North America is expected to be the largest market for low-speed vehicles during the forecast period. The market is projected to grow from USD 5,703.2 million to USD 8,020.0 million at a CAGR of 5.8%.
These vehicles are popular for short-range commutes among older citizens in the US and are also used as neighborhood vehicles to commute to gyms, malls, restaurants, and schools. In the North American region, golf cart vehicles account for the largest market share, approximately 40% of the North American low-speed vehicle market. Under the golf cart vehicle category, two-seater golf carts are more prevalent in North America. The higher market share of golf cart vehicles in the North American market is mainly due to the higher number of golf courses in countries like the US and Canada.
Further, Stringent vehicle emission standards and the growth of the tourism industry are primary factors driving the low-speed vehicle market in North America. For instance, The NHTSA introduced 571.500 Standard No. 500, a motor vehicle act that allows low-speed vehicles on the road. This standard aims to ensure that low-speed vehicles can be operated on public streets, roads, and highways with the minimum motor vehicle equipment appropriate for safety. Thus, increasing pressure from government authorities to reduce emissions has further pushed end users, such as hotels & resorts, golf courses, and industrial facilities, to deploy low-speed electric vehicles. These vehicles are currently available in the US with lead-acid and lithium-ion battery options. Lithium-ion batteries constitute nearly 60% of the market due to their high-efficiency rate and less hazardous nature than lead-acid batteries.
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In Mexico, low-speed vehicles are widely used in hotels and resorts for leisure activities. One of the primary factors for developing new hotels in Mexico is the favorable exchange rates, driving the growth in international travelers. This growth in the hospitality sector is driving the demand for low-speed vehicles in Mexico. Moreover, luxury hotels in Mexico have been recognized as premier travel destinations. Similarly, the higher number of golf courses in Mexico and hosting several golf tournaments, such as PGA Tour Mexico and Mexico Open at Vidanta 2024, is expected to boost the demand for LSVs in Mexico. According to the Federation of Golf, Mexico hosted nearly 200 golf courses as of 2023. Mexico has highly active golf course clubs where international events occur most frequently. The country has many suppliers importing low-speed vehicles from other countries. These golf tournaments are also expected to raise the demand for low-speed vehicles.
The golf industry in Canada is growing in new ways. In December 2021, Lightspeed Commerce Inc. announced a multiyear agreement with Golf Canada, the National Sports Federation, representing more than 271,000 golfers and 1,400 member clubs nationwide. Integrating Lightspeed’s commerce platform with the Golf Canada Score Centre will allow more Canadian golfers to maintain an Official Handicap Index, leveling the playing field for participants across Canada. With the increasing number of golfers, the development of golf courses will also increase, resulting in the deployment of low-speed vehicles in the golf courses. The Government of Canada has also developed specific standards under the Canada Motor Vehicle Safety Standards (CMVSS) for a minimum level of safety for low-speed vehicles. Thus, with innovations and developments, many OEMs launch new products for Canadian customers. For instance, DSG Global added a new line of production for golf carts on March 1, 2023, including SR1 and Shelby models.
Low-speed vehicle manufacturers such as Textron Inc., Club Car, Yamaha Golf Car, and American Landmaster in North America continuously focus on developing advanced safety technology and features for LSVs. For instance, in 2023, Club Car launched its CRU neighborhood electric vehicles, Club Car Urban and Urban XR, with varied seating capacities and a top speed of 25 mph on the road. Similarly, Bintelli Electric Vehicles announced an expansion of its operating plant off Palmetto Commerce Parkway facility by 174,000 square feet in North Charleston for golf carts and other low-speed electric vehicles.
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