Low-Speed Vehicle Market by Vehicle Type (Commercial Turf Utility, Industrial Utility, Golf Cart, Personal), Power Output (=5, 6-15, >15 kW), Motor Type & Configuration, Propulsion, Battery Type, Application, Category, Voltage - Global Forecast to 2030
[294 Pages Report] The low-speed vehicle market is projected to grow from USD 11.1 billion in 2024 to USD 16.3 billion by 2030, at a CAGR of 6.6%. Low-speed vehicles (LSVs) are characterized by their four-wheeled structure and a maximum speed typically around 25 mph (40 km/h). These versatile vehicles serve various purposes: industrial vehicles, neighborhood transport, turf utility vehicles, and golf carts. Due to their ease of maneuverability, LSVs are commonly utilized in diverse settings such as golf courses, school campuses, universities, industrial areas, corporate offices, museums, and gated communities among others. Currently, low-speed vehicles are offered in both traditional fuel-powered and electric models. According to MnM Analysis, more than 65% of these vehicles are electrically operated, a trend expected to dominate the global market during the forecast period.
Market Dynamics
DRIVER: Growing popularity for golf
According to the National Golf Foundation, around 26.6 million people in America played golf in 2023, an increase of approximately 1 million golf enthusiasts compared to 2022. Young adults (aged 18–34) are the largest consumer segment for golf, with 6.2 million on-course participants. 3.4 million juniors played golf on a course in 2022. A study by the R&A showed that the number of golf courses worldwide was approximately 38,800 as of July 2022. There has been a significant surge in golf courses in recent years. Most golf courses worldwide are situated in the western hemisphere, with the US at the forefront, boasting over 16,000 courses. However, the US exhibits a relatively low course density of only 0.004 courses per square mile, suggesting a widespread distribution of courses nationwide. Conversely, the UK is the most golf-focused nation among the top 10, showcasing a higher course density of 0.033 per square mile. Specifically, England hosts 2,213 courses across 50,346 square miles, translating to approximately one course every 22.8 square miles.
Further, the growing popularity of golf can be attributed to an increase in rewards and prize money. Per the Professional Golf Tour of India (PGTI), events with prize money of USD 8,000 to USD 10,000 in Asia Pacific in the early 2000s are scaled up to USD 30,000 to USD 0.2 million in professional golf tournaments. India and China are emerging markets for golf clubs due to rising incomes and tourist visitors. Thus, the growing number of golf events and rising golf enthusiasts is expected to drive the demand for LSVs.
RESTRAINT: High cost of low-speed vehicles for Personal Mobility in emerging markets
One of the most prominent segments of low-speed vehicles (LSVs) is golf carts. As a luxury sport, golf incurs significantly higher expenses than other sports. It necessitates vast areas of land, regular upkeep, and costly membership fees. According to the Asian Golf Industry Federation, the average cost of obtaining a golf membership in Asia ranges from 400 to 800 USD. Golf carts themselves typically cost between 3,000 and 5,000 USD. For example, a single non-member at the Tokyo Golf Club in Japan is charged approximately 250 to 270 USD for weekday access, excluding green fees, caddy fees, and various taxes.
Similarly, Banyan Thailand Hua-Hin Golf Course charges non-members about 3,700 to 3,750 USD annually. However, in developing and underdeveloped regions, purchasing power parity (PPP) is considerably lower, with Africa having a PPP of 5,362 USD and Asia 14,679 USD. The high costs associated with golf carts and the sport itself are significant factors hindering the growth of LSVs in these regions during the forecast period.
OPPORTUNITY: Booming Real Estate and other commercial sectors
The real estate sector is growing globally, with large residential projects seen as the new face of this sector. According to the India Brand Equity Foundation (IBEF), the real estate sector in India is expected to reach USD 1 trillion by 2030, contributing around 13% to the country’s GDP by 2025. Using golf buggies in real estate is an emerging trend driven by the increasing demand for easy mobility solutions within extensive facilities. The distance between two towers or business units in the same locality can be covered by low-speed vehicles. For instance, the Onward series introduced in 2020 by Club Cars offers easy mobility for passengers within such zones.
