The global leisure boat market revenue was valued at USD 51.54 billion in 2024. It is expected to reach USD 74.43 billion in 2032, growing at a CAGR of 4.7% over the forecast period (2024-32). Rising disposable income worldwide is a significant driver for the leisure boat market. As individuals have more spending power, they are increasingly investing in recreational activities, including boating. This surge in disposable income boosts demand for various types of leisure boats, enhancing the market's growth trajectory.
A leisure boat is an entertainment marine vessel used primarily for enjoyment and tourism. Sailboats, runabouts, towboats, cabin cruisers, jet boats, and watercraft are all examples of popular types of recreational boats that can be either motorized or non-motorized and are available for purchase. Activities such as boating, sailing, fishing, and campaigning are common ways people put them to use. Since boating enables people to enjoy themselves while maintaining a social distance, it has become one of the most popular forms of leisure activity in various regions and countries, which has led to an increase in the number of people purchasing boats. The leisure boat has opulent and roomy cabins constructed from high-quality materials like wood, plastic, aluminum, and coated fabrics. It also has cutting-edge propulsion systems and a variety of conveniences for overnight guests. The growing interest in boating among adults and rising levels of discretionary income are two factors that have contributed to the significant rise in the popularity of recreational boating. These factors encourage people to participate in recreational activities, including recreational boating.
The expansion of the leisure boat market is fueled by the swift development of the tourism industry and the introduction of technologies such as the internet of things and intelligent connected devices. Due to various leisure boats' low and affordable prices, going boating has become a popular choice for leisure activity. The rise in the number of people who have a significant amount of wealth has led to an increase in the amount of money spent on activities for leisure. In addition, the expansion of the number of trade shows and boating events and the rise in the number of people participating in these types of events has contributed significantly to the increase of the market.
Security and safety are the primary concerns of recreational boat owners. When boats are moored and left unattended, especially during the winter, there is a risk that they will become unmoored and drift away. To overcome these obstacles, boat manufacturers are investing in Internet of Things (IoT) technology that will help reduce the number of boats that suffer internal damage and sink. The incumbents of the leisure boat market are aggressively adopting new technologies to provide better products and maintain their competitiveness in light of the market's competitiveness. Consequently, private boat manufacturers, boat owners, and fleet managers would now have remote access to their boats' vital information, enhancing the boating experience.
As disposable incomes rise throughout the world, more and more individuals choose to travel and participate in tourism-related activities. Increasing demand for a substitute means of traveling and lodging also expands the leisure boat market. Individuals' shifting spending patterns have resulted in the adoption of diverse forms of recreation. Recreational boating is becoming an increasingly popular pastime. People are finding more fun and excitement in recreational boating. The boating industry provides employment opportunities and is emerging as a source of revenue for yacht caterers, clothing stores, chandlers, and boat builders, to name a few.
Water is one of the most valuable resources on the planet. Boating activities, such as scuba diving, snorkeling, fishing, swimming, and wildlife observation, can be encouraging and exciting when conducted in clean waters. However, practices associated with boating, such as incorrect and improper refueling, storage, and repairs, and neglectful maintenance, pose environmental risks by degrading water quality and affecting wildlife and marine ecosystems.
Oil and fuel spills can wreak havoc on marine ecosystems, impact marine life, and degrade water quality. Additionally, if vessel sewage is discharged directly into marinas without proper treatment, it could pose a significant threat. Among such discharges are intentional dumping, leakage, and spillage. Although marinas are vital to the economy and boating industry, the nature of the leisure boating industry poses a potential threat to marinas. Careful and responsible recreational boating would contribute to the safety of boaters and their families, the preservation of marinas, and the protection of aquatic life.
The World Bank estimates that High Net Worth Individuals, also known as HNWI, make up less than 1% of the world's total population but control more than 40% of its natural wealth. Initially, these people were only found in the western part of the world; however, they have since spread throughout many different world regions. The increase in people with high net worth is driving up spending on leisure activities like recreational boating. The demand for leisure boats, in particular, is on the rise. This is because modern leisure boats can provide passengers with a connected experience even while participating in leisure and recreational activities, such as cruising, fishing, and other water sports activities.
| Study Period | 2020-2032 | CAGR | 4.7% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD 49.23 Billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD 74.43 Billion |
| Largest Market | North America | Fastest Growing Market | Europe |
The North American region will hold the largest share of USD 28,367 million at a CAGR of 4.2% by 2030. North America is home to a significant number of boat manufacturers, both large and small. The region is growing due to the high demand for different recreational boats in the region.
Further, the impact of coronavirus has also led to an increase in the number of people participating in activities that involve boating. According to the reports compiled by the NMMA, the number of individuals purchasing their first boat in the market was approximately 415,000 in the year 2020. In addition, the COVID-19 outbreak on the leisure boat market was observed to positively impact the region, particularly in the United States. According to the region's manufacturers and resellers, after the second quarter of 2020, there was a significant increase in the number of boats sold.
The European region will be the fastest-growing region at a CAGR of 5.7%, accounting for USD 27,186 million during the forecast period. One of the most substantial aspects of the expansion of the market is the significant amount of boat and yacht production in the region. It is anticipated that an increase in the number of people participating in recreational boating activities will also expand the regional market. Additionally, the yachting industry is the most lucrative in Europe compared to other regions. The market's growth is being helped along with an increase in the number of high-net-worth individuals living in the area and an increase in the number of people participating in fishing and other watersports. In addition, the region is well-known for hosting a variety of trade shows and recreational boating events, both of which contribute to the expansion of the market in the area.
