Low Speed Vehicles (LSVs), characterized by their four-wheeled structure and a maximum speed ranging from 20 to 25 mph (32 to 40 km/h), are typically classified as motor vehicles with a gross vehicle weight rating below 3,000 pounds.
Market Insights & Analysis: Global Low Speed Vehicles Market (2023-28)
The Global Low Speed Vehicles Market size was reached at USD 8.5 billion in 2022 and is projected to grow at a CAGR of around 6.5% during the forecast period, i.e., 2023-28. Most of the market expansion ascribes to the increasing usage of LSVs in towns & cities for short-distance journeys. Eco-friendly vehicles have gained recognition in recent years, especially for short commutes as they not only reduce carbon emissions but also offer efficient transportation. As a result, the growing adoption of low speed vehicles in numerous applications, such as airports, resorts, hospitals, and residential areas is anticipated to drive the market.
Another factor encouraging Low Speed Vehicles (LSVs) market growth is the implementation of strict emission laws & regulations by governments. The rising pollution levels and the need to conserve fossil fuel stocks are driving the automotive industry toward eco-friendly mobility alternatives, including LSVs. Furthermore, advancements in ride-hailing and embedded mobility options, along with the demand for vehicles among the aging population, are expected to support the expansion of the Low-Speed Vehicles industry.
|Study Period||Historical Data: 2018-21|
|Base Year: 2022|
|Forecast Period: 2023-28|
|Regions Covered||North America: US, Canada, Mexico|
|Europe: Germany, The UK, France, Spain, Italy, Rest of Europe|
|Asia-Pacific: China, India, Japan, South Korea, Australia, Rest of Asia-Pacific|
|South America: Brazil, Argentina, Rest of South America|
|Middle East & Africa: UAE, Saudi Arabia, South Africa, Rest of MEA|
|Key Companies Profiled||American Landmaster, Bintelli Electric Vehicles, Bradshaw Electric Vehicles , Columbia Vehicle Group Inc., Deere and Company , Kubota Corp, Ligier Group, Polaris Industries Inc, Speedways Electric, Textron Inc, The Club Car, The Toro Company, Waev Inc, HDK Electric Vehicle, Yamaha Motor Co. Ltd., Other|
|Market Value||USD 8.5 Billion|
Key players in North America, such as Textron and Polaris, have adopted strategies like supply contracts, new product developments, and expansions to enhance their businesses. They are actively focused on developing cost-effective and easy-to-drive vehicles, further boosting market growth. Moreover, several countries worldwide have established performance & safety standards for LSVs, i.e., leading to manufacturers showing increased interest in this industry.
Additionally, some countries are offering special incentives to companies, demonstrating a strong commitment to LSVs. Hence, these aspects, coupled with the high demand for LSVs in various applications, including hunting, meter maids, grounds maintenance, yard work, & campus security, are set to spur growth in the global Low Speed Vehicles market through 2028.
Global Low Speed Vehicles Market Growth Opportunity:
The Revival of Golf and Its Massive Popularity Worldwide: Over the past few years, golf has witnessed immense popularity backed by modernization, the pandemic, and its appeal to diverse demographics. With over 119 million people engaged in golf-related activities, the sport has experienced a revitalization, Says National Golf Foundation. The United States alone saw a 12% increase in participation, with 3.4 million junior players, the highest level since 2006. Women comprise 25% of on-course golfers and demonstrate higher representation in beginner and junior categories.
Similarly, Sports Marketing Surveys (SMS) found that more than 23.3 million people played golf in 2020 across Asia, indicating an 11.5% increase since 2016, with China, Korea, Malaysia, and India showing prominent growth. This global phenomenon has led to market expansion for Low Speed Vehicles, including golf carts, as they become essential for navigating courses. As golf continues to attract a wider audience, the demand for low speed vehicles (LSVs ) is set to exemplify, presenting lucrative prospects for the Low-Speed Vehicles market in the ensuing years.
Global Low Speed Vehicles Market Possible Restraint:
Limited Infrastructure and Performance Constraints: The widespread adoption of LSVs faces challenges due to infrastructure limitations & performance constraints. The insufficient availability of dedicated charging stations and specialized parking areas impedes their adoption. This lack of infrastructure hinders the convenience & practicality of such vehicles for potential users. Furthermore, the restricted range and lower speeds, typically ranging from 25 to 35 miles per hour, which are designed specifically for short commutes, might refrain individuals looking for faster or more extensive transportation alternatives from adopting LSVs, thereby restricting the Low Speed Vehicles market growth.