Further, Hotels and resorts utilize low-speed vehicles for customers’ ease of mobility within large spaces. IBEF suggests that the travel market in India is projected to reach USD 125 billion by 2027 from an estimated USD 75 billion in 2020. Similarly, per the Federal Reserve Bank of St. Louis, US, the hospitality sector contributed nearly 3.8% to the US GDP. Therefore, this would provide opportunities for the LSV market to serve the rising demand in the US. Further, five-star hotels from Gulf countries are forming agreements with different LSV suppliers to rent LSVs to their customers. For instance, Atlantis, The Palm, a five-star hotel in Dubai, agreed with Club Cars for a fleet of electric LSVs, including Carryall 500 and 700 models. Thus, the growth of the real estate and hospitality sectors would drive the demand for easy mobility solutions. Low-speed vehicles meet this growing demand and possess a lucrative growth prospect in the market.
CHALLENGE: Lack of safety standards and equipment
The National Highway Traffic Safety Administration (NHTSA) oversees safety standards for conventional vehicles in the US. For low-speed vehicles (LSVs), NHTSA has established regulations under section 571.500 Standard No. 500. These standards mandate that LSVs must be equipped with headlamps, stop lamps, turn signal lamps, taillamps, reflex reflectors, parking brakes, rearview mirrors, windshields, seat belts, and vehicle identification numbers. LSVs that do not meet these requirements are not certified for street use. Many original equipment manufacturers (OEMs) produce customized LSVs that do not fully adhere to these standards and, therefore, cannot legally operate on streets. LSVs lack airbags, which increases the risk of injury in a crash. Additionally, NHTSA does not subject LSVs to standard crash tests, resulting in body designs that are not crashproof. These safety concerns present significant challenges and impede the LSV market's growth.
Low-Speed Vehicle Market Ecosystem.
The major OEMs in the low-speed vehicle market have the latest technologies, diversified portfolios, and strong global distribution networks. The major players in the LSV market are Textron Inc., Deere and Company, Yamaha Motor Co. Ltd, The Toro Company, and Kubota Corporation.
≤ 5 kW low-speed vehicle holds the largest market share by power output segment in the low-speed vehicle market.
Low-power, low-speed vehicles (LSVs) are designed for tasks that don't require significant power and torque. These LSVs, typically with power outputs of 5 kW or less, are easy to handle and commonly used to transport 2-5 people over short distances in settings such as golf courses, resorts, gated communities, and for personal mobility. Globally, most of these LSVs are electric, and their popularity is expected to rise with advancements in electric vehicle technology. A Toronto and Region Conservation Authority study indicates that electric LSVs consume less energy than their gas-powered counterparts. For example, gas-powered golf carts require 10 kWh of energy, whereas electric golf carts only need 3.3 kWh. Further, LSVs with power output <5kW are primarily used in Golf courses and for personnel mobility applications. Given that these LSVs primarily operate on smooth and flat surfaces, such as those found in golf courses, commercial facilities, and business premises, the demand for low-power LSVs is anticipated to remain strong across various applications in the future.
AC Motor accounted for the largest market share in the low-speed vehicle market by motor type segment.
AC Motor holds the largest market share in the Low-speed vehicle market, which is anticipated to remain the largest during the forecast period. The factors contributing to the higher adoption of AC motors in LSVs are highly efficient, especially at lower speeds, maximizing the driving range achievable from a single battery charge. This can contribute to a smoother driving experience. The design of AC motors is relatively simple compared to DC motors, leading to lower maintenance costs and potentially less complex drivetrain systems. Some AC motors can also function as generators during braking. This captures energy that would otherwise be lost and feeds it back into the battery, extending the range of low-speed vehicles. LSVs with 36 V and 48 V voltage capacities are mainly equipped with AC motors. Thus, a growing focus on cost-effective LSVs and an enhanced driving range is expected to boost the demand for AC motors in Low-speed vehicles.
The personal Mobility segment is the fastest-growing segment for low-speed vehicles by Vehicle type.
The personal mobility segment is expected to grow at the fastest CAGR during the forecast period. Cost-efficiency, eco-friendliness, and regulatory support make them a sustainable choice for urban mobility. Personal mobility vehicles, or street-legal vehicles, are neighborhood electric vehicles mainly used for daily commuting. These vehicles have a minimum speed limit of 20 mph and a maximum speed limit of 25 mph and can be legally driven on roads with speed limits of 35 mph or less. They are used widely in malls, restaurants, and school campuses, with easy access to charge. E-Z-GO (Textron) (US) and Club Car (US) are prominent manufacturers of low-speed personal mobility vehicles. The introduction of street-legal LSVs in the US is expected to drive the market for personal mobility. In March 2023, Club Car launched its new neighborhood electric vehicle, CRU, which is a street-legal LSV. Further, the US and Japanese governments have allowed LSVs to be street-legal vehicles. The Japanese government is taking the initiative to promote low-speed electric vehicles for older adults due to the ease of driving. Thus, the growing use of personal mobility vehicles for short-distance commutes in urban areas and government initiatives to make LSVs as street legal vehicles would drive the demand for personal mobility LSVs during the forecast period.
