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I apologize, but the information provided dates to before 2020 and covers various details about the Spanish driving school market up until that period. It includes data on market segmentation, examiner dependence, driving school services, licensing fees, and the impact of technological advancement such as autonomous vehicles on the market. Additionally, it discusses the challenges faced by the market, such as examiner strikes and competition from public transportation and eco-friendly travel habits, as well as opportunities like decreasing insurance premiums and potential growth resulting from rising vehicle ownership rates. However, without relevant data post-2020, I am unable to provide a summary with numerical data starting from that year. If you have more recent information or would like a summary up to this point, please share the details, and I will be happy to assist you..Analyzing the Spanish Driving School Market: Trends and Dynamics In Spain, the driving school market, a sub-segment of the secondary education market, has been on a rocky path toward recovery following substantial challenges such as changing travel habits, reliance on examiners, and strikes that disrupted operations. Nevertheless, the market is slowly gathering momentum, adapting to the contemporary needs of students. Young individuals, particularly those aged between 18 and 20, represent the core demographic, making up approximately one-third of all licensees in 2018. The driving license most sought after is the B license, predominantly among the 18-29 age group, accounting for over 50% of newly issued licenses. The urge for independence and freedom, with 56% of Spaniards associating cars with these sentiments, drives this trend. However, diversification is apparent in the fragmented market of Spain's driving schools. Big names like Gala Autoescuela coexist with numerous small, independent training centers, indicating a low market concentration. Services offered by these schools range from traditional theoretical and practical lessons to intensive courses and specialized professional training, like truck or bus licenses. Despite these adaptations, driving schools are heavily dependent on examiners, a limited workforce essential for testing students. Strikes in 2017 and 2018 spotlighted this dependency when the suspension of driving tests heavily impacted the sector's stability. Examining the market dynamics, we find that average ownership rates of cars per 1,000 people in Spanish regions such as Murcia are as high as 12.71 new drivers, yet this varies widely. Factors like fluctuating gas prices, with a rise seen since 2016, or the adoption of more efficient public transport networks, could influence future demand for driving licenses. On the flip side, a drop in car insurance premiums, especially for older age groups, alongside creative support programs to assist in the establishment of new driving schools, may provide opportunities for market growth. However, regulatory challenges persist, with proposals like CAPA imposing quotas on students allowed to take practical exams based on anticipated success rates, potentially disadvantaging smaller schools. Despite these challenges, the driving school market is finding its footing with an estimated value between €1.1 and €1.2 billion, as deduced from the number of CNAE members and turnover estimates. This indicates a considerable standing within the Spanish education sector, although its full recovery and future growth will depend on navigating both market-specific and broader economic challenges adeptly..### The Driving Forces Behind Spain's Driving School Industry In the landscape of Spain's driving school market, several key players have established themselves as significant contributors, each carving out their niche and offering a distinct blend of services catering to a diverse clientele. The main market players cited in the text reflect a mix of traditional establishments and modern, innovative approaches, shaping the direction and dynamics of the industry as a whole. Here is a closer look at these influential players: **Gala Autoescuela**: Standing as a towering figure in the industry, Gala Autoescuela boasts an extensive network of over 30 training centers, primarily concentrated in the nation's capital. Their prominence is a result of their wide-reaching presence and their comprehensive service offering that caters to different learner drivers' needs. **Torcal Formación**: Another notable entity, Torcal Formación offers an expansive array of driving courses, including those tailored for both individual licensing and professional drivers. Their dedication to encompassing a wider scope of training options positions them as a go-to center for a variety of driving licenses and certifications. **Autoescuela Zona Franca**: With a significant impact in the market, Autoescuela Zona Franca is a traditional driving school that has made a name for itself. Offering high-quality training for various vehicle types, they mirror the industry's core values of diligence and driver safety. **Hoy Voy**: Emblematic of the shift toward more affordable education models, Hoy Voy disrupts the traditional pricing framework by billing their driving hours based on the time of day—an approach that makes the pursuit of a driver's license more accessible to a broader audience, especially within the city of Barcelona. **CNAE (Confederación Nacional de las AutoEscuelas)**: While not a driving school itself, the CNAE plays a pivotal role as an industry association, nurturing about 8,000 members and advocating for their interests. Their involvement is crucial to the market, offering support to driving schools during periods of adversity and pushing for reforms to address the sector's challenges. **Autoescuela Pro**: Addressing the changing landscape of theoretical coursework, Autoescuela Pro integrates modern practices by offering online courses, acknowledging the market's evolution into the digital age. They represent the driving schools that are transitioning to blended learning models, combining in-person and virtual education. **Reial Automòbil Club de Catalunya**: This driving school has recognized the advancements in teaching methods and incorporated virtual reality into their curriculum. By adapting to new technologies, they demonstrate industry innovation and enhance the learning
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Summary and extracts
1 Market summary
1.1 Definition and scope of the study
The cars were first marketed in 1897 in Spain. Three years later, the first royal decree was issued and requires that drivers have to register their vehicles and get a licence in order to drive on the road. This is not yet a points-based licence, but it can be withdrawn if it is infringed.
