Executive Cars - Iceland

Iceland

Highlights

Revenue in the Executive Cars market is projected to reach US$45m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -2.74%, resulting in a projected market volume of US$39m by 2029.
Executive Cars market unit sales are expected to reach 586.0vehicles in 2029.
The volume weighted average price of Executive Cars market in 2024 is expected to amount to US$66k.
From an international perspective it is shown that the most revenue will be generated China (US$63bn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Executive Cars market in Iceland has been experiencing significant growth in recent years. Customer preferences have shifted towards larger and more luxurious vehicles, leading to an increase in demand for executive cars. This trend can be attributed to several factors, including the growing affluence of the population, changing lifestyle preferences, and the influence of global luxury car brands.

Customer preferences: Iceland has seen a rise in disposable income and a growing middle class, which has led to an increased demand for luxury goods, including executive cars. As people become more financially secure, they are more willing to invest in high-end vehicles that offer comfort, style, and status. Additionally, the changing lifestyle preferences of the population have contributed to the growing demand for executive cars. Many Icelanders now prioritize convenience and comfort in their daily lives, and executive cars provide a luxurious and convenient mode of transportation.

Trends in the market: One of the key trends in the Executive Cars market in Iceland is the increasing popularity of SUVs. These vehicles offer a combination of luxury, practicality, and versatility, making them highly desirable among consumers. SUVs provide ample space for passengers and cargo, making them suitable for both daily commuting and weekend getaways. Additionally, the rugged terrain and challenging weather conditions in Iceland make SUVs a practical choice for navigating the country's roads. Another trend in the market is the growing preference for electric and hybrid executive cars. Iceland has been at the forefront of promoting sustainable transportation, and the government has implemented several incentives to encourage the adoption of electric vehicles. As a result, there has been a surge in the sales of electric and hybrid executive cars in recent years. Consumers are attracted to the environmental benefits of these vehicles, as well as the lower operating costs and tax incentives.

Local special circumstances: Iceland's unique geography and climate present special circumstances that influence the Executive Cars market. The country's rugged terrain and challenging weather conditions require vehicles that are capable of handling off-road driving and adverse weather. This has led to a preference for executive cars with all-wheel drive and advanced safety features. Additionally, the relatively small population size and limited availability of charging infrastructure make it more challenging for consumers to adopt electric vehicles compared to other countries.

Underlying macroeconomic factors: The growth of the Executive Cars market in Iceland can be attributed to several underlying macroeconomic factors. Iceland has experienced steady economic growth in recent years, driven by a thriving tourism industry and a strong export sector. This has resulted in increased disposable income and consumer confidence, leading to higher demand for luxury goods, including executive cars. Furthermore, the government's focus on sustainable transportation and the promotion of electric vehicles has created a favorable environment for the growth of the Executive Cars market.

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).