Golf Cart and Neighborhood Electric Vehicle (NEV) Market Reach USD 10.8 Billion by 2033

Introduction

The Global Golf Cart and Neighborhood Electric Vehicle (NEV) Market is projected to reach approximately USD 10.8 billion by 2033, up from USD 4.5 billion in 2023. This growth represents a compound annual growth rate (CAGR) of 9.1% from 2024 to 2033.

Golf carts are small electric vehicles typically designed to transport golfers and their equipment around golf courses. However, their applications have expanded beyond golf courses, particularly in resorts, gated communities, airports, and industrial sites where low-speed, short-distance travel is required. These vehicles, generally powered by lead-acid or lithium-ion batteries, are classified as low-speed vehicles (LSVs) that comply with regulations in non-road use areas.

Golf carts are highly valued for their energy efficiency, environmental benefits, and ease of operation, making them attractive alternatives to traditional gasoline-powered vehicles for short-range travel in controlled environments.

Neighborhood Electric Vehicles (NEVs) are a subset of low-speed vehicles (LSVs) that are primarily used for short-distance travel within neighborhoods, retirement communities, gated resorts, and some urban environments. NEVs are fully electric and generally feature a top speed of 25-35 mph, making them suitable for local commuting or recreational use. With a focus on sustainability and reducing carbon footprints, NEVs have gained popularity as an eco-friendly alternative to conventional cars, particularly for short trips.

As municipalities and consumers continue to seek energy-efficient, cost-effective transportation options, the NEV market is poised for growth, driven by both regulatory incentives and consumer demand for greener alternatives.

Several key drivers contribute to the growth of the golf cart and NEV markets. First, increasing demand for sustainable and eco-friendly transportation solutions has been a significant factor. With heightened environmental awareness, both consumers and businesses are turning to electric vehicles (EVs) to reduce carbon emissions and dependency on fossil fuels. Additionally, urbanization and the proliferation of gated communities and recreational spaces have created a natural demand for short-distance vehicles like golf carts and NEVs. Legislative support, such as tax incentives and grants for electric vehicle purchases, is another critical factor accelerating adoption.

The demand for golf carts and NEVs is largely influenced by their applications in leisure and residential settings. In golf courses, there remains a steady need for golf carts, especially as they contribute to enhanced guest experience and operational efficiency. On the other hand, the demand for NEVs is growing rapidly as they are increasingly used in residential neighborhoods, university campuses, and retirement communities. This demand is further bolstered by the growing popularity of electric vehicles in general, as consumers seek cleaner alternatives to conventional vehicles.

The golf cart and NEV markets present significant opportunities for both manufacturers and service providers. Technological advancements in battery life, charging infrastructure, and vehicle connectivity are expected to open new growth avenues. As the global trend toward electrification continues to gain momentum, there is room for innovation in both the design and functionality of these vehicles.

Key Takeaways

• The global Golf Cart and NEV market is expected to grow from USD 4.5 billion in 2023 to USD 10.8 billion by 2033, reflecting a strong CAGR of 9.1%.
• Golf Carts hold the largest market share at 56%, driven by their widespread use across golf courses, resorts, and private estates.
• The golf course application segment dominates with a 40% market share, underpinned by consistent demand for efficient transportation within golf facilities.
• North America leads the global market, accounting for 40% of the total share, bolstered by high demand in both recreational and residential sectors and a well-established eco-friendly transportation infrastructure.

Golf Cart and Neighborhood Electric Vehicle (NEV) Statistics

Neighborhood Electric Vehicles (NEVs)

• NEVs are battery electric vehicles with a top speed of 25 mph (40 km/h).
• Maximum weight: 3,000 lbs (1,400 kg).
• Legally limited to roads with speed limits of 35 mph (56 km/h) or less in most states, with some allowing 45 mph.
• NEVs cannot be used on highways or high-speed roads.
• Average range: 40-60 miles per charge, depending on model and terrain.

