Low-Speed Vehicle Market by Vehicle Type (Commercial Turf Utility, Industrial Utility Vehicle, Golf Cart, Personal Mobility Vehicle), Power Output (<8, 8-15, >15 kW), Propulsion, Battery Type, Application, Category Voltage & Region - Global Forecast to 2028
[302 Pages Report] The low speed vehicle market size was valued at USD 0.4 billion in 2023 and is expected to reach USD 15.0 billion by 2028, at a CAGR of 7.4% during the forecast period 2022-2028. Low speed vehicles (LSVs) are 4-wheeled vehicles with a maximum capable speed of typically about 25 mph (40 km/h). These vehicles are used as industrial vehicles, neighborhood vehicles, turf utility vehicle, and golf carts. It is easy to maneuver and hence find applications in golf courses, school, college & university campuses. industrial areas, corporate offices, museums, and gated communities, among others. Low speed vehicles are currently available in conventional fuel models as well as electric models. According to MnM analysis, more than 60% of these vehicles electrically operated and expected to dominate at a global market under the review period.
To know about the assumptions considered for the study, Request for Free Sample Report
To know about the assumptions considered for the study, download the pdf brochure
Market Dynamics
DRIVER: Growing Popularity for Golf
As per the record of NGF in the US a total of 25.6 million players played golf on the course and 15.5 million players participated in off course golf activities in indoor golf simulators, and golf entertainment venues like Topgolf and Drive Shack. Also, there were 3 million new golf players in the last 3 year as compared to 2 million players in the last 9 years. The largest customer group of golf according to NGF was young adults (18-34 age) with 6.2 million participants. A major growth factor for golf course games is an increase in rewards and prizes, In Asia pacific rewards range from 30,000 to 0.2 million for professional golf tournaments. The demand for rising golf courses is mainly due to increasing disposable income, changing lifestyles, and shifting inclination towards premium sports. As people have a shifting inclination towards premium sports along with changing lifestyle preferences the demand for golf is expected to grow during the projected years along with the growth of LSVs.
RESTRAINT: High Costs in Developing and Underdeveloped Regions.
One of the largest segments of LSVs is golf carts. Golf is considered to be a luxury sport and has much higher expenses as compared to other sports. Golf requires huge-sized land along with regular maintenance for playing along with expensive membership costs. As per the Asian golf industry federation in Asia, the average price to acquire a golf membership is around 400 to 800 USD. The average price range of a golf cart is around 3,000-5,000 USD. The Tokyo Golf Club in Japan charges around USD 250 – 270 for a single person who is a non-member (excluding green fees, caddy fees, and usage and consumption tax charges) for weekdays. A golf course like Banyan Thailand Hua-Hin charges around USD 3,700 – 3,750 annually for a single non-member. However, in developing and underdeveloped regions the purchasing power parity is low, Africa had a PPP of 5,362 USD while Asia had a PPP of 14,679 USD. High prices of golf carts and golf sport is a restraining factor for the growth of LSV during the forecasted years.
OPPORTUNITY: Increasing Real Estate and Commercial Sector
As per India Brand Equity Foundation (IBEF), India’s real estate sector is expected to grow to 1 trillion USD by 2030 and the real estate sector will contribute 13 % of the country's total GDP. In large residential projects with the huge area the need for LSV to travel inside the premises has been in demand. As travel and tourism return to pre-pandemic levels the hotels& resorts industry has also risen, many hotels and resorts offer LSVs to travel inside their premises, as per the Federal reserve bank of St. Louis, US, the hospitality sector contributed nearly 3.8% to the US GDP. Another commercial sector that provides an opportunity to increase the demand for low speed vehicles is the aviation sector. The requirement for LSVs inside airports for airport-related operations could be a growth opportunity. Therefore, the growth of real estate, hospitality, and aviation could drive the growth of the LSV market during the forecasted period.
CHALLENGE: Lack of Safety Standards and Equipment
The National Highway Traffic Safety Administration (NHTSA) monitors safety standards for conventional vehicles in US. NHTSA has set standards for LSVs under section 571.500 Standard No. 500. This standard requires the LSV to be equipped with the following items which are taillamps, reflex reflectors, parking brakes, headlamps, stop lamps, turn signal lamps, rearview mirrors, windshields, seat belts, and vehicle identification numbers. If an LSV fails to comply with this standard it does not get certified for street legality operations. Many OEMs provide customized LSVs that are unable to follow the standards fully and do not get permission for street operations.