Asia Pacific is the 2nd largest market for low-speed vehicles in 2024.
The Asia Pacific region is the second-largest market for low-speed vehicles (LSVs), following North America, with China and Japan dominating the market demand, accounting for more than 75% in 2024. The increasing number of golf courses, industrial facilities, and travel activities primarily drives the strong market positions of these two countries. Additionally, countries like India, South Korea, and Thailand have seen a rise in demand in recent years. The popularity of golf is also growing in Asia, with 5,000 golf courses established by 2023 and more golf clubs expected to open. Furthermore, the region has experienced significant growth in tourism, manufacturing, IT hubs, and warehouses. LSVs are beneficial in these settings for transporting people within specific areas and carrying medium to heavy loads. These factors are anticipated to boost the growth of LSVs in the region. Major players in this market include Yamaha Motor Co. (Japan), Speedways (India), Auto Power (India), Jiaxing Learoad Special Vehicle Co., Ltd (China), Electric Vehicle Co. Ltd (China), Maini Material Movement Pvt Ltd (India), G.B. Varley Pty Ltd (Australia), and Hawk Carts (Australia).
Key Market Players
The low-speed vehicle market is consolidated. The key companies operating in the low-speed vehicle market are Textron Inc. (US), Yamaha Motor Co Ltd (Japan), The Toro Company (US), Deere & Company (US), Waev Inc. (US), and Club Car (US).
These companies adopted new product launches, partnerships, and joint ventures to gain traction in the low-speed vehicle market.
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Report Metric |
Details |
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Market size available for years |
2019–2030 |
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Base year considered |
2023 |
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Forecast period |
2024–2030 |
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Forecast units |
Volume (Units) and Value (USD Million) |
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Segments Covered |
Vehicle type, power output, battery type, propulsion type, application type, motor type, motor configuration type, voltage type, category type, and region. |
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Geographies covered |
Asia Pacific, North America, Europe, and the Rest of the World [RoW] |
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Companies covered |
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) |
Along with the given market data, MarketsandMarkets offers customizations based on the company’s specific needs.
The study segments the low-speed vehicle market:
Application Type
- Golf course.
- Hotels & resort
- Airport
- Industrial facility
- Other applications
By Vehicle Type
- Golf cart.
- Commercial turf utility vehicle
- Industrial utility vehicle
- Personal mobility vehicle
By Propulsion
- Electric
- Diesel
- Gasoline
By Power Output
- ≤5 KW
- 6–15 KW
- >15 KW
By Battery Type
- Li-Ion Battery
- Lead Acid Battery
By Voltage Type
- <60V
- 61-100V
- >100V
By Category Type
- L6
- L7
By Region
- Asia Pacific
- North America
- Europe
- Rest of the World [RoW]
By Motor Type
- AC Motor
- DC Motor
By Motor Configuration
- Hub-mounted motor
- Mid-mounted motor
Recent Developments
- In March 2024, Tommy Bahama entered a licensing agreement with Club Car for a collaborative project on a particular edition vehicle. As a supporter of innovation and design within the golf car, utility vehicle, and personal transportation sectors, Club Car brings its expertise to this agreement.
- In October 2023, in partnership with Joyride, a micromobility software platform, GEM launched IoT-connected low-speed vehicles for communal use. The Joyride platform, which supports global micro-mobility enterprises, enables operators to establish and manage a shared-use GEM fleet efficiently and profitably while delivering an outstanding experience to riders.
- In June 2023, The Toro company introduced the Vista Series passenger vehicles. These vehicles are available in 4, 6, and 8-seater options. They are available in both battery and gas-powered variants.
- In June 2023, Textron Inc., under its brand E-Z-GO, launched a street-legal low-speed vehicle, Liberty. With a top speed of 25 mph, this vehicle meets all National Highway Traffic Safety Administration standards for low-speed vehicles. It can be operated on public roads with posted speed limits of 35 mph or less in most states. Liberty has a backup camera, operator protective structure, a pedestrian warning system, seatbelts, and an optional infotainment system. It also adheres to FMVSS 500 and SAE J2358 standards.
