40-Ft Electric Boat Market is expected to reach US$ 4,929.58 million by 2030

Supportive Government Policies to Provide Growth Opportunities for 40-Ft Electric Boat Market During 2023-2030

 

According to our latest market study on "40-Ft Electric Boat Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Propulsion, Battery Type, Application, Voltage Architecture, and Boat Type," the market is expected to grow from US$ 1.90 billion in 2023 to US$ 4.93 billion by 2030; it is estimated to register a CAGR of 14.6% from 2023 to 2030.

 

Electric boats produce zero carbon emissions, making them more environmentally friendly than gas- or diesel-powered boats, which is further fueling the growth of the 40-ft electric boat market. Therefore, the governments of various countries such as the US, the UK, and Canada are announcing policies to promote the usage of electric boats to reduce emissions. For instance, in September 2021, the government of New York launched the Green Boats program. Through this program, the government is working on the electrification of tour and charter boats that are operating on the New York State Canal system. The government is also working on creating an incentive program to support the conversion of fossil fuel-powered vessels to electric propulsion, propelling the 40-ft electric boat market growth. In May 2021, the US government introduced the Fueling America’s Security and Transportation with Electricity Act of 2021 (FAST Electricity Act). This act will provide new federal tax incentives to accelerate the manufacturing and adoption of all electrified transportation modes, including recreational boats. Through this act, the government will provide a 30% investment tax credit for any electric vehicle apart from an on-road passenger car or truck. Also, in March 2022, the UK government announced that it would invest ~US$ 270.84 million (GBP 206 million) in support of zero-emission sailing and skilled maritime jobs. Under this program, the government will create its first office, UK Shipping Office for Reducing Emissions (UK SHORE), which will be purely dedicated to making maritime greener. Here, new research and development of technology will be conducted to make sea journeys as green as they were hundreds of years ago. Furthermore, the European Commission published a report in 2017 for the electrification of the transport system to meet the European Union (EU) goals of a decarbonized society. Under this report, the EU published several milestones for the electrification of boats, which are as follows:

 

Milestone	2025	2035
Small Vessels	Monitor emissions from small boats	All small boats in Europe should meet the emission standards
	Prioritize action to meet the emissions standard for the small boat	At least 25% of the small boats in Europe should have electric or fuel-cell propulsion systems
	Increase the sales of electric boats

 

Thus, such supportive policies by the government authorities will create an opportunity for the 40-ft electric boat market growth during the forecast period.

 

Changing lifestyle and increasing disposable income of people in the US are raising the adoption of several marine activities, boosting the growth of 40-ft electric boat market. Cruising, watersports, and fishing are some of the most popular and preferable activities among citizens. In addition, the country also has a significant presence of high-net-worth individuals procuring luxury vehicles and boats, further fueling the market growth during the forecast period. Further, to increase the adoption of electric boats in the country, electric boat charging infrastructures are being constructed. For instance, in June 2022, Tahoe City Marina introduced clean electric boating with the installation of the first Aqua superPower marine fast charger in the US. This new high-power DC charger at Tahoe City Marina will be the first smart network of chargers that will be constructed along the shores of Lake Tahoe. The construction of this charging infrastructure will support boat users to choose electric boats over fuel-based boats in the US. Thus, increasing disposable income of people and rising installation of charging infrastructure in the country will fuel the growth of the 40-ft electric boat market during the forecast period.

40-Ft Electric Boat Market — by Geography, 2022

Source: The Insight Partners Analysis

Frauscher Bootswerft GmbH & Co KG, Natural Yachts BV, ESMARIN LTD, Cockwells Modern & Classic Boatbuilding Ltd, and Navalt Inc are among the key 40-ft electric boat market players profiled during the report study. Several other major 40-ft electric boat market players were studied and analyzed during this market research study to get a holistic view of the market and its ecosystem. The 40-ft electric boat market report provides detailed market insights, which helps the key players strategize their growth.

 

In 2020, according to the United Nations Conference on Trade and Development (UNCTAD), fishing exports decreased by approximately one-third compared to the exports in the previous year due to low demand caused by the COVID-19 pandemic. The shutdown of hotels and restaurants reduced the demand for seafood, adversely affecting the regional fishing industry. Also, the tourism sector in the Caribbean islands, known for recreational activities such as boating and watersports, reported a significant decline due to the pandemic, which hampered the growth of the 40-ft electric boat market. In the second quarter of 2020, after the gradual lifting of lockdown restrictions in North America, the boating industry witnessed a remarkable recovery. As tourist locations reopened to the public, the demand for leisure boating rebounded in the US and Canada. As the economy recovers and restrictions are eased, the 40-ft electric boat market is expected to expand its operations in the coming years. Sustainable and eco-friendly transportation is gaining attention, along with the increasing focus on environmental protection. Also, advancements in electric boat technology and government initiatives promoting clean energy will further drive the 40-ft electric boat market during the forecast period.

 

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