US BOAT MARKET
Boats are transportation vessels which can be used for personal as well as for purposes of carrying goods. The boats are made of different materials according to their environment and use, the size and shape of the boat influences the purpose of their availability. Boats are classified into different types such as Unpowered Boat, Sailboat and motorboat.
Normally the boating season in the USA starts in late April and ends in early October in maximum states, although at some places it is there throughout the year. The expansion of boat industry started in early 1930s when National Outboard Association and the Marine Trade Association formed after World War II had come up with the idea of light weight and high speed boats which led to the introduction of Fiberglass in Boat Manufacturing, but after WWII the boom in the Boat Industry took place.
The first step towards boating safety standards also began with the meeting of the American Boat and Yacht Council. After this some big players came forward which provided safety standards and advancement in boat manufacturing with respect to design, size, shape, engine, etc.
US BOAT MARKET DYNAMICS
As per NMMA, sale of new cruisers reached a twelve-year high in 2020, up 19.5% compared to 2019, due to sales gains both in sterndrive cruisers and outboard cruisers. Sales of new boats used for watersports rose 12.8% in 2020, surpassing the 2007 sales level for the first time. Increased sales of pontoon boats (up 17.3%), personal watercraft (up 8.3%) and inboard wake sport boats (up 21.4%) were the major contributors to the spike in watersport boat sales in 2020. New fishing boat sales were up 10.3% in 2020, the highest annual sales total since 2007.
In old times the boats were mainly used for carrying goods, but as the time passed the boat are now considered as a luxury class (high class society). When we talk about the material which is used, there are mainly 4 types of material:
- Iron and steel
- Composite Material
US BOAT MARKET SEGMENTATION
On Basis Of Engine Type
On Basis Of Application
- Fishing Boat
- Personal Watercraft
On The Basis Of Power
- Engine Powered
- Man Powered
IMPACT OF COVID-19 ON US BOAT MARKET
Different types of materials are used to manufacture the boat for a particular purpose and those materials or parts are either exported or imported as needed.
The Pandemic (Coronavirus) has put a halt on the transportation and human activities that led to decline of production and sales of all products and services. Companies have reported losses in the revenue and some have filed bankruptcy as well due to less demand and inability to handle the resources of the company in a pandemic. Due to halt in travel the people have to pay the maintenance and other charges unnecessary lead the owner to sell the assets.
US BOAT MARKET FORECAST
The global market for Leisure Boats estimated at US$ XX Billion in the year 2021, and projected to reach US$ 45.9 Billion by 2026, growing at a CAGR of 4% .
According to sources and post Covid boom it has been highlighted that Boat sales have boomed during the pandemic due to people’s choice to enjoy outdoor living, spending more time with family together. The companies which are totally dedicated in boat manufacturing also take care of people’s choice and their specific needs that should be available.
TECHNOLOGICAL TRENDS IN US BOAT MARKET
Rising Carbon emission, decrease in crude oil resources, increase in crude oil price continuously has affected all industries which rally on fossil fuel for the energy generation purpose.
Battery Technology is taking a giant step forward for providing the power source for vehicles, so the Boat Industry is also taking the advantage of those. Electric Boat is not a new concept but now more companies are coming forward to use it so as to reduce pollution and also contribute toward a sustainable future.
There is an added advantage of using the electric powered boat as it will provide noiselessness, pollution less, less vibrations and decrease in maintenance cost of the boat (most important). Current problem is the range that is provided by electric boats is less. So big players are focusing more on launching e-boats as well as hybrid boats with more range to attract the potential customers.
Material used for boats experience high stresses and salt water that can easily corrode and majorly affects the boat’s material (as boat maintenance cost is always high). Now light weight material with more strength and durability compared to conventional material is being introduced in material for producing finished products. Boat manufacturers are taking the advantage of this and using the material to the desired place where reinforcement is important.
Other technologies such as 3-D Printing, Shipbuilding robotics, automation, Artificial intelligence, Simulation, Solar and wind powered ships, alternate fuel are helping the industry to move towards the sustainable manufacturing technique and reducing the overall cost of boat as well so that it may become more affordable to customer and reducing maintenance cost as well.
KEY PLAYERS IN US BOAT MARKET
Brunswick group is one of the largest recreational boat, Marine engine and accessories manufacturers of the USA. It has net sales of USD 1.3 Billion in the financial year of 2020. It has its own boat brand such as Bayliner, Harris, Protector, Heyday, etc. which produces various boat types such as Motor Boat, Recreational Boats, fiberglass boats, etc.
Chaparral Boats manufacturer of fishing and pleasure boats founded in 1965 by William Bugg Peg. It provides a wide range of family boats.
J/Boats founded in 1977 by Rod Johnstone. The company manufactures specialized Fiberglass sailboats.
Feadships is the dutch manufacturer of custom yachts founded in 1949 providing high quality products to the American Market. The company indulges in extensive R&D for sleek design and environmentally friendly technology.
Perini Navi is an Italian design and construction of luxury sailing and motors yachts manufacturer (aluminium and steel) founded in 1983.
Bombardier Recreational ProductsInc. (BRP) is canadian manufacturer of a vast variety of Boats such as outboard, fish boats.
Ferretti S.p.A. is an Italian company headquartered in Forli which specialises in the design, construction and sale of luxury motor yachts founded in 1968.