The Boat Business Is Booming
A recent ReportLinker report has predicted that the value of the global leisure boat market is set to soar to $57.92 billion by 2028, with expected expansion at a CAGR of 4.5% from 2021 to 2028. While these numbers are highly impressive, there is the distinct possibility that the actual figures may even exceed predictions as boating enters a boom period thanks to the perfect storm of the global population readjusting to a post-Covid world and a strong growth in the number of individuals with disposable incomes to spend.
In the US, which accounted for a 45.5% revenue share of the global market in 2020, The Chicago-based National Marine Manufacturers Association (NMMA) reported that 2020 saw considerable rises in the number of Americans taking to the water. The highest growth sector was in personal watercraft, a sector which skewers young and suggests that a new generation of young Americans are taking to the water for the first time.
The NMMA data showed total boat sales were up 59% from May to April in 2020, with the personal watercraft sector experiencing year on year growth of 41% in June. The rise in demand extended across all sectors with yacht sales, which the NMA defines as boats over 33 feet, growing by 51% from May to April.
This surge in recreational boating in the US led NMMA President Frank Hugelmeyer to state: “In 2020, a growing number of people are turning to a longstanding American pastime—recreational boating.”
With its vast stretches of coastline, featuring highly developed infrastructure, the US is the perfect place for boating to boom, but other countries are also driving the push to get people out on the water. In France, the government is actively encouraging a switch to coastal activities by providing yacht manufacturers with support in various forms, enabling them to invest in expanding their yacht maintenance and construction capacities.
Boating and COVID-19
It is no surprise that the surge in people looking to get out on the water happened in the immediate aftermath of the first stay at home orders. The unexpected impact of the Coronavirus on our daily lives has led many people to reevaluate just how they want to live in the future. People are leaving big cities in droves, and this new rush to embrace the water follows this same trend.
Not only does boating allow people to spend time outdoors in nature, but it is also an activity that is more Covid-friendly than other popular pastimes. Spending time out on the open water feels like a much safer activity than sharing a gym or a crowded bar with dozens of strangers, and it is the perfect antidote to the claustrophobic lowdown existence that many suffered through last year.
A secondary impact of lockdowns and the mass closing down of all the places where people would typically spend their money is that people are now looking for new ways to spend their greater reserves of cash. This is particularly true of young people. With the world reopening, but the threat of Covid still a very real one, the draw to the water is huge.
How does Boatim benefit from the boating boom?
As an influx of tech-savvy, first-time boaters discover the many wonderful upsides of life on the water, the stage is perfectly set for the entire industry to be brought into the digital age. Within this context, a young Miami and Barcelona based international startup is perfectly positioned to meet the demands of new boaters while also catering for the traditional, long-established boating needs in a more efficient way.
The publicly listed startup Boatim Inc. (OTCQB: BTIM) connects dealers and sellers, buyers and enthusiasts, and brands and manufacturers all under one digital roof. At the moment, where demand has never been higher, Boatim has arrived to reinvent how people buy and sell boats and yachts by taking the whole industry digital.
Boatim’s ambition stretches well beyond simply becoming the industry’s go-to marketplace for the buying and selling of yachts. The bigger picture vision is to build out a comprehensive package of rewarding digital solutions that will ultimately transform every facet of the boating experience.
In the short term, the new rush to get out on the water runs the risk of overwhelming dealers and may leave potential new buyers stuck onshore. Boatim’s international catalogue of new and used boats and yachts is then an ideal port of call for the impatient new buyer who wants to purchase from a trusted seller safely and securely.
Stock market: Boating stocks are in demand
Boatim may be one of the new kids on the boating block, but this is an industry where some of the market leaders are riding the coattails of the new consumer demand to such an extent that share prices have been going through the roof.
Brunswick Corporation (BC) has been in operation since 1845 and is behind some of the most popular recreational marine brands in the US. Brunswick has seen its NYSE listed stock price double in value in light of the vast new numbers of people drawn to the boating world in the past year.
Marine Products Corporation (MPX) is another US-based boating company. A renowned designer and manufacturer of recreational fibreglass powerboats, MPX has also experienced growth of over 100% in share price over the last year.
One Water Marine (ONEW) has had an amazing calendar year with its NASDAQ listed stock price soaring from around $15 one year ago to $50 today. Specialists in purchasing and operating marine retail dealerships in the United States, the boom in boating in the last year sees One Water Marine now approaching a market cap of $750 million.
- Boat dealers struggle to keep up with demand as sales rise during a pandemic - WWAY TV (wwaytv3.com)
- 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 (prnewswire.co.uk)
- Global Recreational Boat Market (2020 to 2025) - Outlook and Forecast - ResearchAndMarkets.com | Business Wire