"Market Intelligence for High-Geared Performance"
The global boats market size was valued at USD 32.69 billion in 2021. The market is projected to grow from USD 30.93 billion in 2022 to USD 47.80 billion by 2029, exhibiting a CAGR of 6.4% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with boats experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global boats market exhibited a growth of 11.3% in 2020 as compared to 2019.
A boat is a small vessel used to travel over water with the help of oars, sails, or engines. Different materials, such as Glass-reinforced Plastic (GRP), aluminum, wood, and others, are used to manufacture boats. Increasing awareness of pollution generated by boats will compel manufacturers to adopt technological changes during production to minimize pollution. Additionally, surging interest in recreational boating will drive the boats market growth.
High Demand for Recreational Boating Led to Market Growth
The COVID-19 pandemic sent shockwaves through numerous industries affecting supply-demand dynamics. However, the market remained resilient while displaying strong growth during 2020. In the U.S., boat sales skyrocketed during the pandemic, and this growth continued in 2021 while showing no signs of slowing down. As people were working at flexible times, they shifted toward outdoor activities.
The penetration of first-time buyers increased significantly during 2020 owing to demographic shifts. The COVID-19 pandemic introduced considerable change in boats market trends and compelled people to spend more time with families and friends, leading to increased recreational activities. Many people turned toward boating as it was a perfect activity to get away from the house and busy areas to relax while remaining safe and socially distant.
According to the U.S. Department of Commerce’s Bureau of Economic Analysis (BEA), recreational boating was the number one contributor to outdoor recreation, surpassing RVing, hiking, and various other recreational activities. The outdoor recreation economy accounted for 1.8% of the U.S. GDP in 2020. This boating boom continued through 2021, owing to consumers' rising interest in recreational activities.
Request a Free sample to learn more about this report.
Favorable Trends Associated with Marine Tourism to Bolster Market Growth
A positive outlook for marine tourism industry will support market growth during the forecast period. Marine tourism positively influences economic growth in various aspects. It generates employment and significantly contributes to local economies. Moreover, it provides multiple sociocultural benefits, including strengthening communities and promoting sustainable tourism. Many countries across the globe are formulating policies to enhance the coastal tourism sector in the wake of issues associated with climate change and environmental degradation.
In January 2021, National Oceanic and Atmospheric Administration (NOAA) finalized the Blue Economy Strategy Plan, 2021 - 2025, to accelerate the growth of the American Blue Economy. This strategy will focus on five pointers, ocean exploration, tourism and recreation, marine transportation, seafood competitiveness, and coastal resilience. Such initiatives will boost product demand over the next few years.
Increasing Number of High-Net-Worth-Individual (HNWI) Across the Globe to Augment Market Growth
North America and Europe have prominent millionaires, collectively accounting for over 70% of total millionaires. Asia has the most significant number of billionaires, with more than 35% of billionaires across the globe. The total number of millionaires was 62.5 million by the end of 2021, increasing by 5.2 million from 2020. The U.S. accounts for nearly 40% of millionaires across the globe. In 2021, the U.S. added 2.5 million new millionaires. In 2021, the U.S. gained the most ultra-high-net-worth individuals (UHNWIs), followed by China.
According to Credit Suisse Research Institute, global wealth accounted for USD 463.6 trillion, exhibiting a growth of 9.8% versus 2020. The share of the top 1% increased from 43.9% in 2019 to 45.6% in 2021. Wealthy people buy yachts for voyaging, parties, and hosting private events. Favorable trends associated with recreational boating activities and the rising number of rich people across the globe will positively influence market growth over the next few years.
Growing Interest in Recreational Boating and Water Sports Activities to Drive the Market Growth
Increasing consumer spending and high disposable income levels will boost the growth of the recreational boating sector in the future. People engage in various recreational activities, including sailing, swimming, diving, wakeboarding, and other water sports. Few people utilize them to spend time with family or friends and arrange parties.
The demand for outboard boats is soaring among recreational consumers due to their versatile operational capabilities. These are cost-effective, easy to maintain, and have fast acceleration & high cruising speed. Moreover, these provide quick handling, excellent low-speed maneuverability, and a tight turn ratio.
