Boat Rental Market

Market Overview

The global boat rental market size was valued at USD 19.35 billion in 2023. It is estimated to reach USD 30.40 billion by 2032, growing at a CAGR of 5.15% during the forecast period (2024–2032). In recent years, the growing popularity of recreational boating and leisure travel has increased demand for boat rentals, particularly since COVID-19 restrictions were lifted, thereby driving the global market growth. Furthermore, with surging environmental concerns, there has been a rise in sustainable and eco-friendly tourism, which is estimated to create opportunities for the global boat rental market expansion.

Boat rental refers to the service of leasing boats for various purposes, such as recreational activities, fishing, or transportation. This industry caters to individuals and groups who seek temporary access to boats without the financial commitment of ownership. Rentals typically include a range of vessels, from small motorboats and sailboats to larger yachts and luxury cruisers.

The service is often provided by specialized companies located near bodies of water, such as lakes, rivers, and coastal areas. Customers can rent boats for a few hours, a day, or longer, depending on their needs. Boat rental services offer flexibility, convenience, and an opportunity to enjoy water-based activities without the responsibilities associated with boat ownership.

Top 4 Key Highlights

• Outboard Boats dominate the boat type segment.
• Engine Powered dominates the power segment.
• Sailing and leisure dominate the activity segment.
• Europe is the highest shareholder in the global market.

Market Dynamics

Market Drivers

Growing Interest in Recreational Water Activities

The rising popularity of recreational water activities is a significant driver for the global boat rental market. More people are seeking unique and enjoyable experiences, particularly in coastal and lake regions, contributing to increased demand for boat rentals. The surge in tourism, especially in regions with abundant water bodies, has led to a higher inclination towards activities like boating, fishing, and water sports.

According to a report by the National Marine Manufacturers Association (NMMA), recreational boating saw a record year in 2021, with retail unit sales of new powerboats in the U.S. reaching around 300,000 units, marking a 13-year high. This trend is not limited to the U.S.; similar patterns are observed globally, driven by increased disposable incomes and the quest for outdoor leisure activities post-pandemic. The advent of social media also plays a crucial role, as sharing boating experiences online spurs interest among wider audiences. Consequently, a surging interest in recreational water activities is estimated to augment the global boat rental market.

Market Restraint

High Operational and Maintenance Costs

Despite the growth potential, the boat rental market faces significant restraints due to high operational and maintenance costs. Boats require regular maintenance, including engine servicing, hull cleaning, and safety equipment checks, which can be quite expensive. The costs are further escalated by the need for skilled personnel to manage these tasks, as well as the expenses related to docking and storage. For instance, the average annual maintenance cost for a mid-sized boat can range from $2,000 to $5,000, depending on the type and frequency of use. These costs are often passed on to the customers, resulting in higher rental prices, which can deter potential clients.

Additionally, fluctuations in fuel prices can significantly impact operational expenses, making it challenging for rental companies to maintain competitive pricing. Environmental regulations also add to the cost burden, as compliance with emissions standards and waste disposal requirements necessitates additional investments in eco-friendly technologies and practices. This financial strain can be particularly challenging for small and medium-sized enterprises (SMEs) in the boat rental market, limiting their ability to scale operations and compete with larger, more established players.

Market Opportunity

Rising Trend of Sustainable and Eco-Friendly Tourism

The surging awareness and preference for sustainable and eco-friendly tourism present significant opportunities for the boat rental market. Consumers are becoming more conscious of their environmental impact and are seeking travel experiences that align with their eco-friendly values. This trend is driving the demand for electric and hybrid boats, which offer a greener alternative to traditional fuel-powered vessels. Companies that invest in sustainable practices and technologies are likely to attract a growing segment of environmentally conscious customers.

According to a report by the European Boating Industry (EBI), there is a noticeable shift towards green boating solutions, with electric boat sales in Europe expected to grow at a CAGR of 11.3% from 2021 to 2028. Rental companies are increasingly adopting electric and hybrid boats to meet this demand. For example, the French company Ruban Bleu specializes in renting electric boats and has seen a significant uptick in bookings, especially in protected natural areas where fuel-powered boats are restricted. Furthermore, partnerships with conservation organizations and eco-tourism operators can enhance the appeal of boat rental services, offering unique experiences such as wildlife tours, clean-up initiatives, and educational trips focused on marine conservation.

Regional Analysis

Based on region, the global market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

Europe holds a dominant position in the global boat rental market, owing to its extensive array of tourist destinations and a thriving maritime heritage. The region is anticipated to witness substantial growth throughout the forecast period, driven by its diverse coastal locations and increasing consumer interest in water-based activities. Key contributors to this market expansion include Croatia, Spain, and Italy, with Spain and Italy standing out due to their significant revenue shares. Italy, in particular, is a major player in the European boat rental sector. According to the Ministry of Tourism, Italy's boat rental industry generated €650 million in 2022, representing over 35% of the European market share. This substantial contribution underscores Italy's pivotal role in the region's maritime economy.

