Recreational Boat Market

[325 Pages Report] The global recreational boat market, by value, is estimated to be USD 18.9 billion in 2023 and is projected to reach USD 25.9 billion by 2028, at a CAGR of 6.5% from 2023 to 2028. The recreational boat market is set to benefit from several key factors that will drive its growth. The expanding tourism industry, along with rising disposable income levels, will contribute to increased demand for recreational boating experiences. Global tourism has improved significantly since the COVID-19 pandemic. In 2022, international tourist arrivals reached 900 million, double those in 2021 and 37% fewer than in 2019. This recovery was driven by strong pent-up demand, improved confidence levels, and the lifting of restrictions. People are becoming more confident about traveling again, as the pandemic situation continues to improve. Many countries have lifted travel restrictions, making it easier for people to travel.

Additionally, advancements in autonomous marine technology are expected to further fuel the market by attracting a wider customer base, including those with less boating expertise.Furthermore, the presence of numerous manufacturers in this well-integrated and fragmented industry ensures a stable supply of recreational boats to meet the global demand. This competitive landscape offers a diverse range of boat options and helps cater to the varying preferences and budgets of boating enthusiasts worldwide.

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Market Dynamics:

Driver: The growing tourism industry will increase recreational boat demand

The recreational boat market has experienced significant growth, particularly in relation to the booming tourism industry. Over the past decade, the market has shown immense potential, with specific segments such as pontoons, cruises, and water sports boats witnessing substantial sales growth. Personal watercraft and used boat sales have also increased, offering buyers and seasonal leasing businesses the opportunity to provide enjoyable holidays. According to a report by the European Ministry of Foreign Affairs, small sea and river cruises have become increasingly appealing to small and medium-sized operators, while larger cruises cater to bigger tour operators and experience seasonal demand for functions and parties. Pontoons and water sports boats, on the other hand, have seen growing demand driven by local tourism. Many popular tourist destinations worldwide, blessed with nearby lakes, rivers, and beaches, have created a market for pontoons and water sports activities.

These boats are purchased by tourism companies and local authorities based on demand and are available for leasing to tourists, adding an additional attraction to the region. For instance, the government of Kerala, India, has established a new boating ecosystem by acquiring pontoons to be installed around its lakes, anticipating increased demand due to the growing tourism trend in the region. Spain has witnessed a remarkable surge in water sports demand, particularly from international tourists, with growth rates reaching as high as 20% over certain years. During the summer season, the demand for water sports boats can skyrocket by up to 60%. Similarly, Australia stands as a prime market for water sports-related boats, offering more than 14 types of water sports across its states. A significant portion of the country's tourism industry relies on water sports, with an annual growth rate of approximately 5-7%. Across Europe, 22% of all tourism operators incorporate water sports, while 14% provide recreational fishing as an additional feature within their tourism packages. This demonstrates the integration of water sports and recreational fishing as attractive components of tourism experiences.

Restraint: Strict emission norms for recreation boats to reduce demand

The recreational boat market is facing increasing regulatory pressure to reduce emissions and mitigate environmental impact. The European Commission has proposed stricter limits on emissions, including Nitrogen Oxide (NOx), hydrocarbons (HC), and particulate matter, for various types of recreational craft. The proposed regulations aim to achieve a 20% reduction in HC+NOx emissions and a 34% reduction in particulate matter emissions from propulsion engines.

Similarly, the United States has implemented regulations to limit discharge from recreational boats, considering the potential harm to the environment and marine life. State-specific rules and designated no discharge zones have been established to protect water bodies. The EPA 4 regulations in the US have achieved a significant 63% reduction in emissions compared to the earlier EPA 3 standards for engines above 600 kW.

Compliance with these strict pollution norms presents a challenge for boat engine manufacturers, who will need to upgrade their technology and adopt cleaner engine solutions. The impact of these regulations on the recreational boat market can be seen in the example of the temporary removal of pollution norms by the US government in 2022, which resulted in a substantial increase in demand for recreational boating during that period. Pollution norms and regulations serve as a significant restraint on the demand for recreational boats worldwide. Manufacturers and industry stakeholders must adapt to these stringent requirements by investing in advanced technologies and developing environmentally friendly solutions. As the focus on sustainability and environmental conservation intensifies, the market will need to align with these regulations to ensure long-term growth and minimize its ecological footprint.

