Battery Electric Vehicles - Iceland

Iceland

Highlights

The projected revenue for the Battery Electric Vehicles market in Iceland is expected to reach US$584.2m in 2024.
It is anticipated that the revenue will exhibit an annual growth rate (CAGR 2024-2029) of -3.21%, resulting in a projected market volume of US$496.4m by 2029.
The unit sales in the Battery Electric Vehicles market are expected to reach 8.55k vehicles in 2029.
In 2024, the volume weighted average price of the Battery Electric Vehicles market in Iceland is predicted to be US$58.2k.
When considering the international perspective, it is evident that China will generate the highest revenue, amounting to US$211bn in 2024.
Iceland's commitment to renewable energy and its abundance of geothermal power make it an ideal market for the growth of Battery Electric Vehicles.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureMethodology

The Battery Electric Vehicles market in Iceland has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for the growth of the Battery Electric Vehicles market in Iceland is the increasing customer preference for environmentally friendly and sustainable transportation options. With growing concerns about climate change and air pollution, more and more consumers are opting for electric vehicles as a greener alternative to traditional gasoline-powered cars. The government of Iceland has also been actively promoting the use of electric vehicles by offering incentives such as tax breaks and subsidies, which has further encouraged customers to switch to electric vehicles.

Trends in the market: The Battery Electric Vehicles market in Iceland has seen a steady increase in sales and adoption. This can be attributed to several trends in the market. Firstly, there has been a significant improvement in the technology and performance of electric vehicles, making them more appealing to customers. The range of electric vehicles has increased, and charging infrastructure has improved, addressing one of the main concerns of potential buyers - range anxiety. Additionally, the availability of a wider variety of electric vehicle models in the market has given customers more options to choose from, further driving the growth of the market.

Local special circumstances: Iceland has unique local circumstances that have contributed to the growth of the Battery Electric Vehicles market. One of the primary factors is Iceland's abundant renewable energy resources. The country generates a significant portion of its electricity from renewable sources such as geothermal and hydroelectric power. This means that electric vehicles in Iceland have a much lower carbon footprint compared to countries that rely heavily on fossil fuels for electricity generation. Furthermore, the cold climate in Iceland can be advantageous for electric vehicles, as they are not as affected by cold weather as traditional internal combustion engine vehicles.

Underlying macroeconomic factors: Several macroeconomic factors have also played a role in the growth of the Battery Electric Vehicles market in Iceland. The government's commitment to reducing greenhouse gas emissions and transitioning to a greener economy has created a favorable environment for electric vehicles. Additionally, the rising fuel prices in Iceland have made electric vehicles a more cost-effective option for consumers. The government's support through incentives and subsidies has further reduced the upfront cost of electric vehicles, making them more affordable for the average consumer. In conclusion, the Battery Electric Vehicles market in Iceland has been growing rapidly due to increasing customer preferences for sustainable transportation options, improvements in technology and performance of electric vehicles, unique local circumstances such as abundant renewable energy resources, and the government's commitment to reducing greenhouse gas emissions. With these factors in play, the market is expected to continue its upward trajectory in the coming years.

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).