Electric Vehicles - Iceland | Statista Market Forecast

In 2024, the projected revenue in the Electric Vehicles market in Iceland is expected to reach US$695.4m.
It is anticipated that the revenue will exhibit an annual growth rate (CAGR 2024-2029) of -0.82%, resulting in a projected market volume of US$667.2m by 2029.
Additionally, the unit sales of Electric Vehicles market in Iceland are expected to reach 11.97k vehicles by 2029.
The volume weighted average price of Electric Vehicles market in Iceland is expected to amount to US$56.7k in 2024.
When considering the international perspective, China is projected to generate the highest revenue of US$376bn in 2024.
Iceland is experiencing a surge in electric vehicle adoption due to its abundant renewable energy resources and government incentives.

CO2 emissions exert a profound influence on climate and the environment, fueling the greenhouse effect and contributing significantly to global climate change. Nearly one-fourth of these emissions worldwide can be attributed to the transportation sector. Electric vehicles (EVs) emerge as a promising solution, potentially acting as a carbon-neutral alternative when powered by renewable energy sources. This underscores their pivotal role in mitigating the impact of traditional combustion engine vehicles on the environment.

The Electric Vehicles market includes information about electric vehicles in countries where, according to our sources, a public electric vehicle charging infrastructure is already available. In this context, “public” means that people have unrestricted access to the charging infrastructure. A vehicle can be defined as electric if it is self-contained with a battery or classified as a plug-in hybrid. All key figures shown represent the sales of new cars, and their basic configuration in the respective year. The figures do not include the sale of used vehicles nor adapted equipment for the new cars sold. The prices and revenues shown are accordingly based on the basic models.

The Electric Vehicle market is divided into distinct two distinct markets, namely Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs). This categorization allows for a nuanced understanding of the market dynamics, considering the specific attributes and market penetration of each electric vehicle type. The emphasis on new car sales and their foundational configurations ensures clarity, while the exclusion of used vehicles and customizations maintains focus on the evolving landscape of electric vehicles.

Battery electric vehicles (BEVs)
Plug-in hybrid electric vehicles (PHEVs)
Road electric vehicles
Passenger Cars

Electric vehicles that are not self-contained and cannot be classified as BEVs or PHEVs
Rail electric vehicles
Surface and underwater vessels
Electric aircraft or spacecraft
Motorcycles, scooters, mopeds, buses, vans, and trucks

The Electric Vehicles market in Iceland has been experiencing significant growth in recent years, driven by changing customer preferences, favorable market trends, and unique local circumstances.

Customer preferences: Customers in Iceland are increasingly choosing electric vehicles due to their environmental benefits and cost savings. With a strong focus on sustainability, Icelanders are attracted to the lower emissions and reduced dependence on fossil fuels that electric vehicles offer. Additionally, the government has implemented various incentives and subsidies to encourage the adoption of electric vehicles, further driving customer preferences in this direction.

Trends in the market: One of the key trends in the Electric Vehicles market in Iceland is the increasing availability and variety of electric vehicle models. As more global automakers introduce electric vehicles to their product lineups, Icelandic consumers have a wider range of options to choose from. This trend is expected to continue as automakers invest in research and development to improve electric vehicle technology and expand their market presence. Another trend in the market is the development of charging infrastructure. The Icelandic government has been actively investing in the installation of charging stations across the country, making it more convenient for electric vehicle owners to charge their vehicles. This infrastructure development is crucial for the growth of the Electric Vehicles market, as it addresses the concern of range anxiety and provides reassurance to potential buyers.

Local special circumstances: Iceland's unique geography and energy sources contribute to the growth of the Electric Vehicles market. The country has abundant renewable energy resources, particularly geothermal and hydroelectric power, which make electric vehicles a more sustainable and viable option. This local advantage aligns with the global trend towards reducing carbon emissions and transitioning to clean energy sources. Furthermore, Iceland's small population and compact size make it well-suited for electric vehicles. The average daily commute in Iceland is relatively short, making electric vehicles an ideal choice for daily transportation needs. The limited distance between towns and cities also reduces the concern of range limitations, making electric vehicles a practical option for Icelandic consumers.

Underlying macroeconomic factors: The Electric Vehicles market in Iceland is also influenced by macroeconomic factors such as government policies and economic stability. The Icelandic government has implemented various incentives and subsidies to promote the adoption of electric vehicles, including tax exemptions, reduced registration fees, and financial incentives for purchasing electric vehicles. These policies create a favorable environment for the growth of the Electric Vehicles market. Additionally, Iceland's strong economy and high disposable income levels contribute to the affordability of electric vehicles. As the economy continues to grow and incomes rise, more consumers are able to afford electric vehicles, further driving market growth. In conclusion, the Electric Vehicles market in Iceland is experiencing growth due to changing customer preferences, favorable market trends, unique local circumstances, and underlying macroeconomic factors. As sustainability and environmental consciousness become increasingly important, the demand for electric vehicles is expected to continue rising in Iceland. The government's support through incentives and infrastructure development will further fuel this growth, making Iceland a promising market for electric vehicles.

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).

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For the first time in the past decade, lithium-ion battery pack costs increased in 2022 due to the raw material and battery component soaring price inflation. However, this increase in production cost has not slowed down the global electric vehicle (EV)market. Electric vehicle sales have increased tremendously over the past decade.