Small Cars - United States

United States

Revenue in the Small Cars market is projected to reach €5,413m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.57%, resulting in a projected market volume of €6,451m by 2029.
Small Cars market unit sales are expected to reach 296.0k vehicles in 2029.
The volume weighted average price of Small Cars market in 2024 is expected to amount to €21k.
From an international perspective it is shown that the most revenue will be generated in China (€12,320m in 2024).

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

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Analyst Opinion

The Small Cars market in United States has experienced significant growth in recent years, driven by changing customer preferences, market trends, and local special circumstances.

Customer preferences: In the United States, there has been a shift in customer preferences towards smaller, more fuel-efficient vehicles. This can be attributed to rising fuel prices, increasing environmental consciousness, and the desire for more practical and affordable transportation options. Small cars offer better fuel efficiency, lower maintenance costs, and are easier to maneuver in congested urban areas. Additionally, younger consumers are increasingly opting for smaller cars as they prioritize affordability and sustainability.

Trends in the market: One of the key trends in the Small Cars market in United States is the increasing popularity of electric and hybrid vehicles. With advancements in technology and the availability of government incentives, more consumers are considering eco-friendly options. Electric and hybrid small cars offer lower emissions, reduced fuel costs, and a more sustainable transportation solution. This trend is expected to continue as automakers invest in research and development to improve the range and affordability of electric vehicles. Another trend in the market is the rise of compact SUVs. While not traditional small cars, compact SUVs offer a similar level of practicality and fuel efficiency, while also providing additional cargo space and a higher driving position. This has attracted consumers who value versatility and the perception of safety and ruggedness that SUVs offer. Compact SUVs have become a popular choice for families and individuals who require more space but still want the benefits of a smaller vehicle.

Local special circumstances: The United States has a vast and well-developed road infrastructure, making small cars a suitable choice for daily commuting and city driving. The compact size of small cars allows for easier parking and maneuvering in congested urban areas. Additionally, the United States has a high population density in many metropolitan areas, which further drives the demand for smaller vehicles.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the Small Cars market in United States. Rising fuel prices have made fuel efficiency a priority for consumers, leading them to choose smaller cars. Additionally, stricter emission regulations and government incentives for eco-friendly vehicles have encouraged the adoption of electric and hybrid small cars. The overall economic stability and growth in the United States have also played a role, as consumers have more disposable income to invest in vehicles. In conclusion, the Small Cars market in United States has experienced growth due to changing customer preferences, market trends such as the popularity of electric and hybrid vehicles, local special circumstances like the need for practical and affordable transportation in urban areas, and underlying macroeconomic factors such as rising fuel prices and government incentives. This market is expected to continue evolving as automakers innovate and consumers prioritize fuel efficiency and sustainability.

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).