SUVs - Iceland

Iceland

Revenue in the SUVs market is projected to reach US$446m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 2.23%, resulting in a projected market volume of US$498m by 2029.
SUVs market unit sales are expected to reach 4.7k vehicles in 2029.
The volume weighted average price of SUVs market in 2024 is expected to amount to US$95k.
From an international perspective it is shown that the most revenue will be generated in the United States (US$333bn in 2024).

Key regions: United States, Germany, United Kingdom, India, China

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Analyst Opinion

The SUVs market in Iceland has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: In Iceland, there has been a shift in customer preferences towards SUVs due to their versatility and practicality. SUVs offer ample space for both passengers and cargo, making them ideal for the rugged and challenging terrain of the country. Additionally, the higher driving position and improved visibility provided by SUVs appeal to Icelandic customers who value safety and comfort.

Trends in the market: One of the key trends in the SUVs market in Iceland is the increasing demand for electric and hybrid SUVs. As the country aims to reduce its carbon footprint and promote sustainability, there has been a growing interest in eco-friendly vehicles. Electric and hybrid SUVs offer lower emissions and greater fuel efficiency, making them attractive options for environmentally conscious customers. This trend is expected to continue as the government provides incentives and subsidies for electric vehicle purchases. Another trend in the SUVs market is the popularity of compact SUVs. These vehicles offer a balance between the ruggedness and versatility of traditional SUVs and the maneuverability and fuel efficiency of smaller cars. Compact SUVs are well-suited for the narrow and winding roads in Iceland, making them a practical choice for many customers.

Local special circumstances: The unique geography and climate of Iceland contribute to the popularity of SUVs in the country. With its vast landscapes, including mountains, glaciers, and volcanic terrain, Iceland presents challenges for regular cars. SUVs, with their higher ground clearance and four-wheel drive capabilities, are better equipped to handle these conditions. Additionally, the harsh winter weather in Iceland, with heavy snowfall and icy roads, makes SUVs a preferred choice for many customers who prioritize safety and reliability.

Underlying macroeconomic factors: The robust economy of Iceland has also played a role in the growth of the SUVs market. With a high standard of living and disposable income, customers in Iceland are more inclined to invest in vehicles that offer comfort, safety, and performance. The stable economic conditions in the country have provided consumers with the confidence to make long-term purchases, including SUVs. In conclusion, the SUVs market in Iceland is experiencing growth due to changing customer preferences, including the demand for electric and hybrid SUVs, as well as the popularity of compact SUVs. The unique geography and climate of Iceland, along with the stable macroeconomic conditions, further contribute to the growth of the 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).