Passenger Cars - Iceland

Iceland

Revenue in the Passenger Cars market is projected to reach €906.6m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -0.76%, resulting in a projected market volume of €872.7m by 2029.
The market's largest segment is SUVs with a projected market volume of €413.2m in 2024.
Passenger Cars market unit sales are expected to reach 12.90k vehicles in 2029.
The volume weighted average price of Passenger Cars market is expected to amount to €64.52k in 2024.
With a vehicle unit sales share of 24.3% in 2024, Audi is expected to have one of the highest market share in the selected region.
The value market share of the make Bentley in the selected region is expected to stand at 36.1% in 2024.
From an international perspective it is shown that the most revenue will be generated in the United States (€561bn in 2024).

Key regions: United States, Germany, Europe, China, India

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Analyst Opinion

The Passenger Cars market in Iceland is experiencing significant growth due to changing customer preferences, emerging market trends, and local special circumstances. Customer preferences in the Passenger Cars market in Iceland have shifted towards more fuel-efficient and environmentally friendly vehicles.

This is in line with global trends, as consumers become more conscious of their carbon footprint and seek sustainable transportation options. As a result, there is a growing demand for electric and hybrid vehicles in Iceland. These vehicles offer lower emissions and reduced fuel consumption, making them attractive to environmentally conscious consumers.

Additionally, customers in Iceland value safety features in their cars, such as advanced driver assistance systems and robust crash protection. Trends in the Passenger Cars market in Iceland reflect broader global developments. One significant trend is the rise of SUVs and crossovers.

These vehicles offer a combination of spaciousness, versatility, and off-road capabilities, making them appealing to Icelandic consumers who often face challenging weather and road conditions. Another trend is the increasing popularity of online car shopping. Customers in Iceland are increasingly using online platforms to research and purchase vehicles, as it offers convenience and access to a wider range of options.

Local special circumstances also contribute to the development of the Passenger Cars market in Iceland. The country's unique geography and climate necessitate specific vehicle requirements. For example, Iceland's rugged terrain and harsh winters make all-wheel drive and winter tires essential features for many drivers.

Additionally, the country's relatively small population and limited public transportation infrastructure make personal vehicle ownership a necessity for many residents. Underlying macroeconomic factors also play a role in the growth of the Passenger Cars market in Iceland. The country has experienced steady economic growth in recent years, leading to increased consumer spending power.

This has allowed more individuals to afford cars and contributed to the overall growth of the market. Furthermore, favorable government policies and incentives, such as tax breaks and subsidies for electric vehicles, have encouraged the adoption of environmentally friendly cars and further fueled market growth. In conclusion, the Passenger Cars market in Iceland is growing due to changing customer preferences, emerging market trends, local special circumstances, and underlying macroeconomic factors.

The shift towards fuel-efficient and environmentally friendly vehicles, the rise of SUVs and crossovers, the popularity of online car shopping, and the unique requirements of Iceland's geography and climate all contribute to the market's development. Additionally, favorable economic conditions and government incentives further boost market growth.

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).