Small Cars - Estonia

Estonia

Revenue in the Small Cars market is projected to reach US$38m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of -0.99%, resulting in a projected market volume of US$36m by 2028.
Small Cars market unit sales are expected to reach 2,292.0vehicles in 2028.
The volume weighted average price of Small Cars market in 2024 is expected to amount to US$16k.
From an international perspective it is shown that the most revenue will be generated in China (US$13,380m in 2024).

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

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Analyst Opinion

The Small Cars market in Estonia has been experiencing significant growth in recent years. Customer preferences have shifted towards smaller, more fuel-efficient vehicles, leading to an increase in demand for small cars. This trend can be attributed to several factors, including changing consumer attitudes towards sustainability and the rising cost of fuel. Additionally, local special circumstances such as the country's small size and well-developed public transportation system have also contributed to the growth of the Small Cars market in Estonia.

Customer preferences: Estonian customers have shown a strong preference for small cars due to their compact size and fuel efficiency. With limited parking spaces and narrow city streets, smaller vehicles are more practical and easier to maneuver in urban environments. Furthermore, the rising cost of fuel has prompted consumers to prioritize fuel efficiency, making small cars an attractive option.

Trends in the market: One of the key trends in the Small Cars market in Estonia is the growing demand for electric and hybrid vehicles. As the government and environmental organizations promote sustainable transportation, more consumers are opting for electric or hybrid small cars. This trend is expected to continue as the country aims to reduce greenhouse gas emissions and transition to a greener economy. Another trend in the market is the increasing popularity of small SUVs. While traditional small cars remain popular, many consumers are now opting for small SUVs that offer a higher driving position, increased cargo space, and a more rugged appearance. This trend reflects the growing demand for versatile vehicles that can accommodate various lifestyle needs.

Local special circumstances: Estonia's small size and well-developed public transportation system have played a role in the growth of the Small Cars market. With shorter commuting distances and efficient public transportation options, many Estonians find small cars to be a practical choice for their daily transportation needs. Additionally, the country's commitment to sustainability and environmental initiatives has further encouraged the adoption of small and fuel-efficient vehicles.

Underlying macroeconomic factors: The growth of the Small Cars market in Estonia can also be attributed to underlying macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable income. As a result, more consumers are able to afford small cars and are willing to invest in vehicles that offer long-term cost savings through fuel efficiency. In conclusion, the Small Cars market in Estonia has been growing due to changing customer preferences, local special circumstances, and underlying macroeconomic factors. The shift towards smaller, more fuel-efficient vehicles reflects changing consumer attitudes towards sustainability and the rising cost of fuel. Furthermore, Estonia's small size and well-developed public transportation system have made small cars a practical choice for many consumers. As the country continues to prioritize sustainability and economic growth, the Small Cars market is expected to continue its upward trajectory.

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).