Environmental Concerns Associated with Boating Activities to Hamper the Market Growth
The boat industry generates a noticeable impact on the marine ecosystem. In heavily trafficked waterways, their presence may lead to the growth of algae and sediments, thereby obstructing sunlight and spoiling the water. Additionally, it deposits can alter the water's chemistry, making it more alkaline or acidic.
Chemicals used to clean, run, and protect boats often get mixed with water, severely affecting the surrounding environment and killing or weakening wildlife. In July 2011, European Commission proposed legislation to minimize the harmful impact of boats on European waters. It specified strict limits for nitrogen oxide (NOx), particulate matter, and hydrocarbons (HC) for small marine vessels.
In September 2021, the California Air Resources Board (CARB) introduced proposed emission regulations on commercial boats. CARB intends to minimize the number of harmful gases emitted through these regulations. As recreational boating continues to grow in popularity, preserving the marine ecosystem and environment will become an uphill battle. Regulatory policies and educational programs will help generate awareness and reduce the pollution caused by boats. However, the collective efforts of boat manufacturers, consumers, and regulatory agencies are essential for preserving aquatic life and human health.
Positive Outlook of Recreational Sector to Drive the Outboard Segment
Based on type, the market is categorized into inboard and outboard.
The outboard segment held majority of market share in 2021 and is projected to continue its growth throughout the forecast period with the fastest CAGR. Engines in outboard boats are lightweight, fast, and easier to service. More space is available for storage or seating as engines are situated outside the boat. They have low maintenance costs. The propeller and drive unit can be removed entirely from the water, which helps minimize the risk of erosion.
These are generally cheaper and have a simple winterizing process for engines. Fishing enthusiasts and speedboat users prefer outboard boats due to their tight turn ratio and low-speed maneuverability.
Favorable Trends Associated with Fishing and Recreational Sectors to Propel Market Growth
Based on size, the market is segmented into below 20 ft, 20 – 50 ft, and more than 50 ft.
In the below 20 ft segment, fishing boat, dinghy, personal watercraft, and inflatable boat are considered. These are subjected to meet specific regulatory requirements. For instance, a backfire flame arrestor is necessary if the boat has a gasoline-powered engine. Enclosed engines must have ventilation systems implemented per Coast Guard standards. The positive outlook of the global fishing industry, coupled with rising aquaculture production, will drive the segment’s growth in the future.
Boats within the 20 – 50 ft segment must possess one personal flotation device of type I/II/III/V for each person on board. In addition, one throwable Type IV device is needed on board. Many people use these for sailing. Sailing offers numerous health benefits, such as promoting cardiovascular fitness, increased agility, and concentration improvement. Moreover, it reduces stress and increases spatial awareness. The rising number of wealthy people worldwide will propel the sales of yachts in the future.
Changing Consumer Interests to Gain Thrill-Seeking Experiences to Augment Market Growth
Based on end-user, the market is segmented into commercial and recreational.
A recreational boat is manufactured or operated primarily for outdoor activities. These are used for numerous activities, including sailing, fishing, cruising, and others. In addition, these are utilized for various watersports such as wakeboarding, diving, snorkeling, parasailing, surfing, rafting, and others. Many people use them to host parties and events and take short vacations. Growing demand for recreational activities in the wake of gaining adventurous experiences and spending more time with family & friends will drive product sales in the future.
Rising government expenditures to strengthen maritime security will boost the sales of patrol boats in the future, thereby bolstering market growth. Moreover, the commercial fishing sector's positive outlook will positively influence commercial boats' sales by 2029.
Strict Regulatory Environment to Boost Penetration of Electric Boat
Based on propulsion, the market is segmented into electric, conventional, and others.
Boat manufacturers are expected to ramp up the production of the electric boat as these manufacturers are shifting toward batteries to produce emission-free products. The rising proliferation of clean drive technology will boost the growth of electric boats. They contain fewer moving parts with no engine oil or gas requirements. Moreover, they will produce less noise and are subject to low maintenance.
They produce more torque and efficiently convert stored kinetic energy into power. They are eco-friendly and do not produce any emissions. A strict regulatory environment associated with conventional boating and rising fuel prices will pave the way for the future growth of electric boat. Huge investments by various manufacturers and supportive government policies will augment market growth in the future.
