"Market Intelligence for High-Geared Performance"

Low Speed Vehicle Market Size, Share & COVID-19 Impact Analysis, By Propulsion Type (Electric Vehicle and ICE), By Vehicle Type (Golf Cart, Commercial utility vehicle, and Personal Carrier), By Application (Golf Courses, Industrial Facilities, Airports, and Hotels & Resort) and Regional Forecast, 2023-2030

Region : Global | Format: PDF | Report ID: FBI103021

 

KEY MARKET INSIGHTS

Play Audio Listen to Audio Version

The global low speed vehicle market size was valued at USD 10.92 billion in 2022. The market is expected to grow from USD 11.91 billion in 2023 to USD 22.56 billion by 2030, exhibiting a CAGR of 9.5% during the forecast period.


A low speed vehicle is defined as a limited-use automobile or truck with a maximum capable speed of up to 25 mph and a gross weight of less than 1,400 kg. This vehicle is used as an industrial/commercial vehicle, golf cart, and neighborhood vehicle. Thus, increasing demand for low speed vehicles is expected to drive the market growth at a considerable CAGR. Also, it is easy to drive these vehicles and find applications in schools, university campuses, golf courses, colleges, airports, railway stations, and factories.


Low speed vehicles are becoming increasingly popular owing to their eco-friendliness as they emit less carbon. Furthermore, families with both a low speed vehicle and a regular car have shown a 23% decrease in carbon dioxide emissions as most of these vehicles are electric and can go up to 30 miles on one full charge. This can satisfy the commuting needs of drivers. There is an increasing need for these vehicles in various industries, which is expected to boost the market's growth during the forecast period.


COVID-19 IMPACT


Drop in Recreational Activities During Pandemic Hampered Market Growth


The COVID-19 pandemic, due to lockdowns across the world, severely affected the automotive industry.


The market faced collateral damage just like other automotive industries. Due to the pandemic, nationwide lockdowns and temporary closure of production across North America, Asia, and European countries had hampered the market potential. Simultaneously, low speed vehicle technology and industry faced a serious decline in revenue generation. The sales of golf carts, industrial/commercial, and passenger vehicles declined during the COVID-19 pandemic. Market-leading players, such as Toyota, Ford, Volkswagen, Polaris, Deere, Kubota, Textron, and others faced a reduction in their revenues as compared to previous years.


Moreover, the use of vehicles decreased in tourist destinations across prime locations including resorts, theme parks, and golf courses due to the pandemic. Furthermore, the outbreak severely impacted the tourism industry, which led to a decline in visitors and consequently affected low speed vehicle rentals and sales in these areas. These developments severely hampered the low speed vehicle market growth.


LATEST TRENDS


Request a Free sample to learn more about this report.


Stringent Government Rules and Regulations toward Vehicle Emission


The conventional fuel-powered vehicle makes use of an IC engine to generate power. In an ideal situation, the combustion system fully incinerates the gas and creates carbon dioxide and water as waste. However, the system generates numerous greenhouse gases, leading to environmental pollution. On the other hand, an EV uses an electric motor powered by a continuous supply of current; thus, the EV does not create any pollutants. Germany, the U.S., France, and China have implemented strict government regulations and laws for vehicle emissions, making it compulsory for manufacturers to use superior technologies to combat high-emission levels in vehicles. The program launched by the CARB (California Air Resources Board) also includes guidelines for vendors to produce and supply Zero-Emission Vehicles (ZEVs). These new trends in the market are fueling the adoption of electric vehicles.


Adoption of Self-Driving Vehicles for Safe Transport to Drive Market Growth


Autonomous technology has been rapidly advancing in recent years. Low speed vehicles have started incorporating autonomous features, such as self-driving capabilities or Advanced Driver-Assistance Systems (ADAS). These features enhance the safety of LSVs. For instance, in December 2022, Carteav announced that the company had offered autonomous mobility as a service by providing a platform for Autonomous Low Speed Vehicles (ALSVs). These vehicles are used in managed mapped environments, such as campuses, hospitals, no-car zones, closed neighborhoods, and retirement communities. These developments will drive the sales of vehicles during the forecast period.


