Leisure Boat Market Size, Share & Trends Analysis Report By Type (New Leisure Boat, Used Leisure Boat), By Product (Motorized, Non-motorized), By Region, And Segment Forecasts, 2023 - 2030

Leisure Boat Market Size & Trends

The global leisure boat market size was valued at USD 42.30 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 5.3% from 2023 to 2030. The rising disposable income of citizens and the flourishing tourism sector in emerging economies, such as Brazil and China, are some of the key factors escalating market growth. Furthermore, the growing participation of people in recreational and competitive boating activities worldwide is estimated to provide an upthrust to the growth. Besides, advancements in technologies leading to the introduction and adoption of connected boats are projected to fuel growth over the forecast period. The market consists of boat manufacturers, engine manufacturers, independent dealers, service providers, and equipment manufacturers.

The market is expected to pose promising growth prospects throughout the forecast period owing to the combination of factors such as the multitude of investments made, and research undertaken by the prominent players in the industry to develop and upgrade their portfolios. Manufacturers are also focusing on developing modern boat layouts to attract the interest of customers, especially in the Gen-Z category.

The growing awareness among customers regarding the benefits offered by integrating technologies in conventional boats is expected to fuel market growth in the coming years. Manufacturers are increasingly integrating advanced technologies, such as IoT, AI, and smart sensors, into the boats for providing users with features, such as GPS tracking, automatic controls, and smart connect. Moreover, the integration of such technologies aids owners to improve boat safety and security, thereby increasing their inclination toward surfing into deep waters.

Recreational boating activities are gaining popularity among tourists owing to the increasing number of boating events and trade shows hosted in different parts of the world. Growing marine and coastal tourism has significantly attracted tourists from numerous countries across Europe and North America. Additionally, Asia Pacific countries such as China and Australia are witnessing new growth opportunities in the market owing to the increasing per capita income of people in these countries. The rising demand for recreational boating in countries, including Japan, China, and Australia, is further propelling the regional market growth.

The measures taken by the governments of various countries for the development of marine tourism have boosted the growth of the market. Initiatives such as increasing investments in the tourism industry, developing infrastructure, and changing regulations are expected to have a positive impact on the tourism industry in the coming years. Outboard boats and yachts are widely used by boaters for personal boating activities across the world and the trend is expected to continue over the forecast period.

COVID-19 Impact

The COVID-19 pandemic has taken a toll on the tourism sector worldwide with complete restrictions imposed on international travel. The entire supply chain was disrupted in the first two quarters of 2020 with several manufacturing plants closed and businesses experiencing labor shortage. The COVID-19 also had an impact on the exports and imports leading to the shortage of equipment and sub-assemblies required for boat building. This consequently led to significant waiting time for new customers as manufacturers were focused on ensuring the product deliveries of pending orders.

Along with the sales of boats, the revenue generated through services also took a hit as small third-party vendors had to shun their businesses due to the financial crisis arising out of lockdown restrictions. However, the gradual movement toward re-opening the economies, coupled with the prolonged restrictions on the movement of people, has resulted in developing an urge among individuals to indulge themselves in recreational activities. Therefore, the market is anticipated to recover slowly over the forecast period.

Type Insights

The used leisure boat segment accounted for over 80% of the market share in 2022. This is attributed to the fact that the used boat can be procured relatively quickly, thereby eliminating a higher delivery timeline. A used leisure boat has been previously owned and may exhibit signs of use, such as cosmetic wear, minor repairs, or equipment upgrades or replacements. These are typically more affordable as they have depreciated in value due to previous ownership and usage. Used boats usually remain functional and ready for sale, which prompts the users to opt for a used boat. Another prominent factor for the large share of used boats is the lower prices of these boats as compared to new boats.

The new leisure boat segment is anticipated to witness considerable growth over the forecast period. Factors including the increasing adoption of advanced technologies, such as smart sensors, Artificial Intelligence (AI), and the Internet of Things (IoT), and availability of flexible financing options offered by boat manufacturers are fueling the growth of the new leisure boat market.

A new leisure boat is brand new, typically straight from the manufacturer, with no prior ownership or usage. It is in pristine condition, free from wear and tear.These boats are generally more expensive than used ones due to their condition and the fact that they come directly from the manufacturer. New boats also tend to include warranties, which provide additional peace of mind to the buyer.New leisure boats often offer the opportunity for customization, allowing buyers to select specific features, layouts, and equipment according to their preferences.

Product Insights

The motorized leisure boat segment accounted for over 87% of the market share in 2022. Boating is one of many outdoor recreational pursuits that are popular worldwide. The demand for motorized leisure vessels is rising as more people look for ways to interact with nature and spend their free time in an active and adventurous way. In addition to providing options for other water activities including fishing, water sports, and cruising, motorized leisure boats offer an engaging and thrilling way to enjoy the open ocean.