The European boat rental market was valued at €1.8 billion in 2021, as reported by the European Boating Industry (EBI). This valuation reflects the region's rich maritime heritage, diverse coastal destinations, and robust tourism sector. The surging popularity of fishing and water sports, coupled with an increasing number of high-net-worth individuals, is expected to drive further growth in this market. Moreover, a 2017 report by the European Commission highlighted the economic impact of chartered boats, noting that 60,000 chartered boats out of 6 million yachts contribute an annual revenue of USD 6.82 billion. This figure emphasizes the significant revenue potential and continued demand for boat rental services in Europe. Thus, Europe's boat rental market is poised for growth, supported by its rich tourism landscape and increasing engagement in water activities.

The Asia Pacific region is emerging as the fastest-growing market for boat rentals, driven by several dynamic factors. The region's robust growth is fueled by a burgeoning tourism industry and rising disposable incomes in key markets such as Australia, New Zealand, and Thailand. The substantial and expanding population in China and India—accounting for over 38% of the global population—plays a pivotal role, with increasing urbanization and higher disposable incomes driving demand for leisure activities.

The popularity of water sports, fishing, and marine tourism is surging across countries like India, Japan, Thailand, Malaysia, China, and Australia. For instance, the Tourism Authority of Thailand (TAT) reported a notable revenue of THB 2.5 billion from the boat rental industry in 2022, highlighting significant growth potential. Additionally, governmental initiatives further bolster this growth. In China, the government's 2016 circular promotes yachting as a mainstream leisure activity, not just a luxury one, and has introduced pilot yacht rental programs to stimulate the market. Similarly, India'sIndia's maritime tourism promotion policies are set to enhance market opportunities. Collectively, these factors indicate a vibrant and expanding boat rental market in the Asia Pacific region.

Segmental Analysis

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

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

Outboard Boats dominate the boat type segment. Outboard boats, which are propelled by motors mounted on the exterior, provide greater maneuverability, versatility, and ease of use, making them popular choices for recreational boating. The increasing demand for user-friendly and fuel-efficient options has contributed to outboard boats' dominance as they align with changing consumer preferences. Outboard boats are popular among both novice and experienced boaters because they are simple and easy to maintain. Outboard motors are popular in the rental market due to their ease of maintenance and repair. The outboard boat rental market is expanding, driven by rising interest in fishing and day trips. Anglers appreciate outboard boats' ability to quickly reach prime fishing spots, whereas day-trippers enjoy the freedom to explore various waterways without extensive boating experience.

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 dominates the boat size. These smaller boats are popular because they are inexpensive, easy to operate, and suitable for a variety of activities such as fishing, leisure cruising, and watersports. Boats under 30 feet are well-established in the market, meeting the needs of both novice and experienced boaters. They are often easier to navigate and require less maintenance than larger boats, making them appealing options for rental companies. Furthermore, smaller boats are more accessible to a wider range of customers because they are generally less expensive and can be operated without specialized training or licenses in many cases. The growing popularity of experiential travel, which seeks out unique and immersive experiences, reinforces the dominance of boats under 30 feet. Renting a smaller boat allows customers to explore waterways, participate in water activities, and create memorable experiences, which aligns with the current trend of prioritizing experiences over possessions. As a result, demand for smaller boat rentals is increasing, solidifying their position as the market's dominant segment.

Based on power, the market is sub-segmented into engine-powered, man-powered, and sail propelled.

The engine-powered segment is estimated to own the market over the forecast period. Engine-powered boats dominate the Global Boat Rental Market due to their ease of use, speed, and versatility. They offer a convenient alternative to sailing or rowing, catering to those seeking a straightforward boating experience. Engine-powered boats are favored for their broad applicability, supporting activities such as fishing, cruising, and water sports. Their popularity is also driven by their comfort, featuring amenities like seating, shade, and storage. With a well-established market and diverse options—from small, open boats to large luxury vessels—engine-powered boats meet varied consumer preferences. The segment's growth is fueled by rising recreational boating interest, expanding online rental platforms, and a trend toward more accessible boating experiences.

By activity, the segment can be further bifurcated into sailing and leisure, fishing, and others.

In the Global Boat Rental Market, the Sailing and Leisure segment is dominant, encompassing various recreational activities such as cruising, watersports, and leisure trips. This segment caters to diverse preferences with options ranging from small, basic boats to large, luxurious yachts, accommodating both novice and experienced boaters. The rise in experiential travel has boosted demand for sailing and leisure boat rentals as travelers seek unique, immersive experiences on the water. Online boat rental platforms further enhance accessibility and convenience, enabling customers to easily book their desired vessels. Additionally, increased disposable income and purchasing power have driven market growth, allowing more individuals to indulge in boating as a recreational activity.

Recent Developments

• May 2024- The Coronado Ferry Landing will be offering boat rentals and concert charters, providing visitors with more recreational options in this picturesque setting. This aligns with the growing global boat rental market, which is projected to reach $31.2 billion by 2031, driven by increased marine tourism and the development of online rental platforms.