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The global boat rental market size was USD 97.97 million in 2020. The market is projected to grow from USD 100.91 million in 2021 to USD 280.02 million by 2028 at a CAGR of 15.70% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with boat rental witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of 13% in 2020 as compared to the average year-on-year growth during 2017-2019. The sudden fall in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Boat rental is a service where consumers can rent boats for leisure or vacation purposes. In today's market, when everything can be acquired without owning, renting a boat is a sensible way to use it. The bulk of boats spend more than 50 percent of their functional lives docked, and the renting solution helps to reuse these inactive ships. Boat rental companies offer boats that are either fueled or unfueled, and with or without a crew, depending on the demands of the customer.
On boats with a skilled crew, a variety of nice amenities are added. These boats are chartered for business and luxury purposes, and they provide a comprehensive luxury experience with the highest comfort and standards. Boats are often used for cruising and fishing in some places of the world, most notably in Europe.
OEMs are constantly creating high-performance boats in order to meet the growing demand for water sports activities. Additionally, boat rental firms provide convenient reservation options via apps and internet platforms. As a result, the market is likely to grow in the approaching years.
Direct Consumer to Owner Rentals Surge with Relaxations in COVID-19 Stay-at-Home Orders
Following the partial lifting of COVID-19 lockdown limitations, a significant number of people are renting boats to savor their leisure while adhering to social distance rules. Government relaxations of lockout regulations also boosted the market's financial development. As many rental facilities reopened, many are choosing direct consumer-to-owner rentals. To reduce personal touch, companies in the charter boat market use mobile apps and servers. Furthermore, boat rental companies are following local rules and regulations to restrict the spread of the coronavirus. They underline the importance of wearing masks, sterilizing equipment onboard, and limiting the amount of people at docks. As a result, the market is expected to rebound once the lockdown limitations are gone.
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Boat Rental Apps Resolving Issues of Standardization in Payments and Customer Service to Set a Positive Trend for Market Growth
Challenges for business owners only increase due to the fragmented nature of the market. There is a growing need for pricing, standardization, and customer service. Hence, boat rental companies are betting on incremental opportunities with the development of mobile apps. For instance, the GetMyBoat app, also known as the Airbnb of boats, is highly publicized for achieving transparency in payments. Mobile apps facilitate consumers to rent boats and bolster business owners' credibility via customer reviews in many countries.
Boat Rental Management Software Easing the Operations to Drive Market Growth
Boat rental management software is now a competing factor among competitors. Rent Rabbit is an online boat hiring management app, which measures performance by analyzing bookings in the form of reports and helps to personalize the rental reservation process. These companies are availing consumers of user-friendly mobile apps, which help business owners manage operations on the go. Instant booking features are trendy in mobile apps. Accurate insights and statistics about bookings and reservations obtained through data science and machine learning are helping companies to scale their business network.
Increase In the Number of Private Islands to Drive Market Growth
In recent years, the tendency of upgrading boats and yachts has increased by roughly 10%. Europe, and the United States have a big proportion of the boating business due to a variety of variables including a large stretch of coastline with rapid sustainability of the tourism sector and the accessibility of its yards to many owners. The rapid rise of adventure travel and cruise tourism is likely to benefit market growth.
Several ship builders have been investing in independent islands, allowing boat rental companies to provide their consumers high-end beach activities. For instance, in March 2021, Little Ragged Island, also known as St Andrew's, the largest private island, was up for sale in the Caribbean paradise. This isolated wonderland is connected to the rest of the world by a 10-minute boat ride to nearby Ragged Island, where deep water access for large ships awaits. As a result, the increased engagement from wealthy, combined with an expansion in hospitality services, is likely to propel market growth during the projected years.
Increasing growth of Marine Tourism is anticipated to Propel Market Growth
Customers' increasing per capita income and their growing interest in maritime tourism and luxury activities, such as sailing, are expected to drive the global boat rental market growth. Recreational boating has grown in popularity over the last few years, which has supported industry expansion. All of these variables drive the market expansion.
Several government efforts and programs are being implemented to encourage marine tourism, which is projected to boost the market growth. For example, the Indian government is rehabilitating port infrastructure and services to boost local tourism. Tours of the port city are expected to increase cruise tourism, potentially by 2030-31 the cruise departures will reach 1.5 million foreign tourists. The Indonesian government has also revised its maritime tourism program.
High Cost of Boats and Higher Taxation on renting Boats May Restrain Market Growth
The cost of renting a boat is determined by a number of factors, including travel location, the type of boat, taxes: both inter and intra-border, as well as cover charges. As a result, rental boats come in a variety of price ranges. Boat rentals can range from USD 10,000 a week monohulls and smaller sailboats to much more than USD 200,000 per week for highly opulent motor super yachts. Furthermore, additional hidden costs and duties, such as VAT, allowances, insurance, and crew gratuity, account for 15% to 30% of the initial charge. Many buyers in developing countries have difficulties as a result of these charges, limiting the industry expansion even further.
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Fuel Powered Segment Dominates Market
Based on propulsion type, the market is segmented into fuel powered, sail boat, and electric boat.
The fuel-powered segment has the biggest worldwide market share and is likely to maintain it during the projected period. This market expansion can be linked to the rising demand for gasoline-powered boats for personal and recreational use in a variety of countries. Fuel-powered boats have various advantages, including increased speed and power, as well as the good travel range. Furthermore, fuel-powered boats can sail in tropical waters, allowing customers to travel practically all of the coastline as well as narrow and shallow streams. Furthermore, an increase in marine events, sporting activities, and championships propel the demand of the fuel-powered boats.
Because of the increased demand for environmentally friendly boats, the sail boat category is predicted to grow steadily. Fuel emissions are hazardous to the environment, and the boating sector contributes significantly to this. Furthermore, sailboats are less expensive than other forms of ships and can go longer distances than gasoline-powered boats.
