Credible Factors Augmenting the Growth of the Global Golf Cart Market
The demand for golf carts is expected to rise on the back of advancement in golf carts. The growing demand for customized seating and comfortable golf carts, especially from hotel industry is the major reason behind the positive growth of the golf cart industry. Additionally, availability of electric and efficient golf carts in the market is further boosting the demand for golf carts. Likewise, solar powered golf carts are also gaining traction among various end-use industries owing to their low maintenance features combined with high-end accessories, such as golf robots, launch monitors and other remote control capabilities. These factors are expected to increase the demand for golf carts over the next five to six years.
Golf equipment manufacturers are launching modern and customized golf carts by using advanced technologies such as computer-aided design and computer-aided manufacturing for developing and modifying their product designs. Manufacturers are increasingly offering advanced products through various distribution channels such as franchisees, company owned showrooms etc. The rising demand for electric golf carts due to their low running cost and low maintenance advantages are predicted to supplement the growth of the global golf cart market with significant market valuation of around USD 4,159.4 Million by the end of 2023 soaring its way up from USD 2,740.4 Million in 2016. Further, the global golf cart market is believed to witness a CAGR of 6.14% over the period 2016-2023.
Regional Growth Highlights during 2016-2024
The global golf cart market is segmented by regions into North America, Latin America, Europe, Asia-Pacific and Middle East and Africa. Geographically, North-America region dominated the global golf cart market by contributing a market share of 58% in 2016. The huge and traditional market of golf carts, U.S. with 78% share in 2016 and Canada are further predicted to contribute in maintaining the dominance of the region in upcoming years.
After North America, Europe is the most opportunistic region for golf carts in the near future. U.K golf cart market accounted for highest share of 57% in 2016 and is estimated to cross USD 450 million by 2023 by registering a CAGR of 4.42% during 2016-2023.
In Asia-Pacific, a highest demand is projected to come from Japan followed by China, Australia & India; Japan accounted for 42% market share in 2016 and is projected to remain a dominant country in the region.
Market Segmentation Synopsis
By Fuel Type
The global golf cart market is divided by fuel type into electric, gas powered and gasoline powered, out of which the electric powered golf carts held more than half of the total market share in 2016 and is expected to continue its dominance in the near future owing to the environmental governing bodies aiming towards reducing dependency on gasoline powered vehicles. In addition to that, people are more inclined towards using environmental friendly vehicle rather than driving a gasoline cart. Further, rising international tourism is expected to foster the demand for electric LSV golf carts in airports, hotels and resorts for luggage and passenger carrying purposes.
By End-User Industry
The global golf cart market is divided by end-user industry into golf courses, hotels & resorts, tourist destinations, airports, residential & commercial premises and other institutions. Among these segments, the golf courses segment has generated the maximum revenue share of 49.30% in 2016 on the back of spiked demand for fuel efficient and advanced golf carts. Moreover, increasing number of golf course globally and rising trend of golf tourism in various developed and developing countries such as U.S., Canada, U.K., Japan, Australia, UAE, India & China is expected to propel the demand for golf carts in the near future. After golf courses, airports segment garnered the second largest market share in 2016 and is believed to expand with highest CAGR of 7.03% over the period 2016-2023. Moreover, hotels & resorts segment is believed to observe Y-o-Y growth rate of 4.90% in 2023. This can be attributed to the positive growth in hospitality sector due to rising tourism industry around the globe which is further encouraging the hotel industry to provide better services to their guests.
The study further analysis the Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX (Belgium, Netherlands, Luxembourg), NORDIC (Norway, Denmark, Sweden, Finland), Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa).
Market Drivers & Challenges
The global golf cart market is thriving on the back of rising number of golf courses in developed nations such as China, U.S., Germany, U.K. and others. Further, various golf cart manufacturers introduced solar powered golf carts which are expected to fuel the demand for golf cart over the next five to six years. Besides, the demand for electric powered golf cart is predicted to increase in terms of volume during the forecast period. This advancement can be attributed to the low maintenance requirement and is predicted to positively impact the growth of the global golf cart market.
Moreover, rapid pace of urbanization in developed and growing economies such as U.S., China, Australia, and others are opening the opportunities for the golf cart industry players to fill the need of economic mobility infrastructure. This urbanization is changing the lifestyle of the population and is also raising the awareness towards the increasing fuel emissions. Factors such as these along with favorable government initiatives to motivate the usage of golf carts are increasing the golf cart ownership in the developed regions.
Additionally, the growing trend of golf sports and large scale applications of golf carts in hospitality industry is also believed to bolster the demand for golf carts over the forecast period.
The presence of local manufacturers offering low quality golf carts and high maintenance cost of gasoline powered golf carts are restricting the growth of the global golf cart market.
Some of the affluent industry leaders in the global golf cart market are Ingersol Rand PLC, Hitachi Chemical, Yamaha Motors Co. Ltd. and Textron.
Textron Specialized Vehicles Inc., a Textron Inc. company acquired TKVGPS, a provider of GPS-based fleet management solutions and GPS technologies to enhance the on-course experience for golfers. This acquisition is helping the company to expand the product portfolio of golf carts and other utility vehicles. The management solutions are providing golf-course owners and operators with extensive, real-time information to help them monitor, maintain and protect their fleets of golf cars and utility vehicles.
Moreover, other key and niche players are working towards the expansion of product portfolio along with investing in high quality R&D to manufacture highly efficient vehicles in order to gain competitive edge in the global golf cart market.
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