- In March 2023, Club Car launched Urban LSV and XR. These vehicles are available in electric powertrains. Urban LSV has a top speed of 25 mph, and the XR has a speed of 19 mph. The vehicles are equipped with rollover protection and a 3-point safety belt to meet the safety requirements.
- In February 2023, Deere & Company is broadening its range of future-oriented products by introducing the brand-new Z370R Electric ZTrak Residential Zero Turn Mower. This mower is aimed at property owners seeking effortless yard maintenance with minimized upkeep, simplified operation, and enhanced operator comfort due to its reduced noise and vibration during mowing.
- In January 2023, American Landmaster launched the new vehicle from the L5 series with a 5.8-inch track width. The vehicle has a 4X4 driving capability and can be used for plowing snow, hauling timber, dumping stones, transporting, and towing trailers. It has a turning radius of 12 ft. The engines generate 16 hp with an engine capacity of 479 cc.
- In January 2023, E-Z—GO redesigned its RXV golf cars with several new features, such as easy-to-load tee and golf ball holders and plenty of space for mobile devices, cups, range finders, and personal items. OEMs optimize LSVs with better facilities and features to provide a better user experience.
Frequently Asked Questions (FAQ):
What is the current size of the global low-speed vehicle market?
The low-speed vehicle market is projected to grow from USD 11.1 billion in 2024 to USD 16.3 billion by 2030, at a CAGR of 6.6%.
Which vehicle type is currently leading the low-speed vehicle market?
Commercial turf utility vehicles are leading in the low-speed vehicle market.
Many companies operate in the low-speed vehicle market across the globe. Do you know who the front leaders are and what strategies they have adopted?
The low-speed vehicle market is consolidated. Textron Inc. (US), Yamaha Motor Co Ltd (Japan), The Toro Company (US), Deere & Company (US), and Kubota Corporation are the top players in the market.
How does the demand for a low-speed vehicle vary by region?
North America is estimated to be the largest market for low-speed vehicles during the forecast period, followed by Asia Pacific. The growth of the low-speed vehicle market in North America is mainly attributed to the higher demand from the US.
What are the growth opportunities for the low-speed vehicle supplier?
Development of fail-safe electronic and electrical components, cost reduction, and improved energy density of batteries would create growth opportunities for the low-speed vehicle market. Also, developing autonomous and interconnected technology in LSVs can create growth opportunities in LSVs. .
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The study encompassed four primary tasks to determine the present scope of the low-speed vehicle market. Initially, extensive secondary research was conducted to gather data on the market, its related sectors, and overarching industries. Subsequently, primary research involving industry experts across the value chain corroborated and validated these findings and assumptions. Employing both bottom-up and top-down methodologies, the complete market size was estimated. Following this, a market breakdown and data triangulation approach were utilized to determine the size of specific segments and subsegments within the market.
Secondary Research
The secondary sources referred to for the study of the low-speed vehicle market are directly dependent on end-use industry growth. Low-speed vehicle sales and end-use industry demand are derived through secondary sources such as the International Light Transportation Vehicle Association, Inc., the National Mobility Equipment Dealers Association (NMEDA), the National Motorists Association, the Electrical Apparatus Service Association, Inc., the European Golf Association, the Japan Golf Association, the Indian Golf Union, the South African Golf Association (SAGA), the Organization for Economic Co-operation and Development (OECD), World Bank, CDC, and Eurostat, corporate filings such as annual reports, investor presentations, and financial statements, and paid repository. Historical production data has been collected and analyzed, and the industry trend is considered to arrive at the forecast, which is further validated by primary research.
Primary Research
In the primary research process, various primary sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included various industry experts, such as CXOs, vice presidents, directors from business development, marketing, product development/innovation teams, and related key executives from various key companies. Various system integrators, industry associations, independent consultants/industry veterans, and key opinion leaders were also interviewed.
Primary interviews have gathered insights such as low-speed vehicle market sizing estimation and forecast, future technology trends, and upcoming technologies. Data triangulation of all these points was done using the information gathered from secondary research and model mapping. Stakeholders from the demand and supply sides have been interviewed to understand their views on the aforementioned points.
Primary interviews have been conducted with market experts from the demand-side (end-use industries) and supply-side (low-speed vehicle providers) across four regions: North America, Europe, Asia Pacific, and the Rest of the World. Approximately 60% and 40% of the primary interviews were conducted on the OEMs and component manufacturer sides. Primary data has been collected through questionnaires, emails, and telephonic interviews. After communicating with primaries, we have strived to cover various departments within organizations, such as sales and operations, to provide a holistic viewpoint in our report. After interacting with industry experts, we have also conducted brief sessions with highly experienced independent consultants to reinforce the findings from our primaries. This and the in-house subject matter experts’ opinions have led us to the conclusions described in the remainder of this report.
