steep cost of linear economic models, governments are beginning to pay attention to the merits of a circular economy.
The Upside of a Circular Economy
Circular economy principles aligned with sustainability offer the following advantages:
- Reducing GHG emissions: 9.3 billion tonnes of CO₂e could be prevented by 2050 if circular economy strategies are applied across the steel, aluminum, cement, food, and plastic sectors.
- Preserving long-term biodiversity: ~50% decrease in harmful effects on farm-level biodiversity through applying circular strategies.
- Improving ocean health & water quality: 80% reduction in plastics entering the ocean globally by using reclamation, recycling, and reduction strategies, among others.
- Economic growth & job creation: $4.5 trillion global economic opportunity by 2030 through spurring innovation in waste reduction.
Importantly, circular strategies, technologies, and transition companies are looking beyond traditional economic models.
5 Business Models in a Circular Economy
From alternative energy to bio-based and recyclable materials, the most effective circular business models are ones that create obvious value.
Let’s consider five circular economy business models and where they can be applied in the supply chain. Additionally, some of the models can be adapted to any part of the supply chain.
|Business Model||Supply Chain Example|
|1. Circular supplies/Circular design||Product design/R&D
Procurement/raw materials acquisition
|2. Resource recovery|
(Recycle, Waste as a resource)
Material & product manufacturing
|3. Product life extension |
(Remanufacture, Resell, Upgrade)
Sales & marketing
|4. Share||Product use
Material & product manufacturing
|5. Product as a service||Logistics
Today, circular models present opportunities in fashion, food systems, mining and metals, among others.
How are Circular Economy Indexes Created?
A circular economy theme is built on two key dimensions:
1. Smarter technologies: Providing circular technologies
- Single-use plastics alternatives
- Digital technologies that replace resource-intensive products
2. Resource efficient processes: Maximizing materials and minimizing impacts (e.g. emissions)
- Improved package materials
- Efficient processes that reduce land degradation and promote diversity
Then, MSCI identifies areas of innovation that support a circular model. Consider the following circular technologies, which are produced by companies that contribute to a circular economy theme “end-state” through their products and services.
|7 Circular Technologies||Example|
|1. Renewables & energy efficiency||Replacing oil-based plastic with compostable materials
|2. Sharing economy||Peer-to-peer accommodation
|3. Future mobility||Electric vehicles
|4. Internet economy||Online markets|
|5. Water sustainability||Wastewater treatment systems|
|6. Plastic sustainability||Companies using only one type of polymer for packaging|
It also looks at circular transitions, which are companies that enable the shift to a circular economy through their management of related issues.
|3 Circular Transitions||Example|
|1. Natural resources management||Deforestation
|2. Water resources management||Smart metering devices|
|3. Plastic transition||Biodegradable plastics|
As a result MSCI has created a range of Circular Economy related indexes:
- Natural Resources Stewardship
- Sustainable Water Transition
- Plastics Transition
- Renewables & Energy Efficiency
- Sharing Economy
It’s worth noting that what is measurable today will likely only expand, considering the evolving regulatory frameworks and thinking around a circular economy,
The Value of a Circular Economy
Through looking at circular economy innovation, we yield three important insights:
- Competitive earnings
- New economic models
- Sustainable solutions
For a growing number of investors, companies, and researchers, a circular economy provides a wide scope of opportunities ranging from single-use plastics alternatives to water sustainability.
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