Electric Boat Market is expected to reach US$ 11,359.85 Million by 2028

The global electric boat market is expected to reach US$ 11,359.85 million by 2028; registering at a CAGR of 13.7% from 2022 to 2028, according to a new research study conducted by The Insight Partners

Increasing Investments in Battery Advancement to Create Lucrative Opportunities for Electric Boat Market

In Europe and North America, there has been a significant rise in the demand for electric boats, mainly due to the increasing number of leisure boats and water sport activities. Growing tourism and rising fishing activities are expected to boost the demand for electric boats. In addition, the development of speedboats is expected to fuel innovations in charging infrastructure. The average speed of an electric speedboat is ~60 mph (100 km/h). Major global speedboat manufacturers include Candela, X Shore, and Orust E-boats. Further, the increasing government support for the electrification of leisure boats is expected to boost the demand for a network of charging stations across marine lines or seaports. For instance, the Swedish government plans to speed up the electrification of the transport sector to reach the climate goals, such as emission control, including projects for electricity roads, marine infrastructure for charging, and an electrification commission by 2030. The major focus on electrification of all types of transportation is expected to contribute to the demand for electric boats across the regions.

Electric Boat Market — by Geography, 2021 and 2028 (%)

Further, the increasing demand for electric leisure boats and speedboats, especially in tourist sightseeing, is a key factor contributing to the need for boat sharing and renting services. The service providers are shifting toward electric boats to reduce the operational and maintenance costs of rented boats. In North America, companies such as American Boat Rentals, Viator, and Borrowboat provide boat-sharing and rental services. Consumers prefer boat rental services as it is an affordable solution and offers convenience during their trips. In addition, several market players are offering speedboats particularly suitable for rental services. In North America, companies such as Vision Electric Boat Rental and Chicago Electric Boat Company provide rental boats for recreational activities along riverside and seashores. Further, Chicago Electric Boat Company offers boat renting services at an average cost of ~US$ 150–250 in the US. Electric boat rental services are highly preferred over fuel-powered boats owing to their lower operational costs.

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 North America electric boat market growth is driven by the growing popularity of recreational activities such as leisure boating and water sports and the high demand for electric boats in inland waterways and coastal tourism in the US. Further, the growing need for fully electric boats and rising emphasis on adopting fossil-free boats with reduced noise are also contributing to the market growth.

Impact of COVID-19 Pandemic on Europe Electric Boat Market

During the COVID-19 pandemic, bans on recreational fishing and restrictions on movement in European countries such as Italy, Germany, Portugal, and Spain resulted in the reduced demand for electric boats. Further, the closure of water sport activities, mainly owing to the shutdown of the tourism and sightseeing locations, has also negatively impacted the Europe electric boat market. According to the United Nations Conference on Trade and Development (UNCTAD), the fish catch fell by ~80% in the Mediterranean Sea territory. The imposed confinement measures across the region primarily affected small-scale fishers.

Furthermore, the tourism sector in European countries such as Italy, Spain, and France has been severely affected by the COVID-19 pandemic, which resulted in reduced demand for recreational boating activities. A large network of inland waterways in Italy and the Netherlands executes passenger transportation. Further, the COVID-19 outbreak has adversely impacted the transportation sector, which hampered the Europe electric boat market. However, in 2021, the outlook for water sports and tourism was positive. The UK experienced a surge in tourism and water sports, which increased the demand for electric boats. Thus, the COVID-19 pandemic is expected to support the growth of the electric boat market in Europe during the forecast period.

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 are a few of the major players operating in the global electric boat market. Several other market players have also been analyzed to understand the ecosystem of the electric boat market.

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