Boat Rental Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The boat rental market is anticipated to register a CAGR of about 5% during the forecast period (2020-2025)

Key Highlights

• The booming tourism industry, increasing interest of people in recreational activities, and marine tourism are expected to fuel the demand for boat rentals during the forecast period. Boat rental provides an easy and convenient way to own a boat without actually owning it. In the current market scenario, where everything can be rented, from bicycle to home, car to workplace sharing, renting a boat is a much-needed service, as most of the boats are parked in the harbor for more than half of their service life. Boat rental companies offer boats as per the requirements of the customers, with or without captain and fueled or to be fueled up to the need, with additional facilities like ski and tubbing.
• Listing a parked boat in the boat rental provides a new revenue source for the boat owners, as it is cheaper to buy a boat is cheaper compared to its maintenance. The parked boats in harbors pose huge potential for the growth of the boat rental market in the coming years. There are several pople who want to experience luxury at a low cost. Previously, boat rental companies provided boats on a weekly and monthly basis. However, digitalization has provided a new opportunity for the hourly and half or full-day rental services.
• The count of the parked boats is high in Europe. Furthermoe, four European countries are among the top five countries in terms of yacht parked on their coastline, with the United States in the lead. Moreover, the United States is the leader in the manufacturing of boats. However, it faces tough competition from the second-largest boat producer, Italy, as the luxury boats made in Italy are highly preferred, while the US States boats are preferred for fishing and sporting activities.

Key Market Trends

Increase in Online Rental Services is Driving the Market

The boat rental market is creating a community of occasional boat users and boat owners, where a boat can be rented on the basis of location, type, feature, and duration. This peer-to-peer service has put thousands of unused boats into work. Owners and rental companies offer boats with a captain and crew, or they handover the boat to the renter. In the latter case, renter companies and the boat owner first review the renter's past experience, boating knowledge, and availability of certifications, before renting a boat.

Traditional boat rental companies took a new leap after the entry of online rental service providers. Previously, from a renter's point of view, renting a boat was out of reach. However, currently, renters are enjoying pocket-friendly services, and boat and fleet owners are achieving a larger reservation volume and enjoying a new income source.

North America and Europe May Lead the Boat Rental Market

Boats and water activities are the preferred recreational activities in the North American and European regions. Furthermore, these regions hold the majority of boat rental start-ups. In terms of manufacturing capabilities and exporting power, the United States is among the top three suppliers, along with the other countries in Europe, such as Germany, France, and Italy.

Similarly, in Asia-Pacific, particularly in China, where there are 1,034,000 millionaires and 11,000 citizens worth at least USD 30 million, there is a huge potential for boat rentals. Furthermore, the Chinese government is trying to promote yachting as a leisure activity to be enjoyed by many, rather than a luxury commodity. In 2016, the China State Council issued a circular to further promote and expand domestic service consumption and spending on tourism. The circular included an announcement to formulate a yachting tourism development plan. Following this, pilot projects for yacht rental services were also started on some routes. Thus, many US and European companies that provide rental services, marinas, and other water sports have expanded their presence in China.

Competitive Landscape

The boat rental market is moderately fragmented, as it has a number of active players. The market is also witnessing the emergence of many new start-ups. Some of the major players in the market are GetMyBoat, Sailo Inc., Nautal, and Boatsetter, among others. The companies are expanding their presence by acquiring other market participants, increasing their boat counts, and tapping in new and unexplored markets. For instance,

• In 2018, Nautal acquired Incredible, a USD 2.6 million funded start-up. Incredible has a good presence across the Mediterranean region, especially in Greece. Nautal made a statement that, in the future, they plan to seek more acquisitions to further consolidate the market.
• In 2018, GetMyBoat secured up to USD 10 million funding, by Yanmar Group, a Japan-based multinational company that is also a marine engine provider. After this funding, the engine provider entered the list of board of directors of GetMyBoat.

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