Low Speed Vehicle (LSV) Market: An Insight On the Important Factors and Trends Influencing the Market
Low speed vehicle (LSV) is a four-wheeled motor vehicle, other than all-terrain motor vehicle, which has a maximum capable running speed of about 40 kmph (25 mph). Several countries have similar regulation for low speed vehicles, yet different top speed limits, which is less than 40 kmph. Low speed vehicles are exempt from most safety standards that apply to other motor transportation vehicles. Low speed vehicles weigh less than 3,000 lbs. and utilize alternative fuels, such as electricity or CNG gas, for their operation.
Increasing demand for eco-friendly vehicles, especially on the streets in cities and towns for short daily commute, is a key factor that is projected to boost the low speed vehicle (LSV) market during the forecast period. Furthermore, low cost of the vehicle supplemented with low regular maintenance cost are other prime factors that are expected to propel the low speed vehicle (LSV) market in the near future. Additionally, a low speed vehicle can carry adequate number of passengers coupled with its positive impact on road infrastructure as these vehicles are lightweight is likely to boost the low speed vehicle (LSV) market during the forecast period. Globally, governing bodies are establishing alliances to curb and curtail emission in conjunction with stringent emission policies enacted to counter the temperature rise caused majorly due to transportation emission.
LSVs are anticipated to eliminate conventional vehicular pollution and hence, adoption of these vehicles is expected to rise significantly for usage in cities and towns for small distance journeys and on campus rides in hospitals, factories, universities, colleges, golf courses, residential apartments, and other such applications. This factor is expected to boost the low speed vehicle (LSV) market significantly during the forecast period. However, lack of recharging station facilities, particularly in developing and underdeveloped regions coupled with its low speed that limits its application to particular streets are likely to restrain the low speed vehicle (LSV) market during the forecast period.
The global low speed vehicle (LSV) market can be segmented based on type, propulsion, end-use, and region. Based on type, the low speed vehicle (LSV) market can be classified into golf cart, neighborhood electric vehicle, electric personal utility vehicle, and others. Neighborhood electric vehicle and golf cart segments accounted for a prominent share of the market primarily due to their extensive usage for small distance rides, especially at golf courses, airports, railway stations, factories, hospitals, resorts, amusement parks, shopping malls, universities, grand residential apartments, and other such applications.
In terms of propulsion, the low speed vehicle (LSV) market can be split into battery powered vehicle, plug-in hybrid vehicle, air powered vehicle, CNG vehicle, and others. Battery powered vehicle is a highly attractive segment of the market. It is projected to remain prominent during the forecast period. The vehicle uses battery as a source of fuel in order to power the electric motor, which drives this vehicle. Higher rate of adoption of the battery powered vehicle due to rising preference for zero-emission vehicles, as they are pollution-free, is a major factor boosting the segment of the market. Based on end-use, the low speed vehicle (LSV) market can be bifurcated into personal and commercial. The commercial segment accounts for dominant share of the market. These vehicles have varied use for commercial purposes, which has led to the higher share held by the segment.
In terms of region, the low speed vehicle (LSV) market can be bifurcated into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Asia Pacific accounted for a dominant share of the global low speed vehicle (LSV) market in 2017 majorly due to the combined effect of regulatory policies by governments to improve the awareness about environmental safety and protection which have driven the demand of electric vehicles in the region with neighborhood electric vehicles and golf carts been no exception. This is a key factor boosting the low speed vehicle (LSV) market in the region.
China being the global leader in low speed vehicle production is another key factor for the high share held by Asia Pacific in the global market. Additionally, the region is witnessing a rising trend of utilizing these low speed vehicles for advertising, promotion and marketing, which is further propelling the low speed vehicle (LSV) market. The region is likely to remain a prominent market, globally, during the forecast period.
Key players operating in the global low speed vehicle (LSV) market include Ingersoll-Rand plc, Textron Inc., Yamaha Motor Co., Ltd., Polaris Industries, Inc., Xiamen Dalle Electric Car Co., Ltd., Bradshaw Electric Vehicles, EverGreen Electric Vehicles, LLC, and Hitachi Chemical Co., Ltd.