Small Cars - North America

North America

The projected revenue in the Small Cars market in North America is expected to reach US$13,030m in 2024.
It is anticipated that the revenue will exhibit an annual growth rate of -0.82% (CAGR 2024-2028), resulting in a projected market volume of US$12,610m by 2028.
The unit sales in the Small Cars market are expected to reach 715.0k vehicles in 2028.
The volume weighted average price of Small Cars market in North America in 2024 is projected to amount to US$18k.
From an international perspective, it is evident that China will generate the highest revenue, with US$13,380m in 2024.
In North America, the demand for small cars has been steadily increasing due to rising fuel prices and a growing preference for compact and efficient vehicles.

Key regions: Europe, Worldwide, China, United Kingdom, United States

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Analyst Opinion

The Small Cars market in North America has been experiencing significant growth in recent years. Customer preferences, market trends, local special circumstances, and underlying macroeconomic factors have all contributed to this development.

Customer preferences in North America have shifted towards smaller, more fuel-efficient vehicles. This can be attributed to several factors, including rising fuel prices and increasing environmental consciousness among consumers. Small cars offer better fuel efficiency and lower emissions compared to larger vehicles, making them an attractive choice for cost-conscious and environmentally conscious consumers.

In addition to customer preferences, several market trends have also contributed to the growth of the Small Cars market in North America. One of the key trends is the increasing availability and affordability of small cars in the market. Automakers have been introducing a wide range of small car models to cater to the growing demand.

These models offer a variety of features and options, making them appealing to a wider range of consumers. Another trend in the market is the introduction of electric and hybrid small cars. With the increasing focus on sustainability and reducing carbon emissions, electric and hybrid small cars have gained popularity among consumers.

These vehicles offer the benefits of a small car, such as fuel efficiency and compact size, while also being environmentally friendly. Local special circumstances in North America have also played a role in the development of the Small Cars market. One such circumstance is the high population density in urban areas.

In densely populated cities, smaller cars are more practical and easier to maneuver in traffic and find parking. This has led to an increased demand for small cars in urban areas. Underlying macroeconomic factors have also contributed to the growth of the Small Cars market in North America.

Economic stability and increasing disposable income levels have made small cars more affordable for a larger segment of the population. Additionally, favorable financing options and low interest rates have made it easier for consumers to purchase small cars. In conclusion, the Small Cars market in North America has experienced significant growth due to shifting customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

The increasing demand for smaller, more fuel-efficient vehicles, the availability of a wide range of small car models, the introduction of electric and hybrid options, high population density in urban areas, economic stability, and favorable financing options have all contributed to the development of this market.

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).