The key industry players are focusing on innovations, such as customization options to cater to individual preferences and styles. Also, low speed vehicles are being equipped with integrated GPS navigation systems, smartphone charging facility, and wireless charging capabilities. Self-driving golf carts gained the attention of golfers as they improved the overall social experience. Thus, post-pandemic, self-driving carts are expected to witness increased demand. These carts have a sensor that enables golfers to track their equipment, thereby driving the market’s growth


DRIVING FACTORS


Increasing Use of Low speed Vehicles in Towns and Cities for Small Distance Journeys Expected to Drive Market Progress


Growing demand for eco-friendly vehicles, especially in towns and cities for short daily commutes, is a prominent factor estimated to fuel the low speed vehicle market share over the projection period. Moreover, these vehicles can carry an adequate number of passengers, which has a beneficial impact on road transportation, which is anticipated to drive the market progress over the projection period. For instance, in 2023, Club Car introduced its latest street-legal electric vehicle, the Club Car Urban LSV, and XR t. The new Urban LSV expanded Club Car's leading electric vehicle portfolio. The new utility vehicle is now available through the company's distributors in North America. Globally, leading government bodies are establishing associations to curtail emissions and strict emission policies to tackle the temperature increase caused majorly by transportation emissions. These vehicles are estimated to reduce vehicle pollution. Thus, the adoption of these vehicles is anticipated to increase significantly in towns and cities for small-distance journeys and campus rides in factories, hospitals, universities, golf courses, colleges, residential apartments, and other applications. Thus, this factor is projected to boost the market.


RESTRAINING FACTORS


Safety Concern & Lack of Infrastructure to Hamper Market Growth


Low speed vehicles are designed to operate at lower speeds, typically below 25 mph (km/h). While this makes them suitable for certain environments, it also raises safety concerns when interacting with faster traffic. The safety risks associated with these vehicles can deter potential buyers and hamper the market’s growth. They may require specific infrastructure to operate effectively. This can include designated lanes, charging stations, or parking areas tailored to their unique requirements. The lack of availability and accessibility to charging infrastructure can significantly restrain the market growth.


SEGMENTATION


By Propulsion Type


Rising Demand for Eco-Friendly Vehicles for Urban Commute to Drive Electric Segment Growth


Based on propulsion type, the market is segmented into ICE and electric low speed vehicle. The electric segment is expected to exhibit substantial growth in this market owing to a rise in the adoption of technologically advanced vehicles in regions, such as Asia Pacific and Europe. A low speed electric vehicle produces zero tailpipe emissions, reducing air pollution and greenhouse gas emission compared to traditional Internal Combustion Engine (ICE) vehicles. The vehicle market will be positively impacted by the rising number of golf courses and the government’s activeness towards lowering carbon emissions to meet emission control standards. The ICE segment is expected to witness a decline as key manufacturers are focusing on developing low speed electric vehicles due to the rising shift toward electric vehicles from fossil-fueled vehicles. These factors are expected to boost the growth of the electric segment.


By Vehicle Type


To know how our report can help streamline your business, Speak to Analyst


Increasing Use of Vehicles in Various Industries for Lightweight Daily Transport to Fuel Commercial Utility Segment Growth


The market is segmented into golf carts, commercial utility vehicles, and personal carriers based on vehicle type. Commercial utility low speed vehicles are expected to hold the largest market share. There is an increasing need for these vehicles in the industry to travel from one plant to another. The major players are focusing on commercial vehicles. For instance, in December 2021, Deere & Company signed an agreement with Krisel Electric to acquire majority ownership of Kreisel Electric. Kreisel develops high-density, high-durability electric battery modules, and packs. John Deere has seen demand growing for batteries as a sole or hybrid-propulsion vehicle system. Products in Deere’s portfolio, such as turf equipment, compact utility tractors, small tractors, compact construction, and road-building equipment can rely solely on batteries as a primary power source.


