USA Golf Cart Market Outlook to 2028

USA Golf Cart Market Overview

• The USA golf cart market is valued at USD 789 million, driven by several factors including the expansion of golf courses, the growing popularity of golf as a recreational activity, and the increasing demand for eco-friendly transportation solutions. The rise in electric golf cart sales is a significant contributor, with advancements in battery technology allowing for longer ranges and improved performance.

• The USA dominates the market due to the vast number of golf courses in states such as California, Florida, and Arizona, which are home to luxury resorts and retirement communities. This strong presence of golf courses, along with an affluent consumer base and significant golf tourism, has solidified the USAs leadership in the market.
• As part of the federal government's clean energy initiative, golf carts qualify for tax credits under the Energy Improvement and Extension Act of 2024, which offers up to $2,500 in tax relief for electric vehicle purchases, including golf carts. This incentive is expected to help drive electric cart sales by at least 15% annually through 2028, easing the financial burden for golf courses, resorts, and individuals opting for electric models.

USA Golf Cart Market Segmentation

By Product Type: The market is segmented into electric golf carts, gasoline golf carts, and solar-powered golf carts. Electric golf carts dominate the market due to the growing environmental concerns and advancements in battery technology, leading to a shift from gasoline to electric options. This segment is preferred for its reduced operational costs and quieter operations, making it an attractive choice for golf courses and residential communities.

By Application: The market is also segmented by application into golf courses, personal use, and commercial services. Golf courses hold the largest share in this segment due to the increasing use of carts for ease of transportation around the course. Golf courses are investing in fleet modernization, with electric golf carts being the primary choice for their eco-friendliness and efficiency.

USA Golf Cart Market Competitive Landscape

The market is highly competitive, with key players investing in innovation and expanding their market presence. Companies like Yamaha and Club Car lead the market, offering a wide range of products from electric to solar-powered golf carts.

USA Golf Cart Market Analysis

Market Growth Drivers

• Rise in Leisure and Tourism Activities: In 2024, the U.S. tourism sector is projected to generate around $1.8 trillion in direct spending, which directly boosts demand for golf carts as recreational vehicles in resorts and vacation spots. As golf courses expand and increase in numbersthere are currently more than 16,000 golf courses in the U.S., a number expected to grow by 10% by 2025golf carts are becoming a staple not only for golfing but for transportation across large properties.
• Adoption of Golf Carts Beyond Golf Courses: Golf carts are increasingly being utilized in retirement communities, large-scale events, airports, and industrial facilities. In 2024, approximately 1,100 retirement communities in the U.S. have golf cart-friendly infrastructure, serving over 2.2 million residents.
• Increasing Regulations for Emission Reduction: The push for cleaner air and reduced emissions is fueling demand for electric golf carts. By 2024, over 13 states, including California and New York, have imposed stringent regulations targeting a 50% reduction in transportation emissions. Consequently, the demand for electric-powered golf carts, which currently constitutes around 40% of the market, is expected to rise.

Market Challenges

• Limited Infrastructure for Electric Cart Charging: In 2024, only about 25% of U.S. golf courses and other golf cart-friendly locations have dedicated charging stations for electric golf carts. As the demand for electric models grows, the lack of infrastructure could slow down their adoption. Developing this infrastructure will be an essential but costly investment, with golf course operators potentially spending upwards of $50,000 to install charging stations.
• Regulatory Hurdles in Urban Use of Golf Carts: While golf carts are gaining popularity for short-distance urban transportation, strict local regulations regarding safety standards, speed limits, and registration impede their widespread use. For example, Florida reported over 500 accidents involving golf carts in 2023, prompting stricter safety regulations.

USA Golf Cart Market Future Outlook

Over the next five years, the USA golf cart industry is expected to see steady growth, driven by technological advancements in electric and solar-powered carts, as well as increasing investments in golf tourism and leisure activities.

Future Market Opportunities

• Increased Demand for Electric Carts: In the next five years, the market will experience a shift toward electric models due to stricter emission regulations. By 2028, electric carts are forecasted to dominate the market, making up nearly 80% of new purchases, driven by regulations in states like California and New York. This shift is expected to result in the sale of an additional 300,000 electric golf carts over this period.
• Growth in Customization Services: The trend of customized golf carts, tailored to user preferences, will grow exponentially over the next five years. By 2028, over 25% of golf carts sold in the U.S. will feature custom modifications, such as unique paint jobs, enhanced seats, and technology integrations like GPS and audio systems. The market for these customized golf carts is projected to expand by at least 40,000 units per year.