Personal Watercraft Market is Estimated to Witness High Growth Owing to Technological Advancements in Electric Personal Watercraft
Personal watercraft, also known as water scooters, are small recreational watercraft used mainly for activities such as riding, wakesurfing, and wakeboarding. Personal watercraft are designed for sports activities and cruising. They provide better maneuverability and carrying capacity than otherwatercraft including small boats. The primary advantage of personal watercraft is their portability and ease of use. Personal watercraft requires less space for storage and transportation compared to other types of motorboats. They are suitable for carrying two to three people.
Global personal watercraft market is estimated to be valued at USD 2.83 billion in 2024 and is expected to reach USD 4.46 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 6.7% from 2024 to 2031.
Key Takeaways
Key players - Key players operating in the personal watercraft market are Avon Marine, BRP Inc. (Bombardier Recreational Products), Gibbs Sports Amphibians, Inc., HISON, Honda Motors, Jiujiang Poseidon Motorboat Manufacturing Co., Limited, Kawasaki Motors Corporation, Lampuga, Meyer Bootswerft, NARKE, Polaris Industries, Sea Doo, SLVH s.r.o, Yamaha Motors, and Zodiac Nautic.
Key opportunities - The growing Personal Watercraft Market Demand is driven by increased participation in water sports and rising disposable incomes in developing countries. Additionally, the development of quiet, eco-friendly electric personal watercraft presents further expansion opportunities.
Technological advancements - Major personal watercraft manufacturers are developing electric personal watercraft models. For instance, Yamaha Motors launched the first production model of an electric personal watercraft in 2021. Electric personal watercraft have zero direct emissions and are more environmentally sustainable.
Market Drivers
Increasing spending on recreational activities: Rising participation in water sport activities such as wakesurfing and wakeboarding is driving the demand for personal watercraft. Additionally, increasing disposable income allows people to spend more on luxury recreational activities involving personal watercraft.
Technological advancements
Ongoing technological innovations including the development of electric engines and engine efficiency improvements are enhancing personal watercraft performance. Electric personal watercraft variants are gaining traction due to their environment-friendly nature and low noise operation. This growing availability of technologically advanced personal watercraft variants is helping market growth.
Current Challenges in Personal Watercraft Market
The personal watercraft market is facing various challenges which are hindering its growth. Stringent government regulations on emissions are a major hurdle for players in this industry. All watercrafts are now required to meet Tier 3 emission standards which have increased overall manufacturing costs. Additionally, maintaining these standards over the product lifecycle further burdens manufacturers. The market is also challenged by the aging customer demographic. Most personal watercraft owners are middle-aged with disposable incomes. Attracting younger customers is crucial for future growth but manufacturers are struggling due to high product costs. Rising insurance and maintenance costs are another deterrent. Strict liability laws hold operators fully responsible for accidents which pushes up insurance premiums significantly. Frequent repair and maintenance needs also drain owners financially over the ownership period.
SWOT Analysis
Strength: Personal watercraft offer an exciting experience of riding on water. Their compact size and maneuverability allows navigating in shallow waters close to shorelines.
Weakness: They require a steep learning curve to control and operate safely. Stringent noise pollution norms hamper their use near residential areas.
Opportunity: Emerging demand for affordable recreational activities presents an opportunity. Growing coastal tourism industry can boost their adoption.
Threats: Strict boating regulations and licencing requirements act as entry barriers in some regions. Environmental activists oppose their use citing negative impacts on aquatic ecosystems.
Geographical Regions
Currently, North America accounts for the largest share of the personal watercraft market in terms of value. The US alone contributes over 35% to the global market revenue aided by the presence of long coastlines and large freshwater bodies. California, Florida and Michigan are some of the highest demand states in the US.
The Asia Pacific region is poised to become the fastest growing market for personal watercraft during the forecast period. Countries like China, Australia, and Indonesia are expected to fuel this growth due to rising disposable incomes, developing coastal tourism industries and investments in boating infrastructure. Cities near major rivers, islands and beaches will drive the demand within these nations.
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About Author:
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
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