Electric Boat Market Research Report and Outlook by 2028

The worldwide electric boat industry is projected to expand from approximately US$ 5,260.52 million in 2022 to around US$ 11,359.85 million by 2028, reflecting a compound annual growth rate (CAGR) of 13.7% during the period from 2022 to 2028.

The electric boat sector is witnessing significant growth driven by several factors, such as the increasing installation of solar energy systems, which are often incentivized by government programs, alongside a rise in water sports activities. Furthermore, advancements in battery technology are attracting more investments, contributing positively to market dynamics. Nevertheless, the expansion of this market faces challenges, particularly concerning safety issues associated with high DC voltages during the rapid charging of electric boats.

A key driver of the electric boat market's growth is the rising collaboration among industry stakeholders to establish charging infrastructure. Various governments, municipalities, and private enterprises along the European coastline are launching initiatives aimed at electrifying recreational boating. For instance, in 2021, Candela partnered with Nordsol Energi, a solar energy provider, to create and install charging stations for electric leisure boats in key locations across Stockholm, Sweden. Similarly, the "Green Tail" initiative, launched in June 2020, has set up a network of charging stations in marinas along the coast of Bergen and its neighboring municipalities in Norway. The Norwegian Coastal Administration has also introduced a digital platform that offers a comprehensive overview of all charging stations, shore power facilities, LNG plants, and more. As investments in port charging infrastructure continue to grow, the demand for electric boats is anticipated to rise throughout the forecast period.

The electric boat market is also being propelled by the increasing prevalence of boat-sharing services for electric leisure vessels globally. This trend is particularly evident among companies that provide boat rental and sharing services. For example, Kruser stands out as one of the pioneering boat-sharing platforms for electric leisure boats, operating in ten locations across Norway. The platform has formed partnerships with manufacturers of electric leisure boats, including Green Waves, Rand Boats, and Hydrolift. Recently, Kruser has initiated a project with the electric propulsion firm "Evoy" to introduce an additional fleet of fast electric boats. Consequently, the demand for boat-sharing services is expected to further stimulate growth in the electric boat market.

Effects of the COVID-19 Pandemic on the Electric Boat Market in North America
In North America, which encompasses the US, Canada, and Mexico, boating and fishing rank among the most favored outdoor recreational activities. However, the COVID-19 pandemic adversely affected the fishing industry, leading to economic and social challenges for those employed in this sector. Lockdown measures implemented during the pandemic disrupted supply chains, leaving many boats stranded at ports due to economic constraints. As a result, the electric boat market suffered, compounded by a downturn in the recreational boating industry that supports over 691,149 jobs in North America. According to the United Nations Conference on Trade and Development (UNCTAD), fishing exports in 2020 plummeted by nearly one-third compared to the previous year, primarily due to diminished demand as numerous hotels and restaurants remained closed or underutilized. The tourism sector in the Caribbean also experienced a significant decline in recreational activities, including boating and water sports.

Despite these challenges, the electric boat market in North America is poised for growth, driven by a resurgence in leisure boating activities. The easing of lockdown restrictions in 2020 facilitated the reopening of tourist destinations, leading to a notable increase in recreational boating in both the US and Canada. The National Marine Manufacturers Association (NMMA) reported that retail sales of new powerboats in the US reached a 13-year peak in 2020, with around 320,000 units sold, marking a 13% rise from 2019. This uptick in recreational boating is expected to bolster the growth of the electric boat market in North America.

The electric boat market is categorized based on boat type, battery type, and application. In terms of boat type, the market is divided into pure electric and hybrid categories. Regarding battery type, it includes nickel-based, lead-acid, and lithium-ion batteries. Applications are segmented into fishing, recreational, and other uses. Geographically, the electric boat market is divided into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). Notably, North America held the largest share of the electric boat market in 2021.

The size of the electric boat market has been determined through a combination of primary and secondary research methodologies. Initially, extensive secondary research was conducted using both internal and external sources to gather qualitative and quantitative data relevant to the market. This approach provided a comprehensive overview and forecast for the electric boat market across all segments. Following this, primary interviews were held with industry participants and experts to validate the data and gain deeper insights. Participants included VPs, business development managers, market intelligence managers, national sales managers, research analysts, key opinion leaders, and valuation experts specializing in the electric boat sector. Overall, the research methodology employed a thorough approach to ensure the accuracy and reliability of the data utilized in the analysis of the electric boat market.

Key players in the electric boat market include Frauscher, Duffy Electric Boat Company, Rand Boats APS, Vision Marine Technologies, Quadrofoil D.O.O, Ruban Bleu, Aquawatt Mechatronik and Yachtbau, Candela, and Budsin Wood Craft.