Companies such as GolfZon, Trugolf, OptiShot, and FullSwing, among others, are significantly providing portable simulators at affordable prices, further driving the market growth. Also, increasing participation of individuals for professional golf, surging adoption of pay per hour model in commercial centers for indoor entertainment, and rising adoption of virtual reality and augmented reality drive the market growth. On the contrary, the high installation cost for the residential and commercial centers restricts the market growth.
The golf simulators market was valued at USD 1,229 million in 2019 and is expected to grow with a CAGR of 8.3% during the forecast period, 2020–2029.
The golf industry is mainly concentrated in North America and the European region. Also, there is lesser participation of golf enthusiasts in the Asia-Pacific region owing to a lack of awareness of the game. Furthermore, around 74% of the golf facility centers are concentrated in North America and the European region. This suggests the awareness of playing golf is concentrated in these two regions.
However, the Asia-Pacific region is expected to exhibit positive signs in terms of the adoption of the game. As per the industry analysis, the consumer behavior of the golf game in the Asia-Pacific region tends to be for the rich and high-class society, which is why the game penetration is quite low. Also, commercial centers that offer indoor golf course training centers have limited presence, notably in metro cities. This possesses a greater challenge for the adoption of the golf simulators.
On the contrary, the professional golfers are increasingly adopting indoor golf simulators for improving their game. The latest advancements in the simulator with an app-based solution integrated with a smartphone are anticipated to be one of the better prospects for the market growth.
As per the data available, about 27% of individuals aged 18–64 have increased their interest in golf, which accounted for an increase of 9% in the last four years. The growth has been witnessed majorly in emerging countries, such as Brazil, Turkey, the UAE, and India. South Korea has emerged as one of the lucrative markets for golf simulators. As per the Korean Golf Association, around 4.3 million individuals are active in the golf industry, which accounts for around 8% of the overall population.
Since the market is witnessing a surge in the number of golf participants across the globe, the overall construction activities for new golf courses has increased considerably. The following tables suggest the number of golf courses opening from 2010–2016 and under construction stats.
The above data suggests that the numbers of planning activities and under-construction projects of golf courses are likely to increase due to growing participation of individuals. This would eventually lead to a surge in the adoption of golf simulators among the adults aged 18–60 to learn and improve the skillset.Source: R&A, 2017
The simulation system segment holds the largest market share and is projected to dominate the market during the forecast period. The simulation system includes a launch monitor, golf screen, and other accessories. The system is mostly developed with integrated software. However, considering the individuals, companies such as SkyTraka and Trackman, are offering customized software to the consumer. The simulation services segment, on the other hand, is projected to grow with the highest CAGR during the forecast period. The simulation services include installation services, consulting services, and maintenance, and other support services.
The portable segment dominates the golf simulators market and is presumed to be the fastest-growing segment during the forecast period. The growth can be attributed to the increasing flexibility of tools that provides greater convenience to professional golfers. Additionally, low deployment costs offered by the portable simulators drives the segment growth.
The indoor segment holds the largest market share of more than 60% on account of increasing adoption of indoor portable golf simulator as it helps the professionals to work on their strokes and increase their accuracy. Additionally, surging number of indoor golf facility centers provides an impetus to the segment growth. On the other hand, the outdoor segment is projected to gain momentum during the forecast period.
North America is expected to dominate the golf simulators market during the assessment period on account of the growing golf participation in the U.S. As per the SR analysis, in 2017, around 8.2 million individuals were golfers, and the number is expected to increase by 25% over the next few years. Furthermore, the U.S. is the leading country in terms of the adoption of golf simulator, further driving the market growth.
Asia-Pacific is projected to be the fastest-growing market in terms of the adoption of golf simulators. Lack of awareness of the game among millennials, increasing number of commercial centers offering indoor golf services, and product development activities by leading market layers drives the regional market growth. As per the industry experts, the adoption of golf simulators in the Asia-Pacific region is expected to grow with a CAGR of 12% during the forecast period.
Golfzon has emerged as a leader in the global golf simulators market. To date, the company has installed more than 30,000 simulators across 62 countries. According to industry experts, the company is the market leader in South Korea with an 89% market share. Moreover, Golfzon has also gained a significant market share in the U.S. and is expected to be among the leaders in the country.
True Golf Inc., adopted an inorganic growth strategy that includes partnership, collaboration, and product launches to strengthen the product portfolio. For instance, in 2019, True Golf Inc. announced 3D Swing Plane Visualization to help provide context to the Swing Analytics captured by the sensor. This enables True Golf Inc. to increase the customer base across the U.S.