Market Overview
Iceland has no national rail network. The island nation relies entirely on road transport, with a well-developed road system connecting Reykjavik to other communities. Reykjavik's small size and dispersed urban form have historically made mass transit economically challenging, though the city operates bus rapid transit services. Studies for a light rail or bus rapid transit system in the Greater Reykjavik area have been conducted, and urban rail has gained political support as the city grows. Iceland's abundant geothermal energy makes electrified rail highly compatible with the country's zero-carbon energy ambitions. A light rail line for Reykjavik has been included in long-term transport planning, and procurement processes may advance in the coming years.