Small recreational boats to opulent yachts are all examples of motorized leisure boats, commonly referred to as powerboats. They provide a variety of conveniences and comforts, such as cozy seats, roomy storage, navigational tools, and entertainment systems. Water sports like wakeboarding, water skiing, cruising, and fishing are all made possible by the versatility of motorized recreational boats. The motorized leisure boat segment is further segmented into personal watercraft, outboard boats, yachts, and others.

The non-motorized leisure boat segment is expected to grow at a rapid CAGR of 7.2% during the forecast period.Due to their low ecological impact, non-motorized recreational boats are becoming more popular as environmental conservation concerns rise. Since these boats don't require fuel-powered engines, there is less noise and carbon dioxide released into the atmosphere, allowing users to enjoy and protect the environment. Non-motorized leisure boats, usually referred to as human-powered boats, provide a special and sustainable approach to take part in aquatic recreational activities.

Outdoor activities that encourage physical fitness are becoming more and more popular as a result of the increased focus on health and wellness. Non-motorized recreational watercraft, such kayaks, paddle boards, and rowing, provide low-impact workout options that draw people who are concerned about their health. Instead of using engines or motors, these boats rely on human power for propulsion, such as paddling, rowing, or sailing.

In addition to allowing people to exercise, enjoy a slower pace on the water, and interact with nature, they offer a more tranquil and pleasant experience. Non-motorized leisure boats provide a distinctive and alluring boating experience for enthusiasts of all ages with their concentration on physical exercise, tranquility, and a closer connection to the natural environment. The non-motorized leisure boat segment is further segmented into kayaks, canoes, and others.

Regional Insights

North America dominated the market and accounted for more than 44.4% share of the global revenue in 2022. The resurgence in the economy post economic recession, coupled with the availability of affordable credit, is resulting in a higher number of boat sales in the region. Besides, the rising demand for recreational watercraft in the U.S. is driving the regional market. The U.S. is witnessing the increasing popularity of marine recreational activities, including boating and cruising. In North America, the U.S. alone held a share of 57.4% in 2022 owing to the rising boat sales in Florida, California, and New York.

The Europe market is expected to expand at the highest CAGR over the forecast period. Surging demand for recreational boats in various countries, including the UK, France, Germany, Italy, and Spain, is estimated to propel the growth of the regional industry. Increasing participation of people in recreational boating activities is also projected to bolster the growth of the regional market. Furthermore, rising recreational boating events and trade shows hosted by manufacturers are supplementing the growth.

Asia Pacific is anticipated to witness significant growth over the forecast period owing to the major steps taken by the governments of several countries in the region for the development of tourism activities. The market in China is likely to exhibit the highest CAGR of 6.4% over the forecast period. The growth in the country can be attributed to the abundance of water resources, such as vast coastline, inland lakes, and rivers. Moreover, measures taken by the Government of China to promote yachting as a leisure activity are estimated to trigger the demand for recreational watercraft in the country.

Key Companies & Market Share Insights

In the leisure boat market, manufacturers continue to innovate and improve the boating experience. They incorporate advanced technologies such as GPS navigation systems, onboard entertainment systems, and ecosystems for convenience, fun, and sustainability. They also focus on ergonomic design and aesthetic features to ensure boat owners' and passengers' safety and style.

In the leisure boating industry, the “gentleman’s agreement” exists whereby firms respect one another’s market niches and follow a “live and let live” strategy. The industry in several countries, like the U.S., has formed an association that deals with issues, such as competition and unwanted behaviors, within the industry. This reduces competition and rivalry within the industry, making the companies operate in a friendly manner. They are focused to provide quality leisure to customers.

In a bid to strengthen their position in the market, manufacturers adopt strategies, including new portfolio expansion and strategic partnerships and collaborations. For instance, in May 2023, Archipelago Expedition Yachts, a shipbuilding company, and Chartwell Marine, a vessel design company, collaborated on developing a methanol-fuelled, zero-carbon leisure vessel. The Archipelago zero.63 vessel can be used for long-range leisure yachting and can perform in high sea states and across oceans. Some prominent players in the global leisure boat market include:

• Avon Marine

• Azimut Benetti Group

• Baja Marine

• Bavaria Yachtbau GmbH

• Bombardier Recreational Products (BRP) Inc.

• Brunswick Corporation

• Chaparral Boats, Inc.

• Farr Yacht Design, Ltd.

• Ferretti S.P.A.

• Fountain Powerboats, Inc.

Leisure Boat Market Report Scope

Global Leisure Boat Market Report Segmentation

This report forecasts revenue growths at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global leisure boat market report based on type, product, and region:

• Type Outlook (Revenue, USD Million, 2017 - 2030)

  • New Leisure Boat

  • Used Leisure Boat

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Motorized

    • Personal Watercraft

    • Outboard Boats

    • Yacht

    • Others

  • Non-motorized

    • Kayaks

    • Canoes

    • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

  • Asia pacific

    • China

    • Japan

    • India

    • Singapore

    • South Korea

  • South America

    • Brazil

  • Middle East & Africa