RECREATIONAL BOATING INDUSTRY INSIGHTS
The global recreational boating market size to reach USD 63.53 billion in 2026, growing at a CAGR of over 11.02% during the period 2020-2026. The leisure boat market is undergoing several transformations. The marine industry is witnessing an increasing appeal among end-users for advanced and innovative features such as joystick docking controls, automatic trim controls, and digital throttles and shifts. Consumers have less time developing driving skills with the hectic lifestyle and compiling practical experience on the water with the hectic lifestyle. Thus, their reliance on automatic controls is growing at an unprecedented rate. The increasing focus on artificial intelligence is the critical technology process that is likely to be implemented in the marine industry. Artificial intelligence can be used to grow corals that are more immune to high sea temperatures and improve salinity and other variables. In the shipping industry, artificial intelligence makes things easier by impeccably incorporating new shipping logistics and communication technology to develop the business model within the industry.
Meanwhile, the outbreak of the COVID-19 pandemic has significantly influenced the market’s growth. Stringent restrictions on supply movements, activities in production facilities, and logistics of finished goods from manufacturers to consumers have hampered the recreational boating market. However, the overall new boat sales increased 59% in May 2020 compared to April 2020. According to Yamaha Watercraft Group, during the COVID-19 pandemic, about a third of first-time sport boat buyers revealed their buying was influenced by COVID-19, doubling the rate of first-time purchasers in April, May, and June.
- The outboard boat market is likely to reach USD 22.92 billion by 2026 due to low-cost maintenance, ownership cost, and high fuel efficiency.
- By volume, the inboard/stern drive segment expects to cross 110,938 units by 2026, growing at a CAGR of 8.14%.
- The engine-powered segment is witnessing incremental revenues of USD 27.90 billion by 2026 because of the popularity and growth in coastal tourism worldwide.
- The sail-propelled segment expects to reach USD 2.51 billion by 2026 despite the demand for sailboats in the US contracted by around 9% for the fifth consecutive year.
- The cruising segment dominated the recreational boating market share due to growth in cruise ship capacities and the increase in cruising activities in the APAC region.
- North America and Europe are likely to lead the recreational boat during the forecast period, growing at CAGRs of 10.97% and 9.45%, respectively.
GLOBAL RECREATIONAL BOATING MARKET SEGMENTATION
This research report includes a detailed segmentation by
INSIGHTS BY PRODUCTS
The global outboard boat market expects to reach USD 22.92 billion by 2026. Outboard boats are one of the largest selling boats in the North American region. With technological improvements, the demand for high-performance outboard boats has grown considerably. Regulations have played a significant role in the increasing demand for outboard boats. The push toward single-fuel policies to promote safety in the industrial, military, and other end-user segments expects to be a strong global driver for high-powered diesel boats.
The global inboard/sterndrive boat market is likely to grow at a CAGR of 12.97% from 2020 to 2026. The expansion of the North American market has inspired boat and engine manufacturers to develop modern and creative vessels. The superyacht and yacht sector observed significant growth in 2019 as the business showed positive improvements in the US, Italy, and the UK. Although the market’s growth, in terms of unit shipments, has faced several challenges over the last five years, inboard boats continue to account for the largest market share in terms of revenue.
INSIGHTS BY POWER
In terms of unit shipment, the global engine-powered boat market is likely to reach 882,365 units by 2026, growing at a CAGR of 10.98%. The growing demand for small and medium-sized vessels for fishing and recreational activities would support the market growth of outboard engines during the forecast period. Outboard motors allow boat manufacturers to offer customers ample interior space on boats along with enhanced engine power. The increasing family tour boat rental practices would boost the demand for these products during the forecast period. In terms of power, engine-powered boats have witnessed significant improvement in terms of horsepower and technology. Stringent emission standards imposed by several countries across the globe and the launch of 4-stroke engines will further support the segment's growth.
The global sail-powered engine boat market is likely to observe an incremental growth of 52,063 units by 2026. With France, the UK, and Germany leading the segment in 2020, nearly 70% of sailboats were imported from Europe to the US. In comparison, the demand for sailboats in the US contracted by around 9% for the fifth consecutive year after US domestic production declined. However, the lack of technological innovations and high maintenance costs have significantly declined the sale in recent years.
INSIGHTS BY ACTIVITIES
The global cruising market expects to reach USD 54.41 billion by 2026, growing at a CAGR of 11.05%. Developing economies such as APAC have emerged as critical regions witnessing a significant increase in the passenger base. For instance, Mainland China dominates the Asian market, accounting for close to 56% of the Asian passenger volume in 2019. Most source markets in Asia observed YOY gains in 2019, except for Mainland China and Malaysia. Passenger volumes from Singapore, India, Indonesia, the Philippines, South Korea, Thailand, and Vietnam saw double-digit growth. Further, the expansion of cruise ship capacities is likely to influence the growth of the market. With the rise in cruising activities, the recreational boating market expects to receive more orders for large boats during the forecast period.
The watersports segment expects to witness shipment of 148,475 units in 2026, growing at a CAGR of 4.44%. The market is witnessing a growing number of customers participating in water sports activities. Developed countries have observed a steady growth in recent years. In terms of activity, canoeing has been the most common boating event, with close to 2 million people paddling in canoes, kayaks, or stand-up paddleboards at least once a year.
INSIGHTS BY GEOGRAPHY
- The North American recreational boating market expects to reach USD 29.46 billion by 2026. In 2020, the new powerboat unit sale increased by 12% 2020 as compared to 2019. Most of the revenue earned by the US recreational boating market is through product exports. However, in 2015, it became a net importer due to the strengthening of the US dollar.
- With the growing consumer confidence over the last few years, boat manufacturers are introducing new products and experiences to attract young boaters. Recent boat sales and recreational boating expenditure grew for the eighth consecutive year in 2019. In 2020, the boat sales reached a 13-year high, and this trend expects to continue during 2021.
- The Europe recreational boating market expects to witness an absolute growth of 71.88%, reaching USD 16.98 billion by 2026. The UK is the key market with a share of 20.05% in terms of revenue.
- The high spending power among Europeans is another major factor propelling the region's growth of the recreational boat market.
- The APAC recreational boating market is likely to observe an absolute growth of 97.29%, reaching USD 10.94 billion by 2026. Japan is the key market with a share of 28.90% in terms of revenue.
- The APAC region has witnessed continuous growth in the spending power of middle-income families over the years. The higher spending power and changing lifestyles expect to increase the penetration of recreational boats in the APAC during the forecast period.
INSIGHTS BY VENDORS
The global recreational boat market is fragmented due to the presence of local and global players. The market concentration in developed countries such as the US and other Western European countries is high. The market is in a growth stage in developing economies such as China because of the entry of many international brands in these countries. The competition among vendors is based on product offerings and pricing. Vendors are using new business models and focusing on developing the portfolio of their established products to drive growth. The focus in yachts is heavily shifting towards luxury products, which is likely to provide vast opportunities to the vendors during the forecast period.
The global recreational boating market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments.
- Personal Watercrafts
- Engine Powered
- North America
- South Korea
- Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa