The global electric boat market is expected to grow from US$ 5,260.52 million in 2022 to US$ 11,359.85 million by 2028; it is estimated to grow at a CAGR of 13.7% from 2022 to 2028.
The electric boat market is experiencing growth due to various factors, including the rising number of solar installations supported by government incentives and growing water sports. Additionally, the market is benefiting from increasing investments in battery technology advancements. However, the market growth is being constrained by safety risks related to high DC voltages during electric boat fast charging.
The growth of the electric boat market is being fueled by increasing collaboration between market players to build charging stations. Numerous governments, cities, municipalities, and companies near the European coastline are undertaking various projects and initiatives to electrify leisure boats. For example, in 2021, Candela joined forces with Nordsol Energi, a solar energy supplier, to develop and install charging stations for electric leisure boats in strategic locations throughout Stockholm, Sweden. Similarly, in June 2020, "The Green Tail" initiative established a network of charging points in marinas along the coast of Bergen and surrounding municipalities in Norway. The Norwegian Coastal Administration has also developed a web solution that provides an overview of all charging points, shore power plants, LNG plants, and more. Thus, as more investments are made in setting up seaport charging stations, the demand for electric boats is expected to increase during the forecast period.
The electric boat market is being driven by an increasing number of boat-sharing platforms for electric leisure boats worldwide. This is particularly true for boat renting and sharing service providers. Kruser, for example, is one of the world's first boat-sharing platforms for electric leisure boats, available in ten locations in Norway. The platform has partnered with electric leisure boat manufacturers such as Green Waves, Rand boats, and Hydrolift. In addition, the company has recently developed a new project with the electric propulsion company "Evoy" to launch an additional fast electric boat fleet. As a result, the electric boat market is expected to experience growth due to the growing demand for boat-sharing platforms.
Impact of COVID-19 Pandemic on North America Electric Boat Market
Boating and fishing are two of the most popular outdoor recreational activities in North America, which includes the US, Canada, and Mexico. However, the COVID-19 pandemic had an adverse impact on the fishery industry, causing economic and social harm to people working in the sector. The lockdown restrictions imposed due to the pandemic also disrupted the supply chain, with many boats left idle at ports due to economic restrictions. Consequently, the pandemic had a negative impact on the electric boat market, which was further amplified by the decline in the recreational boating sector that supports over 691,149 jobs in North America. According to the United Nations Conference on Trade and Development (UNCTAD), fishing exports for 2020 declined by approximately one-third compared to the previous year due to low demand, as many hotels and restaurants remained closed or empty in the region. The tourism sector in the Caribbean islands also witnessed a substantial drop in recreational activities, such as boating and water sports.
The electric boat market in North America is expected to grow due to the increasing demand for leisure boating activities. The lifting of lockdown restrictions in 2020 led to the opening of tourist locations, resulting in a surge in recreational boating in the US and Canada. The National Marine Manufacturers Association (NMMA) reported that the retail unit sales of new powerboats in the US reached a 13-year high in 2020, with approximately 320,000 units sold, indicating a 13% increase from 2019. This surge in recreational boating activities is expected to drive the growth of the electric boat market in North America.
The electric boat market is segmented on the basis of boat type, battery type, and application. Based on boat type, the market is bifurcated into pure electric and hybrid. Based on battery type, the market is categorized into nickel-based, lead acid, and lithium-ion. Based on application, the market is segmented into fishing, recreational, and others. By geography, the electric boat market is segmented into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM). Further, North America accounted for the largest share of the electric boat market in 2021.
The electric boat market size has been determined using a combination of primary and secondary research methods. In the initial phase, extensive secondary research was conducted using both internal and external sources to collect qualitative and quantitative data related to the market. This process helped in obtaining an overview and forecast for the electric boat market across all segments. Subsequently, primary interviews were conducted with industry participants and experts to validate the data and gain deeper insights into the market. The participants in this process included VPs, business development managers, market intelligence managers, national sales managers, research analysts, key opinion leaders, and valuation experts who specialize in the electric boat market. Overall, the research methodology employed a rigorous approach to assure the accuracy and reliability of the data used in the analysis of the electric boat market.
The key companies operating in the electric boat market are 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.