Large Cars - Iceland

Iceland

Revenue in the Large Cars market is projected to reach US$56m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 9.16%, resulting in a projected market volume of US$80m by 2028.
Large Cars market unit sales are expected to reach 1.6k vehicles in 2028.
The volume weighted average price of Large Cars market in 2024 is expected to amount to US$49k.
From an international perspective it is shown that the most revenue will be generated in China (US$106,900m in 2024).

Key regions: China, Europe, Worldwide, United States, United Kingdom

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Analyst Opinion

The Large Cars market in Iceland has been experiencing steady growth in recent years. Customer preferences have shifted towards larger vehicles due to their perceived safety and comfort features.

Additionally, local special circumstances and underlying macroeconomic factors have contributed to the development of this market. Customer preferences in Iceland have played a significant role in the growth of the Large Cars market. With a challenging climate and rugged terrain, Icelandic consumers prioritize safety and reliability when choosing a vehicle.

Large cars, with their robust build and advanced safety features, meet these requirements. Moreover, the spacious interiors and comfortable seating arrangements of large cars cater to the needs of families and individuals who value comfort during long drives. Trends in the market indicate that the demand for large cars in Iceland is on the rise.

This can be attributed to the increasing disposable income of consumers, which allows them to afford higher-priced vehicles. Additionally, the availability of attractive financing options and competitive interest rates has made it easier for consumers to purchase large cars. The trend is further fueled by the growing popularity of SUVs and crossovers, which fall under the large car category.

Local special circumstances also contribute to the growth of the Large Cars market in Iceland. The country's unique geography, characterized by rough terrains and challenging road conditions, necessitates vehicles that can handle such environments. Large cars, with their higher ground clearance and all-wheel drive capabilities, are well-suited for Icelandic roads.

Furthermore, the country's tourism industry has been booming in recent years, attracting a significant number of visitors who prefer to explore Iceland's natural wonders in large cars. Underlying macroeconomic factors have also played a role in the development of the Large Cars market in Iceland. The country has experienced steady economic growth, resulting in increased consumer confidence and spending power.

This has led to a higher demand for larger and more luxurious vehicles, including large cars. Additionally, favorable interest rates and government incentives for purchasing environmentally friendly vehicles have further boosted the market. In conclusion, the Large Cars market in Iceland is experiencing growth due to customer preferences for safety and comfort, along with local special circumstances and underlying macroeconomic factors.

As the demand for large cars continues to rise, manufacturers and dealers in Iceland should focus on offering a wide range of models that cater to the specific needs of Icelandic consumers.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).