If you are in the low-speed vehicle (LSV) or electric golf cart business, there is great news. Predictions made by market forecasters and industry experts point to positive trends in golf cart sales over the next few years.
According to a recent market analysis report by Future Market Insights, the future of the global golf cart market outlook looks bright and healthy with overall market value expected to increase at a compound annual growth rate (CAGR) of 6.4 percent throughout the forecast period ending in 2026. The report also makes a more specific prediction: The electric golf cart segment will expand at a significant rate in terms of value.
Why the Future Is Looking Rosy for LSVs
Part of the market growth can be attributed to the growing popularity of golf around the world. New golf course projects, golf-oriented communities and golf resorts underscore a solid trend. Gas-powered and electric golf carts and other LSVs offer an economical and convenient way to commute the short distances between holes. They’re ideal for both golfers and course maintenance workers, but their potential reaches far beyond the green.
The vehicles are also used in a variety of commercial and private settings where quiet, efficient transportation of people or supplies is required. Examples include hotels, theme parks, airports, hospitals, industrial and construction settings, tourist attractions and more. Some businesses even acquire small fleets of LSVs to use as courtesy carts or security vehicles.
Electric golf carts are progressive products that hold a critical edge. Because they rely on battery power, they’re more economical. More importantly, they don’t produce pollution or cause environmental damage. This makes them increasingly popular among individuals and companies that are striving to reduce their carbon footprints, which has become an important aspect of brand reputation and ethics in today’s social climate. As the demand for eco-friendly transportation grows within the tourism and hospitality industries, electric golf cart sales will inevitably blossom along with it.
Statistics and Segmentation Details for Forecast Period 2016-2026
Here’s a quick overview of the latest market predictions.
Key Players in the Global Golf Cart Market
- Electric golf carts are expected to dominate the market with the most attractive CAGR and market share.
- The personal use segment is expected to expand at a CAGR of 5.7 percent over the forecast period with full ownership as the most attractive in market share.
- The golf course segment will continue to dominate the market in value and volume; this segment represented a 49 percent volume share in 2015.
- North America is expected to retain dominance in the global golf cart market throughout the forecast period. Its market growth is related to rising gas prices, innovative product features and technologies, growing consumer awareness about environmental issues and a higher demand for golf carts in multiple industries for various end use applications.
- In revenue, Asia Pacific and Europe account for 40 percent of the overall market.
- Mexico will hold the dominant revenue share in the Latin American golf cart market.
- By the end of 2026, deployment of golf carts in Western Europe is expected to reach 63,315 units.
Will Industry Challenges and Changes Impact the Market’s Future?
- Textron Inc.
- Marshell Electric Vehicle
- E-Way Golf Cars
- Bradshaw Electric Vehicles
- Polaris Industries Inc.
- Dongfeng Electric Vehicle Co Ltd.
- Ingersoll Rand Corp.
- Dongyang Mechatronics Corp.
- Yamaha Golf Car Company
- citEcar Electric Vehicle
- Garia A.S.
The electric golf cart market has a great opportunity to use technological advancements, growing demand and stricter environmental regulations to its advantage. However, the industry does face a few challenges. The heavy, lead-acid batteries used to power them require maintenance and frequent recharging. Escalating maintenance costs could potentially restrict revenue growth for the electric vehicle segment and subsequently slow down the overall rise of the global golf cart market.
The future of neighborhood electric vehicles (NEVs) may also play an important role in the success of electric golf cart manufacturers. Because electric golf carts can be customized as street legal vehicles by adding a set of required safety features, a portion of golf cart sales involves buyers who are looking for the functionality of both vehicle types. According to some experts, declining interest in car ownership will likely lead to large-scale dependence on electric vehicles such as NEVs and street-legal golf carts in urban settings. In fact, some predict that large fleets of automated, small, electric, cart-like vehicles may one day replace mass transit systems and subways as the primary forms of local transportation. If this does occur, cashing in on the trend would be easy and extremely lucrative for makers of electric golf carts and their investors.