The 40-Ft electric boat market is expected to grow from US$ 19,00.36 million in 2023 to US$ 4,929.58 million by 2030; it is estimated to register a CAGR of 14.6% from 2023 to 2030.
The growing disposable income of the people is fueling the growth of the ocean-based tourism & recreation sector in North America. In addition, the increasing construction of electric boat charging infrastructure in the region is propelling the market's growth. In June 2022, a new marine fast-charging infrastructure was constructed at Tahoe City Marina (US) by Aqua superPower. Thus, growing tourism and increasing construction of fast-charging infrastructure in the region are boosting the growth of the 40-Ft electric boat market.
APAC countries such as China, Thailand, Vietnam, Japan, Singapore, and Indonesia are among the most famous tourist countries in the region. In 2022, Thailand witnessed ~10 million visitors, which is expected to reach 23 million in 2023. Thus, the growing tourism in the region is expected to propel the market growth during the forecast period. The presence of many billionaires and a wide coastline in the region will further raise the demand for recreational marine activities, fueling the market growth in APAC.
The 40-Ft electric boat market in North America is segmented into the US, Canada, and Mexico. The market growth in this region is attributed to the growing ocean-based tourism & recreation sector. The rising ocean tourism is due to the growing disposable income of the people in the region. According to the US Bureau of Economic Analysis, the disposable personal income of the US in Q1 of 2023 was US$ 19,707.2 billion, which increased from US$ 18,174.4 billion in Q1 of 2022. Moreover, North America has the best cruising destinations, such as the San Juan Islands, Block Island, Rhode Island, Chicago, and Florida, which are contributing to the increased demand for electric boats. Thus, the growing tourism in the region is leading to the market's growth. As the tourism industry is growing the electric recreational boats are gaining popularity as eco-friendly alternatives to traditional diesel-powered boats. These boats are well-suited for cruising, water sports, and leisurely outings, and they offer numerous benefits such as environmental sustainability, quiet operation, and improved energy efficiency. As the demand for sustainable boating options increases, advancements in battery technology and electric propulsion systems continue to enhance the range, speed, and overall performance of electric recreational boats. The growing demand for cost-effective and stylish electric boats for sports activities has contributed to the 40-Ft electric boat market growth in the recreational boat industry.
Impact of COVID-19 Pandemic on 40-Ft electric boat market Growth
The COVID-19 pandemic negatively impacted the 40-Ft electric boat market in Europe. Restrictions and lockdown measures implemented to control the virus spread disrupted the leisure and tourism sectors, affecting boat sales and rentals. In the second quarter of 2020, Europe reported a significant decrease of up to 26.5% in shipping activities compared to its previous quarter, right after World Health Organization announced precautionary measures after the COVID-19 outbreak.
As the COVID-19 pandemic recedes and restrictions ease, the European 40-Ft electric boat market is expected to rebound. The growing awareness of environmental issues and the continued support of government regulations to control greenhouse gas emissions will drive the demand for electric boats in the post-pandemic era. Conventional fuel-powered boats contribute to pollution by emitting harmful gases such as sulfur, carbon dioxide, and nitrogen oxide. In response, European government authorities have actively promoted eco-friendly alternatives like electric boats to reduce pollution and achieve environmental sustainability goals. This shift toward electric boats has been driven by various policy initiatives. For instance, in 2020, the new regulation known as International Maritime Organization (IMO) 2020 made mandatory changes of 0.5% sulphur content on marine fuel. The government started to support and promote electric vessels to comply with these rules. The electric boat companies have seen tremendous growth due these initiatives.
Frauscher Bootswerft GmbH & Co KG, Natural Yachts BV, ESMARIN LTD, Cockwells Modern & Classic Boatbuilding Ltd, and Navalt Inc. are a few key 40-Ft electric boat market players.
The overall 40-Ft electric boat market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the 40-Ft electric boat market. The process also serves the purpose of obtaining an overview and forecast of the 40-Ft electric boat market size with respect to all market segments. Also, industry participants and commentators have conducted multiple primary interviews to validate the data and gain more analytical insights. Participants in this process include VPs, business development managers, market intelligence managers, national sales managers, external consultants, such as valuation experts, research analysts, and key opinion leaders, specializing in the 40-Ft electric boat market.