EV Adoption and Market Growth

• California had 1.2 million light-duty electric vehicles (EVs) registered in 2023.
• Florida and Texas followed with much fewer registrations.
• Nearly 1 in 5 cars sold in 2023 were electric.
• EV market share in the U.S. rose to 7.6% in 2023, up from 5.6% in 2022.
• 1,402,371 plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs) were sold in the U.S. in 2023.
• BEV registrations in the first nine months of 2023 totaled 852,904, a 61% increase from the previous year.
• Analysts expect the U.S. EV market share to reach 13% by the end of 2024 and 24% by 2026.

Charging Infrastructure

• As of 2021, there were approximately 1.8 million charging stations worldwide.
  • 1.2 million were slow chargers.
  • 577,000 were fast chargers.
• Level 1 charging, using a standard outlet, may take several hours to fully charge.
• Level 3 fast chargers can charge an EV to 80% in around 30 minutes.
• The UK aims for 300,000 charging points by 2030.
• There are currently 42,000 public charging points in the UK.

EV Battery and Maintenance

• EVs are more energy-efficient than conventional vehicles, converting over 77% of electrical energy from the grid to power the wheels.
• Internal combustion engine (ICE) vehicles only convert 12-30% of fuel energy to power.
• EVs have fewer moving parts (about 20), compared to over 2,000 parts in ICE vehicles.
• This leads to lower maintenance costs and fewer repairs.
• EVs lose an average of 2.3% of battery capacity per year.
• Manufacturers offer 8-10 year warranties on EV battery packs.

Consumer Insights and EV Purchase Trends

• Global sales of fully electric vehicles and plug-in hybrid electric vehicles (PHEVs) increased by 31% in 2023.
• The Tesla Model Y was the top-selling EV in the U.S. in 2023, with 394,497 units sold.
• Over 40 battery-electric vehicle models are available in the U.S. as of 2023.
• 52.1% of EV households (excluding Tesla owners) are likely to buy another EV as their next vehicle.
• 3 in 4 new EVs are purchased by people switching from internal combustion engine vehicles.
• 9% of recent EV buyers were already driving a hybrid.
• 49% of potential EV owners fear the inability to find a charging station.
• Over 40% of consumers report “cost” as a reason for not buying an EV.
• More than one in four Americans would not consider buying an electric vehicle.
• Only 14% of respondents would definitely buy or lease an EV.
• 22% would consider an EV as their next car, while 35% may consider one in the future.
• 60% of consumers are concerned about when and where they can charge their EV.
• 55% worry about the EV’s battery range.

Global EV Market Trends

• China is expected to account for 57% of global EV sales in 2024, with 6.8 million units sold.
• In the U.S., EVs are expected to capture 13% of the market by the end of 2024 and 24% by 2026.

EV Ownership and Charging Preferences

• 66% of car owners are considering buying an electric vehicle in the next 10 years.
• 69% of UK residents would buy an electric vehicle if money were no object.
• 64% of current EV owners say more charging points would encourage them to buy another electric vehicle.

The Future of EVs

• The average range of current electric car models is 235 miles on a full charge.
• Rapid chargers can fully charge compatible EVs in under 60 minutes.
• Over 15 million golf carts are in use globally, with the U.S. holding the largest share. These vehicles share similar characteristics with NEVs.

