European golf course construction is expected to be one driver in industry growth, according to a report.
The golf cart market is expected to record a valuation of USD 3 billion by 2032, according to a new research report by Global Market Insights Inc. An increase in natural grassland capacity and the increase in the construction of public and private golf courses are key growth drivers, especially in France, Scotland, England, and other European markets.
The availability of naturally occurring grasslands in these European countries makes them ideal golfing destinations, mainly in terms of drainage. Over the years, the rate of household savings has also been rising across this region. Based on data from Eurostat, in Q1 of 2022, the household saving rate was recorded at 15%, a rise from the 14.1% recorded in the Q4 of 2021. Furthermore, due to the expanding middle-class population, participation in golfing activities will surge, creating a strong demand for custom golf carts worldwide.
The gas fuel segment accounted for 35% share of the golf cart market in 2022, given the mounting demand for golf carts with powerful engines from hotels, resorts, and golf clubs. Gas golf carts are used commonly in large golf courses, considering their long-range and high-speed features. The strong presence of Yamaha, Polaris Industries, Hawk Carts, and other companies involved in the development of gasoline-powered vehicles is expected to further increase their usage in various long-range applications across the globe.
Based on the application, the golf cart market from golf courses segment is estimated to attain more than 5% CAGR through 2032. The increasing number of people indulging in leisure and recreational activities is one of the key contributors to golf course construction. According to the U.S. Bureau of Labor Statistics, in 2021, people aged 15 years and above spent 5.3 hours per day on average in leisure and sports. The surge in investments to improve sports infrastructure will also stimulate golf course expansion. This, in turn, will promote the deployment of solar, gas, and electric golf carts as preferred means of transport in golf courses, especially in developed nations.
Latin America golf cart market size is projected to reach over USD 50 million by 2032. The introduction of organizational policies and government support to design low-speed electric vehicles is creating lucrative growth opportunities for electric golf cart manufacturers in the region. To address the demand for low-fuel or electric vehicles, regional automakers are also making substantial investments in R&D projects. The report says that these trends are likely to fuel the development of energy-efficient golf carts and create a strong outlook for the regional market.