Recreational Boats Market to Reach $54.9 billion by 2027, Growing at a CAGR of 7.8% from 2020 with COVID-19 Impact - Meticulous Research Analysis
REDDING, Calif., March 31, 2021 /PRNewswire/ -- The recreational boats market is poised to grow at a CAGR of 7.8% from 2020 to reach USD 54.9 billion by 2027. The growth of this market is mainly attributed to the booming tourism industry, growing economic development, growing participation in boating activities, innovation in boat engines, and increasing disposable income. Additionally, growing water sports activities and growing boat imports in developing nations provide significant growth opportunities for recreational boats.
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Impact of COVID-19 on the recreational boats market
The COVID-19 pandemic outbreak has caused a widespread economic downturn as several countries imposed strict lockdowns to contain the infection. This has affected diverse industries; manufacturing is one of the severely impacted sectors. There has been a significant impact on supply chains globally. Boats and engine manufacturing companies have faced huge losses during the first & second quarter of 2020 due to disrupted supply chains and production schedules. The rapid spread of COVID-19 in the U.S., Europe, and Asian economies resulted in nationwide lockdowns and a temporary halt of production facilities to prevent further spread.
With the increasing number of cases, consumers opted to spend on necessities and food supply compared to recreational & leisure activities in the highly impacted regions, including Europe and Asia-Pacific. This situation resulted in negligible spending on outdoor recreational & boating activities. Also, the imposition of stringent lockdowns and temporary closure of public facilities, including marinas, boating parks, and lakes, has led to the downfall of the boating business.
Powered boats are witnessing a significant demand even during the pandemic in the U.S. Following the WHO's social distancing guidelines for minimizing the virus' spread; people have shunned airlines, hotels, cruises, and other crowded places. North Americans have opted for personal transportation to fend off the virus, thereby boosting the demand for outboard-powered boats for recreational activities.
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In the first quarter of 2020, the North American market suffered a slight dip due to the pandemic's sudden outbreak, creating havoc and panic. However, the market started gaining traction soon during the second quarter of 2020, and outboard-powered boats started witnessing a spike in demand for recreational purposes. According to National Marine Manufacturers Association, in May 2020, new boat sales rebounded sharply, up by 59%, compared to April 2020, and up 9% from pre-pandemic levels on a seasonally-adjusted basis. In May 2020, total sales increased across all the segments. Wherein outboard boats accounted for 60% of new boat sales.