Electric boats are still making their way into the boating industry. Electric boats represented 3% market share in the industry in 2021. The initial cost of an e-boat is higher than fuel-powered boats, and the price increases linearly with battery size or range. Electric boats are currently sold in Europe and the U.S. in small numbers. There are only 100+ manufacturers of electric boats, but the market is on an uptrend. Electrification in the boat market is anticipated to drive the market growth.
Up to 20 feet Segment is expected to hold the Largest Market Share
Based on boat size, the market is segmented into up to 20 feet, 21 to 35 feet, and above 36 to 50 feet.
The growing trend of using renewable energy for the propulsion of ships is expected to surge the demand for boats with lengths up to 20 feet as the propulsion energy required for these boats is less.
The 21 to 35 feet segment accounts for the largest share in the global market. Many boats having a length varying from 26 to 35 feet are primarily used for personal purposes. The influence can be attributed to various factors, including affordable prices and low maintenance charges, low mooring costs, and anchoring capabilities in shallow waters, thereby making it the preferable choice for the end-users.
Rapid urbanization, increasing disposable income of individuals, and improved living standards have increased the spending capacity of individuals on luxuries and leisure activities. Also, the demand for super boats and gigaboats is rising in most of the developed countries. This factor is propelling the market growth for the 36 to 50 feet segment boats. Thus, the 36 to 50 feet segment is expected to grow substantially during the forecast period.
Luxury Segment Account for the Largest Global Market Share
Based on end-user, the market is further segmented into luxury, sports, and entry.
The rental boat market is fueled by a growing interest in luxury cruising, particularly among rich individuals around the world. Exploring new tourist spots that provide luxury cruises has enticed the wealthy and the general public to travel across the world. Furthermore, by creating premium services, such as internet facilities, bars, and restaurants, the companies focus on delivering greater comfort and extended luxury cruises for their passengers. This is expected to boost the boating sector in the luxury segment.
Wealthy individuals and high-tax payers are growing their boat investments and running them for profit, be it on their own or via third-party administration. The sports category boats are preferred by the U.S. customers, particularly those in the tax brackets of the wealthy, who rent them to adventure tourism aficionados.
Entry segment boats are also known as all-purpose fishing boats. The all-purpose fishing boats are relatively low-cost as they aren’t loaded up with excessive amenities. They are rugged, versatile, compact, easy to transport, and easy to afford. They are a suitable choice for people who have light-duty tow vehicles. Hence, the entry boat segment is anticipated to grow at a steady rate.
Europe Boat Rental Market Size, 2020 (USD Million)
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Europe stood at USD 36.39 million in 2020. The region is expected to dominate the global boat rental market due to numerous tourist destinations. Croatia, Spain, and Italy contribute to a significant share in their revenue. In addition, the prevalence of fishing and water sports is growing and the existence of high net-worth individuals will promote the market's continued development in this region during the forecast period. According to the 2017 study of EC (European Commission) on the tourist business in the European waters, 60,000 chartered boats out of the 6 million yachts generate USD 6,819.15 million yearly turnover.
Asia Pacific is expected to exhibit the highest CAGR during the forecast period. A significant factor propelling the growth of this region is the increased population in China and India, accounting for more than 38% of the global population. This growth is attributed to the increase in urbanization and changing individual preferences as a result of increased disposable income. The growing popularity of water sports, fishing, and marine tourism in India, Japan, Malaysia, China, and Australia creates significant boat sports opportunities. Additionally, numerous beneficial government programs have been established by India and China to develop marine tourism. This is expected to fuel market expansion.
North America holds the third-largest position in the market due to numerous cruising destinations sanctified with a diverse coastline. The U.S. ranks first in this region as central boat hiring locations are situated. In addition, increased public spending on water sport activities and leisure travel is responsible for the region's market growth. Increasing globalization further propels the market growth in the region.
The rest of the world consists of Latin America, the Middle Eastern, and Africa. The Middle East is anticipated to contribute significantly to the growth of the global market. This can be attributed to the travel and tourism industry of the area. According to a recent YouGov survey, the organizer of Arabian Travel Market (ATM) 2021, the amount of money that Middle East travelers spend on leisure travel will begin to exceed 2019 pre-COVID-19 levels in as little as three years.
With A Record Business Growth Exhibited by GetMyBoat Company To Expand Its Market Prospects
GetMyBoat was launched in 2013 in the San Francisco Bay Area. Since then, it has grown to be the world's largest boat and watercraft experiences marketplace. The user-friendly platform is available on mobile apps for both iOS & Android. GetMyBoat recorded nearly 700% y-o-y growth between January and April 2021, as travel restrictions were lifted. With an annual run rate (ARR) of more than USD 158 million, the company had aimed to send around a million people boating by 2021 end.
An Infographic Representation of Boat Rental Market
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The boat rental market research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, Propulsion Types, and leading product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth over recent years.
Value (USD Million)
By Propulsion Type
By Boat Size
By Boat Class
Fortune Business Insights says that the global boat rental market size was USD 97.97 million in 2020 and is projected to reach USD 280.02 million by 2028.
In 2020, Europe boat rental market stood at USD 36.39 million.
The boat rental market is projected to grow at a CAGR of 15.70% and will exhibit steady growth during the forecast period (2021-2028).
The luxury segment is expected to be the leading segment in this boat rental market during the forecast period.
Boat rental apps facilitate customers with standardization in payments and decent customer service. This is expected to drive the boat rental market growth.
GetMyBoat is the leading player in the global boat rental market.
Europe dominated the boat rental market share in 2020.
The increasing Inclination towards marine tourism & adventure travel and favorable government initiatives are expected to drive the boat rental market growth.
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