LSVs does not have airbags and have a higher risk of injury during a crash. Also, NHTSA doesn’t allow LSVs for the usual crash test due to which the body design is not crashproof. Safety concerns for LSV is a major challenge for LSV and are hampering the growth of LSV market.
Low speed Vehicle Market Ecosystem.
The major OEMs of the low speed vehicle market have latest technologies, diversified portfolios, and strong distribution networks globally. The major players in the LSV market are Textron inc., Deere and Company, Yamaha Motor Co. Ltd, The Toro Company, Kubota Corporation.
Commercial turf utility vehicle is a large segment of the low speed vehicle market by vehicle type
Commercial turf utility vehicles will dominate the low speed vehicle market during the forecast period. These vehicles are primarily used for transport in hotels & resorts and can be applied in commercial transportation but have slight uses in industrial sectors. These vehicles are rugged and versatile with a complaint to street regulation in certain countries and are also offered with 4X4 configuration. Due to these features, these vehicles can transport people over the roads as well as haul heavy materials and loads within industrial facilities or warehouses. As these vehicles can carry out multiple operations under normal & extreme conditions, the demand for commercial turf utility vehicles would lead the market growth in the future.
<8 kW low speed vehicle dominates the market demand, by power output segment.
Low-power LSVs are used for regular operations that do not require much power and torque. It is LSVs with low-power output (<8 kW) are easy to maneuver and mostly used for 2-5 people for short-distance transport in golf courses, resorts, gated communities, and as personal mobility vehicles. Globally, most of these LSVs are electrically operated and projected to gain traction with advancements in electric vehicle technology. According to the study by the Toronto and Region Conservation Authority, electric low speed vehicle consumes less energy to drive the cart compared to gas-powered carts. For instance, gas-powered golf carts need 10 kWh of energy, whereas electric-powered golf carts need 3.3 kWh of power. Thus, as these LSVs mostly operate on smooth & flat surfaces usually across golf courses, commercial facilities, business premises and other similar areas where the power requirement is maximum, the demand for low-power LSVs would remain lucrative in the future across various applications.
Airports are the fastest-growing segment for low speed vehicles, by application.
The airport is estimated to grow at the fastest CAGR during the forecast period. The higher growth of this segment is mainly due to increased passenger travels around the world. As per the Centre of Aviation, there were 3.8 billion passengers globally in 2022. Also, ACI Europe reported that there was an increase of 98 % in passenger traffic in Europe airport traffic in 2022. At the same time, there are multiple new airports are expected to be started as nearly 225 new airport projects would be in place and 70 % of these new airport projects are in Asia pacific with an estimated investment of 150 billion USD. Thus, with increased passenger volume, the LSV demand would be on the rise for dropping passengers from one place to another within the large area of the airport. Further, newer airports are spread across a larger area for which travel passengers within the facility are a key concern and LSVs can act as a differentiating factor for this purpose.
Asia Pacific is the second largest market for low speed vehicles.
Asia Pacific is the second largest market for low speed vehicles after North America, where China and Japan lead with market demand with more than 85% in 2022. The leading market position of these two countries is mainly due to higher demand coming from increasing golf courses, industrial facilities, and travel. Other countries, such as India, South Korea, and Thailand, are experiencing increased demand in recent years. The popularity of golf is another growing aspect in Asia where 5,000 golf courses had been developed by 2021 and many new golf clubs are expected to come. Additionally, there is a significant growth in tourism, product manufacturing, IT hubs, and warehouses in recent years. Low speed vehicles can be useful in these applications for traveling people within defined areas and can also be noteworthy while carrying medium to heavy loads. All of these factors are expected to promote the growth of low speed vehicles in the region.
Some of the major players are Yamaha Motor Co. (Japan), Speedways (India), Auto Power (India), Jiaxing Learoad Special Vehicle Co., Ltd (China), Dongguan Excar Electric Vehicle Co. Ltd (China), Maini Material Movement Pvt Ltd (India), G.H. Varley Pty Ltd (Australia), and Hawk Carts (Australia)
Key Market Players
The low speed vehicle market is consolidated. Textron Inc. (US), Yamaha Motor Co Ltd (Japan), The Toro Company (US), Deere & Company (US), Waev Inc (US), and Club Car (US) are the key companies operating in the low speed vehicle market.
These companies adopted new product launches, partnerships, and joint ventures to gain traction in the low speed vehicle market.
