Low-speed vehicle market projected to be worth $4.15 billion by 2022
The low-speed vehicle market in North America is expected to grow at a compound annual growth rate of 3.06%, according to a report by MarketsandMarkets. The report, "Low Speed Vehicle Market for North America by Manufacturer, Power Output (<8 kW, 8-15 kW, and >15 kW), Propulsion (Diesel, Electric, and Gasoline), Type (Commercial Turf & Industrial Utility Vehicle, Golf Cart, and Personnel Carrier), and Country - Forecast to 2022," estimates the market to be worth $3.57 billion in 2017 and projects it to reach $4.15 billion by 2022. The rising trend of using low-speed vehicles in gated communities, resorts, and industrial and college campuses is projected to fuel the demand for these vehicles.
Electric low-speed vehicles are expected to have the largest market among the various types of propulsion. The battery is the power source for electric vehicles. Presently, the battery costs almost one-third of the total electric vehicle price. The battery price has shown a decline of 20% from 2011 to 2016. OEMs and battery manufacturers are working toward the development of high-energy-density batteries to deliver greater range on a single charge. While the automotive industry is moving toward electric vehicles, a similar trend is observed in the low-speed vehicle segment, where key vehicle types are golf carts and personnel carriers. The electric low-speed vehicles are a better fit option as they are required for short-distance coverage and can be used for low power output. With the growing trend toward electrification, zero emission, and vehicle weight reduction, electric low-speed vehicles are expected to have the largest market during the forecast period.
Based on the use and the terrain, the power output and the type of low-speed vehicle were considered. The market for the high-power output (>15 kW) segment is expected to present the highest growth during the forecast period. High-power output vehicles are found in all types of low-speed vehicles, including commercial turf utility vehicles, industrial utility vehicles, and personnel carriers. The demand for high-power low-speed vehicles is expanding with the increase in speed limit and government permission to ride the vehicles on selected roads, since high speed capability requires high power output.
The U.S. is estimated to be the largest and fastest growing region for the low-speed vehicle market during the forecast period. The market growth in the region can be attributed to the presence of established manufacturers such as Polaris, Textron, and Club Car. Other factors including strict emission regulations, rapid improvement in battery technology, and increasing demand for electric vehicles are expected to boost the market for low-speed vehicles in the U.S.
The key strategies adopted by the players in the low-speed vehicle market in North America are new product developments, supply contracts, and expansions. Polaris and Textron are two of the leading market players that have adopted these strategies to expand their businesses. For example, in October, Polaris introduced the intelligent off-road suspension, DYNAMIX Active Suspension, for its low-speed vehicles. In addition, in September, Textron had a supply contract with the Real Club Valderrama, a golf club in Spain, to supply 40 units of E-Z-GO RXV ELiTE golf carts.
The key companies profiled in the study are Polaris (U.S.), Textron (U.S.), Deere (U.S.), Toro (U.S.), Kubota (Japan), Yamaha (Japan), Club Car (U.S.), Taylor-Dunn (U.S.), Columbia Parcar (U.S.), and American Landmaster (U.S.).
For more information, go to https://www.marketsandmarkets.com/Market-Reports/north-america-low-speed-vehicle-market-1965274.html.