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Bus Tickets - Iceland

Iceland

The Bus Tickets market in Iceland is predicted to generate a revenue of €1.59m by 2024, which is expected to exhibit an annual growth rate of 3.30% (CAGR 2024-2029).
This growth is anticipated to result in a market volume of €1.87m by 2029.
Moreover, the number of users in this market is projected to reach 22.83k users by 2029.
In 2024, the user penetration rate is expected to be 5.2%, which is further expected to increase to 5.9% by 2029.
The average revenue per user (ARPU) is expected to be €81.29.
Online sales are expected to contribute to 92% of the total revenue by 2029.
In comparison to other countries, China is expected to generate the highest revenue (€4,610m in 2024) in the Bus Tickets market.
Iceland's bus market is dominated by eco-friendly vehicles, with the government setting a goal to have only electric buses operating in Reykjavik by 2025.

Key regions: United States, Europe, Malaysia, Germany, Thailand

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Analyst Opinion

The Buses market in Iceland has been experiencing significant growth in recent years.

Customer preferences: Customers in Iceland have shown a strong preference for buses as a mode of transportation. This is due to several factors, including the country's rugged terrain and challenging weather conditions. Buses are seen as a reliable and safe means of travel, especially in areas where other modes of transportation may be less accessible. Additionally, buses provide a cost-effective option for both locals and tourists, making them a popular choice for transportation in Iceland.

Trends in the market: One of the key trends in the Buses market in Iceland is the increasing demand for eco-friendly buses. As the country focuses on sustainable development and reducing carbon emissions, there has been a growing interest in electric and hybrid buses. This trend is in line with global efforts to combat climate change and promote environmentally-friendly transportation options. Another trend in the market is the integration of technology in buses. In recent years, there has been a push to modernize the bus fleet in Iceland, with the introduction of features such as Wi-Fi, USB charging ports, and real-time tracking systems. These technological advancements enhance the overall passenger experience and make bus travel more convenient and efficient.

Local special circumstances: Iceland's unique geography and climate present special circumstances for the Buses market. The country's rugged terrain and limited road infrastructure require buses to be specially designed and equipped to navigate challenging conditions. Additionally, the harsh weather conditions in Iceland, including snowstorms and icy roads, necessitate buses that are capable of operating in extreme weather.

Underlying macroeconomic factors: The growth in the Buses market in Iceland can be attributed to several underlying macroeconomic factors. Firstly, the country's thriving tourism industry has contributed to increased demand for transportation services, including buses. Iceland has seen a significant rise in tourist arrivals in recent years, and buses are a popular choice for tourists to explore the country's natural attractions. Furthermore, the government's investment in infrastructure development has played a crucial role in the growth of the Buses market. The construction and improvement of roads, especially in rural areas, have made bus travel more accessible and convenient. This has opened up new opportunities for bus operators and encouraged more people to choose buses as their preferred mode of transportation. In conclusion, the Buses market in Iceland is experiencing growth due to customer preferences for reliable and cost-effective transportation, the increasing demand for eco-friendly and technologically advanced buses, the unique local circumstances, and the underlying macroeconomic factors such as the thriving tourism industry and infrastructure development.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and online shares of bus tickets.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, third-party studies and reports, federal statistical offices, industry associations, and price data. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as demographic data, GDP, consumer spending, internet penetration, and device usage. 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, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, the S-curve function and exponential trend smoothing methods are applied.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.