A new study finds that the growth of the recreational electric boat market is exploding — it’s expected to reach $16 billion by 2031!
Allied Market Research recently published a report outlining the growth of the electric and hybrid boat market, stating that the global electric boat industry generated $5 billion in 2021. The market is expected to bring in $16.6 billion by 2031, making a compound annual growth rate (CAGR) of 12.9% over ten years.
The electric boats that operate within the 50-100 km range (31-62 miles) held the highest market share in 2021, making up more than two-fifths of the global electric boat market. This segment is also projected to maintain that leadership status throughout that forecast period.
Within that range we have the passenger boat segment. That’s the segment where the giants like Brunswick Marine live, and which accounted for the largest portion of the global market in 2021 — more than two-thirds of said market — and the leaders there expected to maintain that lead position during the forecast period.
One factor that will help to boost the market in the future comes from various manufacturers launching new electric boats in the 101-1,000 km range (62-621 miles). This segment, which includes the 500 HP Arc One, is expected to create a CAGR of 14.1% from 2022 to 2031.
These longer-range boats include cargo boats, a segment that’s expected to set the largest CAGR of 14.8%, predominantly from their wider usage to transport large quantities of heavy goods.
Europe was the region with the highest market share in terms of revenue in the 2021 report, making up nearly half of the global market. North America is expected to see the fastest CAGR of 14.0% over the forecast period, due to factors like higher fuel costs, environmental concerns, and government regulations aimed at reducing emissions in marine transport.
Of course, like with anything else in the electric mobility segment, COVID-19 impacted the industry with supply chain disruptions, closings of manufacturing hubs, shortage of raw materials, and a lessened workforce, which did restrict market growth. However, post-pandemic, the electric boat sector has seen significant growth.
From the growing understanding of environmental concerns, stricter emission regulations, and increase in both seaborne trade activities and the marine tourism industry, the global electric boat market has huge growth potential. The market is still rather limited, though. There is still the limited capacity of batteries and the high cost of electric propulsion systems. With efforts to expand charging infrastructure, advance technological capabilities, and gain government support to promote the adoption of electric boats, new and wider opportunities could arise in the coming years.
SOURCE | IMAGES: ALLIED MARKET RESEARCH.