Medium Cars - Iceland

Iceland

Revenue in the Medium Cars market is projected to reach US$50m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -1.62%, resulting in a projected market volume of US$46m by 2029.
Medium Cars market unit sales are expected to reach 1.6k vehicles in 2029.
The volume weighted average price of Medium Cars market in 2024 is expected to amount to US$28k.
From an international perspective it is shown that the most revenue will be generated in China (US$89,320m in 2024).

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

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Analyst Opinion

The Medium Cars market in Iceland has been experiencing significant growth in recent years. Customer preferences have shifted towards medium-sized vehicles due to their practicality and versatility. Additionally, local special circumstances and underlying macroeconomic factors have contributed to the development of this market.

Customer preferences: In Iceland, customer preferences for medium-sized cars have been driven by several factors. Firstly, these vehicles offer a balance between fuel efficiency and interior space, making them suitable for both urban and rural driving conditions. With Iceland's diverse terrain and varying weather conditions, medium-sized cars provide a reliable and comfortable mode of transportation. Furthermore, medium-sized cars often come equipped with advanced safety features, which is a key consideration for Icelandic consumers who prioritize safety on the road.

Trends in the market: One of the key trends in the Medium Cars market in Iceland is the increasing demand for electric and hybrid vehicles. As the country aims to reduce its carbon footprint and transition towards a greener economy, more consumers are opting for eco-friendly transportation options. Electric and hybrid medium-sized cars offer lower emissions and reduced fuel consumption, aligning with Iceland's sustainability goals. This trend is further supported by government incentives and subsidies for electric vehicles, making them more affordable for consumers. Another trend in the market is the growing popularity of crossover vehicles. These medium-sized cars combine the features of a traditional sedan with the higher ride height and versatility of an SUV. Crossovers appeal to Icelandic consumers who value practicality and the ability to navigate challenging road conditions. The increased demand for crossover vehicles has led to a wider range of options available in the market, catering to different customer preferences and budgets.

Local special circumstances: Iceland's unique geography and climate play a significant role in shaping the Medium Cars market. The country's rugged terrain and unpredictable weather conditions require vehicles that can handle challenging road conditions. Medium-sized cars offer the right balance of size and maneuverability, making them well-suited for Icelandic roads. Additionally, the availability of charging infrastructure for electric vehicles is relatively high in Iceland, further driving the demand for electric and hybrid medium-sized cars.

Underlying macroeconomic factors: Iceland's strong economy and high disposable income levels have contributed to the growth of the Medium Cars market. With a stable job market and favorable economic conditions, consumers have the financial capacity to invest in medium-sized vehicles. Furthermore, low interest rates and favorable financing options make purchasing a medium-sized car more accessible to a wider range of consumers. The overall positive economic outlook in Iceland has created a conducive environment for the development of the Medium Cars market. In conclusion, the Medium Cars market in Iceland is experiencing growth driven by customer preferences for practical and versatile vehicles, the increasing demand for electric and hybrid cars, the popularity of crossover vehicles, local special circumstances such as challenging road conditions, and underlying macroeconomic factors including a strong economy and high disposable income levels. These factors combined have created a favorable market environment for medium-sized cars in Iceland.

Methodology

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).