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The Recreational Boats Market size is estimated to increase by USD 6.28 billion, at a CAGR of 5.97% between 2023 and 2028. Several factors contribute to the growth of the market, including heightened customer engagement in recreational boating activities, government initiatives aimed at developing the boating and yachting ecosystem, and rising demand for outboard engine-operated powerboats and leisure boats. However, the market faces challenges such as the high total cost of ownership for recreational boats, stringent regulations concerning pollution control, and a decrease in boat registrations attributed to a rise in accidents. Despite these obstacles, the market's trajectory remains promising due to increasing participation in recreational boating and ongoing efforts to bolster the boating industry as well as river cruises through government support and innovation. By addressing challenges and capitalizing on growth opportunities, the market is poised for expansion, catering to the evolving needs and preferences of boating enthusiasts worldwide.
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The market is witnessing a resurgence fueled by pent-up demand and increasing confidence levels despite lingering travel restrictions. Consumers explore various boat options, including boat rentals, to suit their preferences and budgets, including pontoons and sailboats, reflecting diverse leisure activities. Sustainable development and environmental impact considerations drive industry dynamics, influencing boat manufacturers to embrace innovation while maintaining battery prices. The market caters to international tourists and local enthusiasts alike, with offerings ranging from motorboats to sailboats and yachts for exploring navigable waters and enjoying water sports demand. Tourism operators capitalize on tourist hotspots and promote recreational boating as a key component of overall tourism and leisure activities. As the market adapts to changing preferences and embraces sustainable practices, it remains integral to promoting leisure and economic growth in the recreational industry.
The market is propelled by increasing pent-up demand and rising confidence levels in recreational boating activities despite lingering travel restrictions. Consumers explore various boat options based on their preferences and budgets, with a focus on versatile choices like pontoons and Sailboats, including boat and yacht transportation. Sustainable development is a key consideration as the market contributes to leisure boat activities and the overall Economy.
Further, industry dynamics are influenced by factors such as battery prices and environmental impact, shaping demand for Motorboats and Sailboats. The market caters to international tourists and Tourism operators, leveraging navigable waters and popular tourist hotspots. Recreational boating experiences drive growth, particularly in regions like the US and Europe, where consumers increasingly favor marina services over boat ownership, signaling a shift towards experiential leisure activities. Such factors are expected to drive the market growth and trends during the forecast period.
The growing population of high-net-worth individuals is a major market trend. Owning a recreational boat is highly expensive. HNWIs are the major buyers of these luxury boats. Hence, market growth is largely dependent on the global HNWI population. Leisure boating is emerging as one of the major recreational activities among consumers globally. The World Bank estimates that high-net-worth individuals, also known as HNWI, make up less than 1% of the world's total population but control more than 40% of its natural wealth. Initially, these people were only found in the Western part of the world. However, they have since spread throughout many different world regions. The increase in people with high net worth drives spending on leisure activities such as recreational boating.
Major boat manufacturers operating in the global market have been registering strong financial results since 2021. This is mainly attributable to the increasing HNWI population and their interest in buying leisure boats. It is expected that the growth trend in the HNWI population will continue during the forecast period. Since leisure boat activities are mostly affordable to this segment of customers, it is expected that a considerable number of investments will be flowing into the market size during the forecast period.
The high total cost of ownership is a major challenge impeding the growth of the global market. Owning a boat is a luxury. The average price of recreational boats has been on the rise continuously since 2006. For instance, the average boat's retail price grew at a rate of around 5% during this period. The surge in their average retail selling price also has a huge impact on the volume of sales of leisure boats. Apart from the initial investment, there are other costs associated with recreational boats. When all these costs are taken into consideration, the total cost of ownership of a leisure boat is very high.
Hence, owning a recreational boat is economically not feasible for low and middle-income families. Due to its expensive nature, the global market is also very niche in emerging economies. Therefore, the high total cost of ownership of leisure boats will be a key challenge that may hinder the growth of the market share during the forecast period.
