Low-Speed Vehicle Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Low Speed Vehicle Market Size

Low-Speed Vehicles Market Trend and Growth Drivers

Growing Need for Eco-Friendly Transportation Is Key Trend

• The need for eco-friendly transportation solutions is one of the biggest trends in the world currently.
• Transportation is one of the major reasons for climate change as most of the vehicles still run on crude oil derivatives.
• According to the IEA, in 2022, global CO2 emissions from the transportation sector grew nu 250 Mt to nearly 8 Gt, which was a growth of 3% from 2021.
• In comparison to traditional vehicles, which use gasoline or diesel to operate, low-speed vehicles are usually electricity-based, which means they do not produce the hazardous gases that are harmful to the environment.
• As per the IEA, almost 14 million electric cars were sold around the world in 2023, a number that could reach 17 million by the end of 2024.
• Due to the increasing environmental concerns and efforts for a sustainable lifestyle among consumers and governments, automakers are expanding the production of electric models.

Technological Advancements Are Also Trending in Market

• The advancements in automotive technology are another major trend in the market.
• Among these, those being brought about EV batteries and powertrains are the most significant.
• The emergence of advanced lithium-ion batteries is contributing to faster charging and enhanced energy density, due to which the usability of these vehicles is also increasing.
• Moreover, the developments in autonomous driving technology are another notable achievement in this market.
• The integration of advanced algorithms and sensors enables self-driving functionality in LSVs.
• They can easily navigate predefined paths, overcome obstacles, and interconnect with other vehicles, due to which the risk of accidents reduces significantly.
• V2I connectivity allows these vehicles to connect with the transportation system, providing flexible mobility on request and, as a result enhancing accessibility for urban residents overall.
• The internet of things (IoT) enables features such as fleet management optimization, predictive maintenance, remote diagnostics, and real-time data exchange.

Increasing Popularity of Golf Carts Is Driving Market

• One of the major factors driving the market is the growing requirement for golf carts.
• Apart from golf courses, these automobiles are extensively used in airports, residential areas, hotels, and industrial areas as they are environment-friendly and cost-effective.
• Another important reason golf carts are gaining popularity is because of the increasing interest of people in golf.
• According to studies, there are 39.6 million on-course golfers around the globe.
• Golf carts are widely used at golf courses to ferry players and their equipment, offering sustainability and low emissions.

Inadequate Safety Is a Challenge for the Market

• One of the significant challenges that the lower-speed vehicles market faces is the inadequate safety measures in such automobiles.
• Because of their lightweight design, they contain minimal protective equipment, such as airbags, structural elements, and advanced braking systems.
• This lack of inadequate safety equipment can lead to severe injuries and collisions despite their slow nature.
• Though these vehicles have a lower speed, the insufficiency of their safety features can hinder their market growth, as buyers prioritize vehicles with more safety features.

Low-Speed Vehicles Market Analysis

Power Output Insights

• The 8–15 kW category is expected to grow fastest with a CAGR of 7.8% during the forecast period.
• One main reason for the popularity of 8–15-kW models is that they provide a balance between power output and utility, which makes them a perfect choice for several applications.
• Additionally, the main purpose of these models is addressing environmental concerns and enhancing sustainability.
• Moreover, technological improvements in this field are playing a crucial role in enhancing battery performance, performance efficiency, and charging speed.

The power outputs included in this report are:

• <8 kW (Largest Category)
• 8–15 kW (Fastest-Growing Category)
• >15 kW

Application Insights

• Universities and colleges hold significant market share in 2024.
• The focus on eco-friendliness among students and staff members boosts the demand for vehicles that release low or no emissions.
• Further, universities and colleges consist of multiple buildings and a big campus, making it quite challenging for staff members and students to navigate it properly. These vehicles can be quite helpful there.
• Another reason for the high adoption of these vehicles in universities and colleges is that they are cost-effective and prioritize sustainability.
• By building charging and parking spots for these vehicles, colleges and universities are optimizing their transportation services and ensuring these vehicles are available for staff members, students, and visitors when needed.