Gasoline propulsion offers a more power-to-weight ratio and produces low noise. Superior efficiency and long life expectancy will drive the future growth of gasoline propulsion systems. Rising environmental sustainability awareness will generate the future need for sailboats and solar-powered boats.
Recyclability and Lightweight Characteristics of GRP to Propel the Market Growth
Based on hull, the market is segmented into wood, GRP, aluminum, steel, and others.
GRP boat type can be seaworthy and sustained for up to 50 years. Complex hull shapes consisting of steps, variable degree deadrise, and bow flare can be made with fiberglass. They are easier to maintain and provide steady and quiet working on the water. The rising popularity of marine recreational activities will bolster the segment’s growth.
Aluminum is steadily gaining traction in boat manufacturing due to its lightweight capabilities and easy workability. Aluminum helps in saving a lot of money where no paint is required other than below the waterline. Aluminum offers superior shear strength, better fuel economy, and quickness out on the water. They are less expensive and have a long service life.
To know how our report can help streamline your business, Speak to Analyst
Rising Involvement of People in Water Sports Activities to Augment the Market Growth
Based on application, the market is divided into fishing, water sports, sailing, tourism, surveys, and others.
Water sports include cable skiing, kiteboarding, knee boarding, parasailing, rafting, wakeboarding, water skiing, and others. These activities offer great enjoyment and pleasure, and many people opt for these activities in search of adventure. The demand for watersports activities is increasing due to rising consumer interests. The participation of people in adventure water sports is expected to grow in the future, thereby propelling market growth.
Sailing is an excellent leisure activity to spend time with family & friends away from the crowd. Leisure boating promotes mental health by offering relaxation and happiness. The sight of water aids in inducing neurochemicals, thereby promoting wellness. Additionally, it improves cardiovascular health and offers significant exposure to sunlight. These benefits mentioned above will propel the segment’s growth.
North America Boats Market Size, 2021 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
The North America boats market size was USD 18.37 billion in 2021 and is projected to retain its position throughout the forecast period. The U.S. outdoor recreation economy generated USD 374.3 billion, accounting for 1.8 % of the U.S. Gross Domestic Product (GDP). According to Outdoor Industry Association, in 2017, 49.0% of the U.S. population participated at least once in an outdoor activity. In 2021, the number of Americans participating in outdoor recreation at least once increased to 54%. Such favorable trends associated with the rising interest of people in recreational boating and water sports activities will bolster the market growth during the forecast period.
Europe held the second-largest market share in 2021 and is likely to witness the fastest market growth in the coming years. Supportive policies to accelerate the growth of marine tourism will propel the market growth. The European Union’s “Integrated Maritime Policy” will support the development of coastal tourism and marine economic activities. Moreover, favorable trends associated with the fishing industry in Northern Europe will support the market growth.
Asia has the largest number of billionaires, more than 35% of total billionaires across the globe. The rising prosperity of emerging economies and the expansion of income levels of the middle class in developing countries will create favorable conditions for market growth. The rest of the world exhibits strong market growth potential owing to favorable fishing and recreational trends.
Mergers & Acquisitions of Small Players to Offer Competitive Advantage
The competition in the market is driven by the presence of leading key players such as Brunswick Corporation, Groupe Beneteau, Malibu Inc., Yamaha Motor Co., Ltd., Polaris Inc., Azimut Benetti Group, and Marine Product Corporation. Major players are acquiring other minor players to strengthen their market position. Additionally, many boat manufacturers are investing in research & development activities to develop new products.
Partnerships & Collaborations are Accelerating the Growth of Groupe Beneteau
Groupe Beneteau is one of the largest boat manufacturers in Europe. The company provides approximately 180 recreational boat models serving many applications from sailing to motor boating, monohulls, and catamarans. In July 2022, Groupe Beneteau and Vision Marine Technologies launched a partnership to integrate Vision Marine Technologies' revolutionary high-performance outboard motors into several models in the Group's portfolio
To gain extensive insights into the market, Request for Customization
The research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product 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 contributing to the market's growth in recent years.
Value (USD Billion)
Fortune Business Insights says that the global market size was USD 32.69 billion in 2021 and is projected to register USD 47.80 billion in 2029.
The market is expected to register a CAGR 6.4% during the forecast period 2022-2029.
Rising demand for recreational boating to drive the market growth.
North America led the market in 2021.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry