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The driving school market - United States

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Study Overview

A driving school educates students how to drive in both a theoretical and practical context. The global market is growing parallel to higher disposable incomes. Indeed, the industry is highly dependent on the income of households as the driving school services many times are costly. Ibisworld reports that the US market has experienced strong historic growth, and will continue doing so in the future, albeit at lower pace due to factors such as alternatives to driving and stagnating disposable income growth rates. Moreover, on the very long run, the US’s population is ageing, which decreases the relative number of individuals signing up for driving school, consequently decreasing industry revenue. The market is highly fragmented due to the low barriers of entry; however, some notable players include Teachworks, Coanics, TutorCruncher, SimplyBook.me, and Bookitlive. The driving school market is not cyclical, and demand is stable. Nevertheless, consumers are price-sensitive, which explains the importance of disposable incomes when understanding the car market.