Golf Cart Market
The global golf cart market was valued at US$ 3,262.3 million in 2017 and is projected to exhibit a CAGR of 6.3% during the forecast period (2019–2027), reaching US$ 5,590.0 million by 2027. Growing urbanization and industrialization are driving demand for golf carts, this in turn fueling growth of the global golf cart market. However, high initial costs associated with golf carts act as a major roadblock to the growth of the market. Additionally, lack of infrastructure for charging points of golf carts in emerging economies also hinders growth of the golf cart market.
The increasing urbanization and industrialization in emerging economies have fueled the market for golf cart
Increasing urbanization and industrialization in various emerging economies such as South Korea, Brazil, South Africa, China, and India are expected to boost mall culture, theme parks, amusement parks, and smart housing projects, among others. This in turn, has increased the demand for internal transportation to carry goods and people, subsequently fueling demand for golf carts. Increasing demand for customized products by end users, related to seating capacity and vehicle aesthetics have provided immense opportunities for market players.
Increasing demand for electric golf carts fuels growth of the global golf cart market
On the basis of fuel type, the global golf cart market is segmented into electric golf carts, solar golf carts and gasoline golf carts. The electric golf carts segment held a dominant position in 2018 and is projected to retain its dominance throughout the forecast period. Increasing demand for pollution-free vehicles, surging prices of fuels, coupled with low costs associated with maintenance of electric carts are creating a conducive environment for growth of the segment.
Electric golf carts are powered by lead-acid batteries that enables the increase in its weight-to-performance ratio. Lithium golf cart batteries are half the size of a traditional lead-acid battery, and two-thirds of the battery weight, which enables the golf cart to reach higher speeds with less energy and can transport more weight.
The companies are focused on collaborations and strategic partnerships in order to expand their geographical expansion. For instance, in December 2018, Tonino Lamborghini has entered into a business partnership with Indian golf cart maker, Kinetic Green Energy, to design and manufacture premium segment electric and solar golf carts for the global market.
Figure 1. Global Golf Cart Market, by Fuel Type (2018)
Source: Coherent Market Insights Analysis, 2018
North America holds a dominant position in the global golf cart market
On the basis of geography, the global golf cart market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East and Africa. Among all of these regions, North America accounted around 53% market share in the global golf cart market in 2018 and is expected to grow at a CAGR of XX% over the forecast period from 2019 to 2027. The high popularity of golf sport in this region has resulted large number of golf courses in the region. According to CMI analysis, as of 2018, the U.S. has more than 15,000 golf courses and is increasing at a significant rate which is fueling the demand of golf cart in the North America market. Moreover, the inception of solar powered golf cart and development in the field of autonomous golf cart are the major contributing factors in the growth of golf cart market in the region.
Asia Pacific region is expected to witness significant growth opportunity in the golf cart market over the forecast period. Japan and Australia are largest contributors in the region. The country has more than 2,000 golf facilities as of 2018 which is positively impacting the market growth for golf cart. The growth of this region is mainly attributed to the increasing use of golf carts in developing countries such as China and India. With the increasing urbanization and increasing disposable income in these countries, the golf is gaining popularity. Owing to this, the number of golf course is increasing at a significant rate in the region which is propelling the market for golf cart in the region.
Moreover, the increasing use of golf carts in other end-use verticals such as malls, resorts, hotels, airports are propelling the demand for golf cart market in the region.
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