Get online access to the report on the World's First Market Intelligence Cloud
- Easy to Download Historical Data & Forecast Numbers
- Company Analysis Dashboard for high growth potential opportunities
- Research Analyst Access for customization & queries
- Competitor Analysis with Interactive dashboard
- Latest News, Updates & Trend analysis
Request Sample Scope of the Report
Get online access to the report on the World's First Market Intelligence Cloud
- Easy to Download Historical Data & Forecast Numbers
- Company Analysis Dashboard for high growth potential opportunities
- Research Analyst Access for customization & queries
- Competitor Analysis with Interactive dashboard
- Latest News, Updates & Trend analysis
|
Report Metric |
Details |
|
Market size available for years |
2018–2028 |
|
Base year considered |
2022 |
|
Forecast period |
2023–2028 |
|
Forecast units |
Volume (Units) and Value (USD Million/Billion) |
|
Segments covered |
By vehicle type, power output, battery type, propulsion, application type, voltage type, category type and region. |
|
Geographies covered |
Asia Pacific, North America, Europe, and the Rest of the World [RoW] |
|
Companies covered |
Textron Inc. (US), Yamaha Motor Co Ltd (Japan), The Toro Company (US), Deere & Company (US), Waev Inc (US), and Club Car (US) |
Along with the given market data, MarketsandMarkets offers customizations in accordance with the company’s specific needs.
The study segments the low speed vehicle market:
Application Type
- Golf courses
- Hotels & resorts
- Airports
- industrial facilities
- Others
By Vehicle Type
- Golf cart
- Commercial turf utility vehicle
- Industrial utility vehicle
- Personal mobility vehicle
By Propulsion
- Electric
- Diesel
- Gasoline
By Power Output
- <8 KW
- 8–15 KW
- >15 KW
By Battery Type
- Li-Ion
- Lead Acid
By Voltage Type
- <60V
- >60V
By Category Type
- L6
- L7
By Region
- Asia Pacific
- North America
- Europe
- Rest of the World [RoW]
Recent Developments
- In Jan 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 are now optimizing LSVs with better facilities and features to provide an overall better user experience.
- In June 2022 Club Car acquired Garia a Denmark based street legal electric low speed vehicle manufacturer. This acquisition will enable Club car to increase its electric LSVs manufacturing and establish itself as a Major OEM of the LSV market.
- In January 2022, Yamaha launched the Drive2 Powertrain AC Lithium. The new Lithium-ion-powered golf car is with Independent Rear Suspension (IRS). Yamaha is known for offering the strongest product line of golf and utility cars in the world, and the addition of the Drive2 PowerTech with the IRS model offers customers the same comfort, reliability, and performance.
- In January 2022, The Toro Company launched Workman UTX. The commercial-grade, 4-wheel drive vehicle uses a proprietary ground speed governing system. Workman UTX’s ground speed and RPM are not directly connected, allowing the manager to limit the speed of the machine without gutting the power.
- In June 2021, The Club Car Current is designed for low speed logistics and cargo operations. The company has partnered with ARYO Inc to develop the product. The Club Car Current is ideal for low speed logistics and cargo services. It has the agility and versatility that is essential in a campus or urban environment, filling the gap between full-sized trucks and small utility carts.
- In December 2021, The R&A has named The Toro Company as a Founding Partner and Official Golf Course Maintenance Partner for its planned community golf facility in Glasgow, Scotland. This partnership would pave the path for the sales of gold cars in the region.
- In August 2021, Club Car announced the all-new integration of Club Car Connect with EzLocator, the industry leader in daily pin placement management. This new partnership enables superintendents with the ability to manage pin locations with speed and precision. At the same time, golfers will enjoy exact yardages seamlessly delivered to their Club Car golf car updated through the cloud with the new integration.
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 10.4 billion in 2023 to USD 15.0 billion by 2028, at a CAGR of 7.4%.
Which vehicle type is currently leading the low speed vehicle market?
Commercial turf utility vehicle is leading in the low speed vehicle market.
Many companies are operating in the low speed vehicle market space across the globe. Do you know who are the front leaders, and what strategies have been adopted by them?
The low speed vehicle market is consolidated. Textron Inc. (US), Yamaha Motor Co Ltd (Japan), The Toro Company (US), Deere & Company (US), Kubota Corporation are the top players in the market.
How is the demand for a low speed vehicle varies by region?
North America is estimated to be the largest market for the low speed vehicle 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, the development of autonomous and interconnected technology in LSV can create growth opportunities in LSVs.
