The global leisure boat market size is anticipated to reach USD 50,065.2 million in 2024. It will likely broaden at a CAGR of 6.1% in the forecast period from 2024 to 2034. It is estimated to attain a value of about USD 90,508.6 million by 2034.
Among several types of leisure or recreational boats, yachts are likely to be highly demanded through 2034. This is mainly attributed to the growing popularity of leisure cruising and boating, which is backed by high levels of disposable income, especially in developed countries.
Though sales of yachts are anticipated to showcase average growth, companies are set to gain profit by launching unique amenities and features. Affluent individuals are projected to seek high-end and luxury yachts to celebrate special moments of their lives on the water.
| Attributes | Description |
|---|---|
| Estimated Global Leisure Boat Market Size (2024E) | USD 50,065.2 million |
| Projected Global Leisure Boat Market Value (2034F) | USD 90,508.6 million |
| Value-based CAGR (2024 to 2034) | 6.1% |
A few key companies are adopting electronically controlled fuel injection systems to provide high engine flexibility. These help in reducing emissions, vibrations, and noise, especially in coastal areas and ports, by allowing for variable speed.
The systems further help in enhancing the total efficiency of the propulsion system. The emergence of yacht rental services is projected to reduce the negative effects on marine tourism as personal ownership can involve high-cost spending.
Innovations in connectivity, tracking systems, and maritime security solutions are also set to augment sales. Several companies are focusing on integrating their watercraft with IoT and telematics, thereby unlocking new growth avenues.
Electric and hybrid propulsion systems are set to gain momentum worldwide. These will likely reduce emissions more effectively compared to conventional engines. Novel materials, such as lightweight composites are also anticipated to showcase high demand for improved fuel efficiency and vessel performance.
Innovations in self-stabilizing and automated sail-handling technologies are further estimated to help improve operation and comfort. This ongoing mission to increase innovation in leisure boats is set to enable sustainable yet luxurious experiences for tourists.
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The annual growth rates of the global leisure boat market from 2024 to 2034 are illustrated in the table below. Starting with the base year 2023 and going up to the present year 2024, the report examines how the growth trajectory changes from the first half of the year, i.e. January through June (H1) to the second half consisting of July through December (H2).
This gives stakeholders a comprehensive picture of the market’s performance over time and insights into potential future developments.
The figures provided in the table show the growth rate for each half-year between 2023 and 2024. The market was projected to increase at a CAGR of 5.5% in the first half (H1) of 2023. However, in the second half (H2), there is a noticeable surge in the growth rate of 6.2%.
| Particular | Value CAGR |
|---|---|
| H1 | 5.5% (2023 to 2033) |
| H2 | 6.2% (2023 to 2033) |
| H1 | 5.8% (2024 to 2034) |
| H2 | 6.4% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2024, the CAGR is projected to slightly drop to 5.8% in the first half and relatively surge to 6.4% in the second half.
Key Brands Focus on Enhancing Online Presence to Reach Niche Areas
With the penetration of the internet, online marketplaces have evolved and these have dramatically transformed the way leisure boats were once sold. In the early days, boat manufacturers mainly relied on boat shows and dealerships to sell their products, which restricted their presence in certain areas.
But, the rising popularity of e-commerce platforms worldwide has provided them with an avenue to increase sales. Several manufacturers are striving to tap into niche areas by leveraging online platforms. This strategy has not only helped manufacturers reduce their total operational costs but also eliminated investments in brick-and-mortar stores.
Leading companies in the field of e-commerce, such as Alibaba, Walmart, and Amazon recently entered the boat business. These companies provide boats from key brands, including FRP, Sea Eagle, Intext, Solstice, and Classic. Water sports boats, pontoons, and inflatables are the bestsellers among these players.
High Popularity of Tourist Spots Blessed with Nearby Waterbodies Provides Opportunities
Leisure boat demand is anticipated to skyrocket in the assessment period with significant growth in the tourism industry. Specific segments, such as water sports boats, cruises, and pontoons are showcasing high demand.
Used boat and personal watercraft sales have also surged, providing seasonal leasing companies and buyers with an opportunity to offer pleasurable vacations. Small- and medium-sized service providers are anticipated to propel their business in river and small sea cruises.
With the increasing proliferation of social media platforms like Instagram and Meta, millennials are hiring recreational boats for arranging parties and functions. It has further propelled several companies to broaden their services across popular tourist spots situated near beaches, rivers, or lakes.
Local authorities and tour agencies are anticipated to offer their boats on lease to tourists, thereby increasing profit. They are also purchasing novel boats equipped with innovative features to gain a competitive edge.
Kerala government’s Hydrographic Survey Wing, for instance, introduced a QR code-based vessel tracking and information system. Named Bon Voyage, the system enables passengers to scan the code using smartphones and obtain safety-related data. It also provides information about how to utilize life-saving gadgets provided on the vessel.
Stringent Emission Standards Globally to Create Hindrances
Constant regulatory pressure to reduce environmental impact and emissions is projected to hamper leisure boat sales. The European Commission, for instance, has come up with stringent emission limits, such as particulate matter, hydrocarbons, and nitrogen oxide for a wide range of recreational watercraft.
As per the norms, the region is focusing on achieving a 34% reduction in the emissions of particulate matter and a 20% reduction in both hydrocarbons and nitrogen oxide from propulsion engines.
The United States, on the other hand, has also introduced strict norms for leisure boats to reduce harm to marine life. No discharge zones and state-specific norms were recently deployed to protect water bodies. The Environmental Protection Agency (EPA) has successfully achieved a reduction of around 63% in terms of emissions through its 3 standards for engines with a capacity of above 600 kW.
Principal Consultant
The global leisure boat market witnessed a CAGR of 5.8% in the historical period between 2019 and 2023. It reached a value of USD 47,186.8 million in 2023 from USD 37,659.8 million in 2019.
The industry witnessed considerable growth in the historical period due to rapid innovations in autonomous marine technology. It helped attract the attention of those customers who had limited knowledge of boating. The emergence of several companies in the fragmented industry also ensured a reliable supply chain to cater to the high global demand.
However, the industry showcased declining demand to a certain extent amid the COVID-19 pandemic that started back in 2019. Leisure boating activities have always carried some risk, which surged during the pandemic.
In New England, for instance, severe riptides and harsh currents of the Atlantic have always been the most prominent danger to boaters. But, since the pandemic, the issues of irresponsible sea vessel operation and high levels of congestion surged. When the pandemic hit, social distancing norms intensified, which made several individuals shift to purchasing new boats even though they didn’t have licenses.
Affluent residents in the United States, on the other hand, looked at the pandemic as a golden chance to pursue their hobbies. In 2020, recreational boat sales surged dramatically in the country and have not shown a sign of slowing down.
Newcomers and experienced boaters were facing issues like back ordered equipment, overwhelming congestion, rapid harbor space booking, and long wait times. Even though the pandemic situation has come under control now, port communities and marine vendors are facing rising harbor traffic, supply chain disruptions, and staff shortages.
Tier 1 companies are characterized by high production capacity and a wide product portfolio. They are distinguished by extensive expertise in manufacturing and a broad geographical reach, underpinned by a robust consumer base.
The firms provide a wide range of products and utilize the latest technology to meet regulatory standards. Prominent companies within Tier 1 include Avon Marine, Azimut Benetti Group, Baja Marine, and Bavaria Yachtbau GmbH.
Tier 2 companies hold a presence in specific regions and exert significant influence on local economies. These firms are distinguished by their robust presence overseas and in-depth industry expertise.
They possess strong technology capabilities and adhere strictly to regulatory requirements. However, the firms may not wield cutting-edge technology or maintain an extensive global reach. Noteworthy entities in Tier 2 include Brunswick Corporation, Ferretti S.P.A., Farr Yacht Design, Ltd., and Fountain Powerboats, Inc.
