Small Task-Oriented Vehicle (STOV) market at the Edge Of Significant Transformation & Growth in Next Five Years
In a new market study on the small vehicle market, Small Vehicle Resource (SVR), LLC predicts significant growth over the 2015-2019 period. The market research reveals four trends coming together that will result in market gains of between 8%-12% in the forecast period and an industry value in the range of $20-$25 billion at retail. These trends are:
- Growing appreciation in a highly diverse market for the effectiveness of small vehicles specifically designed to meet individual segment needs (small, task-oriented vehicles (STOVs);
- Superior product development in drive trains (AC electric plus the addition of EFI and hybrid drives in many new market segments) and automotive-type components, which heightens performance capabilities and raises the bar in the cost/benefit trade-off;
- Critical improvement in distribution and sales systems that cater to manufacturers’ non-traditional markets—in conjunction with,
- Increased use of the internet-based information to drive sales.
“Much better economic performance for the last three quarters of 2014 and a strong positive outlook for 2015, provides the launching pad for SVR’s positive forecast for 2015-2019,” states Steve Metzger, SVR Managing Director. “The drag on industry growth from the 2008/09 recession and subsequent slow recovery appears to be over,” he went on to say. Further, Metzger explains, “With the exception of fleet golf cars, where demand is stagnant at best, the privately-owned (primarily personal transportation vehicles), utility vehicle, and off road segments should all see gains in mid-single digits to low double digits range over the next five years.” The report notes that the stability of the golf-related market offers to golf car manufacturers the cash flow breathing room to transition to non-golf segments.
Marc Cesare, SVR Managing Director adds, “We put special emphasis on the off-road market in this report, because it has become the competitive vortex for golf car manufacturers seeking new markets, the powersports industry, and traditional manufacturers of work related utility vehicles.” “The spectrum of off-road solutions has greatly expanded,” Cesare notes, “as manufacturers seek growth by broadening their product lines and targeting market sub-segments with models tailored for specific end-use applications.”
The new study, the seventh in the series of studies produced by SVR since 2000, covers utility, off-road, and personal transportation vehicles, and fleet golf cars.
The study is entitled, “The Small, Task-Oriented Vehicle Market: Greater Product Diversity Opens New Avenues of Market Competition–Trends from 2010; Forecasts to 2019. For additional, detailed information see our SVR STOV Market Study Brochure or contact:
Steve Metzger at smetzger@smallvehicleresource.com or (914) 293-7577