Low Speed Vehicle (LSV) Market Size - By Vehicle Type (Golf Cart, Commercial Utility Vehicle, Industrial Utility Vehicle, Personal Mobility Vehicle), By Engine Type (ICE, Electric), Application, & Forecast, 2023 - 2032

Low Speed Vehicle Market Size

Low Speed Vehicle Market size was valued at over USD 6.5 billion in 2022 and is anticipated to grow at a CAGR of 10% between 2023 and 2032. The enactment of strict vehicle emission laws & regulations by governments is driving the market growth. The rising pollution, technological advancements, the growing automotive industry, and the declining fossil fuel stocks are contributing to the industry growth. Advancements in ride-hailing and embedded mobility alternatives as well as the need of the aging population for vehicles for mobility are expected to support the low-speed vehicle industry expansion. As these vehicles are used for short-distance transportation, an increase in fuel costs will not hamper market expansion.
 

A Low Speed Vehicle (LSV) is a four-wheeled Electric Vehicle (EV), with a top speed of 25 mph and a gross weight rating of less than 3,000 kg. Countries worldwide have established performance & safety standards such as the requirement for headlights, front & rear turn signals, taillights, stop lights, reflex reflectors, mirrors, a parking brake, windscreen, seat-belt assemblies, and an alert sound for LSVs. LSV manufacturers are showing increased interest in moving forward in the industry. Several countries are now offering special incentives to firms that show a strong commitment to this industry. These LSVs are in high demand for hunting, meter maids, grounds maintenance, yard work, and campus security.
 

Low speed electric vehicles require charging stations to charge their batteries. The lack of charging stations in cities is a significant impediment to the global low speed electric car market growth. A completely depleted battery can be a problem for EVs and endanger travelers. Developing countries lack the necessary infrastructure for supporting EVs. The high prices of EVs are also stifling the overall low speed electric vehicle market growth.
 

COVID-19 Impact

The COVID-19 pandemic had significant impacts on the low speed vehicle market, affecting growth expectations as well as major beneficiaries. Geopolitical tensions and economic uncertainties may lead to localization and shifting away from certain suppliers, potentially impacting the supply chain. At the same time, the pandemic increased the demand for affordable & accessible personal transport options, potentially driving market growth. Companies that can adapt to the changing market conditions and prioritize innovations related to safety, comfort, and sustainability are expected to benefit the most.
 

Low Speed Vehicle Market Trends

Rapid urbanization and growing public safety concerns are the primary factors augmenting the market demand. The rising government initiatives to reduce carbon emissions and increasing global road traffic congestion will also drive market size. The growing public-private relationships and the increasing number of megacities will create beneficial opportunities for the market value. LSVs are widely used on golf courses, gated communities, resorts, college campuses, large industrial zones & IT hubs, amusement parks, historical monuments, and airports. The market growth is due to the increase in tourism & travel and the expansion of commercial & industrial infrastructure, aviation investments, and manufacturing operations.
 

Low Speed Vehicle Market Analysis

The commercial utility segment held a low speed vehicle market share of around 25% in 2022, owing to increasing disposable incomes and consumer preferences toward luxury tourism, particularly in North America and Europe. Commercial utility vehicles also termed as Utility Terrain Vehicle (UTV) are used in playgrounds, turf utilities, and hotels & resorts (as well as tourism, gated communities, and college campuses). End users of commercial utility vehicles include sports grounds, both on & off campus, and top-quality playing surfaces for sports ranging from rugby and cricket to polo and hockey.
 

The electric LSV market volume was accounted at over 150 thousand units in 2022. Lower production & operational costs along with simple architecture and fewer spare parts & components than IC engine vehicles are contributing to industry expansion. With constantly decreasing battery costs and lower after-sales maintenance costs, electric LSVs are expected to provide better ROIs, further fueling their market demand.
 

Improved charging infrastructure in major markets, such as China, the U.S., Germany, and France, is fostering the growth of electric LSVs. Global players including Club Car, The Toro Company, and Textron Inc. are expanding their electric offerings, which deliver performance comparable to ICE counterparts. As a result, favorable government regulations and the development of necessary charging infrastructure will be key factors proliferating the market revenue.
 

The low speed vehicle market size from airport segment was reached USD 1 billion in 2022 and will expand at 10% CAGR through 2032. The presence of the thriving aviation industry, the highest number of airports, and increased spending on airport services contribute to market growth. Airport construction/expansion projects are now underway in almost every region of the world, with massive investments pouring in. Electric LSVs are becoming increasingly popular due to their lower noise, zero emissions, and higher efficiency. Regulatory compliance and reduced maintenance requirements are boosting product adoption. Airport operators are constantly replacing aging fleet vehicles with advanced & efficient electric LSVs.
 

North America low speed vehicle market dominated over 40% revenue share in 2022, attributed to increasing government initiatives to encourage sustainable mobility as well as the growing construction & infrastructure industry. There is a growing global demand for low-emission, environment-friendly automobiles to combat environmental pollution. Governments around the world are promoting electric transportation and low-emission fuels to counteract the negative consequences of deforestation.
 

For instance, in February 2022, The U.S. Department of Transport has announced their plan to invest USD 5 billion in the coming years under National Electric Vehicle Infrastructure (NEVI) Formula Program. The president has established this program to support the development of national electric vehicle charging network.
 

Low Speed Vehicle Market Share

Some major players operating in the low speed vehicle market are

• AGT Electric Cars
• American Landmaster
• Bradshaw
• CLUB CAR
• Columbia Vehicle Group Inc.
• Deere & Company
• Evolution Electric Vehicles
• Garia
• ICON Electric Vehicles
• KUBOTA Corporation
• Moto Electric Vehicles
• Motrec International Inc.
• Star EV Corporation

These companies focus on strategic partnerships and new product launches & commercialization for market expansion. They are heavily investing in research to introduce innovative products and garner maximum revenue in the market.
 

Low Speed Vehicle Industry News:

• In March 2023, Club Car unveiled the Club Car CRU, a street-legal lifestyle vehicle that will disrupt the low speed vehicle market for consumers. It broadened Club Car's EV portfolio into a new, innovative Neighborhood Electric Vehicles (NEV) category. NEVs are intended to meet the needs of consumers looking for a more enjoyable & environment-friendly option for short trips.
   
• In June 2022, Garia, a street legal electric low speed vehicle manufacturer based in Denmark, was acquired by Club Car. With this acquisition, Club Car will be able to expand its production of electric LSVs and establish itself as a major OEM in the market.
   

This low speed vehicle (LSV) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million & Units from 2018 to 2032, for the following segments:

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Market, By Vehicle Type

• Golf cart
• Commercial utility vehicle
• Industrial utility vehicle
• Personal mobility vehicle

Market, By Engine Type

• Electric
• ICE

Market, By Application

• Golf courses
• Hotels & resorts
• Airports
• Industrial facilities
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Netherlands
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ

• Latin America
  • Brazil
  • Mexico

• MEA
  • UAE
  • Saudi Arabia
  • South Africa