Golf Cart Market Trends

Growth Drivers

• Increase in purchasing power and globalization - The increasing global population in 2020 crossed 7.8 billion, and every year, this population grows by approximately 43 million. This surge in the population increases the opportunities for several industries including the golf cart market. This is expected to increase the demand for compact and eco-friendly vehicles, which occupy small parking spaces. Globalization also helps in organizing the international influence and this has helped to change the outlook of several regions. Globalization has also helped users to expect a better lifestyle, and they have started to spend more to get the best service possible. This drives the surge in the market share.
• Rising Technological Development - Similar to the transforming automotive & transformation sector, the market is also evolving toward long-lasting, efficient, and eco-friendly solutions. Electrification in such vehicles is primarily driven by the stringent emission norms enforced by the government bodies to achieve carbon neutrality and increasing demand for electric golf carts among the populace owing to the various benefits such as enhanced comfort and technologically advanced features. Further, the surge in demand for this type of car in tourism, hospitality, university, and other sectors is expected to expand the market growth.
• Government rules towards vehicle emissions - The US, Germany, China, and many other countries have implemented laws and regulations to decrease vehicular emissions while mandating that automobile manufacturers use advanced technologies for the same. California Air Resources Board (CARB), launched a program that includes the guidelines for manufacturers to ensure the production of zero-emission vehicles (ZEVs).  This is positively impacting the golf cart market.

Challenges

• High purchasing and maintenance cost- The purchasing cost varies with different types of features the cart includes such as GPS, built-in refrigerators, radios, air conditioners, and many more. Golf carts demand a high maintenance cost which includes- batteries, brake services, rear axle, and more. Due to such high initial cost and maintenance costs as well, the sales of the market can be restricted.
• Lack of safety features to impede the market growth.
• Low speed and power is set to restrict the industry’s growth.