Tier 3 companies are small-scale players that do not have vast manufacturing expertise or resources. They are located in remote and urban areas to cater to the demand from local consumers.
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The section covers assessments of leisure boat sales across key countries. India is anticipated to remain at the forefront with a CAGR of 6.4% through 2034. France, Spain, and Canada are likely to follow behind with CAGRs of 6%, 5.8%, and 5.6%, respectively from 2024 to 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| Canada | 5.6% |
| France | 6% |
| India | 6.4% |
| Japan | 5.2% |
| Spain | 5.8% |
India's leisure boat market is estimated to witness a CAGR of 6.4% in the forecast period. As per the India Brand Equity Foundation (IBEF), the country’s travel industry is anticipated to reach USD 125 billion in FY25. It stood at USD 75 billion in FY20. By 2028, around 30.5 million international tourists are estimated to arrive in the country.
With rising government investments and initiatives to bolster the tourism industry in India, leisure boat sales are projected to skyrocket. The Ministry of Tourism, for instance, launched a new scheme named Swadesh Darshan to boost theme-based tourist circuits. It has sanctioned around 76 other projects. Apart from that, the rising enhancement of airport infrastructure is anticipated to attract more tourists, further augmenting demand.
Canada is estimated to showcase a CAGR of 5.6% through 2034. Statistics Canada, which is operated by the Parliament of Canada, mentioned that in the first quarter of 2023, the total tourism amount spent by international visitors surged by 1.8%, followed by a 4% rise in the fourth quarter. In the first quarter of 2024, about USD 5.8 billion in tourism amount was spent by non-residents.
With an increasing number of tourists entering the country, several international boat rental service providers are focusing on strengthening their position in Canada. Europe-based Le Boat, for instance, broadened its presence in Canada by featuring a new base and a cruising route along the Trent-Severn Waterways in May 2024.
With this expansion, the company promises to provide luxury boat rental services on the historical site. Such strategies by leading players are predicted to fuel sales.
France is predicted to showcase a CAGR of 6% in the evaluation period. The country recently hosted the Olympics and it gave a boost to its overall economy. Olivia Gregoire, Tourism Minister, stated that there was a Y-o-Y surge of 16% in the number of individuals staying at hotels across cities organizing Olympic events in France.
Also, there was a 25% surge in the amount spent by individuals across bars and restaurants as well as those visiting the Paris museum.
In May 2024, for instance, Uber celebrated the Paris Olympics by launching two new experiences for visitors, namely, a boat tour and a champagne-tasting event. The boat tour is set to make sightseeing convenient in Paris by providing one-hour tours free of cost on electric boats. The novel Uber Cruise experience is set to take place along the Seine and it would be the company’s first boat tour in the city.
The section explains the growth trajectories of the two leading segments. In terms of type, the new leisure boat category will likely dominate and generate a share of around 50% in 2024.
Based on the propulsion system, the gas segment is projected to hold a share of 40% in 2024. The analysis would enable potential clients to make effective business decisions for investment purposes.
| Segment | New Leisure Boat (Type) |
|---|---|
| Value Share (2024) | 50% |
The increasing popularity of connected boats is anticipated to fuel sales of new leisure boats. Safety and security are considered the main concerns of these boat owners. The risk of the boats drifting away or becoming unmoored is rising worldwide. This is mainly a matter of concern during the winter season when the boats are left unattended.
Several boat manufacturers are hence investing huge sums in the Internet of Things (IoT) technology to help lower sinking and internal damages. They are also embracing novel technologies to gain a competitive edge and offer new products. Modern customers are looking for new recreational boats with unique features so that they can easily access key information from any part of the world.
| Segment | Gas (Propulsion System) |
|---|---|
| Value Share (2024) | 40% |
Even though gas propulsion systems are anticipated to generate a share of 40% in 2024, demand for electric leisure boats is anticipated to rise exponentially. As millennials prioritize the environment, key companies strive to provide sustainable transportation solutions like electric boats. Increasing implementation of strict norms to reduce emissions in the atmosphere is another leading factor augmenting demand.
