Electric Boats Will Be A $16.6 Billion Market By 2031
Allied Market Research recently published a report outlining the growth of the electric and hybrid boat market, and they’re predicting a massive, 12.9% compound annual growth rate (CAGR).
The global electric boat industry generated $5 billion in 2021, which represented significant “post COVID” growth. Following that COVID bump, “boating and fishing continue to occupy the top rank as the largest leisure activity in the U.S.,” according to Allied Market Research. “(Nearly) 100 million Americans go boating each year. With continuous popularity of remote work and flexible schedules, people are exploring more adventures in water.”
If Allied Market Research is right about their 12.9% growth projections – that $5 billion in 2021 works out to more than $16.6 billion by 2031. And, while different segments of the boat industry are expected to grow at a faster rate, the most profitable market seems to be cargo boats.
Passenger electric boats operating within the 50-100 km range (31-62 miles) hold the highest market share in 2021, making up more than 40% of the global electric boat market. This segment is also projected to maintain that leadership status throughout that forecast period, with more consumers picking up on marine products that are quieter, cleaner, and less expensive to own and operate. Not to mention the fact that many lakes and rivers are now banning many forms of internal combustion engines.
That’s the core of the consumer market — and the leaders there (X Shore, Flux, Ingenity, etc.) are expected to maintain that lead position during the forecast period.
Longer range cargo boats are expected to set the largest percentage of growth, predominantly from their ability to insulate marine shipping fleets from unpredictable fuel costs. And, while Europe is leading today, the study implied that American growth would outpace it. “North America region is expected to witness the fastest CAGR of 14.0% from 2022 to 2031,” the report’s summary reads. “This is attributed to rise in environment concerns, high fuel cost, and government rules & regulations toward reducing emission in marine transport.”
What do you guys think? Are electric watercraft the wave of the future (see what I did there?), or will the rising cost of– well, everything put a damper on Allied’s growth numbers for electric boats? Scroll on down to the comments and let us know.
Source | Images: Allied Market Research, via PR Newswire.
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