The market for Low Speed Vehicles is forecast to reach $6.18 billion in 2025, after growing at a CAGR of 8.47% from 2020 to 2025. Low speed vehicles are majorly deployed in industrial facilities, warehouses, hotels and so on for the goods movement and other operations. The significant penetration of the electric technology in the low speed vehicles is set to significantly impact on the market growth rate. The significant adoption of the low speed vehicles in the personal utility vehicles is also set to further escalate the market growth rate.
- Low speed Electric vehicles are analysed to grow at highest rate during the forecast period owing to the growth in recorded sales due to cheaper costs, maintenance and stringent environmental norms.
- North America is analysed to hold highest market share in 2019 owing to the high geriatric population alongside the highly developed economy.
- The increasing demand for electric vehicles is set to drive the market for Low Speed Vehicles market during the forecast period.
By Propulsion type- Segment Analysis
Electric type is analysed to grow at highest rate during the forecast period, this is majorly attributed to the environmental issues and the decreasing adoption of the conventional vehicles. Ampere, a low speed electric scooter manufacturer has announced that the sales of the low speed electric scooters have risen from 5,500 units in 2018 to 15,000 units in FY 2019. The demand is further increasing with the wide spread applications in hotels, warehouses and others, thereby boosting the market growth rate.
By Application- Segment Analysis
The hotels and resorts are analysed to hold highest market in 2019 owing to the growing hospitality sector. The increasing demand for the hospitality in the gated communities and the growing investments in these sectors is set to boost the market growth rate. The significant deployment of the commercial low speed vehicles in the industrial sector is also set to boost the market growth rate. Alongside this, the increase in significant deployment of the low speed electric vehicles in airports and golf courses is further driving the market growth rate.
Geography – Segment Analysis
North America is analysed to hold highest market share in 2019 majorly attributed to the high economy and the presence of geriatric population. The significant presence of the golf courses in the North American region is further contributing to the market growth rate. Furthermore, the growth of luxury tourism in the region alongside the adoption of electric low speed vehicles due to low noise carbon emissions is set to boost the growth rate in the region. As the region has high economy, the sales of the personal utility vehicles in the region for the geriatric population is further set to boost the market growth rate.
Drivers – Low Speed Vehicles market
- Rising geriatric population to boost the demand for low speed vehicles:
The significant rise in the geriatric population in the countries such US, India and so on is set to cause a rise in the demand for the low speed vehicles thereby acting as a key driver for the market. As stated by US Census, the elderly population of age above 55 years is set to rise by 23.4% by 2060. The geriatric population majorly deploy the low speed vehicles such as electric scooters, wheel chairs and so on in the developed economies, therefore this factor is set to escalate the market growth rate during the forecast period.
- Increasing use of lithium ion batteries in the low speed electric vehicles:
The use of lithium ion batteries has significantly increased in the recent times owing to their advantages thereby contributing to the increasing growth of the low speed electric vehicles. Lithium ion batteries have higher energy density and provide better power efficiency therefore they are highly deployed in the low speed electric vehicles and is set to boost the market growth rate during the forecast period 2020-2025.
Challenges – Low Speed Vehicles market
- Lack of safety standards
In the electric vehicles more energy from the battery is taken to the inverter causing switching losses, thereby impacting on the vehicle performance. It also affects the thermal efficiency of electronic units in the electric drive system thereby hindering the market growth. Alongside this, these low speed vehicles lack safety standards thereby resulting in the accidents and hindering the market growth rate.
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Low Speed Vehicles market. Low Speed Vehicles driver market is expected to be dominated by major companies such as Ingersoll Rand, Textron Inc., Yamaha Motor Corp., Polaris Inc., Kubota Corp., Colubia Vehicle Group among others.
- In January 2019, Textron has launched Hauler 800 ELiTE electric utility vehicle, which is powered by Samsung SDI lithium technology.