Low-Speed Vehicle Industry Size and Market Share Projections for 2030
The low-speed
vehicle industry is projected to grow from USD 8.9 billion in 2021 to USD
14.4 billion by 2027, at a CAGR of 8.2%. As per the
World Bank, the global population is growing at a rate of ~1% annually.
Further, according to the same World Bank statistics, nearly 35% of the global
population came under the 40-79 age group in 2020. Nearly 25% of the population
in the US were 60 years and above, European nations had an average of 21.5% of
the population above 60 years and above, and Japan is the oldest country with
nearly 28% of the population in that age group. As per the UN Census Bureau,
the global population crossed 7.9 billion in February 2022. As per medical
studies, the reflex actions of the human body tend to reduce with growing age.
This supports that people are now moving toward safer driving options. The
trend of an aging population in the US has grown nearly 3% from 1996 to 2020
and predicted to grow during the forecast period. Thus, these figures show that
the geriatric population is increasing, and low-speed vehicles which run at 25
mph are the best and safe solutions available for this population. The current
trend for safe, comfortable, and easy mobility solutions is growing. People in
the geriatric age group look for door-to-door movement mobility solutions, and
low-speed compact vehicles fulfill this requirement. Companies have developed
products keeping the elderly group population in consideration with models like
E-Z-Go Express S4 introduced in 2021, Club Car’s Onward Series introduced in
2017, and Garia Via provides a full customization option to its customers and
Cushion Shuttle 6 for movement of more passengers. In 2016, Wajima, a city in
Japan, introduced free automated golf car services for the elderly population.
Therefore, considering these factors, the rise in the geriatric population
could drive the market for low-speed vehicles.
Golf is considered a form of recreational sport. The average age of the golfer is nearly 54 years. As per the National Golf Foundation (NGF) records in 2020, there was remarkable surge in both participation and rounds played despite the shutdowns and uncertainties of the COVID-19 pandemic. The NGF count showed 24.8 million golfers in the US in 2020, an increase of 500,000 and 2% over 2019. New players numbered 6.2 million in 2020. As per the NGF’s study, 2020 marked the third straight year more golfers came to the game in the US. Despite being the age group most at risk during the pandemic, older players showed an enthusiastic response for playing the sport. Further, in the US, two-thirds of private golf clubs were reported in a good financial situation in late 2020.
Also, at DLF Golf and Country Club, a prestigious golf club in Asia
Pacific, there has been an increase in demand for membership and regular usage
by existing members in 2020. Another factor that led to the growing popularity
of the sport is the increase in rewards and prize money. As per Professional
Golf Tour of India (PGTI) in Asia Pacific, events that had prize money of USD
8-10 thousand in the early 2000s are now scaled up to a range starting from USD
30 thousand and going up to USD 0.2 million in professional golf tournaments.
There has been a remarkable increase in golf courses throughout the
globe. Again, as per NGF, there was a 44% increase in the number from 2006 to
2019. According to ASIAN Golf, nearly 5,000 golf courses were developed in Asia
till March 2020, of which 196 were officially registered in India. Therefore,
growing popularity among people for golf and rising enthusiasm toward this
sport would drive the market for low-speed vehicles like golf carts.
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“The Commercial Turf Utility Vehicle segment
is expected to lead the Vehicle type segment.”
The hotels and resorts industry is completely dependent on tourism
activities. According to the latest World Tourism Barometer, global travel
activity rebounded sharply in the third quarter of 2021, while remaining far
below pre-pandemic levels. International tourist arrivals increased by 58% in
the three months ended September 2021 compared to the same period of 2020.
These travel activities globally are creating demand from the hotel and resorts
industry to provide the best facilities and convenient activities to their
providers. For instance, in 2019, Atlanta, the Palm Dubai ordered a fleet for
LSVs from Club Car.
Apart from this, hotels and resorts are now promoting
battery-operated vehicles and even focusing on structures to support electric
mobility solutions. In 2021, Fern Hotels and Resorts partnered with Magenta to
install EV charging stations at over 84 hotels across India. A few examples of
commercial turf utility vehicles are Carryall 500 (Club Car), Carryall 1500
(Club Car), 2020A ProGator (Deere & Company), and Gator TX Turf Utility
Vehicle (Deere & Company). Thus, the market for commercial turf utility vehicles
is largely dependent on the travel and tourism industry, and with the growth of
the tourism industry, the market for commercial turf utility vehicles is
predicted to grow during forecasted period.
North America is projected to be the largest regional
market
North America accounts for 80% of the world’s golf cart demand, with
the US accounting for 96% of the regional golf cart demand. Thus, the US is the
largest country-level market in the region and accounts for more than
two-thirds of the overall market, followed by Canada and Mexico. Mexico and
Canada are also gaining traction due to lower manufacturing costs, low manpower
costs, and favorable government policies.
The market is held strongly by established American and Asian OEMs
such as Textron Inc. (US), Deere & Company (US), Club Car (US), and Yamaha
Motor Co Ltd (Japan). Low-speed vehicles in the US have advanced comfort and
safety technologies.
The North American low-speed vehicle industry features vehicles such
as golf carts, commercial turf utility vehicles, and industrial utility
vehicles. Electric low-speed vehicles are widely preferred across the region
because of their zero-carbon emission and noise reduction. The US government is
also focusing on the electric vehicle market and even giving subsidy benefits
on taxes for promoting them.
Golf courses are expected to hold the largest market share during
the forecast period. The increased use of low-speed vehicles in commercial
applications such as hotels and resorts and the high number of golf courses are
expected to drive the North American low-speed vehicle industry.
Key Players
Textron Inc. (US), Deere & Company (US), Yamaha Motor Co., Ltd.
(Japan), The Toro Company (US), Kubota Corporation (Japan), Club Car (US),
American Landmaster (US), Columbia Vehicle Group Inc. (US), Waev Inc. (US),
Suzhou Eagle Electric Vehicle Manufacturing (China).
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