Low Speed Vehicle (LSV) Market Analysis

Low Speed Vehicle Market Analysis

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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.