Small Cars - Denmark

Denmark

Highlights

Revenue in the Small Cars market is projected to reach US$612m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.89%, resulting in a projected market volume of US$640m by 2029.
Small Cars market unit sales are expected to reach 36.6k vehicles in 2029.
The volume weighted average price of Small Cars market in 2024 is expected to amount to US$17k.
From an international perspective it is shown that the most revenue will be generated China (US$13bn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Small Cars market in Denmark has been experiencing steady growth in recent years.

Customer preferences: Danish customers have shown a strong preference for small cars due to their compact size and fuel efficiency. Small cars are well-suited for navigating the narrow streets and crowded urban areas of Denmark. Additionally, the rising awareness of environmental issues has led to an increased demand for eco-friendly vehicles, and small cars are often seen as a more sustainable option compared to larger vehicles.

Trends in the market: One of the key trends in the Small Cars market in Denmark is the growing popularity of electric and hybrid small cars. As the government and consumers become more focused on reducing carbon emissions, there has been a significant increase in the number of electric and hybrid vehicles on Danish roads. This trend is expected to continue as the government continues to incentivize the purchase of electric and hybrid vehicles through tax breaks and other incentives. Another trend in the market is the rise of car-sharing services. Danish consumers are increasingly embracing the concept of shared mobility, and car-sharing services have gained traction in urban areas. This has led to a shift in consumer behavior, with some individuals opting to forgo car ownership in favor of using car-sharing services. As a result, there is a growing demand for small cars that can be easily rented or shared.

Local special circumstances: Denmark has a well-developed public transportation system, which has contributed to the popularity of small cars. Many Danish consumers use public transportation for their daily commute and only require a car for specific purposes. Small cars provide a convenient and cost-effective solution for these individuals, allowing them to easily navigate the city and park in tight spaces.

Underlying macroeconomic factors: The Danish economy has been relatively stable in recent years, with a high level of disposable income among consumers. This has allowed individuals to invest in small cars as a mode of transportation. Additionally, the government's focus on sustainable development and reducing carbon emissions has created a favorable environment for the growth of the Small Cars market. The availability of government incentives and subsidies for electric and hybrid vehicles has further encouraged consumers to choose small cars over larger, less fuel-efficient options. In conclusion, the Small Cars market in Denmark is experiencing growth due to customer preferences for compact and fuel-efficient vehicles, the rise of electric and hybrid cars, the popularity of car-sharing services, the country's well-developed public transportation system, and the government's focus on sustainability. These factors, along with the stable macroeconomic conditions, are driving the growth of the Small Cars market in Denmark.

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).