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Market Size Estimation
As mentioned below, a detailed market estimation approach was followed to estimate and validate the value of the low-speed vehicle market and other dependent submarkets.
- Secondary research identified key players in the low-speed vehicle market and determined their global market ranking.
- The research methodology included a study of annual and quarterly financial reports, regulatory filings of major market players (public), and interviews with industry experts for detailed market insights.
- All vehicle level penetration rates, percentage shares, splits, and breakdowns for the low-speed vehicle market were determined using secondary sources and verified through primary sources.
- All key macro indicators affecting the revenue growth of the market segments and subsegments were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain validated and verified quantitative and qualitative data.
- The gathered market data was consolidated, enhanced with detailed inputs, analyzed, and presented in this report.
Global Low Speed Vehicle Market Size: Bottom-Up Approach, By Vehicle Type and Country
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Global Low Speed Vehicle Market Size: Top-down Approach, By Vehicle Type and Country
Data Triangulation
All percentage shares, splits, and breakdowns have been determined using secondary sources and verified by primary sources. All parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, and analysed to obtain the final quantitative and qualitative data. This data has been consolidated and enhanced with detailed inputs and analysis from MarketsandMarkets and presented in the report.
Market Definition
According to the US Department of Energy, a low-speed vehicle is a four-wheeled motor vehicle capable of reaching speeds of more than 20 miles per hour (mph) but not more than 25 mph. It may not operate on a highway with a posted speed limit of more than 35 mph. A city or county may adopt ordinances that allow the operation of low-speed vehicles or medium-speed EVs on city streets or county roads with posted speed limits greater than 35 mph and 45 mph, respectively. Low-speed vehicles and medium-speed EVs must comply with specific standards in Title 49 of the US Code of Federal Regulations, section 571.500.
Key Stakeholders
- Senior Management
- End User Finance/Procurement Department
- R&D Department
Report Objectives
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To define, describe, and forecast the size of the low-speed vehicle market in terms of value (USD million) and volume (units) between 2024 and 2030 based on the following segments:
- By Application (Golf Course, Hotel & Resort, Airport, Industrial Facility, and Other Applications)
- By Vehicle Type (Golf Cart, Commercial Turf Utility Vehicle, Industrial Utility Vehicle, and Personal Mobility Vehicle)
- By Propulsion (Electric, Gasoline, and Diesel)
- By Power Output (<5 kW, 6–15 kW, and >15 kW)
- By Battery Type (Lithium-ion Battery and Lead-acid Battery)
- By Category (L6 Vehicle and L7 Vehicle)
- By Voltage (<60 V, 61–99 V, and >100 V)
- By Motor Configuration (Hub-mounted, Mid-mounted, and Other Motor Configurations)
- By Motor Type (AC Motor and DC Motor)
- By Region (Asia Pacific, Europe, North America, and Rest of the World)
- To identify and analyze key drivers, restraints, opportunities, and challenges influencing the market.
- To analyze the market share of leading players in the low-speed vehicle market and evaluate competitive leadership mapping.
- To strategically analyze key player strategies and company revenue analysis
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To study the following with respect to the market
- Trends and Disruptions Impacting Customers’ Businesses
- Market Ecosystem
- Technology Analysis
- Supply Chain Analysis
- Patent Analysis
- Regulatory Landscape
- Case Study Analysis
- Key Stakeholders and Buying Criteria
- Key Conferences and Events
- Trade Analysis
- Investment and Funding Scenario
- Pricing Analysis
- To analyze recent developments, including product launches, partnerships, acquisitions, expansions, and other developments undertaken by key industry participants in the market
- To give a brief understanding of the low-speed vehicle market in the recommendations chapter
Available Customizations:
MarketsandMarkets offers the following customizations for this market report:
Global low-speed vehicle market by propulsion type, at the country level (North America, Europe, Asia Pacific, and the Rest of the World)
- Gasoline
- Diesel
- Electric
Global low-speed vehicle market, by power output, at country level (North America, Europe, Asia Pacific, and Rest of the World)
- ≤5 kW
- 6-15 kW
- >15 kW
Global low-speed vehicle market by seating capacity
- Small (2-4 seater)
- Medium (6-8 seater)
- Large (Above 8 seater)
Generating Response ...
Growth opportunities and latent adjacency in Low-Speed Vehicle Market