A new report recently published by Technavio, one of the leading market-research firms in the world, details the future of golf cart batteries on a global scale. Golf Cart Battery Market 2015-2019 was released just two weeks after another research report focusing on motive lead-acid batteries called Global Motive Lead-Acid Battery Market 2015-2019. Motive lead-acid batteries remain the most popular power source for golf carts, low-speed electric vehicles (LSVs) and neighborhood electric vehicles (NEVs), and both of these reports show unprecedented growth in the number of golf cart batteries for sale over the next four years.
Golf Cart Battery Market 2015-2019
According to Technavio’s latest study on the golf cart battery market, the industry will experience a compound annual growth rate (CAGR) of 4.29 percent from 2015 to 2019. Electric golf carts can be found on golf courses throughout the world, but in the U.S., these vehicles are becoming increasingly popular for use in resorts, hotels and shopping malls in addition to personal use on public roads. Among the reasons for this surge in popularity are that electric golf carts are convenient and affordable, produce zero emissions and operate quietly, making them perfect for indoor or localized outdoor use.
As the situation currently stands, North, Central, and South America comprise nearly half the total global market for electric golf carts. It is speculated that this is because a majority of the world’s golf courses are located in the Western Hemisphere, but the fact that many of the world’s major golf cart manufacturers are headquartered in the United States cannot be ignored.
“One of the interesting trends gaining traction in the market is the increased usage of golf carts for daily commuting. The fluctuating fuel prices and stringent emission regulations across the world have led to their on-road use,” said Navin Rajendra, lead energy analyst at Technavio Research. “These carts are low cost and energy efficient and are used for daily needs like shopping and recreational purposes. Also, the governments are making amendments to allow golf carts on roads, which will increase the use of golf carts for domestic purposes.”
Golf has been enjoyed by people in the developed world for more than a century, but the sport is beginning to gain traction in countries with emerging global economies, such as India and China. In addition, golf is set to be included as an official sport in the 2016 Summer Olympics, which is to be held in Brazil. Both of the above factors will contribute to the growth of the golf cart battery market over the next few years.
Country clubs and public golf courses in the U.S. have recognized the potential golf carts have for bringing in new clientele. For this reason, many courses are purchasing the latest and greatest golf carts that offer several luxury amenities, including hole-to-hole GPS trackers and apps that help players select the best clubs for each position on the course.
While new types of batteries are available that are increasingly efficient and maintenance free, they come with a hefty price tag, which has prompted many courses and private owners to continue to use the older lead-acid batteries.
Lithium-ion batteries are becoming more popular than ever before, but their price is not expected to drop enough to make them a true contender for the most-used type of golf cart battery until at least five years in the future. Even after taking into consideration that lithium-ion batteries last longer, weigh less and require virtually no maintenance, lead-acid batteries will still account for more than 79 percent of the market in 2019. However, this prediction not only accounts for the low price of these batteries but also their use in hybrid-gasoline golf carts and other gasoline-powered vehicles that require high cranking current.
Another factor driving the increased need for LSV batteries is that new technologies are being developed by golf cart manufacturers. For instance, researchers are developing new, highly efficient algorithms for electric-drive controllers. In addition, Yamaha has already been able to deliver higher voltage while drawing less current with the latest edition of its Drive AC golf cart.
Other questions answered in this comprehensive report regarding the future of batteries designed for golf carts include all of the following:
- What is driving the global market for golf cart batteries?
- What are the global trends impacting the market?
- What challenges will manufacturers and distributors be facing in the future?
- What opportunities and obstacles will be presented to retailers?
Global Motive Lead-Acid Battery Market 2015-2019
Just two weeks before Technavio published its latest report, another report on the industry was made available, and this one looks specifically at motive lead-acid batteries, which are used to power electric vehicles. The report focuses on the industries and regions where motive lead-acid batteries are predominantly used.
According to the research, these batteries are most frequently used for golf carts, railroad vehicles, mining vehicles and forklifts, and growth is being spurred by industrial production and the transportation of raw materials in Europe, Asia, and the Middle East.
This study predicts that the market for motive lead-acid batteries will grow by more than 7 percent from 2015 to 2019. However, the fastest-growing segment will be forklifts rather than golf carts. At present, more than 70 percent of all forklifts are powered by lead-acid batteries, and by 2019, they will make up about 85 percent of the market.
Looking at the geographic regions where lead-acid batteries are used, the Asia-Pacific region is the largest, and it is expected to hold more than 43 percent of the market by 2019. However, this growth is driven by the aforementioned industrial activities in the emerging economies in this area.
The motive lead-acid battery market is very diverse, and vendors of all sizes, from small, regional companies to large, multinational corporations, are scrambling to meet demand. Technavio believes that these vendors will have to work together in the future, and new partnerships will be forming between those who serve the various sectors: recreation, private transportation, industrial and commercial.
Key Vendors of Golf Cart Batteries
Technavio mentioned several key players in the motive battery industry in its two recent reports. The largest of these are as follows:
- Axion Power International
- Crown Battery
- East Penn Manufacturing
- Exide Technologies
- Navitas System
- Trojan Battery
The full reports from Technavio are available for purchase from the firm’s website for $2,500 each.