Market Research Report
Recreational Boating Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
|Recreational Boating Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)|
Published: July 1, 2021
Mordor Intelligence Pvt Ltd
Content info: 80 Pages
Delivery time: 2-3 business days
The recreational boating market was valued at USD 26 billion in 2020, and it is anticipated to reach USD 35 billion by 2026, at a CAGR of around 5% during the forecast period.
Due to the COVID-19 pandemic and with the travel restrictions and social distancing norms imposed, all recreational activities were avoided. Consequently, the recreational boating market saw a dip in its revenues. With no public movement and the low phase of the global economy, neither new purchases were made, nor any transactions occurred. This forced the market toward economic downfall.
The recreational boating industry continues to attract large volumes of participants competing strongly with rival luxury leisure pursuits. It is estimated that there are at least 140 million active boaters and watersports participants worldwide, including almost 100 million across the United States and Canada, a further 36 million across Europe, and more than 5 million in Australia.
The growth in the watersports tourism industry is majorly driving the recreational boating market. Rising attraction toward recreation activities and watersports from millennial and post-millennial generations is further boosting the demand in the market studied. However, dynamics in the cost range of diversified boats might serve as a challenge.
At present, the recreational boating industry represents a small percentage of the overall global leisure industry; however, the share of recreational boats is anticipated to grow over the forecast period.
The growing interest of people in outdoor recreational activities and increased participation rates across all age groups for the same are some of the major factors driving the recreational boating industry.
Watersports are becoming popular not only for the excitement or adrenaline rush of getting fit but also because of several health benefits. As a result, increasing health benefits associated with water sports are supporting market growth worldwide.
A study from North Carolina State University found that outdoor play and nature-based activities helped buffer some of the negative mental health impacts of the COVID-19 pandemic for adolescents. In 2020, the coronavirus pandemic fueled the surge in recreational boat sales. New age groups and female boat buyers played a huge role in the growth.
Various players active in the market are updating their product offerings as the demand for recreational activities has increased after the pandemic. For instance, in July 2020, Kawasaki added eight models in the line for 2021; each model in the 2021 range comes with a normally aspirated or supercharged four-cylinder, four-stroke Kawasaki marine engine.
Moreover, companies are also introducing electric personnel boats for clean and silent recreational activity. For instance, in July 2020, Taiga introduced two versions of its Orca electric jet ski, as the electric watercraft space is starting to take shape. The watercraft is offered with a 23-kWh battery pack. Its electric powertrain generates over 134 kW and can achieve a top speed of up to 104km/h.
There is already an uptrend in the domestic boating industry, where people are opting to do watersports in their own country rather than going foreign. This ongoing trend is boosting the watersport industry domestically.
The National Marine Manufacturers Association (NMMA) reported that retail unit sales of new powerboats in the United States increased in 2020 by around 12% compared to 2019, with near to 310,000 new powerboats sold in 2020.
Personal watercraft sales were up by around 8% to 82,000 units in 2020, and wake boats were up near to 20% to 13,000 units in 2020. Boat sales are expected to continue this in 2021 as well.
Additionally, restrictions are likely to continue into 2021, which will fuel the demand for safe outdoor recreation activities, including boating.
According to the US Bureau of Economic Analysis (BEA), around 100 million Americans go boating each year. Outdoor recreation makes up 2.1% of country's GDP, generating USD 788 billion in real gross output. Boating and fishing are the largest outdoor recreation activities in the country, totaling near to USD 23.6 billion.
Another country where the recreational boating industry is a major contributor to the economy is Canada. Canadian pastime brings more than 12 million people together on the water every year, thereby generating more than USD 10 billion in revenues and has a GDP impact of USD 5.6 billion.
The recreational boating market is fragmented and dominated by industry players such as American Sail Inc., Ferretti, Sunseeker, Beneteau, Brunswick, MacGregor, Azimut-Benetti, Hunter, Hobie Cat Corporation, Princess Cruise, Bavaria Yachtbau, and Catalina Yachts. The boat manufacturers are expanding their business to increase their revenue generation opportunities. For instance: