Car-sharing - Iceland | Statista Market Forecast

The Car-sharing market in Iceland is expected to witness a surge in revenue with a projected value of US$4.01m in 2024.
Moreover, the revenue is anticipated to grow annually at a rate of 3.74% (CAGR 2024-2029), which will result in a projected market volume of US$4.82m by 2029.
The number of users in this market is expected to reach 19.93k users by 2029.
Furthermore, the user penetration rate is projected to increase from 4.6% in 2024 to 5.1% by 2029.
The average revenue per user (ARPU) is expected to be US$233.00.
It is estimated that 96% of the total revenue generated in the Car-sharing market will be through online sales by 2029.
Additionally, in comparison to other countries, United States is expected to generate the highest revenue in the Car-sharing market with an estimated value of US$3bn in 2024.
Iceland's Car-sharing market is relatively small but growing, with a focus on environmentally-friendly options such as electric vehicles.

Definition:

The Car-sharing market encompasses car-sharing services. Car-sharing service providers own the vehicles that customers can book independently at any time. Customers need to enter into a contract with the service provider in order to be able to book vehicles via a smartphone app, the website of the service provider, or by telephone. The vehicle is usually opened via smartphone or a chip card. Some service providers, however, provide the car key in a key safe at the car-sharing station. Prices are calculated per minute or hour, with the money being debited from the customer's bank account. Peer-to-peer car-sharing is not included in this market. Car-sharing services are not available in all countries; thus, only a limited number of countries and regions can be selected.

Additional Information:

The main performance indicators of the Car-sharing market are revenues, average revenue per user (ARPU), user numbers and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the mentioned market. User numbers show only those individuals who have made a reservation, independent of the number of travelers on the booking. Each user is only counted once per year.

The booking volume includes all booked rides made by users from the selected region, regardless of where the ride took place.

For further information on the data displayed, refer to the info button right next to each box.

Free-floating car sharing bookings
Station-based car sharing bookings
Companies offering a combination of free-floating and station-based car sharing
Services such as Share Now, Sixt Share, or Enterprise CarShare

Peer-to-peer car sharing bookings
Rental car booking
Taxi services
Carpools
Ride hailing services

The Car-sharing market in Iceland is experiencing steady growth and development.

Customer preferences: Customers in Iceland are increasingly opting for car-sharing services due to their convenience and cost-effectiveness. With the rising cost of car ownership, many individuals are choosing to forgo owning a car and instead rely on car-sharing platforms for their transportation needs. This shift in customer preferences is driven by the desire for flexibility and the ability to access a vehicle when needed, without the hassle of maintenance and parking.

Trends in the market: One of the key trends in the car-sharing market in Iceland is the increasing popularity of electric vehicles (EVs). As a country known for its commitment to sustainability and renewable energy, Iceland has seen a surge in the adoption of EVs among car-sharing platforms. The government's initiatives to promote electric mobility, such as tax incentives and the development of charging infrastructure, have further fueled this trend. The availability of EVs in car-sharing fleets has not only attracted environmentally conscious customers but also those looking for a unique and futuristic driving experience. Another trend in the car-sharing market in Iceland is the emergence of peer-to-peer car-sharing platforms. These platforms allow individuals to rent out their personal vehicles to others, providing an additional source of income for car owners. This trend has gained traction due to the high cost of living in Iceland and the desire for individuals to make the most of their assets. Peer-to-peer car-sharing platforms also offer a wider range of vehicle options and a more personalized experience for customers.

Local special circumstances: Iceland's unique geography and weather conditions play a significant role in shaping the car-sharing market. The country's relatively small size and well-developed infrastructure make it conducive to car-sharing services. The availability of charging stations for electric vehicles is particularly important in a country where long distances between towns and cities are common. Additionally, Iceland's harsh winter conditions make car-sharing an attractive option for those who do not want to deal with the challenges of driving in icy and snowy conditions.

Underlying macroeconomic factors: Iceland's strong economy and high standard of living contribute to the growth of the car-sharing market. As disposable incomes rise, more individuals have the financial means to afford car-sharing services. Moreover, the country's robust tourism industry has created a demand for convenient and flexible transportation options for tourists, further driving the growth of the car-sharing market. In conclusion, the car-sharing market in Iceland is experiencing growth and development due to changing customer preferences, the adoption of electric vehicles, the emergence of peer-to-peer platforms, local special circumstances, and underlying macroeconomic factors. As the market continues to evolve, it is likely to witness further innovation and expansion in the coming years.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and online shares of car-sharing services.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, third-party studies and reports, federal statistical offices, industry associations, and price data. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as demographic data, GDP, consumer spending, internet penetration, and device usage. 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, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, the S-curve function and exponential trend smoothing methods are applied.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.

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