Below are the applications that we have analyzed during the research:

• Airports (Fastest-Growing Category)
• Hotels & Restaurants
• Industrial Facilities
• Golf Courses (Largest Category)
• Hospitals
• Universities & Colleges
• Others

Model Insights

• The e6 model is the largest category with a share of 45% in 2024.
• One significant reason for the growth of the e6 category is that in comparison to other models, these ones provide more safety.
• They provide enough space for six people and their stuff and are versatile, due to which they are widely used in campuses, industries, and residential communities.
• Due to their lower speeds, e6 models are becoming an ideal choice for traveling short distances and for modern societies because they can help in promoting road safety by preventing accidents and collisions.
• They can be charged rapidly on DC, which ensures high availability and long battery life
• e6 models are adequately responsive to human commands, and they do not give the feeling of being unpowered even at a lower speed; they also ensure a comfortable ride.

Below are the major models that we have studied in this market:

• e2
• e4
• e6 (Largest Category)
• eL XD (Fastest-Growing Category)

Vehicle Type Insights

• Commercial turf utility vehicles hold the largest market value share in 2024, because of their ability to fulfill an extensive array of needs.
• These vehicles are adaptable and tough and give a wider space in compassion to others, which makes them a perfect choice to load both goods as well as people.
• These vehicles can help in reducing the carbon footprint as they produce little or no emissions.

The vehicle types analyzed in this report are:

• Commercial Turf Utility Vehicles (Largest Category)
• Golf Carts
• Industrial Utility Vehicles (Fastest-Growing Category)
• Personal Mobility Vehicles

Propulsion Insights

• Electric vehicles hold the largest share of the market in 2024.
• One significant reason for this dominance is the high preference of people for more-sustainable solutions to protect the environment from harmful gases.
• Moreover, the contribution of governments to encourage the wide adoption of these vehicles is playing a crucial role in their rising popularity.

The propulsions included are:

• Electric (Largest and Fastest-Growing Category)
• Diesel
• Gasoline

North America Is Largest Market

• The North American region holds the largest share of the low-speed vehicles market, of around 50%, and it is expected to do the same in the coming years.
• This is because of the large number of hotels, airports, and golf courses in the continent and the wide usage of LSVs at these places.
• Another reason is that this region has strict rules for harmful emissions and noise levels in sensitive areas, such as educational campuses, hospitals, and residential colonies home to a large number of elderly.
• These vehicles are eco-friendly; so, they are a perfect choice for traveling short distances in this region.
• In addition, this region has a strong network of suppliers, manufacturers, and vendors with expertise in the automotive industry. This provides them with control over the supply chains and helps deliver products on time.
• The North American region also excels in the research & development sector, as many investors are investing in LSVs.
• The market in the APAC region will witness the highest CAGR, of 8.0%, over the forecast period.
• Regional countries, especially China, South Korea, Japan, and China, are witnessing a rampant development of airports, golf courses, large commercial zones, residential townships, and industrial facilities.
• They are also some of the most-polluted countries in the world; hence, the regulations against GHG emissions from automobiles and the support for EVs are quite strong here.

The regions and countries analyzed in this report include:

North America (Largest Regional Market)

• U.S (Larger and Faster-Growing Country Market)
• Canada

Europe

• U.K. (Fastest-Growing Market)
• Germany (Largest Country Market)
• France
• Italy
• Spain
• Rest of Europe

Asia-Pacific (APAC) (Fastest-Growing Regional Market)

• China (Largest Country Market)
• India (Fastest-Growing Country Market)
• Japan
• South Korea
• Australia
• Rest of APAC

Latin America (LATAM)

• Brazil (Largest Country Market)
• Mexico (Fastest-Growing Country Market)
• Rest of LATAM

Middle East and Africa (MEA)

• Saudi Arabia (Largest Country Market)
• South Africa (Fastest-Growing Country Market)
• U.A.E.
• Rest of MEA

Low-Speed Vehicles Market Share

The low-speed vehicle market is fragmented as it is dominated by big players, such as Kubota Corporation and Yamaha Motor Co. Ltd., as well as having small organizations. Companies are competing to gain the top position in the market by continuously focusing on research and development and enhancing their technologies. The participants are also establishing new production facilities and expanding their sales channels.

Low-Speed Vehicles Market News

• In August 2023, Yamaha launched low-speed electric mobility for first and last-mile transportation in Japan.
• In April 2024, Speedways Electric announced the launch of its UNO LSEV for urban mobility.
• In January 2024, AYRO received the first U.S. government order for its new utility LSEV.
• In December 2023, AYRO received orders from a Fortune 100 retailer for 40 units of the former’s newly released adaptable LSEV.