Opportunity: Online market for the industry can boost sales in untapped markets

The emergence of the online market for boats has greatly evolved the way recreational boats are sold. Previously, boat manufacturers primarily relied on dealerships and boat shows to sell their products, limiting their reach to specific regions. However, the growing popularity of online boat sales has opened up new markets for manufacturers worldwide. By leveraging online platforms, manufacturers can now sell their boats in previously untapped markets without the need for extensive dealership networks. This expansion has not only broadened the market but has also resulted in cost savings for manufacturers, as online sales eliminate the need for traditional brick-and-mortar dealerships. As a result, recreational boats have become more affordable for a wider audience. The increasing demand for recreational boats through online sales channels is expected to continue its rapid growth in the coming years, particularly in new and emerging markets worldwide. E-commerce giants such as Amazon, Walmart, and Alibaba have entered the boat market and offer boats from various top brands, including Intex, Bris, Classic, Solstice, Sea Eagle, and FRP. Inflatables, pontoons, and water sports boats are among the top-selling categories in the online boat market.

Challenge: Presence of trade barriers in the industry will subsequently slowdown the overall growth

The imposition of an additional 25% duty by the European Commission on certain imports from the US in 2019 has had repercussions on the import of recreational boats into the European market. This trade dispute between the two regions has led to the cancellation of numerous orders at US shipyards, impacting the sales of marine engines and other related parts as well. Furthermore, many developing countries also impose high import duties on recreational boats, categorizing them as luxury goods.

These trade barriers have posed significant challenges for the recreational boat industry, particularly at a time when it was experiencing growth. Efforts are underway to address these issues through ongoing dialogues between the concerned countries, aiming to reduce import duties and promote sales of boats between the regions. The European Union has already taken steps to remove retaliatory tariffs, and plans are in place to gradually eliminate tariffs from the US side in the coming years. To further accelerate the development of the recreational boat market beyond North America (NA) and the European Union (EU) regions, it will be essential for both countries to not only reduce import duties between themselves but also involve countries from other regions in the discussions. Removing trade barriers between most countries will be crucial for the rapid growth and expansion of the market globally.

Yacht segment is estimated to account for the largest market during the forecast period

The yacht segment has the largest market in the recreational boat market in terms of value, and this trend is expected to continue in the forecast period. The high demand for yachts can be attributed to the increasing popularity of leisure boating and cruising, fueled by the rise in disposable income levels worldwide. While the number of yachts sold may not exhibit rapid growth, the market continues to thrive due to the ongoing enhancement of luxury features and amenities offered by yachts. As manufacturers introduce new and improved features, the prices of yachts tend to increase. This indicates a strong market demand for luxurious and high-end yachts, attracting affluent individuals who seek high end luxury experiences on the water. The dominance of the yacht segment in terms of value highlights the significant contribution it makes to the overall market. The luxury, comfort, and exclusivity provided its features associated with yachts continues to captivate discerning buyers, particularly in regions such as the United States and Europe. The steady growth of disposable income levels, coupled with the desire for premium leisure experiences, further fuels the demand for yachts in these markets.

Outboards are estimated to account for the largest market size during the forecast period

The outboard boats segment holds the leading position in its segment the global recreational boat market and is expected to maintain and increase its market share in the forecast period. This segment has high demand, particularly in the Asia Oceania, United States and Europe, driven by several factors that make outboard boats highly appealing to boating enthusiasts. One of the key advantages of outboard boats is their superior speed. Equipped with powerful outboard engines, these boats offer excellent acceleration and cruising speeds, allowing boaters to enjoy thrilling and exhilarating experiences on the water. The ability to swiftly navigate through waterways makes outboard boats a popular choice for recreational activities such as water sports and cruising.

Ease of docking is another factor that contributes to the popularity of outboard boats. The outboard engine's location outside the boat provides better maneuverability, making it easier for boaters to dock their boats in various docking environments. This feature enhances the overall convenience and user experience, making outboard boats a preferred option for individuals who value ease of handling. In addition to performance benefits, outboard boats are known for their cost-effectiveness. Compared to other types of boats, outboard boats generally have lower maintenance costs. The accessibility and simplicity of outboard engines make servicing and repairs more affordable, attracting budget constrained buyers and reducing long-term ownership expenses. This cost advantage, coupled with the versatility and functionality offered by outboard boats, make them an attractive choice for a wide range of boating enthusiasts. Safety considerations also contribute to the popularity of outboard boats. The positioning of the engine outside the boat minimizes the risk of fire hazards. With the engine located in a separate compartment, away from the vessel's interior, the chances of a fire breaking out and endangering occupants are significantly reduced. This safety feature adds to the appeal of outboard boats, providing peace of mind to boaters and ensuring a more secure boating experience.

“North America is expected to witness highest growth during the forecast period.”

The recreational boat market in North America is expeted to be the largest and most rapidly expanding market globally, primarily driven by the robust demand for leisure boating and water-sports in the region. The United States, in particular, is expected to experience significant growth, supported by government initiatives aimed at fostering the development of the recreational boat industry. However, it is important to note that the growth rate of the market in North America could be hindered by emission regulations. As governments prioritize environmental conservation, stricter emission standards may be imposed, potentially impacting the demand for recreational boating in the future.

