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Car-sharing - Iceland

Iceland

The Car-sharing market in Iceland is expected to witness a surge in revenue with a projected value of €3.72m in 2024.
Moreover, the revenue is anticipated to grow annually at a rate of 3.97% (CAGR 2024-2029), which will result in a projected market volume of €4.52m by 2029.
The number of users in this market is expected to reach 19.93k users by 2029.
Furthermore, the user penetration rate is projected to increase from 4.6% in 2024 to 5.1% by 2029.
The average revenue per user (ARPU) is expected to be €216.00.
It is estimated that 96% of the total revenue generated in the Car-sharing market will be through online sales by 2029.
Additionally, in comparison to other countries, United States is expected to generate the highest revenue in the Car-sharing market with an estimated value of €2,769m in 2024.
Iceland's Car-sharing market is relatively small but growing, with a focus on environmentally-friendly options such as electric vehicles.

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

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Analyst Opinion

The Car-sharing market in Iceland is experiencing steady growth and development.

Customer preferences: Customers in Iceland are increasingly opting for car-sharing services due to their convenience and cost-effectiveness. With the rising cost of car ownership, many individuals are choosing to forgo owning a car and instead rely on car-sharing platforms for their transportation needs. This shift in customer preferences is driven by the desire for flexibility and the ability to access a vehicle when needed, without the hassle of maintenance and parking.

Trends in the market: One of the key trends in the car-sharing market in Iceland is the increasing popularity of electric vehicles (EVs). As a country known for its commitment to sustainability and renewable energy, Iceland has seen a surge in the adoption of EVs among car-sharing platforms. The government's initiatives to promote electric mobility, such as tax incentives and the development of charging infrastructure, have further fueled this trend. The availability of EVs in car-sharing fleets has not only attracted environmentally conscious customers but also those looking for a unique and futuristic driving experience. Another trend in the car-sharing market in Iceland is the emergence of peer-to-peer car-sharing platforms. These platforms allow individuals to rent out their personal vehicles to others, providing an additional source of income for car owners. This trend has gained traction due to the high cost of living in Iceland and the desire for individuals to make the most of their assets. Peer-to-peer car-sharing platforms also offer a wider range of vehicle options and a more personalized experience for customers.

Local special circumstances: Iceland's unique geography and weather conditions play a significant role in shaping the car-sharing market. The country's relatively small size and well-developed infrastructure make it conducive to car-sharing services. The availability of charging stations for electric vehicles is particularly important in a country where long distances between towns and cities are common. Additionally, Iceland's harsh winter conditions make car-sharing an attractive option for those who do not want to deal with the challenges of driving in icy and snowy conditions.

Underlying macroeconomic factors: Iceland's strong economy and high standard of living contribute to the growth of the car-sharing market. As disposable incomes rise, more individuals have the financial means to afford car-sharing services. Moreover, the country's robust tourism industry has created a demand for convenient and flexible transportation options for tourists, further driving the growth of the car-sharing market. In conclusion, the car-sharing market in Iceland is experiencing growth and development due to changing customer preferences, the adoption of electric vehicles, the emergence of peer-to-peer platforms, local special circumstances, and underlying macroeconomic factors. As the market continues to evolve, it is likely to witness further innovation and expansion in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and online shares of car-sharing services.

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.