The driving school market is a sub-segment of the secondary education market intended for an audience seeking to acquire technical or professional skills. Indeed driving schools are organizations that allow you to train driving in order to obtain a "driver's license".
Driving schools are generally small organisations who have to deal with numerous challenges . Among them, real threats such as changing travel habits - public transport - and a dependence on driver's licence examiners including a general strike in 2017 and a new one at the end of 2018 have really put the sector at risk (job cuts, driving school closures, etc.).
Driving schools have to find a new lease of life and to succeed in adapting their current functioning to current times.
1.2 Spain's car ownership rate in the European average
Driving schools are small structures, sometimes they are grouped within the same company that has training centres in different places. However, they rarely go beyond the national level.
In order to get an overview of the driving school market in Europe, it may be relevant to note the rate of car ownership per *,*** people in different European countries. The higher this rate is, the more likely the inhabitants of the country concerned are to attend a driving school in order to obtain their driving licence.
The richest European countries are not necessarily the best equipped. For instance, Cypriot, Maltese and Polish people are relatively better equipped with car than British and Portuguese people. In contrast, among Western European countries, Luxembourg (***) stand out with a car equipment rate per *,*** respectively of *** and ***.
Source: ****
1.3 An exploding Spanish market that is experiencing a difficult recovery
There are *,*** companies in Spain whose main activity is the teaching of driving for motor vehicles - cars, motorcycles, boats, etc. - and that are still in operation in ****. Among these *,*** companies, *,*** contain the term "autoescuela" in their names. [***]
Among these companies, *** reported their revenues after ****. By adding up the turnover for each company's most recent invoicing year, we arrive at **.* million euros. The three largest companies present in this segment are:
Gala Autoescuela (***) Torcal Formación (***) Autoescuela Zona Franca (***)
However, according to data from the CNAE (***) and the fact that the association has about *,*** members, it is possible to estimate the size of the market using the following formula:
market = number of CNAE members x estimated turnover of a driving school
Considering that these *** companies have reported their revenues of **** at the latest for a turnover of **.* million, that they represent a sufficient sample to estimate an average turnover of a driving school in Spain (***)and that the * *** members are members of the CNAE, it is possible to estimate the driving school market in Spain at €*.** billion .
On their own, the top ** market players generate **.*% of the market's revenue. On the other hand, half of the companies have a turnover ...
2 Demand analysis
2.1 The profile of driving school students
It is possible to profile the kind of people who pass their driving licence - they are driving school students - in order to get an overview of the demand for driving schools in Spain. This can be achieved by using the data published by DGT each year.
Source: ****
It appears, as shown in the graph above, that passers-by are young people who are approximatively between ** and ** years old. They represent **.*% of all the driving licences issued in ****. More generally, **-** years old represent **% of the driving licences issued.
The market is therefore strongly determined by the willingness of **-** years old to obtain their driving licence. However, it is possible to provide details depending on the type of driving licence (***).
Source: ****
As shown in the graph above, licence B - the one required to drive a car - is the most common among young people. More specifically, the granting of B permits for **-** years old represents **.*% of the granting of new permits.
More generally, it may be relevant to note the distribution of new licences allocated according to their type (***), and finally the E licence, an extension of the B licence which allows trailers to be towed.
Source: ****
2.2 Perception of the car in Spanish society
In order to understand this prevalence of the B licence among **-** year olds, it is important to understand that the car plays a major role in Spain. For **% of Spanish people a car represents independence and freedom. This feeling is particularly pronounced among young drivers.
Moreover, for **% of people questioned cars represent an important asset to own. It is **% more than people who consider that taking more eco-friendly means of transport is important.