Canada also demonstrates a strong demand for recreational boats, as boating has long been a cherished pastime in the region. The country's rich natural landscapes, including numerous lakes and waterways, contribute to the popularity of recreational boating among Canadians.

In Mexico, the recreational boat market is experiencing notable growth, with an increasing number of individuals embracing boating as a recreational activity. As the industry continues to develop, Mexico is emerging as a promising market for recreational boating enthusiasts.

Key Market Players

The recreational boat market is dominated by global players such as Brunswick Corporation (India), Yamaha Motor Corporation (Japan),  Groupe Beneteau (France), Malibu Boats (US) and Ferretti Group (Italy). These companies have developed and launched new products, adopted electrification strategies, and undertakeen collaborations, partnerships, to gain market size in the market.

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Scope of the Report

This research report categorizes the recreational boat market based on Boat Type, Boat Size, Engine Placement, Engine Type, Power Range, Material Type, Activity Type, Power Source, Distribution And Region

Based on Boat Type:

• Yachts
• Sailboats
• Personal Watercrafts
• Inflatables
• Others

Based on Boat Size:

• <30 Feet
• 30-50 Feet
• >50 Feet

Based on Engine Placement:

• Outboards
• Inboards
• Others

Based on Engine Type:

• ICE
• Electric

Based on Power Range:

• Up to 100 kW
• 100-200 kW
• Above 200 kW

Based on Material Type:

• Aluminum
• Fiberglass
• Steel
• Others

Based on Activity Type:

• Cruising+watersports
• Fishing

Based on Power Source:

• Engine Powered
• Sail Powered
• Human Powered

Based on Distribution Channel:

• Dealer Network
• Boat Shows
• Online Sales

Based on the region:

• Asia Oceania
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • New Zealand
• North America
  • US
  • Canada
  • Mexico
• Europe
  • France
  • Germany
  • Spain
  • UK
  • Italy
• RoW
  • Russia
  • Brazil

Recent Developments

• In January 2023, Brunswick Corporation has announced the launching of an all-electric marine outboard in 2023. The Avator 7.5e will be the first in a full line of electric outboard motors from Mercury Marine, a division of Brunswick Corporation. A Mercury 3.5 hp FourStroke outboard has roughly the same output and performance as the 7.5e, rated at 750 W of power at the prop shaft. It is designed to be used in small boats such as tenders, inflatables, and kayaks and is available with a tiller or remote steering. An exchangeable lithium-ion battery is another feature of the Avator series. The 48 V/1 kWh battery pack has an IP67 water resistance rating and was created in collaboration with Mastervolt.
• In April 2023, Ferretti Group launched Custom Line 106' hull 14. The Custom Line 106 Ft, a Ferretti Group Engineering Department design, is the entry-level model for the brand's planning line. The yacht has interior spaces with a 2-meter-high ceiling, large windows, and over 200 square meters of interconnected outdoor spaces.
• In August 2022, Yamaha unveiled a brand-new 22 Ft platform which replaces the versatile 21 Ft center console line. There are three new 22-foot FSH models in total, and they all feature the top center console technology.
• In July 2022, Azimut Benetti Group, an Italian shipyard, expanded its model lineup by introducing the 37-meter Benetti B.Yond. Siemens Energy's cutting-edge E-Mode Hybrid system, which generates optimal energy consumption in accordance with particular usage profiles, is installed on the 395GT yacht. With the help of this technology, onboard noise and vibration are significantly reduced, consumption and CO2 emissions can be cut by up to 24%, and NOx emissions can be reduced
• In September 2022, Groupe Beneteau launched 15 new models across its four brands in the day boating segment. The models include Jeanneau Cap Camarat 10.5 Cc, Jeanneau Merry Fisher 1295, Jeanneau Db/43, Four Winns Th36, Wellcraft 355, and Prestige M48.
• In July 2021, Brunswick’s Heyday brand launched its new H22 boat as part of its upcoming series of next generation wake boats. The boat comes with a length of 22’4 and has a 14-person capacity.
• In July 2021, Malibu boats launched the 25 LSV with a length of 7.62 meters, as part of its LSV series. It has a max capacity of 18 people and comes with 390 liters fuel capacity and 430 hp torque.
• In June 2021, Groupe Beneteau launched its Grand Turiamo 45 luxury boat with high class interiors, and dynamic control. It has a length of 14.78 meters, 900 Liters fuel capacity, 400 Liters freshwater capacity and 2X 440 CV/HP engine power.

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