Boat Rental Market

Market Overview

The global boat rental market size was valued at USD 20.1 billion in 2022 and is projected to reach a value of USD 38.2 billion by 2031, registering a CAGR of 7.4% during the forecast period (2023-2031). The rise of the global marine tourist industry, the development of online platforms, the shift toward alternative energy sources, and an increase in disposable income and purchasing power are the primary market drivers boosting the boat rental market share.

Boat rental is the practice of leasing or renting out boats or watercraft for a set period, usually for recreational purposes. This sector allows individuals and organizations to enjoy boating excursions without the responsibility and costs of boat ownership. Boat rental services come in various flavors, appealing to various tastes, from sailing and fishing to cruising and watersports.

The global boat rental market is due to global growth in the marine tourist industry, the development of online platforms for renting boats, the shift toward alternative energy sources, and increased disposable income and purchasing power. However, the high cost of renting a boat and the environmental concerns linked with boating impede market expansion. Additionally, technological advancements in boats and boat engines will likely provide growth prospects during the forecast period.

Market Dynamics

Global Boat Rental Market Drivers:

Rising Interest in Experiential Traveling

Travelers are increasingly seeking unique and immersive experiences rather than typical tourism. Renting a boat allows passengers to explore bodies of water, participate in water sports, and create unique experiences, which aligns with the experiential travel trend. According to Skift's 2020 study, the trend of experiencing travel is on the rise, with 76% of travelers preferring experiences above material items. This is consistent with the boat rental sector, as clients seek unique and memorable experiences while visiting new places. The growing popularity of experience travel has aided the expansion of the boat rental business. Travelers are increasingly looking for activities that allow them to interact with their environment and create memorable experiences.

Renting a boat allows you to interact with the surroundings, culture, and nature, making it a popular choice for those seeking immersive experiences. Boat rentals provide a platform for such experiences as travelers seek activities that enable a deeper connection with their destination and surroundings. As a result, the boat rental market trend continues to grow.

Global Boat Rental Market Restraints:

Regulatory Compliance and Safety Standards

To safeguard the safety of its customers, boat rental companies must follow maritime legislation and safety requirements. In the United States, for example, a boat rental company must follow the US Coast Guard's (USCG) safety laws, which include requirements for life jackets, fire extinguishers, navigation lights, and other equipment. Furthermore, operators must frequently provide safety briefings and instructions to renters to guarantee they understand how to use safety equipment and operate the boat safely. According to the United States Coast Guard's 2022 Recreational Boating Statistics Report, there were 4,040 recreational boating accidents in the United States, resulting in 636 deaths, 2,222 injuries, and nearly USD 63 million in property damage. While not all of these instances are related to boat rentals, they highlight the necessity of boating safety rules and compliance.

Regulatory compliance and safety standards are critical to ensuring the safety of boat rental consumers. Noncompliance with these rules can result in accidents, injuries, legal penalties, and reputational harm for boat rental companies. Businesses must invest in safety equipment, perform regular maintenance, and provide detailed safety instructions to tenants to comply with safety standards. While these standards may raise operational expenses, they are critical for retaining consumer and regulatory trust.

Global Boat Rental Market Opportunity:

Diversification of Fleet

Boat rental companies can vary their fleets to serve a broader range of consumers. A prominent seaside destination's boat rental company seeks to expand its fleet by including electric and hybrid boats in its options. These environmentally friendly boats are outfitted with energy-efficient motor technologies that reduce emissions and noise pollution. By doing so, the company attracts eco-conscious travelers and enjoys a competitive advantage over competitors. According to the United States Environmental Protection Agency (EPA), one hour of operation of a conventional gasoline-powered boat can emit the same amount of smog-forming pollutants as driving a recent-model automobile for more than 200 miles. This data highlights the environmental advantages of electric boats, which emit no direct emissions.

Furthermore, diversifying the fleet with electric and hybrid boats appeals to environmentally concerned clients while also aligning with the expanding worldwide focus on sustainability. This diversification has the potential to improve market share and revenue. Furthermore, having a range of boat types, from small electric boats for day trips to bigger hybrid yachts for lengthy leases, can appeal to a wide range of consumers. Boat rental firms can work with manufacturers specializing in electric and hybrid boats to gain access to the newest technologies and models, assuring a current and competitive fleet.

Regional Analysis

Europe Dominates the Global Market

The global boat rental market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Europe is the most significant global Boat Rental market shareholder and is estimated to grow at a CAGR of 7.6% over the forecast period. The region is likely to dominate the worldwide boat rental market because of its various tourist locations. Croatia, Spain, and Italy all contribute significantly to their revenue. Spain and Italy, in particular, contribute to a sizable revenue share. Furthermore, the growing popularity of fishing and water sports and the presence of high-net-worth individuals are expected to drive the growth prospects for the European boat rental market throughout the projection period. 

Furthermore, the popularity of fishing and water activities is increasing, and the presence of high-net-worth individuals will support the market's continuing growth in this region throughout the projection period. According to a 2017 EC (European Commission) report on the tourist business in European waterways, 60,000 chartered boats out of the 6 million yachts create a yearly revenue of USD 6,819.15 million.

