A new report by Straits Research breaks down exactly why the golf car industry is taking off.
Increased urbanization and industrialization, a shift toward mall culture, hi-tech and innovative residential and commercial housing projects, and increased use of golf cart vehicles in hotels, hospitality, tourism, and amusement parks will propel the golf cart market forward globally.
The United States has the most golf courses in America, with roughly 15,332, Canada with 2,363, Mexico with around 200, Brazil with 75, and Argentina with 319. The golf industry employs almost 2 million people in the United States, and it provides more to charity than any other major sport. In 2018, more than a third of the population of the United States, or 36 percent of the total population of 107 million people played, watched or read about golf. In 2020, the National Golf Foundation (NGF) estimated 24.8 million golfers in the United States, up over 2% or 500,000 from 2019, the highest net gain in 17 years. The spike in the number of golf courses is accompanied by an increase in the number of interested people in golf.
This has a direct impact on the rise of golf cart demand. Additionally, the number of country clubs and golf courses in the United States is increasing at roughly 15%. Moreover, an increase in disposable income leads to increased leisure time and discretionary income. All of these reasons contribute to the golf cart market’s expansion.
Manufacturers are concentrating their efforts on developing improved golf cars that emit fewer pollutants and are reasonably inexpensive. Disabled people can now enjoy golf courses and games thanks to new solo rider technology and adaptable golf cars made for single users. Extreme golf cars and solar-powered golf cars are examples of market innovations. The Golf Board, a golf car inspired by skateboards, is one of the most current breakthroughs in golf car technology. Front and back gear boxes provide power to all four wheels on the Golf Board. The rider steers the vehicle while standing erect, as though on a skateboard, leaning right or left to turn. According to the manufacturers, the golfing community has highly embraced the Golf Board since it speeds up the game and has up to 75 percent less effect on the turf than regular golf carts. Such advances in golf cart technology are projected to open up several potentials for market expansion for significant competitors.
By region, the market is segmented into North America, Europe, Asia-Pacific, and LAMEA.
North America dominated the global market. It is estimated to reach an expected value of $645 million by 2030 at a CAGR of 3%. The United States, Canada, and Mexico make up North America. This North America golf cart vehicle market is growing due to an increase in demand for automation and technical improvements in the automobile sector.
Golf cars are a big business in North America, and there are a lot of companies that offer modern electric car solutions. In 2018, North America held a significant proportion of the global golf car market. This was due to widespread acceptance of advanced electric vehicles and rising consumer demand for fuel-efficient and environmentally-friendly vehicles.
The market in Europe is analyzed across the UK, Germany, France, Russia, and the rest of Europe. It is estimated to reach an expected value of $485 million by 2030 at a CAGR of 4%. The market in Europe is analyzed across the UK, Germany, France, Russia, and the rest of Europe. Europe is predicted to witness significant growth in the golf car market during the forecast period, owing to a rise in demand for electric vehicles and rising applications for low-speed electric vehicles across the region.
The Asia-Pacific is the fastest-growing region. It is estimated to reach an expected value of $525 million by 2030 at a CAGR of 6%. The Asia-Pacific market is examined across China, India, Japan, Australia, and the rest. Government regulations, rising urbanization, rising fuel prices, and a surge in the trend toward adopting non-fossil fuel-based vehicles all contribute to the growth of golf carts in developing countries like India, China, and Indonesia, creating lucrative opportunities for the market in this region. The market in Asia-Pacific is growing due to rising vehicle norms and an increase in vehicle population. Furthermore, several technological developments linked to electric vehicles are occurring due to government initiatives, further propelling market expansion.
Key report takeaways include:
- The global golf car market was valued at $1.41 million in 2021 and is projected to reach $2 million by 2030, registering a CAGR of 4% during the forecast period (2022-2030).
- By product type, the electric golf car segment dominated the global market and is estimated to grow at a CAGR of 4% by 2030 owing to growth in the popularity of golf and the substantial number of upcoming golf facilities in Asia and Africa.
- The gasoline golf car is the second largest segment. The segment is estimated to grow at a CAGR of 3% by 2030 owing to golf carts that run on gasoline and their variants are becoming increasingly popular in emerging economies, commercial places, and utilities like airports, bus stops, universities, and stadiums.
- The solar golf car is the fastest-growing segment. It is estimated to reach an expected value of $395 million by 2030 at a CAGR of 6%. Owing to encouragement and investment in the use of renewable energy sources by the government.
- By application, the golf course segment dominated the market. It is estimated to reach an expected value of $825 million by 2030 at a CAGR of 3.2%. Many golf courses in the area necessitate the use of functional and efficient transit vehicles for convenient travel from one hole to the next while carrying sporting equipment and accessories.
- Commercial services are the second-largest segment. It is estimated to reach an expected value of $675 million by 2030 at a CAGR of 4%.
- Personal services are the fastest-growing segment. It is estimated to reach an expected value of $510 million by 2030 at a CAGR of 5%. Integration of intelligent technologies is anticipated to drive the growth of golf cars for personal use
