The recreational boating market (henceforth referred to as the market studied) is anticipated to register a CAGR of about 4.20% during the forecast period (2019 – 2024).
- 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 towards recreation activities and watersports from Millenial and Post Millenial generations are further boosting the demand for 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.
Key Market Trends
Growing Demand for Watersports And Recreational Activities Across the Globe
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 is supporting market growth worldwide.
According to the Royal Yachting Association, 3.5 million people (6.7% of UK adults) participated in one or more of 12 core boating activities in 2016, the highest volume recorded since 2009 (3.534 million). Moreover, 668,828 (1.3% of UK adults) took part in growing watersports activities, a rise of approximately 95,000 more participants.
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.
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 on-going trend is boosting the watersport industry domestically. For instance, in recent years UK has witnessed a higher proportion of UK adults participating in water skiing and using personal watercraft in the UK than abroad (+18.3% and +27/9% in the UK vs. -19.2% and -20.8% abroad respectively).
Asia-Pacific is likely to Grow at a faster Pace
The recreational boating industry in Asia-Pacific region is likely to grow significantly over the forecast period The growing demand for watersports in developing countries such as China, Australia, India, Japan and amongst others is driving the recreational boat industry in the Asia-Pacific region. China and Australia is likely to dominate the APAC region for the recreational boating industry.
France is Europe’s largest boating market, both territorially and demographically. In 2017, the French boating industry was supported by a network of 7,000 boating businesses. United Kingdom is one of Europe’s largest markets with over 4 million active boating participants and close to 600,000 boats in ownership. In total, over 14.3 million people (27.3% of UK adults) participated in any water-based leisure activities. With an increase of more than 2 million more participants in 2017, it is the highest volume of participants recorded since pre-recession (14.4million in 2007). It includes participants of the 12 core boating events and growing watersports activities, as well as activities such as sea angling and coastal walking.
The above facts and figures ensure the growing demand for boating industry worldwide and is likely to continue grow over the forecast period as people are getting attracted towards watersports.
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 through strategic acquisitions and partnerships for increasing their revenue generation opportunities. For instance,
- In May 2019, Brunswick Corporation announced that as part of the company’s strategy to expand its presence and scale within the emerging and fast-growing boat club segment, it has entered into a definitive agreement to acquire Freedom Boat Club (FBC).
- In June 2018, Winnebago Industries, Inc. acquired Chris-Craft to expand their product range with new recreational boats and dealership network.
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