Small Cars - EU-27

EU-27

Highlights

Revenue in the Small Cars market is projected to reach US$32bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -0.74%, resulting in a projected market volume of US$31bn by 2029.
Small Cars market unit sales are expected to reach 1.9m vehicles in 2029.
The volume weighted average price of Small Cars market in 2024 is expected to amount to US$16k.
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 EU-27 is experiencing significant growth and development.

Customer preferences: Customers in the EU-27 region have shown a strong preference for small cars due to their compact size, fuel efficiency, and affordability. Small cars are particularly popular in urban areas where parking spaces are limited and fuel costs are high. Additionally, with growing environmental concerns, customers are increasingly opting for smaller, more fuel-efficient vehicles to reduce their carbon footprint.

Trends in the market: One of the key trends in the Small Cars market in EU-27 is the increasing demand for electric and hybrid small cars. As governments and regulatory bodies in the region are implementing stricter emission standards, customers are turning towards eco-friendly alternatives. Electric and hybrid small cars offer lower emissions and reduced fuel consumption, making them an attractive option for environmentally conscious customers. This trend is further supported by the availability of government incentives and subsidies for electric and hybrid vehicles. Another trend in the market is the rise of tech-savvy small cars. Customers in the EU-27 region are increasingly looking for small cars that are equipped with advanced technology features such as touchscreen infotainment systems, smartphone integration, and advanced driver-assistance systems. These features not only enhance the driving experience but also provide convenience and safety.

Local special circumstances: The Small Cars market in EU-27 is influenced by various local special circumstances. One such circumstance is the high population density in many European countries, especially in urban areas. This has led to a greater demand for small cars that are easier to maneuver in crowded city streets and can fit into tight parking spaces. Additionally, the high fuel prices in the region have also contributed to the popularity of small cars as they offer better fuel efficiency compared to larger vehicles.

Underlying macroeconomic factors: Several macroeconomic factors are driving the growth of the Small Cars market in EU-27. The region has witnessed steady economic growth over the years, resulting in increased disposable income among consumers. This has allowed more people to afford cars, and small cars have become a popular choice due to their affordability. Furthermore, the availability of favorable financing options and low-interest rates has made it easier for customers to purchase small cars. In conclusion, the Small Cars market in EU-27 is experiencing growth and development due to customer preferences for compact, fuel-efficient, and affordable vehicles. The increasing demand for electric and hybrid small cars, as well as tech-savvy features, reflects the evolving needs and preferences of customers. Local special circumstances such as high population density and fuel prices also contribute to the popularity of small cars in the region. The underlying macroeconomic factors, including steady economic growth and favorable financing options, further support the growth of the 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).