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The new leisure boats are further segmented into Motorized and Non-motorized.
The motorized new leisure boats are expected to grow at a CAGR of 5.2% to reach USD 11,190 million by 2030. The expansion of the new leisure boat market is fueled by several factors, including the increasing adoption of cutting-edge technologies like intelligent sensors, artificial intelligence (AI), and the internet of things (IoT), as well as the availability of flexible financing options made available by boat manufacturers. The motorized new leisure is sub-divided into personal watercraft, outboard boats (pontoon boats and others), yachts (superyacht, flybridge yachts, sport yachts, long-range yachts) others) and others. The non-motorized new leisure boat is expected to account for USD 1,648 million at a CAGR of 6.9% during the forecast period. The non-motorized market is propelled by an increase in the number of people using outboard boats and yachts, both of which are primarily employed for recreational purposes. The market is being driven by the ever-increasing demand for yachts and the growing number of yachting competitions held all over the world. The non-motorized is sub-divided into kayaks, canoes, and others.
The used leisure boat is also segmented into motorized and non-motorized.
The motorized used leisure boats are estimated to grow at a CAGR of 4.5% to reach USD 42,318 million by 2030. The large market share held by the used leisure boat segment can be attributed to the quick purchasing ability of the used boats, which eliminates the need for a longer delivery window. Used boats almost always continue to be operational and are prepared for sale, which encourages users to go with a pre-owned vessel rather than a new one. Compared to new ships, the lower prices of used boats are yet another significant factor contributing to the large market share of used boats. The non-motorized used leisure boats are expected to be the fastest-growing segment at a CAGR of 6.5%, accounting for USD 7,558 million by 2030. Due to the growing use of kayaks and canoes in exciting water sports and the low prices of non-motorized boats, the segment of the market for non-motorized used boats is growing at a better CAGR over the forecast period. In addition, as these boats are becoming more readily available, there has been an increase in the demand for ships that do not have motors. In addition, these vessels can be purchased in a wide range of contours and dimensions, making them more accessible to buyers of all ages and socioeconomic backgrounds.
The equipment segment is bifurcated into boat and yacht monitoring solutions, IoT sensors, telematics solutions, etc.
The boat and yacht monitoring solution is anticipated to grow at a CAGR of 6.4% to reach USD 1,872 million by 2030. Throughout the forecast period, the proliferation of the Internet of Things technology and smart connected devices is anticipated to play a significant role in driving growth in the monitoring equipment market. By eliminating the need for users to perform specific manual tasks, intelligent devices and Internet of Things technologies make boating activities more user-friendly and improve the overall boating experience. In addition, the use of wireless technology and smartphones makes it possible for the owner of the boat to effectively track, monitor, and control the ship. The integration of smartphone apps and the internet of things makes it easier to maintain preventative maintenance, receive alerts in an emergency, and receive notifications. The improved connectivity helps to further ensure the safety of boaters while they are traveling on lengthy journeys.
Based on propulsion type, the global leisure boat market is divided into diesel, gas, electric/hybrid, and others.
In the global leisure boat market, the Diesel propulsion segment is currently dominating. Diesel engines are favored for their superior fuel efficiency, longevity, and reliability, which are critical factors for boating enthusiasts and commercial operators alike. These engines provide a high power-to-weight ratio, making them ideal for long-distance cruising and heavy-duty applications. The establishment of the diesel segment in the market is reinforced by its historical dominance and widespread acceptance among boat manufacturers and users. Diesel-powered boats are well-suited for various types of leisure activities, from fishing and sailing to luxury yachting, due to their robust performance and lower operational costs over time compared to gas engines.
Additionally, advancements in diesel engine technology have led to significant reductions in emissions and improvements in environmental performance, aligning with global sustainability trends. This has helped maintain the relevance of diesel propulsion even as electric and hybrid technologies gain traction. The infrastructure for diesel refueling is well-established globally, providing convenience and accessibility that further support its dominance. Leading manufacturers continue to innovate within the diesel segment, enhancing engine efficiency and integrating modern features to meet evolving customer demands. As a result, diesel propulsion remains the preferred choice for a wide range of leisure boat applications, cementing its leadership in the market.
The industrial lockdown followed by the COVID-19 pandemic brought manufacturing activity to a grinding halt in most industries worldwide, leading to a significant drop in the demand for oil and gas. For instance, as per the US Energy Information Administration, the average consumption of petroleum and liquid fuels globally was reported at 94.1 million barrels per day during the Q1 period of 2020, a decline by around 5.8 million barrels per day from the same period observed in 2019. In addition, power demand from industrial and commercial end-users also saw a significant dip due to lockdown being imposed in most countries around the globe.
COVID-19 has hindered the market for PV inverters globally due to disruption in the supply chain, resulting in delays for existing projects. Further, demand for PV inverters has reduced from residential and commercial end-users due to limited new construction activities and the diversion of available funds by residential and commercial end-users to sustain themselves during the pandemic.
Nonetheless, the governments in major countries such as the US, Germany, and India have taken steps to extend the deadline for new and under construction solar power projects to be eligible for incentives and tax credits. These factors have mitigated the impact of COVID-19 in the PV inverter market.
