The global recreational boating market size will reach $57 billion in 2025, growing at a CAGR of 12% during 2020-2025. The research report provides insights into the recreational boating market size and forecast, share, industry trends, growth drivers, and vendor analysis. Europe and North America hold the largest recreational boating market share. With over 23,000 miles of inland waterways and over 43,500 miles of coastline, Europe offers its 48-million citizens a perfect ecosystem to participate in recreational marine activities annually. Countries such as Belgium and Croatia have witnessed significant growth in the recreational boating market. There are an estimated 6 million boats kept in European waters, and over 10,000 marinas offer more than 1 million berths both inland and in coastal areas.
The marine industry is witnessing an increasing appeal of technologically-advanced features such as joystick docking control, automatic trim controls, and digital throttle and shift among end-users. With a hectic lifestyle, end-users have less time to develop driving skills and compile practical experience on the water. Thus, their reliance on automatic controls is growing at an unprecedented rate. The marine industry has witnessed some of the significant development in marine technology, especially for outboard engines in the past two decades. The year 2018 witnessed a plethora of technological advancements in outboard and inboard engine technology, ranging from technologically advanced, light-weight, easier-to-use outboard engines and power systems along with advancements in inboards, diesel, and control systems. Hence, advances in marine technology are likely to drive the recreational boating market during the forecast period.
Key Highlights of the Industry:
- Industry 4.0 will be transformative in the management of interconnected systems and will be a key element in both smart manufacturing and shipping and competitiveness enhancement.
- The introduction of a 400-hp Verado engine by Mercury Marine in February 2019 for large boats is likely to set the standard for smooth, quiet marine propulsion.
- With close to 141 million people in the US going for boating events, the US market is likely to account for the largest share of the leisure boating market.
Recreational Boating Market Segmentation
This industry analysis report on the recreational boating market includes a detailed segmentation by
INSIGHTS BY PRODUCT
Regulations have played a significant role in increasing the high demand for the outboard boating segment. The push toward single-fuel policies to promote safety in the industrial, military and other markets is expected to drive the outboard high-powered diesel model. Further, significant upgrades in engine technology over the last 10–15 years and the introduction of four-stroke engines and two-stroke direct fuel injection have resulted in light engines with better strength and fuel efficiency.
The inboard boat is a relatively higher price than outboard models, which have significantly affected the growth of the segment. Although the market growth in terms of unit shipment despite several challenges in the past five years, the inboard segment continues to account for the largest revenue share.
The personal watercraft (PWC) segment has witnessed traction in the tourism sector as these boats provide a simple and affordable way to get out on the water. The global sale has risen significantly in the past five years. North America has emerged as one of the major regions in terms of demand. Factors such as affordability, ease of operation, and low cost of ownership have increased the demand for PWC.
INSIGHTS BY POWER
The demand for engine-powered engines is increasing on account of the growing coastal tourism worldwide. Developing high-powered motors will further promote the use of these engines in tourist's vessels. Also, the increase in family tour boat rental practices would boost demand during the expected period. 4-stroke engines are likely to retain supremacy due to high-power output and reduced environmental impact. Therefore, stringent emission standards imposed by regulatory bodies across the globe will further support growth in the segment.
A spurt of tourism across the globe has boosted the sale of sail-powered boats. The increasing youth participation in sports and leisure activities and rising health awareness are driving the segment. Another factor, which is likely to drive the growth of the man-powered segment, is the growing outdoor participation of youth across the globe. However, the lack of technological innovations, and the need for a long-term time commitment, the high maintenance cost of sailboats are major factors contributing to the segment’s declining sales.
INSIGHTS BY ACTIVITY
The growth in cruising activities is expected to drive the recreational boating market during the forecast period. The ocean cruise ship capacity is likely to increase by 48% until 2027, which will provide the push to the cruise industry. These activities are expected to push the sale of recreational boating across the globe. Moreover, the growth in the number of cruise tourists worldwide increased significantly, reaching 31 million in 2019 from 18 million passengers in 2009.
The high participation and involvement of people in boating events, especially in developed economies, is increasing demand globally. For instance, about 4 million people from the UK engaged in one or more of the 12 main events in 2018. Water sports have been another prominent activity, which has increased the demand for recreational boats. The recreational boat industry is largely dependent on the performance of the US, as the country is the world's largest recreational boat demand generator.
Since 2010 the recreational boating market has marked positive growth. Major players resort to inorganic growth strategies to better position themselves on the market, which, in turn, leads to increased concentration of the market. Factors such as an increase in new sales, growth in outdoor activities, especially fishing, are fueling the demand for aluminum fishing boats across regions, particularly in North America.
INSIGHTS BY GEOGRAPHY
The presence of major manufacturing facilities in the region is a major driver for the growth of the US recreational boating market. With rising consumer confidence, the manufacturers are introducing new products to attract the younger generation. New sales and recreational boating expenditure grew for the eighth consecutive year in 2019, and this trend is expected to continue in 2020. Low-interest rates, rising disposable income, consumer spending, and healthy growth in the housing market are expected to have a positive impact on leisure activities during the forecast period.
The high spending power among Europeans is a major factor propelling the growth of the European recreational boating market. Since the Brexit referendum in June 2016, British recreational, superyacht, and small-scale commercial maritime sectors have recorded improvements in business performance. However, the dearth of skilled staff is a persistent challenge in the European marine industry, especially in the UK.
The leisure boating market in APAC reached over $4 billion in 2018. The major reason for the increase in demand was the rising awareness leading to the utilization of boating products. In recent years, the APAC region has observed a continual rise in the spending power of middle-income families. Consequently, the higher spending power and changing lifestyles are expected to increase the popularity of recreational boats in APAC during the forecast period.
The recreational boating industry in Latin America has to experience turmoil in the last five years. One of the key reasons is political and economic disturbances. For instance, Argentina witnessed a slight growth decline at the end of the first quarter of 2018 due to the truckers’ strike in Brazil, weakening of its currency, tighter financial conditions, and severe market stress. Hence, a high-interest rate and the growing inflation are expected to stunt growth in Argentina. Likewise, the current political scenario in Colombia is expected to aid economic growth in the region during the forecast period, whereas, in Mexico, the new government is expected to avoid radical policy changes, leading to a slump in the economy. The rise in global protectionism and uncertain outcome of NAFTA renegotiations are likely to hinder the sales in the next few years.
MARKET SHARE AND VENDOR ANALYSIS
The global recreational boating market share is fragmented due to the presence of local as well as global players. Ferretti and Sunseeker International are the key leading vendors and hold the maximum market share. The competition is intense across the globe. The market concentration in developed countries such as the US and Western Europe.
The market in developing economies such as China and India is stable because of the entry of several leading vendors. The competition among vendors is based on offerings and pricing. Vendors are using new business models and focusing on developing product portfolios to drive growth. The focus is slowly shifting from yachts to luxury products, which are likely to provide vast opportunities to vendors.
The recreational boating market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue and unit shipments from 2019 to 2025 for the following segments:
Segmentation by Product
- Personal Watercrafts (PWC)
- New Zealand
- South Korea
- Latin America
- Middle East & Africa
- North America