Luxury Cars - Iceland

Iceland

Highlights

Revenue in the Luxury Cars market is projected to reach US$198m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -7.24%, resulting in a projected market volume of US$136m by 2029.
Luxury Cars market unit sales are expected to reach 707.0vehicles in 2029.
The volume weighted average price of Luxury Cars market in 2024 is expected to amount to US$203k.
From an international perspective it is shown that the most revenue will be generated United States (US$7bn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: Icelandic consumers have shown a strong preference for luxury cars, with a growing demand for high-end vehicles. This can be attributed to several factors, including increasing disposable income levels and a desire for status and prestige. Luxury cars are seen as a symbol of wealth and success, and owning one is considered a status symbol in Icelandic society. Additionally, the country's rugged terrain and challenging weather conditions make luxury SUVs and 4x4 vehicles particularly popular among consumers.

Trends in the market: One of the key trends in the Luxury Cars market in Iceland is the increasing popularity of electric and hybrid vehicles. This can be attributed to the country's commitment to reducing carbon emissions and promoting sustainability. The government has implemented several incentives and subsidies to encourage the adoption of electric and hybrid vehicles, such as tax breaks and reduced registration fees. As a result, luxury car manufacturers have been introducing more electric and hybrid models to cater to the growing demand in Iceland. Another trend in the market is the rise of luxury car leasing and subscription services. This allows consumers to enjoy the benefits of driving a luxury car without the burden of ownership. Leasing and subscription services provide flexibility and convenience, as consumers can switch between different luxury car models based on their preferences and needs. This trend has been driven by the changing attitudes towards car ownership and the desire for a hassle-free driving experience.

Local special circumstances: Iceland's unique geography and climate pose special circumstances for the Luxury Cars market. The country's challenging terrain and unpredictable weather conditions require vehicles that are capable of handling rough roads and adverse weather. This has led to a higher demand for luxury SUVs and 4x4 vehicles, which offer better performance and safety in such conditions. Luxury car manufacturers have recognized this demand and have been introducing models specifically tailored for the Icelandic market.

Underlying macroeconomic factors: The growth of the Luxury Cars market in Iceland can be attributed to several underlying macroeconomic factors. Firstly, the country has experienced steady economic growth in recent years, resulting in higher disposable incomes and increased consumer spending. This has enabled more consumers to afford luxury cars and has contributed to the overall growth of the market. Additionally, Iceland has a strong tourism industry, with a large number of tourists visiting the country each year. This has created a demand for luxury car rentals and chauffeur services, further driving the growth of the Luxury Cars market. Tourists often seek the experience of driving a luxury car while exploring the country's stunning landscapes, contributing to the market's expansion. In conclusion, the Luxury Cars market in Iceland has been growing due to customer preferences for high-end vehicles, the rise of electric and hybrid models, the popularity of leasing and subscription services, the unique local circumstances, and the underlying macroeconomic factors. As Iceland continues to develop and evolve, it is expected that the Luxury Cars market will continue to thrive 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).