Global Low-Speed Vehicles Market (2023-28): Segmentation Analysis
The Global Low Speed Vehicles Market size, & share study from MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the global, regional, and national levels. Based on the analysis, the market has been further classified as:
Based on Engine Type:
Of both, electric LSVs are gaining prominence in the Global Low Speed Vehicles market. Their rising adoption owes to various factors, such as environmental concerns, improved charging infrastructure, and declining battery costs. Besides, Governments are incentivizing the adoption of electric vehicles through subsidies, tax benefits, and other initiatives, encouraging consumers to choose electric LSVs over ICE vehicles. As a result, favorable government regulations regarding emissions and sustainability are crucial factors driving revenue growth of the Low Speed Electric Vehicles market.
Another factor supporting the industry expansion for electric low-speed vehicles is the lower production & operational costs. These vehicles have simpler architecture and require fewer spare parts & components than their ICE counterparts. Additionally, the lower after-sales maintenance expenses that contribute to a better return on investment (ROI) for electric LSVs is another crucial aspect amplifying their demand & spurring growth in the Low Speed Vehicles market globally.
Based on Vehicle Type:
Here, commercial turf utility vehicles acquired the highest market share in 2022, primarily due to an increasing focus on developing infrastructure to accommodate electric mobility options in hotels & resorts. As the tourism sector expands, these establishments are striving to provide superior amenities and activities to attract customers, subsequently encouraging the adoption of commercial turf utility vehicles.
With these vehicles emerging as a cost-effective & environmentally responsible alternative to traditional gas-powered vehicles offering battery-powered transportation options, including cars, trucks, personnel movers, and more, the demand for such variants in the Low-Speed Vehicles market is amplifying, leading to market expansion worldwide.
Moreover, commercial turf utility vehicles come in different types and variants, ranging from compact versions for smaller fields to larger models for larger-scale management operations. With their ability to enhance turf management operations while exhibiting minimal damage owing to various features that ensure their safe operation on turf, such as skid plates, safety belts, and flashlights, these vehicles are gaining recognition for maintaining and managing grassy areas and resulting in further proliferation of the market.
Global Low-Speed Vehicles Market Regional Projection:
Geographically, the Global Low-Speed Vehicles Market expands across:
Of all countries globally, North America garnered the lion's share of the Low Speed Vehicles market in 2022. It owes to the increased focus of governments on promoting electric transportation and low-emission fuels to combat environmental pollution. For instance, the National Electric Vehicle Infrastructure Formula Program in the United States allocated a substantial investment of USD 5 billion to support the development of a national electric vehicle charging network. Moreover, the presence of numerous golf courses in the region, with the US accounting for the highest number worldwide, is another notable aspect expected to bode well for the regional market growth in the coming years, as Low Speed Vehicles are commonly used in these recreational settings.
On the other hand, Asia-Pacific presents substantial growth potential, with the market projected to witness significant expansion from 2023 to 2028. Governments in the region are carrying out regulatory initiatives to raise public awareness about environmental safety, leading to an increased demand for low-speed electric vehicles and golf carts. In particular, China held the largest market share in the Low Speed Vehicles market, while India showcased the fastest growth within Asia Pacific. The speedy adoption of such vehicles in these countries ascribes to their utilization for neighborhood commuting, last-mile connectivity, and shuttle services within campuses, railway stations, airports, or residential areas.
Global Low-Speed Vehicles Industry Recent Developments:
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Frequently Asked Questions
A. The Low Speed Vehicles Market is projected to grow at a CAGR of around 6.5% during 2023-28.
A. The revival of golf followed by its massive popularity worldwide is likely to drive the market further during the projected time frame.
A. The prominent players anticipated to stiffen the competition globally are American Landmaster, Bintelli Electric Vehicles, Bradshaw Electric Vehicles, Columbia Vehicle Group Inc, Deere and Company, Kubota Corp, Ligier Group, Polaris Industries Inc, Speedways Electric, Textron Inc, The Club Car, The Toro Company, Waev Inc, Xiamen Dalle Electric Car Co., Ltd (HDK electric vehicle), Yamaha Motor Co. Ltd, Others.
A. ‘Commercial Turf Utility Vehicles’ is anticipated to emerge as an area of remunerative opportunities for the leading players in the Low Speed Vehicles Market during the forecast period.
A. Globally, North America would provide lucrative prospects for the Low Speed Vehicles Market in the years ahead.
Global Low Speed Vehicles Market Research Report (2023-2028) - Table of Contents