Global Electric Low Speed Vehicle (LSV) Market Overview
Rising oil prices and increasing air pollution in developed regions are some of the major factors which are uplifting the trend for low speed electric vehicles. The electric low speed vehicle manufacturers such as Hitachi Automotive, Speedway Electric, Textron Inc., and other such companies are actively focusing on introducing innovative products at affordable prices and are focused on expanding their distribution network across the globe. The growing demands for fuel efficient and low maintenance LSV’s is creating a huge pressure on the low speed vehicles manufacturers to enhance the technology of LSV’s. Major players have also introduced solar powered low speed vehicles which have low maintenance costs and additional advantages over gasoline vehicles. The industry is also growing on the back of technological advancements in these vehicles. It has been notified that the population all over the world is inclining towards economic transportation vehicles due to cost saving factors. In addition to this, various end-use industries including hotels, golf courses, airports and others are shifting towards low running cost vehicles for commuting purposes.
Market Size and Forecast
The golf courses segment accounted for the largest market share of 49% in revenue terms in the overall electric low speed vehicles end-user segment in 2016 by generating revenue of USD 2,740 Million in 2016 globally. The rising popularity of golf sports and reinstate of golf sport in Olympic Games in 2016 is increasing the number of golf courses across the globe. The total numbers of 269 golf courses are under construction across the globe. These projects are estimated to be finished by the end of 2021. The rising numbers of golf courses with advanced facilities are expected to boost the demand for electric golf carts. The global electric low speed vehicles market was valued USD 3,372.8 Million in 2016 and further the market is expected to garner USD 5,119.3 Million by the end of 2023. The market is anticipated to register a CAGR of 6.50% during the forecast period i.e. 2016-2023.
The major factors driving the growth of low speed vehicle market is the rising pressure from the government entities on the gasoline powered vehicles to minimize the emission. The introduction of stringent emission control regulations from the road authorities is pushing various end-use industries towards electric low speed vehicles. On the other hand, the national highway and road authority in U.S. has already introduced favorable motor vehicle act by allowing low speed vehicles on road. The advancement in products from the manufacturers along with government support is expected to augment the growth of electric low speed vehicle market in near future. Geographically, North-America dominated the electric low speed vehicle market for over 57% revenue share in 2016. Availability of large electric low speed vehicle manufacturers such as Textron Inc., Ingersoll Rand and others is one of the key factors which is helping this region to dominate and to grow exponentially in the overall electric low speed vehicle market over the next five to six years.
Additionally, Asia-Pacific region is expected to showcase tremendous growth in electric low speed vehicle market in near future on the back of rising popularity of electric vehicle in developing and robust economies such as China, Japan, India and others. The huge electric vehicle manufacturer base in China would help the Asia-Pacific region to intensify the growth over the forecast period. In 2014, China produced 427,000 low-speed electric vehicles, a 41.4% jump from a year ago. The figure reached nearly 300,000 in the first half of 2015.
Rapid pace of urbanization in growing economies such as U.S., China, Australia, and India is further opening the opportunities for the low speed vehicles players to fill the need of economic mobility infrastructure. Population in urban regions is shifting towards low speed vehicles for their routine works is fostering the demand for electric LSV’s. The zero emission feature of electric and solar powered vehicles are rising the popularity of LSV’s among the population in developed nations. The urbanization is changing the lifestyle of the population and also raising the awareness towards the increasing fuel emissions. The rising disposable income of the population is allowing them to spend more on commuting vehicles such as electric LSV’s. Growth in hospitality sector has been noticed owing to expansion of tourism industry across the globe. The rise of hotels and resorts across the globe and rising expectations of tourists towards the hotels services are encouraging the hotel industry to provide better services. These factors are expected to generate a huge demand for electric low speed vehicles in hotel industry over the next five to six years.
The airport authorities are also adopting electric low speed vehicles for various purposes including carrying passenger, luggage and heavy utilities. The golf carts are used inside the premises of airports to commute passengers. Moreover, the total number of airports across the globe was 41,821 in 2013. Among these airports, U.S. alone had 13,513 airports in 2013 across the nation. The low cost flight travels is increasing the number of passengers in North-America region. The total number of passengers visits Los Angeles Airport was 58,995,672 in 2010. The number of passengers increased by 4.6% in 2011 and reached to 61,848,449 in 2012. The rising number of passengers on international airports is pushing the airport authorities to adopt more electric low speed vehicles for passengers. However, poor quality offering from local LSV manufacturers is increasing the incidents related to breakdown and systems failures. The rising number of local companies which are producing low quality LSV’s are creating reluctance among the various end-use industries.
Likewise, the lack of government regulations on the manufacturing of electric low speed vehicles is one of the major factors which are hindering the growth of electric LSV market across the globe. The increasing number of low quality offerings of low speed vehicles is hampering the growth of industry and decreasing the revenue share of the organized players globally.
Global Electric Low Speed Vehicle (LSV) Market Segmentation
Our in-depth analysis segmented the global electric low speed vehicle (LSV) market in the following segments:
By Vehicle Type
By Transmission Type
By End-Use Industry
Global Electric Low Speed Vehicle (LSV) Market is further classified on the basis of region as follows:
The key players of electric low speed vehicle (LSV) market are as follows:
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