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The leisure boat market size is estimated to grow at a CAGR of 5.66% between 2022 and 2027, and the size of the market is forecast to increase by USD 22,154.06 million. The growth of the market depends on several factors, such as increasing customer engagement in marinas and recreational boating activities, increasing demand for outboard powerboats, and technological integration in leisure boats.
This leisure boat market report extensively covers market segmentation by product (leisure boat accessories, leisure boat motors, and leisure boat building), propulsion (diesel, gas, hybrid, and sail drive), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The report includes the adoption lifecycle of the market, spanning from the innovator’s stage to the laggard’s stage. Furthermore, the report includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Leisure Boat Market Customer Landscape
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the market growth is the increasing customer engagement in marinas and recreational boating activities. The largest recreational boating markets are in the US and Europe. The recreational boating industry in the US has grown steadily over the last decade. US-operated marina and charter services account for a significant portion of this growth. This is due to the high cost of owning and maintaining a leisure boat. Customers in the US with a mid-to low-level annual income are opting for boating experiences rather than owning a boat.
The demand for leisure boats is increasing in marinas across the US and Europe owing to several factors. For instance, the growing consumer shift toward marinas to carry leisure goods is a key driver shaping the growth. Additionally, increasing the adoption of recreational boating activities in adventure tourism will propel the growth of the global market. The rapid growth of the millennial population, growing disposable incomes, and the increasing popularity of adventure tourism are other factors influencing market growth.
The growing population of HNWI (High Net Worth Individuals) is a key trend supporting the leisure boat market growth during the forecast period. The cost of owning a recreational or leisure boat is very high. Most of these luxury boats are purchased by high-net-worth individuals. As a result, the expansion of the market is highly dependent on the world's HNWI population. Leisure boating is quickly becoming one of the most popular recreational activities among consumers worldwide.
Since 2016, major boat manufacturers operating in the global market have reported strong financial gains. This is primarily due to the growing number of HNWIs and their desire to purchase recreational boats. Between 2018 and 2021, the global HNWI population grew at a CAGR of around 6%. Over the forecast period, the HNWI population is expected to continue to grow. As leisure boat activities are generally affordable to this customer segment, significant investments are expected to flow into the global market during the forecast period.
The high total cost of ownership of leisure boats will be a major challenge for the leisure boat market during the forecast period. Owning a leisure boat is an extravagance. Average leisure boat prices have continued to rise since 2020. The average retail sales prices increased by approximately 5% over the period. Rising average retail prices have also had a significant impact on recreational boat sales. For example, in the United States, recreational boat sales declined by approximately 0.32% over the period.
Moreover, with the inclusion of such expenses, the total cost of ownership of a leisure boat becomes USD 60,000, on average. Hence, affording a leisure boat is economically not feasible for low- and mid-income families. Due to its expensive nature, the market for leisure boats is very niche in emerging economies as well. Therefore, the high total cost of ownership of leisure boats will be a key price challenge that might hinder the growth of the market.
Vendors 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.
Carnival Corp. and Plc: The company offers leisure boat such as Carnival Cruise Line, Princess Cruises, and Holland America Line.
Correct Craft Holding Co. LLC: The company offers leisure boat such as Super Air Nautique G25 Paragon, Super Air Nautique G23 Paragon, and Super Air Nautique G23.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
The report offers clients a deeper understanding of the market and its players through a combined qualitative and quantitative analysis of the vendors. The analysis classifies vendors into categories based on their business approach, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak to understand the dos and don’ts of business which in turn can help a client make the best decision.
The leisure boat accessories segment will contribute a major share of the market due to growth in sales of new and used boats. The leisure boat accessories segment showed a gradual increase in market share with USD 25,813.36 million in 2017 and continued to grow by 2021. This segment includes revenues from the sale of recreational boating accessories such as remote controls, GPS systems, digital throttles, digital dashboards, fishing equipment, marine batteries, safety equipment, specialty clothing, seats, and storage components. Manufacturers of leisure boat accessories sell these products to new and used boat owners. In 2021, there will be approximately 11.96 million recreational boats (new and used) registered in the United States alone.
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This segment is expected to be driven by increasing consumer engagement in recreational activities such as fishing and sailing. The United States is the most important market for recreational boat accessories, followed by Europe. By 2021, there will be approximately 1 million leisure boats registered in Australia. Stand Up Paddle Boards (SUP) and sailing dinghies are the top leisure boat categories in Australia. Along with this, clothing plays an important role in a sailing dinghy. It makes a difference when it comes to keeping the boat crew comfortable during sailing adventures. Demand for accessories such as seat covers, traction mats, dry bags, and cases will therefore increase. All these factors will boost the global leisure boat market during the forecast period.
Diesel propulsion systems offer high power and good fuel efficiency. Diesel engines are often used in large luxury boats that require a lot of power to propel them through the water. The diesel segment of the global leisure boat market is dominated by luxury yachts and cruisers. However, diesel propulsion is also used in smaller boats, such as fishing and merchant vessels. These engines also require a lower grade of oil, and they mostly use relatively cheap gasoline. However, the higher compression ratio required for compression ignition increases the torque that diesel engines can deliver. Diesel is about 20% more efficient than gasoline engines. In recent years, there has been growing concern over the environmental impact of diesel engines, and the industry has worked to develop cleaner and more efficient diesel engines to meet emissions regulations. Therefore, the diesel segment holds the largest market share and is expected to contribute significantly to the market during the forecast period.
North America is estimated to contribute 58% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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Individual boaters in the area prefer recreational boating as an experience rather than owning a boat. This changing preference has led to increased customer engagement with marina and charter services, which is a major factor driving the demand for recreational boating in North America. Recent innovations such as the introduction of remote controls and digital dashboards on recreational boats will also be key factors contributing to the growth of the market. The United States and Canada are the two major recreational boating markets in North America. The United States is the largest single recreational boating market, accounting for nearly two-thirds of total sales generated in North America. Boating is one of the most important pastimes of the people of the United States. Retail sales of new motorboats are also growing continuously from 2021 onwards. Factors such as the country's economic growth over the past decade, rising consumer confidence, and technological innovation by boat manufacturers have driven the US market.
The 2020 COVID-19 outbreak negatively impacted the recreational boating market. However, in 2021, COVID-19 vaccination campaigns conducted by governments in different countries eased stringent lockdown restrictions and allowed business and industrial activity to resume. This increased the demand for recreational boats. Additionally, most of the suppliers in the region started producing boats and launched new variations of leisure boats in 2022 to attract end-users. Moreover, improving economic conditions and increasing consumer disposable income spur the growth of the leisure boat market during the forecast period.
The leisure boat market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Leisure Boat Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.66% |
Market growth 2023-2027 |
USD 22,154.06 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.04 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 58% |
Key countries |
US, Canada, Italy, UK, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Azimut Benetti SpA, Baja Marine, BPS Direct LLC, Bavaria Yachtbau GmbH, Bombardier Recreational Products Inc., Brunswick Corp., Carnival Corp. and Plc, Catalina Yachts, Correct Craft Holding Co. LLC, Dalian Wanda Group, Groupe Beneteau, Iconic Marine Group, Mahindra and Mahindra Ltd., Malibu Boats Inc., Marine Products Corp., MasterCraft Boat Holdings Inc., Polaris Inc., Volvo Car Corp., WeiChai Holding Group Co. Ltd., and Yamaha Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
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. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Propulsion
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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