Emerging Trends

• Increased Electrification and Sustainability: As sustainability becomes a priority across various industries, both golf carts and NEVs are increasingly powered by electric batteries. This shift is driven by both consumer demand for greener alternatives and stricter emission regulations. Electric-powered vehicles, as opposed to traditional gas-powered ones, offer reduced carbon footprints and lower maintenance costs. This trend is particularly pronounced in residential communities, golf courses, and commercial properties.
• Integration with Smart Technology: Advancements in smart technology are finding their way into golf carts and NEVs. Features like GPS navigation, Bluetooth connectivity, and smartphone integration are becoming standard. Additionally, some models are now equipped with remote control features and anti-theft technologies. This trend reflects the broader move towards smart, interconnected vehicles in urban and recreational settings.
• Expanded Use in Urban and Resort Areas: Golf carts and NEVs are no longer limited to golf courses. They are increasingly used in urban settings, resort communities, retirement communities, and college campuses. As cities aim to reduce congestion and emissions, smaller electric vehicles offer a practical solution for short-distance travel within these areas. This trend aligns with the global push toward micro-mobility solutions in urban transport.
• Regulatory Push for Low-Speed Vehicles (LSVs): Several regions have introduced or are considering regulations that support low-speed electric vehicles (LSVs), including golf carts and NEVs. These regulations offer incentives such as tax rebates and reduced registration fees, making these vehicles more attractive to both consumers and manufacturers. Countries with aging populations, such as Japan, are particularly likely to see growth in this segment due to the convenience and affordability that NEVs offer.
• Design Innovations and Customization: Manufacturers are now offering increasingly customizable golf carts and NEVs. These include different styles, colors, and specialized features, such as off-road capabilities, enhanced seating, or solar panel integration for self-charging. Customization is appealing to a wide range of users, from golf enthusiasts to those seeking unique transportation options in gated communities.

Top Use Cases

• Golf Course Transportation: Golf carts have been an integral part of the golfing experience for decades. They enable players to easily move around the golf course, reducing physical strain and enhancing pace of play. In fact, it’s estimated that over 70% of golfers use carts during their rounds, reflecting the essential role of electric vehicles in this sector.
• Resort and Hotel Property Shuttle: Many resorts and hotels use golf carts and NEVs to shuttle guests between locations. These electric vehicles are particularly effective in large resort properties, where guests can be transported quickly and efficiently between amenities such as pools, spas, restaurants, and parking areas. In high-traffic vacation spots, this contributes significantly to guest satisfaction by providing a convenient, eco-friendly transportation option.
• Campus Transportation: Educational institutions, particularly large campuses, are adopting NEVs to help students, staff, and visitors navigate the expansive grounds. These vehicles are environmentally friendly, low-maintenance, and cost-effective. NEVs are often used for on-campus shuttle services, enhancing accessibility while reducing overall campus emissions.
• Residential Community Transport: Golf carts and NEVs are increasingly common in residential gated communities, especially in retirement and vacation home areas. These vehicles are used for short trips to amenities like clubhouses, grocery stores, and community centers. The low operational cost and easy maneuverability in small, closed-loop communities make them ideal for daily use.
• Utility and Maintenance Vehicles: Golf carts and NEVs are also widely used for maintenance and utility work, especially in resorts, golf courses, and large properties. These vehicles provide an efficient way to transport equipment, tools, and maintenance crews around large estates or complexes. Their electric nature offers a quiet and environmentally friendly alternative to traditional gas-powered utility vehicles.

Major Challenges

• Limited Range and Battery Life: One of the key limitations of electric golf carts and NEVs is their range, which is typically shorter than that of conventional cars. Most golf carts have a range of approximately 30 to 40 miles on a single charge, which can be restrictive in larger resort areas or urban environments. Longer charging times also add to user inconvenience, potentially limiting their widespread adoption.
• High Initial Purchase Cost: While operating costs for electric vehicles are low, the initial purchase price can be a barrier for many consumers. Golf carts and NEVs, particularly those with advanced features like smart technology, can cost several thousand dollars. Despite the lower cost of ownership over time, the upfront investment is still a significant challenge, particularly in budget-sensitive markets.
• Regulatory and Legal Barriers: Different countries and regions have varying regulations concerning the use of low-speed electric vehicles. In some areas, NEVs and golf carts may not be permitted on public roads or may require special permits for operation. Additionally, there may be restrictions on their use in non-golf course settings or urban environments, which limits their broader adoption.
• Infrastructure and Charging Station Availability: While there is growing infrastructure for electric vehicles in general, the availability of charging stations specifically for golf carts and NEVs is still limited in many regions. This can deter potential users from adopting electric vehicles, as range anxiety (the fear of running out of battery) becomes a significant concern. Expanding charging networks is essential for facilitating greater uptake of these vehicles.
• Maintenance and Repair Complexity: While electric vehicles generally require less maintenance than traditional vehicles, the specialized nature of golf carts and NEVs can make repairs more costly or difficult to manage. For instance, replacing batteries and ensuring proper servicing of electric motors and other components can be more expensive than the maintenance of conventional gas-powered alternatives. Additionally, the availability of skilled technicians for specialized repairs may be limited in some regions.

