The low speed vehicle market in North America is projected to grow at a CAGR of 3.06%, reaching USD 4.15 billion by 2022. The rising trend of using low speed vehicles in gated communities, resorts, industrial & college campuses and changing the face of the transportation industry to drive the low speed vehicle market is projected to fuel the demand of these vehicles.
To respond to consumer preferences, the OEMs are developing low speed vehicles with advanced and efficient systems. These developments are especially found in golf carts and utility vehicles. For instance, Textron had launched a new electric vehicle named E-Z-GO RXV golf carts. The car is equipped with the Samsung SDI lithium technology and offers zero-maintenance batteries. The car operates through the advanced battery management system that monitors the overall efficiency of the vehicles. Also, the growth is observed with the increase in the speed limit from 25 mph to 40 mph on selected permissible roads. In Georgia, Florida, Arizona, and South Carolina the speed limit is 35 mph, whereas, in Texas and Alaska, the permissible speed limit is 40 mph.
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With the increasing focus on vehicle weight reduction and system efficiency, several advancements such as improved safety features and high power have led to the improvement in low speed vehicles. As the vehicle trend is shifting toward electric vehicles, during the forecast period, the electric low speed vehicle segment is expected to have the largest market and the fastest growth rate. The new advancement such as battery management in golf carts and utility vehicles are gaining popularity as it helps in efficient power management. Also, there has been increasing trend of high power vehicles which can be maneuver on the permissible roads and can be used as personnel carriers and utility vehicles. Hence, in the coming years, electric low speed vehicles are expected to have significant growth, along with high-power low speed vehicles which would eventually drive the low speed vehicle market.
As the transportation industry is shifting toward the ride-hailing option, the low speed vehicle market is expected to contribute a significant share in such new markets, especially in the station-based mobility market. There has been a growing trend of special economic zones, IT parks, and industrial areas wherein the production unit or the offices are in the same vicinity or nearby areas. Station-based mobility is expected to have a major role in such instances. The distance between two towers or business units in the same locality can be covered using low speed vehicles. Thus, low speed vehicles are expected to be a suitable option for station-based mobility or ride sharing. Therefore, OEMs can focus on electric low speed vehicles and personnel carriers which can be uncashed for such untapped opportunities.
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