The recreational boating industry is still sailing through rough waters. Economic and political uncertainty, along with a lack of younger buyers, has led to a -3.2% drop in global boat sales in 2024, according to the IC Market Forecast Pleasure Boats 2025 study by Interconnection Consulting.

This downward trend is expected to continue in 2025, with sales projected to decline by another -0.5%. The industry’s key markets, Europe and America, have left the pandemic boom behind and are now facing years of decline. In the U.S., sales fell by -7.2% in 2024, and another -3.0% drop is expected in 2025, impacted by the economic slowdown and new tariffs introduced by the Trump Administration.

In Europe, France—the region’s largest market—saw a -9.1% drop in 2024, and another -4.9% decline is expected in 2025 due to a weak economy and political instability. Germany, the second-largest market, had an even sharper decline of -12.5% in 2024 and is forecasted to fall another -5.7% in 2025, as the prolonged economic crisis continues and unsold stock piles up. Italy, the third largest player, is not immune either, with a decline of -5.2% in 2024 and a forecast of -2.8% in 2025, mainly due to the flight of investors, who are now betting on new emerging markets.

On the other hand, China’s market grew by 4.3% in 2024 and is set to continue expanding with a 3.8% increase in 2025. The Middle East also saw positive growth, with sales up by 3.7% in 2024 and a projected 2.6% rise in 2025. Both regions are benefiting from a more stable economy and a growing interest in water sports.

Small boats (10-25 feet) continue to be the best sellers, with 60% of the market share thanks to their affordability. Meanwhile, despite the industry’s push for electric models to attract new customers, sales have not taken off as expected. Electric boats still account for only 3.1% of total sales. “The performance of these boats and battery life are below customers’ expectations” states Ruben Rodriguez, author of the report.

To stay afloat, the sector is exploring new business models to attract younger generations and buyers with lower purchasing power, such as charter services and boat-sharing models, which are gaining popularity, driving growth in the catamaran segment, which experienced a 7.8% increase in 2024.

Large companies in the sector such as Azimut-Benetti Group, Bavaria Yachts, Beneteau, Brunswick, Dufour Yachts, Ferreti Group, Nimbus Boats, Sanlorenzo, Sirena Marine and Sunseeker have had a tough year, where their profits and units sold have been lower than previous years. Despite the headwinds, the industry is expected to recover, reaching a global market value of €32.335 million by 2028, with an average annual growth rate of 2.6%.

Link to the report

27/02/2025

Copyright: Interconnection, Publication free of charge for coverage regarding the study and InterConnection Consulting.