According to a recent report published by Allied Market Research, titled, “golf cart market by product type and application: global opportunity analysis and industry forecast, 2021–2028”, the global golf cart market was valued at $1.35 billion in 2020, and is projected to reach $1.79 billion by 2028, registering a CAGR of 3.9% from 2021 to 2028.
Presently, North America dominates the market, followed by Europe, Asia-Pacific, and LAMEA. In North America, U.S. dominated the golf cart market in 2020, and is expected to maintain its dominance during the forecast period. Key factors that drive growth are rise in population, coupled with increase in purchasing power, stringent government rules and regulations toward vehicle emission, and increase in number of golf courses and country clubs. However, high initial maintenance and purchasing cost, low power and speed, and short overall drive range hamper the market growth to a certain extent.
Continuously growing global carbon emission by combustion of fuel has been one of the foremost concerns for governments and environmentalists from past few years, which is expected to drive demand for electric and solar golf cart across the globe; which supplements growth of the market. Furthermore, increase in fuel prices at international level, growing pollution, and traffic congestion, especially in urban areas have further increased acceptance of golf cart as a recreational vehicle across the globe. In addition, relatively higher running and maintenance cost of gasoline golf cart leads to shift in preference for electric golf cart for shorter transits, which, in turn, boosts the market growth during the forecast period.
In America, the U.S. has the maximum number of golf courses, which counts around 15,332 followed by other countries such as Canada with 2,363 golf courses, Mexico with around 200, Brazil with 75, and Argentina with 319. The golf industry across the U.S. includes nearly 2 million jobs and golf game also contributes more to charity than any other major sports industry. In addition, around 36% of the U.S. population, which is over 107 million, who have either played, watched, or read about golf in 2018.
In 2020, the U.S. NGF (National Golf Foundation) witnessed ~24.8 million golfers in the U.S., representing a rise of nearly 2% or 500,000 as compared to 2019, the largest net increase recorded in 17 years. Increase in number of golf courses is supported by rise in number of people, who have inclined interest toward golf. This directly boosts growth in demand for golf carts. In addition, there is an increase, though at a slower rate of around 15, in the number of country clubs and golf courses in the U.S. Further, increase in disposable income leads to rise in expenditure of recreational time and discretionary income of population. All these factors collectively boost growth of the golf cart market.
Governments across the globe has become very strict regarding problems of vehicle emission due to its impact on environment. U.S., Germany, France, and China have implemented government laws and regulations for vehicular emission and have made it mandatory for automobile manufacturers to use advanced technologies to combat high emission levels in vehicles. Program launched by California Air Resources Board (CARB), also includes guidelines for manufacturers to produce and deliver zero-emission vehicles (ZEVs). The ZEV mandate substantially boosts adoption of electric vehicles. Golf carts are available in two variants, one being gasoline powered and other that runs on electricity.
Electric variant is the most ecofriendly out of the two but the gasoline powered variety itself does not produce a lot of unwanted pollution, owing to its downsized engines and low overall power and weight than other vehicles. These vehicles are quite compliant toward vehicular emission and has a bright future ahead, owing to their quality. This holds especially true for electric golf carts, which boosts the market growth.
As per the study conducted by the Aarhus University in Denmark in 2020, a 50-cart fleet of golf buggies could help reduce energy consumption from grid if each electric vehicle includes a 250 W panel. Based on their techno-economic analysis which considered the use of solar powered buggies at the Los Naranjos Golf Club in Marbella, southern Spain – the return on investment could be achieved within five years. Annual savings of €15,607 would be possible with an upfront investment of €75,000, the researchers added. Furthermore, with effective integration of technology and workflow by prominent players in the industry is expected to contribute toward reinforcing adoption of solar powered golf carts in the future. For instance, in October 2020, India’s Kinetic Green Vehicles announced to launch a new range of solar and electric-powered golf carts, designed Lamborghini, as part of its joint venture inked by Tonino Lamborghini and Kinetic Green in 2018. Under this agreement, Lamborghini handles designing part of the vehicle. Furthermore, the production part is handled by Kinetic Green with manufacturing facility in India.
COVID-19 impact analysis:
- Amid lockdown, shutdown of various manufacturing facilities and shipping delays has made getting new golf cart and replacements parts a challenge. Furthermore, low inventory, considerable demand, and higher prices for parts have resulted in rise in price of golf carts significantly.
- Due to the COVID-19 pandemic, the golf cart market has witnessed low sales volume demand.
- Due to the imposed lockdown, golf cart manufacturing units across the globe have halted their production, which has affected demand for golf cart across the globe.
Key Findings Of The Study
- In 2020, by product type, the electric golf cart segment generated the highest revenue.
- In 2020, by application, the golf course segment was the highest revenue contributor.
- In 2020, region-wise, North America contributed the highest revenue, followed by Europe, Asia-Pacific, and LAMEA.
- Key players identified across the value chain of this report include Garia Inc., Platinum Equity Aadvisors, LLC (Club Car), Textron Inc. (E‑Z‑GO), Showa Denko (Hitachi Chemicals), Maini Group, Yamaha Motor Co., Ltd., Nordic Group of Companies, Ltd., Suzhou Eagle Electric Vehicle Manufacturing Co., Ltd, and Xiamen Dalle New Energy automobile Co., Ltd.