Top Opportunities

• Expansion of NEVs in Urban and Suburban Areas: As cities become more focused on reducing congestion and pollution, the demand for alternative forms of transportation is growing. NEVs are well-suited to urban and suburban environments, where short commutes and low-speed travel are common. Offering affordable and eco-friendly options for residents and commuters could drive significant growth in the NEV market in these regions.
• Integration with Smart Cities Initiatives: The rise of smart cities and their associated infrastructure projects presents an opportunity for NEVs and golf carts. With smart transportation systems in place, NEVs could be integrated into multi-modal transport solutions that include ride-sharing, smart parking, and traffic management systems. This could position these electric vehicles as key components in the future of urban mobility.
• Golf Course and Resort Upgrades: Golf courses and resorts continue to upgrade their fleets of electric golf carts, driven by both sustainability goals and a desire to enhance the guest experience. As these properties grow in size and scope, the demand for new, more efficient, and technologically advanced vehicles will also rise. This trend presents an opportunity for manufacturers to innovate and offer customized solutions to meet the specific needs of the hospitality and leisure industry.
• Elderly and Mobility-Conscious Consumer Segments: With an aging population globally, there is an increasing demand for transportation solutions that cater to the mobility needs of senior citizens. NEVs and golf carts offer an ideal solution for elderly individuals who need safe, low-speed, and comfortable transportation within retirement communities or urban neighborhoods. This growing market segment presents a significant opportunity for expansion in the coming years.
• Fleet Services and Corporate Partnerships: As businesses increasingly focus on sustainability and reducing their carbon footprints, corporate fleets of NEVs and golf carts are expected to become more common. Companies in industries such as real estate, hospitality, and even logistics could benefit from integrating electric vehicles into their operations, whether for internal use or customer transportation. Partnerships with large corporations could drive demand for customized solutions, further boosting market growth.

Key Player Analysis

• Club Car (Ingersoll Rand): Club Car, a leading player in the golf cart and NEV market, is renowned for producing high-quality, customizable electric vehicles. As part of Ingersoll Rand, it offers a broad range of golf carts for both recreational and commercial use. The company’s vehicles are well-regarded for their durability, performance, and environmental benefits. Club Car has a strong presence in both North America and international markets, focusing on sustainable manufacturing practices and innovation in electric mobility. According to data, Ingersoll Rand’s segment of Golf Carts and NEVs contributes significantly to its overall revenue, although specific sales figures for Club Car alone are not disclosed.
• Yamaha Golf-Car Company: Yamaha Golf-Car Company, a subsidiary of Yamaha Motor Co., is another dominant player in the market. Known for its high-performance electric and gas-powered golf carts, Yamaha’s offerings cater to both the leisure and utility sectors. The company focuses on providing value through advanced features such as quiet operation, fuel efficiency, and low maintenance. Yamaha’s global market presence spans across North America, Europe, and Asia.
• E-Z-GO (Textron Inc.): E-Z-GO, a subsidiary of Textron Inc., is one of the most recognized names in the golf cart industry. The company manufactures a broad range of electric and gas-powered vehicles, focusing on innovation in technology, efficiency, and design. E-Z-GO is known for its high-quality vehicles used in golf courses, resorts, and residential communities. The company has a strong presence in North America, where it commands a significant market share.
• Polaris Industries: Polaris Industries is a significant player in the NEV market with its lineup of GEM (Global Electric Motorcars) electric vehicles. These low-speed vehicles are designed for use in gated communities, resorts, and urban areas, offering eco-friendly transportation options. Polaris’s GEM electric vehicles are known for their durability and are widely used in various sectors, including hospitality and local government.
• Garia: Garia is a premium manufacturer of electric golf carts and NEVs, catering to the high-end market with its luxury electric vehicles. The company combines advanced engineering with stylish design, offering vehicles that appeal to both golfers and residential communities. Garia’s focus is on providing a premium experience with features such as customizable interiors, innovative technology, and exceptional comfort. Garia’s vehicles are sold globally, with particular success in European markets.