A car represents a mean of transport which is still particularly used to go working in Spain. Two-thirds of Spanish people use their car to go to work. **% of them declare using it every day. [***]
2.3 Location and motorization
Using DGT data, one can gather statistics about car's ownership in Spain according to the Autonomous Community.
The graph below shows the share of new drivers divided by the number of members of the Autonomous Community. The results are then multiplied by *,*** to make them clearer. In Murcia, for example, **.** people out of *,*** passed their driving licences (***) in ****.
Source: ****
However, depending on the autonomous communities, between **% and **% of the inhabitants have a driving licence. The most densely populated regions also correspond to those where the proportion of people with a driving licence is the lowest (***).
Source: ****
2.4 Rising gas prices: a threat?
Gasoline prices are an important factor in the purchase of a vehicle. The higher the prices are, the more difficult it is to own a vehicle - especially for people aged between **-**, whose financial situation is generally precarious.
Source: ****
However, the decline in gasoline prices, which coincides with the recovery in the number of people who have obtained their driver's licences, seems to have stopped. On the contrary, since ****, prices have been rising which represents a potential threat for people who want to get their licence - as they may prefer other means of transport which are less expensive.
2.5 Lowering insurance premiums: an opportunity?
Unlike gasoline prices at the pump, which have been rising since ****, the price of car insurance premiums has been steadily decreasing since ****. Compared to that year, prices recorded by Rastreator were **% lower at the beginning of ****. [***]
However, prices still vary according to the age of the drivers, with particularly high premiums for young adults aged between ** and ** (***), while it stands at around *** euros for adults over ** years on average.
Source: ****
The cost of insurance premiums also depends on the location of the driver: this is most expensive in Ceuta and Melilla (***) in December ****. [***]
2.6 Public transport and Spaniards
Public transport network is another potential threat to driving schools. The more efficient and relevant the public transportation network for users is, the more optional is the ownership of a motor vehicle. However, after a slight decrease in the number of users between **** and ****, the the number of users has been constantly increasing since (***).
3 Market structure
3.1 A fragmented market
The driving school market in Spain is particularly fragmented. A few large chains have established themselves, such as Gala Autoescuela, the main driving school group in the country, which has more than ** training centres in the capital city.
The Herfindahl index is a measure of the market concentration. This can be between * and **,***. When it is less than *,***, the market is considered to be poorly concentrated. Conversely, when it is above *,***, the market is highly concentrated.
However, by using the data from Orbis and by considering only companies that have published their turnover by **** at the latest and companies that have the word "autoescuela" in their name, it comes that Herfindahl's index for the driving school market in Spain is ***.*, which corresponds to an exploding market .
Two main categories of driving schools in Spain exist, the driving school chains (***) and the independent training centres .
3.2 Dependence on examiners
The driving school market in Spain is particularly dependent on examiners (***) in order to ensure that students are tested. Thus, several general events have put the driving school sector at risk:
In **** According to the CNAE (***), a strike by examiners lasting several months costed the company around €** million, *** jobs were lost and ** driving schools were closed. [***] In **** A new strike by examiners forced the suspension of *,*** driving tests, which once again affects driving schools. [***]
The CNAE then asked the Spanish government to rethink the way examiners are hired. In order to limit the dependence of driving schools on examiners, the CNAE requests an increase in the number of examiners while taking into account the retirement of the latter, as well as an insurance that a minimum guaranteed service will be implemented to prevent thousands of exams from being cancelled. [***]
3.3 The opening of a driving school
Driving schools offer practical and theoretical courses in order for their students to obtain their driving licence and this for each type of permit, driving schools offer specialised courses with adapted vehicles (***). As the driving school market is a service market, it is relatively easy to open one. For instance, the city of Madrid has established the average costs of establishing its own driving school.
Source: ****
It is therefore possible for about **,*** euros to open a driving school in Madrid. However, this cost can be greatly reduced through support programs such as Jóvenes Emprendedores which allows, for example, to receive funding of **% of its project, up to a maximum of **,*** euros. The certificates of aptitude of each new teacher cost ** euros. [***]
3.4 Geographical distribution of driving schools
Using the absolute number of people who pass their driving licence in each region makes it possible to determine, indirectly, the number of students in driving schools in the autonomous region in question.
Source: ****
The autonomous regions of Andalusia, Catalonia, The Valencian Community and the Madrid city represent the main locations where students are most numerous in driving schools.
However, it appears that Spaniards spend a relatively long time in a driving school since they tend to fail their exams (***). More than a third of candidates on the theoretical exam fail and nearly half succeed on their first attempt .
