Transport industry in Iceland - statistics & facts
Relatively isolated in the North Atlantic, Iceland’s location has substantially shaped its transport industry and domestic and international transportation networks. Mid-way between the European and the North American continent, the country relies heavily on shipping and aviation for its international connections. Additionally, without any significant vehicle manufacturing or petroleum refining, this island nation also depends on ship and air imports of gasoline, petrol, and vehicles for domestic transport.
While the country has large, sparsely populated rural areas, Iceland is highly urbanized. Around 94 percent of the population lives in urban areas, predominantly in the capital city of Reykjavík. Significant population growth around Reykjavík over the past decades and resulting urban sprawl have had an impact on the number of journeys in the urban and suburban areas being made by car. However, Iceland does not have a rail network and, thus, relies on its bus network for public transportation, operated by the publicly owned company Strætó. The company runs the urban and suburban routes around Reykjavík, as well as long-distance routes connecting the capital region to other parts of Iceland.
High motorization rates
Iceland has one of the highest motorization rates in Europe, ranking second following Liechtenstein. As of 2021, nearly ninety percent of passenger journeys in the country were made by car, and this has only continued to increase. The whole of Iceland is connected by one main road that encircles the entire island and links to a network of smaller roads. This coupled with a limited public transportation network are main contributing factors to the country’s high motorization.While the country has large, sparsely populated rural areas, Iceland is highly urbanized. Around 94 percent of the population lives in urban areas, predominantly in the capital city of Reykjavík. Significant population growth around Reykjavík over the past decades and resulting urban sprawl have had an impact on the number of journeys in the urban and suburban areas being made by car. However, Iceland does not have a rail network and, thus, relies on its bus network for public transportation, operated by the publicly owned company Strætó. The company runs the urban and suburban routes around Reykjavík, as well as long-distance routes connecting the capital region to other parts of Iceland.