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
The study involved four major activities in estimating the current size of the low speed vehicle market. Exhaustive secondary research was done to collect information on the market, peer market, and parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both bottom-up and top-down approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
Secondary sources referred to for this research study include financial statements of companies offering LSV vehicles and the information from various trade, business, and professional associations such as International Light Transportation Vehicle Association, Inc., National Mobility Equipment Dealers Association (NMEDA), National Motorists Association, Electric Auto Association, Japan Golf Association, Indian Golf Union, and South African Golf Association (SAGA) etc. This secondary data was collected and analyzed to arrive at the overall size of the low speed vehicle market, which was validated by primary respondents.
Primary Research
Extensive primary research was conducted after obtaining information regarding the Low speed vehicle market scenario through secondary research. Several primary interviews were conducted with market experts from both, the demand and supply sides across major countries of North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. Primary data was collected through questionnaires, emails, and telephonic interview. The primary sources from the supply side included various industry experts, such as Chief X Officers (CXOs), Vice Presidents (VPs), Directors, from business development, marketing, product development/innovation teams, and related key executives from LSV vendors; system integrators; component providers; distributors; and key opinion leaders.
Primary interviews were conducted to gather insights such as market statistics, data of revenue collected from the products and services, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also helped in understanding the various trends related to technology, application, vertical, and region. Stakeholders from the demand side, such as CIOs, CTOs, and CSOs, and installation teams of the customer/end users who are using LSVs were interviewed to understand the buyer’s perspective on the suppliers, products, component providers, and their current usage of LSV and outlook of their business which will affect the overall market.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
The research methodology used to estimate the size of the low speed vehicle market includes the following details. The market sizing of the market was undertaken from the demand side. The market was upsized based on electrical LSV vehicle used in golf cart, industrial turf utility vehicle, commercial utility vehicle, and personal mobility vehicle at a regional level. Such procurements were used on the demand aspects of LSV applications such as airports, hotels, industrial facility, and golf course. For each category type segment, all possible application areas were mapped.
To know about the assumptions considered for the study, Request for Free Sample Report
Global Low Speed Vehicle Market Size: Bottom-Up Approach, By Vehicle Type and Country
Data Triangulation
After arriving at the overall size from the market size estimation process explained above, the total market. was split into several segments and subsegments. The data triangulation and market breakdown procedures explained below were implemented, wherever applicable, to complete the overall market. engineering process and arrive at the exact statistics for various market segments and subsegments. The data was triangulated by studying various factors and trends from the demand and supply sides. Along with this, the market size was validated using both the top-down and bottom-up approaches.
Market Definition
LSV covers various propulsion type, and category type of the low speed vehicle which can be used in restaurants and hotels, airports, campuses, industrial facility and golf course having a speed less than 25kmph. It finds its application mostly for elderly retired people community, disabled person, tourism, and commercial application, where it comes with a wide range of power rating, battery type, voltage type, power output and seating capacity which can used according to its end application by the user.
Key Stakeholders
- Senior Management
- End User Finance/Procurement Department
- R&D Department
Report Objectives
- To define, describe, segment, and forecast the size of the low speed vehicle market based on application, voltage, power output, category, battery, vehicle, propulsion, and region.
- To forecast the market size of segments with respect to various regions, including North America, Europe, Asia Pacific, Latin America, Middle East & Africa, along with major countries in each region.
- To identify and analyse key drivers, restraints, opportunities, and challenges influencing the growth of the low speed vehicle market.
- To analyse technological advancements and product launches in the market.
- To strategically analyse micro markets, with respect to their growth trends, prospects, and their contribution to the market.
- To identify financial positions, key products, and key developments of leading companies in the market.
- To provide a detailed competitive landscape of the market, along with market share analysis, porter’s five forces analysis, ASP analysis, patent analysis, conference and events, regulatory analysis, and the recession impact.
- To provide a comprehensive analysis of business and corporate strategies adopted by the key players in the market.
- To strategically profile key players in the market and comprehensively analyze their core competencies.
Available Customizations
MarketsandMarkets offers the following customizations for this market report:
- Global low speed vehicle market, by propulsion type, by country (North America, Europe, Asia Pacific, and Rest of the World)
- Global low speed vehicle market, by power output, by country (North America, Europe, Asia Pacific, and Rest of the World)
- Global low speed vehicle market, by product, by country (North America, Europe, Asia Pacific, and Rest of the World)
- Global low speed vehicle market, by seating capacity, by country (North America, Europe, Asia Pacific, and Rest of the World)
Product Analysis
- Product matrix, which provides a detailed comparison of the product portfolio of each company in the low speed vehicle Market
Generating Response ...
Growth opportunities and latent adjacency in Low-Speed Vehicle Market