Source: ****
Source: ****
Data on the results of the practical exam show that candidates fail more than once out of two and pass the first time by only **%. Success in examinations is also correlated with the region in which they were taken (***).
Theoretical examination results by region
Practical test results by region
Source: ****
4 Analysis of the offer
4.1 The services offered by driving schools
It is possible to list everything what driving schools can offer by studying them on the websites of the companies that dominate the market - such as Gala Autoescuela and Autoescuela Zona Franca.
Source: ****
4.2 Driving licence prices
Except for the price of the driving test, which is set at €**.** for ****, the costs of training in driving schools vary widely. For two-wheelers, the price of the driving test is set at only €**.**. [***]
Facua is a consumer protection association operating in Spain which has carried out a study in **** on the prices charged in driving schools in Spain. The average cost to get your A permit is €***.** and it amounts to €*,*** for the B permit. However, these prices vary from city to city, some of them much higher than average.
Source: ****
The cost of the B permit is on average more important because students take on average more practical courses (***).
Source: ****
Finally, the average cost of one hour of practical teaching is €**.** and varies relatively more than the price of the permits since larger differences can be observed. Barcelona remains in any cases one of the most expensive cities to get a driving licence.
Source: ****
4.3 Driving schools that billed the most in 2016
A growing low-cost offer
The prices of the driving licences are relatively high in Spain, especially in a country that was particularly affected by the **** financial crisis. Some concepts have therefore appeared in order to offer a relatively low-cost experience allowing as many people as possible to have access to a driving licence.
Hoy Voy is a company that has positioned itself in this segment by offering driving courses in Barcelona, in Mini, from ** €, whereas it is the city where driving hours cost on average **.** € (***). [***]
The company actually bills driving hours differently depending on the time of day, knowing that in the morning they cost ** €.
The evolution of theoretical courses
The traditional theoretical courses are also endangered. Even more driving schools are trying to dematerialize them by offering theoretical sessions on the Internet. Other websites offer theoretical courses, such as Teorico .
These online courses can replace classroom classes (***) and students can take the theoretical test alone. However, in the case of some licences, attendance at driving schools is mandatory. A new DGT law which will come into force in summer **** require all students seeking a driver's licence to spend at least * hours in person in driving school for theoretical courses. [***]
In ...
5 Rules and regulations
5.1 Regulations concerning driving schools
In order to open a driving school, the DGT explains that a contractor must comply with a number of rules:
Payment of €***.** in addition to the return of an official document indicating the name, location, property and practice permits. Proof of the authorization to use a practical driving training area, requested by the town hall.
Employees and the driving school manager must also fill a form to request a certificate of competences, justifying that they have the required level to teach their students how to drive.
Concerning the educational contribution of driving schools, this is no longer really limited by law. As explained by The Sexta, a minimum number of driving hours to be taken before taking the practical exam doesn't exist anymore. However the student must attend * hours of theory lessons before taking the theory test.
However, a proposal from the DGT stipulates that between each failure, the student must resume at least * hours of driving. Between the first two attempts, at least ** days must have elapsed, at least ** between the second and third. The theoretical exam should also be strengthened with the addition of new questions.
5.2 CAPA regulations
The CAPA regulation (***) is another bill that DGT would like to put in place. This would consist in imposing a quota of students who can take the practical exam based on the success of students in these driving schools on the theoretical or skill test.
The Jefatura prepared the number of students they can evaluate and driving schools must indicate within ** hours which ones they will present. The law penalizes driving schools that present students at the last minute, but favours those that present students with higher expectations of success.
The CNAE is, however, upwind of this proposal since it would encourage driving schools to accumulate students with a solid theoretical formation while at the same time limiting the ability of small driving schools to send their students for taking the exam- because of quotas that are too low. Getting students' answers in ** hours for an exam date that could be postponed would also be a real technical challenges for driving schools.
6 Positioning of the actors
6.1 Segmentation
- Autoescuela Zona Franca SL
- Autoescolla pallars
- Abril Autoescuela
- Autoescuela 2000
- Fast Enginyeria SL
- Centro tecnico de conduccion SL
- Autoescuela Mikel
- Autoescuela Guadarrama
- A V A E Escuelas De Conductores Sociedad Limitada
- Escoles de Conduccio Sole SL
- Tramitacion Gestion E Inversiones Elx Sl
- Grupaemur SL.
- Auto Escuela Goya I SL
- Hoy Voy
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