Another key factor boosting sales is their high compatibility with renewable energy sources, such as hydroelectric, wind, and solar power. As the world is gradually inclining toward a more sustainable and greener future, electric boat manufacturers are leveraging renewable energy sources to charge the batteries. However, the lack of adequate charging infrastructure is set to be a key growth-hampering factor.
The global leisure boat market is fragmented with the presence of several small- and large-scale companies. Leading companies are focusing on enhancing and innovating the overall boating experience for clients. They are hence focusing on equipping their boats with novel features like onboard entertainment systems and GPS navigation systems.
At the same time, they are striving to create an ecosystem for sustainability, fun, and convenience. They are introducing aesthetic features and ergonomic designs to ensure passengers’ and boat owners’ safety.
Several companies are also embracing the ‘gentleman’s agreement’ strategy to accelerate demand as they seek to respect their competitors’ niches. In the United States, for instance, an association was set up to deal with unwanted behaviors and competition to reduce rivalry and increase friendliness.
Industry Updates
New and used leisure boats are the two main boat types. These are further divided into motorized/power boats and non-motorized boats. Motorized/power boats is further divided into personal watercraft, outboard boats, yachts and others. Similarly, non-motorized boats are further divided into kayaks, canoes and others.
Diesel, gas, sail drive, and electric/hybrid are the key propulsion systems.
Information about the leading countries of North America, Latin America, Western Europe, South Asia and Pacific, East Asia, and the Middle East and Africa is given.
It is anticipated to reach USD 50,065.2 million in 2024.
It is set to rise at a 6.1% CAGR through 2034.
It will likely reach USD 90,508.6 million by 2034.
It is a recreational boat that is utilized for pleasure, water-sporting, and tourism.
It is operated or manufactured mainly for pleasure.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Boat Type 6.2. Propulsion System 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Boat Type 7.1. New Leisure Boat 7.1.1. Motorized/Power Boats 7.1.1.1. Personal Watercraft 7.1.1.2. Outboard Boats 7.1.1.3. Yacht 7.1.1.4. Others 7.1.2. Non-motorized Boats 7.1.2.1. Kayaks 7.1.2.2. Canoes 7.1.2.3. Others 7.2. Used Leisure Boat 7.2.1. Motorized/Power Boats 7.2.1.1. Personal Watercraft 7.2.1.2. Outboard Boats 7.2.1.3. Yacht 7.2.1.4. Others 7.2.2. Non-motorized Boats 7.2.2.1. Kayaks 7.2.2.2. Canoes 7.2.2.3. Others 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Propulsion System 8.1. Diesel 8.2. Gas 8.3. Electric / Hybrid 8.4. Sail Drive 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 9.1. North America 9.2. Latin America 9.3. Western Europe 9.4. South Asia Pacific 9.5. East Asia 9.6. Eastern Europe 9.7. Middle East & Africa 10. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 11. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. South Asia Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Sales Forecast 2024 to 2034 by Boat Type and Propulsion System for 30 Countries 18. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 19. Company Profile 19.1. Avon Marine 19.2. Azimut Benetti Group 19.3. Baja Marine 19.4. Bavaria Yachtbau GmbH 19.5. Bombardier Recreational Products Inc. 19.6. Brunswick Corporation 19.7. Chaparral Boats Inc. 19.8. Catalina Yachts 19.9. Farr Yacht Design, Ltd. 19.10. Ferretti S.P.A. 19.11. Fountain Powerboats, Inc. 19.12. Groupe Beneteau 19.13. Sunseeker International Limited 19.14. Malibu Boats 19.15. Marine Product Corporation 19.16. MasterCraft Boat Company 19.17. Polaris Inc. 19.18. Ranger Boats
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