North America Golf Cart and Neighborhood Electric Vehicle (NEV) Market

In 2023, North America remains a dominant force in the global Golf Cart and Neighborhood Electric Vehicle (NEV) market, accounting for approximately 40% of the total market share, valued at USD 1.8 billion. This region’s robust performance can be attributed to several factors, including strong demand in both recreational and utility sectors, widespread adoption of eco-friendly transportation solutions, and supportive government policies aimed at reducing carbon emissions.

The United States, in particular, is the largest contributor to this regional growth, with a significant portion of the market driven by consumer demand for golf carts in both leisure and residential settings. Additionally, the increasing popularity of NEVs for short-distance commuting in suburban and urban areas has further bolstered market growth. The continued development of golf resorts, gated communities, and retirement communities—where NEVs and golf carts are widely used—supports this trend.

Moreover, North America’s focus on sustainability and electrification of transportation has spurred innovations in NEV technologies, such as enhanced battery life and charging infrastructure, further promoting adoption. The region also benefits from well-established distribution channels and a high concentration of key market players, ensuring a steady supply of advanced and affordable golf carts and NEVs.

Recent Developments

• In April 10, 2023, GreenPower Motor Company Inc. (NASDAQ: GP) (TSXV: GPV) announced the successful delivery of over 120 electric vehicles during Q4, ending March 31, 2023. This marks a significant increase in deliveries, primarily consisting of the EV Star Cab and Chassis, as well as various electric buses, including the EV Star Cargo, EV Stars, EV 250 low-floor transit buses, and the Type D BEAST all-electric school bus.
• In June 11, 2024, Textron E-Z-GO® LLC, a leading name in the golf cart industry, revealed plans to launch National Golf Cart Day on June 13, 2024. This initiative is aimed at celebrating the growing popularity and fun of golf carts, which are becoming a common mode of transportation in various recreational and community settings.
• In 2024, BYD and Tesla continue to lead the global electric vehicle market. According to data from EV Volumes, these two companies together accounted for more than 30% of global EV sales between January and May 2024, underscoring their pivotal role in driving the automotive industry’s shift to electric mobility.
• In March 29, 2023, Club Car, renowned for its small-wheel, zero-emissions electric vehicles, introduced the Club Car Urban LSV and XR models. These street-legal electric vehicles are now available through the company’s commercial distributor network in North America, offering an eco-friendly transportation solution for urban environments.
• In January 9, 2024, WiTricity and ICON EV unveiled the 2024 ICON Low-Speed Vehicles (LSVs) with a groundbreaking wireless charging option. Set to be showcased at the Consumer Electronics Show (CES) in Las Vegas, these LSVs will be available for purchase starting Summer 2024, bringing the latest in electric vehicle technology to the market.

Conclusion

The global Golf Cart and Neighborhood Electric Vehicle (NEV) market is poised for significant growth, driven by the increasing demand for sustainable, cost-effective, and eco-friendly transportation solutions. As urbanization continues to expand and consumer preferences shift towards greener alternatives, the adoption of golf carts and NEVs is expected to rise across recreational, residential, and commercial sectors.

Technological advancements, such as enhanced battery life, smart connectivity, and the expansion of charging infrastructure, will play a crucial role in supporting this growth. Additionally, regulatory incentives and a broader focus on sustainability will further fuel market adoption, creating new opportunities for manufacturers and service providers. Overall, the market is set to benefit from a convergence of consumer demand, technological innovation, and regulatory support, positioning it for long-term success in the evolving transportation landscape.

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