Also, there is increasing usage of low speed vehicles for public transport in resorts, hospitals, colleges, and residential apartments. There is steady growth in the golf cart segment as a golf cart has a long life cycle compared to other vehicles. These factors are anticipated to boost the growth of the market.


By Application


 Vehicles to be Widely Used in Industrial Facilities for Their Attractive Features


The market is segmented into golf courses, industrial facilities, airports, and hotels & resorts based on application. The industrial facility segment is set to hold a dominant vehicle market share. The dominance of low speed industrial vehicles is driven by factors, such as their sustainability for industrial applications, cost-effectiveness, safety features, environmental benefits, compliance with regulations, and adaptability to various tasks. The airport segment is expected to record the fastest CAGR during the forecast period due to efficient passenger transportation. Airports are vast spaces, and low speed automobiles provide convenient and efficient transportation within the airport premises. For instance, in February 2023, ACI EUROPE announced that passenger traffic across the European airport network nearly doubled (+98%) in 2022 compared to the previous year, reaching 1.94 billion passengers.


REGIONAL ANALYSIS


North America Vehicle Market Size, 2022 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample


The market is analyzed across North America, Europe, Asia Pacific, and the Rest of the World.


The presence of golf courses in North America is higher as compared to other regions, which is propelling the demand for golf carts in this region. OEMs are also more focused on increasing the production volume with technological advancements in manufacturing facilities in emerging nations, such as the U.S., Canada, and Mexico. This will increase the vehicles market share in North American region.


Europe is anticipated to hold the second-largest share of this market, primarily attributed to key OEMs' presence in the region. The massive production of low speed automobiles has also propelled market growth in Europe. Asia Pacific is also projected to show significant growth in the market during the projection period.  The growth is attributed to many countries attracting a significant number of tourists; electric golf carts or neighborhood vehicles are commonly used for short-distance transportation within tourist destinations such as resorts, amusement parks, and scenic areas.


KEY INDUSTRY PLAYERS


Companies Focus on Business Development, Acquisitions, and Partnerships to Gain Competitive Edge


Major players in the vehicle market include Textron, Inc., Deere & Company, Polaris Industries, Inc., and Yamaha Motor Co., Ltd. These players are focusing on manufacturing technologically advanced electric vehicles for various customers across the world.


Textron offers golf carts and other vehicles under its E-Z-GO, Cushman, Arctic Cat, TUG Technologies, and Douglas Equipment brands. However, Club Car, Kubota Corp, Ingersoll-Rand plc, Xiamen Dalle Electric Car Co., Ltd., and Bradshaw Electric Vehicles are prominent players in the global market. In August 2022, Arctic Cat Inc. (Textron Inc.) revealed new off-road models and a partnership with Garmin for its Model Year 2023 launch. The growing lineup delivers more vehicles that cater to a wider variety of customers.


List of Key Companies Profiled: 



KEY INDUSTRY DEVELOPMENTS:



  • In January 2023, E-Z-GO (Textron Specialized Vehicles Inc.) announced that the company had redesigned its RXV golf cart with several new specifications and refinements to improve the on-course experience for golfers. The E-Z-GO RXV claims to deliver a new, sleek design to the front end, forming a modern and stylish golf car for any golf course. The new RXV also features a reimagined dashboard for the golfers, such as an easy-to-load tee, golf ball holders, cups, and plenty of space for mobile devices, range finders, and personal items.

  • In April 2022, Club Car signed an agreement to acquire Garia A/S ("Garia"), a Denmark-based manufacturer of low speed electric vehicles for the utility, consumer, and golf markets, from Lars Larsen Group. The Poland-based company manufactures lightweight utility vehicles and provides an array of street and non-street legal products including multi-passenger and compact cargo utility vehicles.

