Small Cars - Europe

Europe

Highlights

Revenue in the Small Cars market is projected to reach US$46bn 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$45bn by 2029.
Small Cars market unit sales are expected to reach 2.7m 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 Europe has seen significant growth in recent years, driven by changing customer preferences, market trends, and local special circumstances.

Customer preferences: One of the key factors driving the growth of the Small Cars market in Europe is the changing preferences of customers. With increasing urbanization and congestion in major cities, customers are opting for smaller, more fuel-efficient cars that are easier to maneuver and park in crowded areas. Additionally, the rising awareness about environmental issues and the need for sustainable transportation has also led to an increased demand for small cars that have lower emissions.

Trends in the market: The Small Cars market in Europe is witnessing several trends that are shaping its growth. Firstly, there is a growing demand for electric and hybrid small cars, as customers are looking for more eco-friendly options. This trend is driven by government incentives and stricter emission regulations in many European countries. Secondly, there is a shift towards more premium small cars, with customers willing to pay a premium for features and technologies that were previously only available in larger, luxury cars. This trend is driven by the increasing disposable income of customers and their desire for a more luxurious driving experience.

Local special circumstances: Europe is a diverse region with varying local special circumstances that impact the Small Cars market. In countries like Germany and France, where there is a strong automotive manufacturing industry, there is a wide range of small car models available, catering to different customer needs and preferences. On the other hand, in countries like the United Kingdom and Italy, where there is a high population density and limited parking space, small cars are particularly popular due to their compact size and easy maneuverability in crowded cities.

Underlying macroeconomic factors: Several macroeconomic factors are contributing to the growth of the Small Cars market in Europe. Firstly, the improving economic conditions in the region, with rising disposable incomes and low unemployment rates, have increased the purchasing power of customers, enabling them to afford small cars. Secondly, the availability of attractive financing options and low-interest rates have made it easier for customers to finance their small car purchases. Lastly, the increasing urbanization in Europe has led to a higher demand for small cars, as more people are moving to cities and need compact vehicles for their daily commute. In conclusion, the Small Cars market in Europe is experiencing significant growth due to changing customer preferences, market trends, and local special circumstances. The increasing demand for smaller, more fuel-efficient cars, the shift towards electric and hybrid models, and the desire for more premium features are driving this growth. Additionally, the diverse local special circumstances and underlying macroeconomic factors in Europe are also contributing to the expansion of the Small Cars 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).