The driving school market - Germany

The German driving school market, by 2020, is a highly fragmented sector made up mainly of small, family-run businesses, with an average of around 13,000 driving schools. Despite the growing trend towards digital solutions and online training platforms for theory components, in-person training at accredited driving schools remains mandatory for those wishing to obtain a driving license in Germany.

Demand trends in the market include a growing need for foreign language courses due to the rising proportion of foreigners (12.2% in 2018), as well as an increase in the number of driving tests taken, influenced in part by rising passenger car sales. However, demographic changes such as an aging population present potential challenges by potentially reducing demand for new driving licenses. The average cost of obtaining a category B license is 1,903 euros, with notable variations between regions and cities in Germany. Expenditure in the driving school sector is divided mainly between personnel (40%) and material costs (60%). At European level, the standardization of driving licenses through the "3rd European Directive" serves to harmonize the market in EU member states, by rationalizing the appearance, validity period and categorization of driving licenses

Demand trends in the German driving school market

An analysis of demand trends in the German driving school market reveals a multi-faceted landscape, marked by both growth and nuanced regional differences. There is an apparent upward trend in the number of driving tests taken in Germany, a legally required step that reflects direct demand for driving school services. Specifically, the number of practical driving tests has risen, especially in regions such as Saarland, Bremen and Berlin. This increase correlates with passenger car sales, which have been rising steadily since 2013, with an estimated 3.0 to 3.5 million cars sold in a recent year.

Another dimension of demand is the growing foreign population in Germany, which has reached over 10% of the total population. This demographic shift has led to an increase in demand for driving courses offered in languages other than German, to meet the needs of non-EU/EEA nationals who need to convert their existing licenses. In addition, on the German market, the majority of driving tests are taken by first-time applicants, accounting for around three-quarters of all tests. Although there is a significant disparity in the gender distribution among those obtaining a driving license - with twice as many men as women obtaining a license in any given year - the under-18 age group has seen a more equitable balance between men and women.

Germany's demographic dynamics also influence demand in the driving school market. With a significant proportion of the population aged over 65, the decline in the young population could potentially reduce market demand in the long term. Overall, while regional disparities based on competitive pressure, driving instructor demographics and the rural/urban divide suggest a localized nature of the market, the continued increase in the number of driving instructors and the number of driving instructors in the market suggest a localized nature of the market.of the market, the continuing increase in driving tests and car sales, as well as demographic trends, point to a sustained and evolving demand for driving school services in Germany.

The forces at work in the German driving school landscape

• The German driving school market is a dynamic sector with a large number of key players, each contributing to the dynamism and success of the industry.
• The European Driving Schools Association (EFA) is a central figure representing the interests of driving schools at European level. This collective ensures that the voice of driving schools is heard in the various policy-making platforms, liaising between individual companies and the wider political landscape.
• On a national level, the KBA (Kraftfahrt-Bundesamt or Federal Motor Transport Authority) is an essential institution, not only for maintaining the central register of driving licenses (ZFER), but also for providing vital statistics that give an insight into market trends and needs. The data collected by the KBA is essential to enable driving schools to align their offerings with the demands of Germany's diverse population of drivers. Driving instructors and their ongoing qualification are also essential to the market.

The annual influx of newly certified driving instructors ensures that the market remains fresh and competitive. This workforce generally comes from small, family-run schools catering to local or regional customers, underlining the deep-rooted, community-oriented nature of the sector. Mention should also be made of the Movement Fahrschul-Klima-Index, which provides valuable analytical reports on the climate and trends in the German driving school market. These reports provide information that helps driving schools navigate the economic landscape, adjust pricing models and respond to demographic needs, such as offering multilingual courses for a growing population of foreign drivers. The combined efforts of these entities support a thriving driving school market which, despite regional and local disparities, continues to ethe combined efforts of these entities support a thriving driving school market which, despite regional and local disparities, continues to evolve and adapt to the changing environments of legislation, technology, market needs and consumer preferences. Together, they ensure the industry's progress and contribute to its long tradition of promoting road safety and driver education in Germany.

Inforamtion

• Number of pages : ~ 40 pages
• Format : Digital and PDF versions
• Last update : 31/08/2022

Summary and extracts

List of charts presented in this market study

• Répartition des permis de conduire selon le type
• Répartition par sexe des personnes titulaires d'un permis probatoire
• Passenger car sales by volume
• Part des étrangers dans la population totale
• Evolution de l'âge médian
• Évolution de la pression concurrentielle dans l'industrie des auto-écoles selon les régions
• Chiffre d'affaires en fonction du Land
• Répartition des dépenses dans l'industrie des auto-écoles
• Chiffre d'affaires généré par les auto-écoles
• Number of general licenses by ZFER by category of permit
• Number of licensed drivers
• Number of people with probationary licences
• Evolution du nombre d'auto-écoles
• Nombre d'examens passés au sein des auto-écoles
• Répartition des moniteurs en fonction de l'âge