Small Cars - Iceland

Iceland

Revenue in the Small Cars market is projected to reach US$48m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 8.10%, resulting in a projected market volume of US$66m by 2028.
Small Cars market unit sales are expected to reach 2.0k vehicles in 2028.
The volume weighted average price of Small Cars market in 2024 is expected to amount to US$32k.
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 Iceland has seen significant growth in recent years, driven by changing customer preferences, market trends, and local special circumstances.

Customer preferences: Icelandic customers have shown a strong preference for small cars due to their fuel efficiency, compact size, and affordability. With the rising cost of living and increasing environmental awareness, many consumers are opting for smaller vehicles that offer better fuel economy and lower emissions. Small cars are also easier to maneuver and park in Iceland's narrow streets and limited parking spaces.

Trends in the market: One of the key trends in the Small Cars market in Iceland is the increasing demand for electric and hybrid vehicles. As the government and consumers prioritize sustainability and reducing carbon emissions, there has been a significant shift towards electric and hybrid cars. The availability of charging infrastructure and government incentives for purchasing electric vehicles have further boosted their popularity in the market. Another trend in the market is the growing popularity of crossover SUVs, which offer the practicality of a small car combined with the versatility and higher seating position of an SUV. These vehicles appeal to Icelandic consumers who value both space and fuel efficiency, making them a popular choice in the Small Cars market.

Local special circumstances: Iceland's unique geography and climate also contribute to the development of the Small Cars market. The country's rugged terrain and unpredictable weather conditions make small cars more suitable for navigating through narrow and icy roads. Additionally, the high cost of importing vehicles into Iceland makes smaller, more affordable cars a more attractive option for consumers.

Underlying macroeconomic factors: The Small Cars market in Iceland is influenced by several macroeconomic factors. The country's stable economy and high disposable income levels have contributed to the growth of the market. Additionally, favorable financing options and low interest rates have made it easier for consumers to purchase small cars. Furthermore, government policies and regulations play a significant role in shaping the Small Cars market in Iceland. The government's focus on sustainable transportation and reducing carbon emissions has led to the implementation of incentives and subsidies for electric and hybrid vehicles. These policies have not only increased the demand for small cars but also encouraged manufacturers to introduce more electric and hybrid models into the market. In conclusion, the Small Cars market in Iceland is experiencing growth due to changing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The demand for small cars, particularly electric and hybrid vehicles, is driven by factors such as fuel efficiency, affordability, and environmental consciousness. The unique geography and climate of Iceland, along with government policies and regulations, further contribute to the development of the market.

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).