Recreational boat shipments are set to surpass one billion in 2027, according to Global Recreational Boat Market Outlook and Forecast Report 2022 from ResearchAndMarkets.com.
The market crossed USD$425.18 million in 2021 and is expected to witness shipments of 1.08 million units in 2027.
The established markets of Europe and North America will witness high demand for recreational boats during the forecast period, with the commercial adoption of boats increasing in these regions.
In addition, the demand for marine infrastructure arises due to the changing market dynamics, such as a higher number of recreational boat users.
According to the report, the demand for boating and consumer interest is increasing as people seek boating as an outdoor activity, particularly as other leisure activities, travel, and sports continue to be impacted by COVID-19. According to National Marine Manufacturers Association, the retail unit sales of new powerboats surpassed 300,000 units in 2021 for the second consecutive year.
With several technological advancements, the market for electric boats has witnessed significant growth over the past few years. Electric boats, particularly hybrid ones where the electric motor doubles as a mechanically spun generator, are now experiencing more uptake in the leisure sector. Electric propulsion for boats has grown in popularity, inspired by a desire to reduce emissions and noise and because it is cheaper to operate and easier to maintain.
The report says the global recreational boat market is fragmented, and the degree of fragmentation is expected to accelerate during the forecast period. There are a significant number of global and domestic vendors across the geographies.
The competition among these key players has intensified in recent years. The market concentration in developed countries such as the US and other Western European countries is high, while the market is growing in developing economies such as China and India because of the entry of several 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 on yachts is heavily shifting towards luxury products, which will likely provide vast opportunities to the vendors during the forecast period.
Outboard boats are one of the largest selling boats in the North American region. In addition, with technological improvement, the demand for outboard boats has been mostly driven based on the performance of boats. Outboard boats cater to various advantages, including versatile nature, improved performance, ease of use, and diversified options.
Due to growing coastal tourism worldwide, commercial applications of engine-powered boats are likely to witness significant growth in the demand for outboard engines. Developing high-powered motors will further promote the use of these engines in tourist boats. Engine-powered boats are among the most used boats in the global recreational boating market.
Developing regions such as the APAC have emerged as one the key regions witnessing a significant increase in passenger base. For instance, Mainland China dominates the Asian market, accounting for around 50% of the Asian passenger volume in 2021. Several factors are driving the cruise industry’s growth across the globe, including strong economic recovery and growth of cruise ship capacity.
In APAC, Japan is one of the developed markets for recreational boats, whereas countries such as China, India, and South Korea are still developing their markets in terms of demand. Moreover, the global market has been witnessing intense competition in recent years regarding new product launches and product pricing.
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