  • In August 2022, Yamaha Motor Corp introduced its 2023 model year lineup of Proven Off-Road ATV and Side-by-Side (SxS) vehicles. The 2023 models include Recreational SxS Lineup: Wolverine RMAX2 1000, RMAX4 1000, X2, & X4, Pure Sport SxS Lineup: YXZ1000R SS & YXZ1000R, Utility SxS Lineup: Viking & Viking VI, Utility ATV Lineup: Grizzly, Kodiak 700 & Kodiak 450, Sport ATV Lineup: Raptor 700, Raptor 700R & YFZ450R, and Youth ATV Lineup: Grizzly 90, Raptor 90 & YFZ50.

  • In May 2023, Polaris Off-Road announced its all-new Polaris XPEDITION. The 2024 Polaris XPEDITION XP and ADV create an entirely new category of "adventure side-by-side," combining the all-terrain capabilities of a traditional side-by-side with comfort and cargo capabilities typically associated with Overlanding at the highest level. With the Polaris XPEDITION lineup, Polaris claims to have created a new category of "adventure side-by-sides" – vehicles designed to enable and elevate the broadest range of specific outdoor pursuits.

  • In April 2023, United Rentals, Inc. signed a partnership with Polaris Commercial, a division of Polaris, to include more all-electric utility vehicles that will help make job sites cleaner, more environmentally friendly, and quieter. This will also help customers meet sustainability goals and reduce maintenance requirements. The all-new electric utility vehicle, the Polaris RANGER XP Kinetic, claims to provide more features and the highest horsepower and torque ever found in a utility side-by-side.


REPORT COVERAGE


An Infographic Representation of Low Speed Vehicle Market

To get information on various segments, share your queries with us



The report provides a detailed analysis of the market and focuses on key aspects, such as leading market players, competitive landscape, and vehicle types. Besides, the report includes insights into the latest market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth in recent years.


REPORT SCOPE AND SEGMENTATION




















































  ATTRIBUTE



  DETAILS



Study Period



2019-2030



Base Year



2022



Estimated Year



2023



Forecast Period



2023-2030



Historical Period



2019-2021



Growth Rate



CAGR of 9.5% from 2023 to 2030



Unit



Value (USD Billion)



Segmentation



By Propulsion Type



  • Electric Vehicle

  • ICE



By Vehicle Type



  • Golf Cart

  • Commercial utility vehicle

  • Personal Carrier



By Application



  • Golf Courses

  • Industrial Facilities

  • Airports

  • Hotels & Resort



 



By Region



  • North America (By propulsion type, By Vehicle Type, By Application)


    • U.S.  (By Propulsion Type)

    • Canada (By Propulsion Type)

    • Mexico (By Propulsion Type)


  • Europe (By propulsion type, By Vehicle Type, By Application)


    • U.K. (By Propulsion Type)

    • Germany (By Propulsion Type)

    • France (By Propulsion Type)

    • Rest of Europe (By Propulsion Type)


  • Asia Pacific (By propulsion type, By Vehicle Type, By Application)


    • Japan (By Propulsion Type)

    • China (By Propulsion Type)

    • India (By Propulsion Type)

    • South Korea (By Propulsion Type)

    • Rest of Asia Pacific (By Propulsion Type)


  • Rest of the World (By propulsion type, By Vehicle Type, By Application)



Frequently Asked Questions

As per the Fortune Business Insights study, the market size was USD 10.92 billion in 2022.

The market is projected to record a CAGR of 9.5% over the forecast period of 2023-2030.

The electric segment is expected to lead the market due to the adoption of electric vehicles globally.

The market size in North America stood at USD 4.84 billion in 2022.

Textron, Inc., Deere & Company, Polaris Industries, Inc., and Yamaha Motor Co., Ltd are some of the top players in the market.

North America held the largest share of the market in 2022.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • Jul, 2023
  • 2022
  • 2019-2021
  • 150

    CHOOSE LICENSE TYPE

  • $4850
    $5850
    $6850

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Automotive & Transportation Clients

KIA
Bosch
Asahi
GM
Hitachi

Related Reports

Client Testimonials

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- UGlobal hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.
X