The market share growth by the sailboats segment will be significant during the forecast period. Factors such as an increase in recreational tourism and growing sailing activities are driving the growth of the sailboats segment by type in the global market. Also, the natural landscape and long coastlines in many countries, such as Greece, Spain, France, and Italy, attract thousands of tourists worldwide every year, especially those belonging to the high-net-worth individuals (HNWIs) population. These places are popular destinations for business events and meetings, during which sailboats are leased from yacht fleet operators.
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The sailboats segment was valued at USD 7.19 billion in 2018. Europe is one of the largest and most attractive regions for yachts. The Port of Rotterdam in the Netherlands is Europe's largest port for yachts, where about 77 luxury yachts are docked for luxury tourism. The global tourism industry is witnessing tremendous growth, with Southeast Asia witnessing higher growth than other regions. This is primarily attributed to the increase in the number of tourists from developing countries, such as China and India, who spend almost three times more on foreign tourism than domestic tourism. Such factors will increase the market growth during the forecast period.
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North America is estimated to contribute 46% to the growth of the global leisure boats market size during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The US and Canada are the two major markets in North America. The US, by far, is the single largest market and accounts for almost two-thirds of the total revenue generated in North America. Boating is one of the major recreational activities preferred by people in the US. The retail unit sales of new powerboats have also been growing continuously over the last seven years. In 2020, retail unit sales of new powerboats witnessed a growth of around 12% from 2019. Factors such as positive economic growth in the country over the last decade, increasing consumer confidence, and technological innovations by boat manufacturers are driving the market in the region during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
A. H. Wadia Boat Builders: The company offers recreational boat solutions such as Luxury Yachts, Lauish Dhow, FRP VIP Boat, Floating Restaurant, Spa Boat, Catamaran. Also, the company focuses on boat building in the marine industry with the manufacturing and sale of a vast range of quality boats, yachts, and super yachts.
The recreational market research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is experiencing a resurgence driven by pent-up demand and increasing confidence levels despite lingering travel restrictions. Consumers are exploring various boat options, including pontoons, cruises, and water sports boats, reflecting diverse preferences and budgets. Personal watercraft and used boat sales are particularly popular, catering to both enthusiasts and cost-conscious buyers. Emission norms and environmental considerations are shaping the market, influencing boat engine manufacturers to adhere to stringent regulations for pollutants like Nitrogen Oxide and hydrocarbons. As the market taps into untapped markets and embraces online sales channels, including e-commerce and dealerships, it navigates challenges such as trade barriers and import duties. The luxury yacht segment thrives on luxury features, speed, and cost-effectiveness, while safety considerations and emission regulations drive innovation in functionality and versatility. Sustainable development and the overall economy further shape industry dynamics, fostering growth opportunities in tourism activities and water sports.
The market is vibrant, with opportunities driven by a range of factors, including the allure of larger cruises, the rise of local tourism, and the enduring popularity of recreational fishing. Concerns over environmental impact are influencing the market, with a focus on reducing particulate matter emissions and embracing electric drives. Online boat sales and participation in boat shows facilitate consumer access while promoting cost savings. Luxury goods continue to attract enthusiasts, especially in the realm of cruising and docking experiences. Maintenance costs are a consideration, but the market's versatility is evident in its offerings for personal ships, rental services, and river cruises. As tourism operators cater to international tourists and exploit navigable waters, the recreational boats market remains integral to both transportation and leisure activities. Water bodies face increasing threats due to industrial production schedules, prompting organizations to advocate for sustainable practices. Balancing production needs with environmental preservation is critical for the long-term health of ecosystems and communities reliant on water resources.
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Market Scope |
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Report Coverage |
Details |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.97% |
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Market Growth 2024-2028 |
USD 6.28 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.28 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 46% |
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Key countries |
US, Canada, Italy, UK, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
A. H. Wadia Boat Builders, Azimut Benetti SpA, Baja Marine, Bavaria Yachtbau GmbH, Brunswick Corp., Christensen Shipyards LLC, Damen Shipyards Group, Feadship Holland BV, Grady White Boats Inc., Great American Marine, Groupe Beneteau, Halevai Power, Jettec Jet Boats Ltd., Malibu Boats Inc., Marine Products Corp., MasterCraft Boat Holdings Inc., Nobiskrug Yachts GmbH, Shandong Heavy Industry Group Co. Ltd., and Yamaha Motor Co. Ltd. |
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Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Product Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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