40-feet Electric Boat Market: Current Analysis and Forecast (2023-2030)

The 40-foot electric boat market refers to the segment of the marine industry that focuses on producing and selling electric boats that measure approximately 40 feet in length. These boats are designed to provide a comfortable and efficient means of transportation for individuals and small groups while minimizing environmental impact. The 40-foot electric boats possess various advantages over the conventional boat such as environmental friendliness, where electric boats become an attractive choice for the consumers who look to reduce their carbon footprints. Furthermore, unlike traditional gasoline-powered boats, electric boats run silently, providing a peaceful and serene experience for passengers. Moreover, electric boats are becoming a more prominent and practical choice of the fleet for almost all end-usage such as water taxis, private charters, fishing, and pleasure cruises, where consumers and service providers are adding all their new capacity and replacing their old fleets with electric boats.

The 40-foot Electric Boat Market is expected to grow at a strong CAGR of around 14% owing to the growing spending on tour and travels and improving economic conditions. Furthermore, the growing popularity of recreational activity is also driving up the demand for 40-foot electric boats. Boating and sailing are two popular recreational activities that have seen significant growth in recent years. According to a report by the National Marine Manufacturers Association, the number of boats in use in the United States grew by 12% between 2019 and 2020, reaching a record high of nearly 15 million vessels. Similarly, the number of active sailboaters in the country increased by 10% during the same period. One reason for the growing popularity of boating and sailing is the desire for a more relaxed and tranquil lifestyle. Both activities allow individuals to enjoy the great outdoors while experiencing a sense of freedom and adventure. Additionally, many people view owning a boat or sailboat as a luxury item, similar to buying a car or a vacation home. Another factor driving the growth of boating and sailing is the rise of social media, which has made it easier than ever before to share experiences and connect with other enthusiasts. Online communities and forums dedicated to boating and sailing have sprung up, providing a space for people to ask questions, share tips, and plan trips together. Furthermore, advances in technology have made both activities more accessible and safer. Modern boats and sailboats come equipped with advanced safety features like GPS tracking systems, emergency position-indicating radio beacons (EPIRBs), and even autonomous navigation software. This has helped to alleviate concerns about safety and security, making it easier for people to try out these activities for themselves. Moreover, along with the above-stated reasons the demand for electric boats is also rising due to factors such as sustainability, where electric boats offer a cleaner and more sustainable alternative to traditional gas-powered boats. Additionally, electric boats are known for their quiet operation, smooth ride, and low maintenance requirements, making them a practical choice for daily use. Also, while the initial purchase price of an electric boat may be higher than a comparably sized gas-powered boat, the lower operating costs (no gas needed) and potential tax incentives make up for it in the long run.

Based on propulsion, the market is segmented into pure electric, hybrid, and sail electric. The pure electric segment holds the majority of the electric boat market, accounting for a share of over 60% in 2022. This is due to the increasing demand for zero-emission boats from governments and environmental organizations. Pure electric boats are also becoming more affordable and efficient, making them a more attractive option for boaters. The hybrid segment is the second largest, with a share of around 30%. Hybrid boats offer the best of both worlds, combining the power and range of a gasoline engine with the environmental benefits of an electric motor. This makes them a popular choice for boaters who want to reduce their environmental impact without sacrificing performance. The sail electric segment is the smallest, accounting for a share of less than 10%. However, it is growing rapidly, as more boaters are looking for sustainable ways to enjoy the water. Sail electric boats use a combination of solar power and electric motors to propel them, making them a zero-emission option that is also quiet and environmentally friendly.

On the basis of battery type, the market is categorized into nickel-based, lead-acid, and lithium-ion. The lithium-ion batteries hold the majority of the market for the batteries that are used in 40-foot electric boats. The prominent factors responsible for this domination are the high energy densities of lithium-ion batteries making them an ideal choice for electric boats. Furthermore, the rising production of lithium-ion batteries and technological advancements in this sector has led to decreased cost of these batteries, making them affordable and practical to commercialize. Moreover, ongoing innovations and R&D continuously taking place in this segment have made the batteries safer, high operational life, and reliable, with increased range, further motivating the manufacturers to use lithium-ion batteries for electric boats. Adding value to both consumers as well as manufacturers and leading to rising demand for lithium-ion batteries-powered electric boats, and same can be seen from the product launches by the players operating in this segment. For instance, in November 2021, ElectricFuel launched its new 48V lithium-ion battery alongside its 12V and 24V lithium-ion NCA marine batteries. The company claims that its marine-grade smart batteries offer four times more energy than traditional lead acid batteries of similar size, and can withstand thousands of charging cycles and seven to ten years of operational life.

Based on application, the market is segmented into fishing, recreational, and others. Recreational activities generate the maximum demand for 40-foot electric boats. Recreational activities have become a significant part of modern society, providing numerous benefits to individuals and communities alike. The notable factor that has increased the spending towards recreational activities is stress relief, where many people find that engaging in recreational activities helps to reduce stress and improve mental health. Outdoor activities like sailing allow individuals to connect with nature and disconnect from technology. Furthermore, engaging in recreational activities can also promote personal growth and self-improvement. For example, learning a new skill or taking on a challenge can build confidence and resilience, which also makes the 40-foot electric boats popular, especially in the coastal regions.

For a better understanding of the market adoption of the 40-feet electric boat market, the market is analyzed based on its worldwide presence in countries such as North America (The U.S., Canada, and the Rest of North America), Europe (Germany, The U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. North America is by far one of the biggest markets for the 40-feet electric boat market and holds the majority of the market share. The primary reason for this domination is the rising water-based tourism and recreation in the North American region. Furthermore, in North America electric boats are finding new applications beyond just recreational purposes. One of the most promising use cases is in the commercial sector, where they are used for tasks such as cargo transportation, passenger ferry services, and even search and rescue missions. Another area where electric boats are seeing increased demand is in the military sector, where they are used for reconnaissance, patrol, and surveillance missions. Additionally, electric boats are also being explored for use in offshore wind farms, oil rigs, and other industrial settings, hence raising the demand for electric boats in the market.

Some of the major players operating in the market include Frauscher Bootswerft GmbH & Co. KG; Duffy Electric Boat Company; RAND Boats; Vision Marine Technologies Inc.; Quadrofoil d.o.o.; Voltari Marine Electric.; Wellington Electric Boat Building Company; Ruban Bleu; aquawatt; and Cockwells