Asia-Pacific is anticipated to exhibit a CAGR of 7.9% over the forecast period. The rising population in China and India, which account for more than 38% of the world population, is a crucial element driving this region's growth. This expansion is linked to rising urbanization and changing individual preferences due to increased disposable money. The expanding popularity of water sports, fishing, and marine tourism in India, Japan, Malaysia, China, and Australia opens up new potential for boat sports.

In addition, India and China have implemented several helpful government programs to promote maritime tourism. The Chinese government is attempting to promote yachting as a leisure pastime for all rather than a luxury item. The China State Council published a circular in 2016 to promote and develop domestic service consumption and tourism spending. The circular includes a call to design a yachting tourism development strategy. Following this, pilot programs for yacht rental services on certain itineraries were launched. This is projected to fuel market growth.

North America ranks third in the industry because of its various cruise sites and diversified coastline. The United States ranks #1 in this region because of its central boat hiring locations. Furthermore, increased public spending on water sports and leisure tourism is driving market expansion in the region. Globalization is propelling market expansion in the region even further. High-speed internet, together with enterprises offering a variety of exciting rental options, contributes to the market's development. Government investments in islands, tourism promotion, and boat rental activities also fuel industry growth. The companies offer jet skiing, yacht rental, and resort booking.

The Middle East is expected to considerably contribute to the worldwide market's growth according to boat rental market insights. This can be ascribed to the area's travel and tourism business. According to a recent YouGov survey, the organizer of the Arabian Travel Market (ATM) 2021, the amount of money spent on leisure travel in the Middle East will begin to approach 2019 pre-COVID-19 levels in as little as three years.

Segmental Analysis

The global boat rental market is segmented based on boat type, boat size, Power, activity, and region.

The market is further segmented by Boat type into Inboard Boats, Outboard Boats, and Sail Boats.

Inboard Boats account for the maximum share of the market.

An internal engine, often placed within the boat's hull, powers inboard boats. These boats are well-known for their dependability, maneuverability, and tremendous performance. They are frequently utilized for water activities such as wakeboarding and waterskiing because of their capacity to create high Power and torque. Inboard boats offer a steady and controlled boating experience, making them ideal for families and enthusiasts.

Outboard engines are positioned on the boat's exterior, or "outboard. " These boats are versatile and easy to maneuver, making them popular for fishing and leisure boating. Outboard boats are popular among novice and experienced boaters due to their simplicity and ease of maintenance.

Based on boat size, the market is fragmented into Less than 30 ft, between 30 and 79 ft, and Greater than 79 ft.

Less Than 30 Ft occupy the largest share of the market.

Small to medium-sized boats are those that are less than 30 feet in length. They are well-known for mobility and access to various water basins, including lakes, rivers, and coastal locations. These boats are frequently preferred for shorter voyages, day excursions, and activities such as fishing, water sports, and leisure cruising.

Mid-sized to big vessels range in length from 30 to 79 feet. They have larger interiors, lodgings, and amenities, making them ideal for longer journeys and overnight stays. Cabin cruisers, motor yachts, and sailing yachts provide a good blend of comfort and maneuverability.

Based on Power, the market is sub-segmented into Engine Powered, Man Powered, and Sail Propelled.

Engine Powered generates the most revenue.

Engine-powered boats are propelled by internal combustion engines, commonly fuelled by gasoline or diesel. These boats are well-known for their speed, adaptability, and simplicity of operation. They are frequently preferred for water sports, fishing, and leisure boating. Outboard or inboard engines are often used in engine-powered boats for efficient and dependable performance. The increasing demand for engine-powered boats, the wide availability of engines, and the expanding popularity of recreational boating will all likely fuel growth in the engine-powered category in the future years.

Man-powered boats require physical effort to operate, such as rowing or paddling. These boats are often smaller, easier to operate, and provide a more peaceful and environmentally friendly boating experience. Man-powered boats are frequently used for leisurely and peaceful adventures, such as paddling on lakes, rivers, or along quiet coastal areas.

By activity, the segment can be further bifurcated into Sailing and Leisure, and Fishing.

Sailing and Leisure is a significant contributor to the market.

Sailing and leisure activities include diverse boating experiences intended for relaxation, discovery, and enjoyment. Customers interested in sailing and Leisure may be looking for peaceful trips on the water, soaking in the landscape, and enjoying the thrill of sailing. Sightseeing cruises, island hopping, sunset sails, and day visits to gorgeous locations are examples of these activities.

Anglers enthusiastic about pursuing their preferred catch in various bodies of water can participate in fishing activities. Customers who want to go fishing may opt for boats with fishing gear, fish finders, and bait wells. These boats are intended to enhance the fishing experience by providing access to top fishing locations and a successful day on the sea.

Recent Developments

• October 2023- Sunsail and The Moorings entered an exclusive purchase deal with monohull sailboat maker Dufour. This exclusivity signals the end of a 40-year collaboration with the Bénéteau Group.
• October 2023- GetMyBoat, the world's largest boat rental marketplace, has joined Morgan Stanley, the world's premier global financial services organization, as a Reserve Rewards Program partner. Through this program, Morgan Stanley Reserve members can access unique discounts and rewards from the best luxury lifestyle and travel brands.