Medium Cars - Israel

Israel

Highlights

Revenue in the Medium Cars market is projected to reach US$2bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 2.73%, resulting in a projected market volume of US$2bn by 2029.
Medium Cars market unit sales are expected to reach 37.2k vehicles in 2029.
The volume weighted average price of Medium Cars market in 2024 is expected to amount to US$46k.
From an international perspective it is shown that the most revenue will be generated China (US$89bn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Medium Cars market in Israel has been experiencing significant growth in recent years.

Customer preferences: Customers in Israel have shown a strong preference for medium-sized cars due to their versatility and practicality. Medium cars offer a good balance between fuel efficiency and interior space, making them suitable for both urban and long-distance driving. Additionally, medium cars often come equipped with advanced safety features and technology, which is highly valued by Israeli consumers.

Trends in the market: One of the key trends in the Medium Cars market in Israel is the increasing demand for electric and hybrid vehicles. As the government continues to promote sustainable transportation and reduce carbon emissions, more consumers are opting for eco-friendly options. The availability of electric and hybrid medium cars from both domestic and international manufacturers has contributed to the growth of this segment. Another trend in the market is the rise of car-sharing services. With the increasing popularity of ride-hailing platforms and the high cost of car ownership, many Israelis are opting to use car-sharing services instead. This has led to a shift in customer preferences towards smaller and more fuel-efficient vehicles, including medium cars. Car-sharing companies often offer medium cars as a flexible and cost-effective transportation option for their users.

Local special circumstances: Israel has a unique geographic and demographic profile that influences the Medium Cars market. The country is relatively small, with most journeys being short to medium distances. This makes medium-sized cars an ideal choice for Israeli consumers who require a balance of comfort and maneuverability in their vehicles. Furthermore, the high population density in major cities like Tel Aviv and Jerusalem has led to increased traffic congestion. As a result, customers in these areas prefer medium cars that are easier to maneuver and park in tight spaces. The compact size of medium cars makes them well-suited for navigating through crowded city streets and finding parking in limited spaces.

Underlying macroeconomic factors: Israel has a strong and stable economy, which has contributed to the growth of the Medium Cars market. Rising disposable incomes and low unemployment rates have increased consumer purchasing power, allowing more people to afford medium-sized cars. Additionally, favorable financing options and low interest rates have made it easier for customers to purchase new vehicles. Furthermore, the government has implemented policies and incentives to support the automotive industry. This includes tax breaks and subsidies for electric and hybrid vehicles, which has further boosted the demand for medium-sized cars in this segment. The government's commitment to promoting sustainable transportation aligns with the global trend towards reducing carbon emissions and mitigating climate change. In conclusion, the Medium Cars market in Israel is experiencing growth due to customer preferences for versatile and practical vehicles, the increasing demand for electric and hybrid cars, the rise of car-sharing services, the unique geographic and demographic circumstances in the country, and the underlying macroeconomic factors such as rising disposable incomes and government support for the automotive industry.

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).