North America Low Speed Vehicle Market Report and Forecast 2024-2032

North America Low-Speed Vehicle Market Outlook

The North America low-speed vehicle market size was valued at USD 2.39 billion in 2023. The market is further projected to grow at a CAGR of 8.30% between 2024 and 2032, reaching a value of USD 4.90 billion by 2032.

Key Takeaways

• Polaris Industries, Club Car, Textron Specialized Vehicles, and Garia are some of the major players in the low-speed vehicle market.

• LSEVs are designed to operate at moderate speeds, usually around 25-30 mph, depending on the local regulations and safety standards.

• Golf is a popular sport and leisure activity in the US, with about 40 million Americans participating in it in 2022.

Low speed vehicles (LSVs) are four-wheeled vehicles that have a maximum speed of 25 miles per hour and a gross vehicle weight rating of less than 3,000 pounds. They are typically used for short-distance transportation within gated communities, campuses, resorts, and urban areas.

Some of the factors driving the North America low-speed vehicle market growth are the increasing demand for eco-friendly and cost-effective mobility solutions, the rising popularity of golf and recreational activities, the growing adoption of LSVs for commercial and industrial applications, and the favourable government regulations and incentives for LSVs.

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Key Trends and Developments

Increasing demand for electric and hybrid vehicles and favourable government initiatives are boosting the North America low-speed vehicle market growth

North America Low-Speed Vehicle Market Trends

North America has a strong presence of a well-developed automotive market, which is propelling the low-speed vehicle market in North America. The rising elderly population is projected to create more demand for mobility solutions that are beyond automobiles. In this respect, the low-speed vehicles and street-legal golf carts are ideal as these are cost-effective, convenient, and a clean local transportation substitute for this population.

The demand for low-speed vehicles in North America is growing due to rising demand for eco-friendly automobiles. Low-speed vehicles offer many advantages, such as being light on the road infrastructure and being able to carry enough passengers. The low-speed vehicles are becoming more popular as a means of combating global warming, which is mostly driven by vehicular emissions. Hence, this factor is foreseen to act as an opportunity for the low-speed vehicle market development in the forecast period.

Demand for low-speed vehicles has also been spurred by the tight implementation of federal emission standards. Government initiatives are encouraging producers to get involved and develop further in the industry.

Some other factors driving the North America low-speed vehicle market expansion are increasing emission standards, rising adoption from the geriatric population and the rising trend of using low speed vehicles in gated communities, hotels and resorts, industrial facilities, golf courses and college campuses. Also, the tectonic shift toward the adoption of electric low speed vehicles is further anticipated to positively impact the North America low-speed vehicles market outlook during the forecast period.

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Market Segmentation

North America Low-Speed Vehicle Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Commercial turf utility vehicles are expected to hold significant share in low-speed vehicle market in North America due to increasing demand for landscaping services and rising adoption of electric LSVs

Commercial turf utility vehicles are LSVs that are designed for landscaping, grounds maintenance, and agricultural applications. They are equipped with features such as cargo beds, tailgates, dump mechanisms, and towing capabilities. They are also known as utility terrain vehicles (UTVs) or side-by-sides. As per North America low-speed vehicle market analysis, the commercial turf utility vehicle segment is expected to grow due to the increasing demand for landscaping services, the rising adoption of electric LSVs, and the growing popularity of recreational activities.

Golf carts are LSVs that are primarily used for transporting golfers and their equipment on golf courses. They are also used for other purposes such as personal transportation, sightseeing, and security patrol. Golf carts can be powered by gasoline, electric, or solar energy. The North America golf cart market size is expected to grow due to the increasing number of golf courses, the rising demand for eco-friendly LSVs, and the growing tourism and hospitality industry.

Industrial utility vehicles are LSVs that are used for material handling, warehousing, logistics, and transportation applications in various industries such as manufacturing, mining, construction, and oil and gas. They are equipped with features such as lift gates, cranes, winches, and racks. North America low-speed vehicle market estimates that industrialisation, rising demand for automation and efficiency, and the growing adoption of electric LSVs are key factors driving the segment growth.

Electric LSVs aid in low-speed vehicle market growth due to environmental concerns and the increasing availability of charging infrastructure

Diesel LSVs have higher power, torque, and range than electric LSVs, but also emit more greenhouse gases and noise. Electric LSVs have lower operating and maintenance costs, but also require frequent charging and battery replacement.

Electric LSVs are expected to dominate the North America low-speed vehicle market share in the forecast period, due to the growing environmental awareness, the declining battery prices, and the increasing availability of charging infrastructure.

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Competitive Landscape

To gain a competitive edge, market players are engaging in mergers and acquisitions, product launches, partnerships, and expansions by launching new range of vehicles

Other key players in the North America low-speed vehicle market include Textron Specialized Vehicles, Inc., among others.

North America Low-Speed Vehicle Market Analysis by Country

United States leads the regional share due to the presence of major low speed vehicle manufacturers

The United States is the largest and the most mature low-speed vehicle market in North America due to the high penetration of golf carts, the presence of major manufacturers, and the favourable regulatory framework. Canada is the second-largest market, due to the growing demand for LSVs in urban and rural areas, especially for public transport and utility purposes.

The United States is expected to maintain its leadership position in the market, due to the continuous innovation and development of LSVs, the expanding application areas, and the increasing consumer preference for LSVs over conventional vehicles. Canada low-speed vehicle market value is expected to increase due to the growing adoption of LSVs in various end-user segments, the supportive government initiatives, and the emerging market opportunities.

Key Highlights of the Report