Water Taxi Market Size was valued at $222.7 billion in 2022. The water taxi market industry is projected to reach $281.3 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 2.7% during the forecast period (2023 - 2030). The market growth is attributed to factors such as increasing demand for convenient and eco-friendly transportation options, growth in the tourism industry, and rising investments in water transportation infrastructure.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The water taxi market has grown in recent years due to the increase in disposable income and the subsequent rise in travel and recreation activities. People with increased disposable income afford to travel and explore new destinations. Water taxis offer a convenient and exciting mode of transportation, especially in cities with water bodies and coastal areas, allowing travelers to access various attractions and destinations with ease. With more disposable income, individuals have the means to indulge in recreational activities, and water taxis have capitalized on this trend by offering tailored experiences. They provide tourists and locals with an opportunity to enjoy scenic views, visit remote islands, access waterfront dining and entertainment venues, or participate in water sports and leisurely cruises. The rise in disposable income has also enabled water taxi operators to invest in improving their services and amenities, further enhancing the overall customer experience. They can offer more luxurious features, such as comfortable seating, onboard entertainment, and specialized tour packages, catering to the preferences of affluent travelers.
Additionally, the growth of the water taxi market has also spurred infrastructure development. Governments and private investors have recognized the potential economic benefits and have invested in enhancing waterfront facilities, including building or renovating docking stations and improving accessibility. For instance, in June 2023, Oman government announced to launch an integrated entertainment project, Spray Boulevard, at an investment of USD 103 million in Salalah, which will cater to both locals and tourists, adding value as an outlet for tourists and residents in the governorate. The project is spread over a 470,000m sq area, which will be implemented on a public-private-partnership (PPP) will boast waterfront restaurants, a grand market, suspended walkways and a botanical garden in addition to suspended walkways, theatres and venue for specialized exhibitions and events. These efforts not only support the water taxi operations but also contribute to the overall development of tourist destinations.
The Water Taxi Market is segmented based on its product and fuel type. Based on the product, the market is segmented into yachts, cruise, ferries, and sail boats. The water taxi market is expected to grow rapidly, with sail boats dominating the market with around 55% volume share in 2022. Sail boats are highly preferred for covering short distances due to their cost effectiveness as compared to other boats. This will further support the industry dominance over the forecast timeframe.
The water taxi market from ferries is also anticipated to grow rapidly, exhibiting over 6% CAGR from 2022 to 2030. This growth is credited to shifting preference owing to lesser travel rates as compared to cruise or yachts. Moreover, they are used dominantly for transportation of passengers for work purposes, unlike the counterparts that are only used for leisure activities. Continuously rising production of these ferries will further propel the industry growth.
The Water Taxi Market segmentation, based on the fuel type is categorized into battery powered or electric, diesel, and hybrid. Among the fuel type, the diesel-powered water taxi market accounted for the major share. However, electric or battery powered taxi market is anticipated to register fastest-growth during the forecast period, 2022-2030. The growth of the electric or battery powered taxi is attributed to factors such as growing demand for clean and sustainable transportation options, and advancement in battery technology. Electric water taxis are a cost-effective and energy-efficient alternative to diesel-powered ferries. They produce less noise and leave no trail in the water, and they produce zero emissions, making them more environmentally friendly than diesel-powered water taxi. They offer a smoother ride and can travel at greater speeds than diesel-powered taxi. Further, electric water taxis use innovative technology such as hydrofoils and electric powertrains to create a super-efficient drive system.
Figure 2: Water Taxi Market, By Fuel Type, 2021 & 2030 (Usd Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By Region, the study segments the market into North America, Europe, Asia-Pacific and Rest of the World. North America Water taxi market accounted for largest market share in 2021. The marine industry is a big source of revenue in North America, with companies like American Sail Inc. and Brunswick contributing to its growth. The industry has been growing due to an increase in marine passenger traffic, and people's preference for travel and tourism activities. Sail boats are expected to dominate the water taxi market, with high production and cost-effectiveness. The recreational boating industry is also growing, with North America being the largest market due to increasing disposable income levels and interest in leisure activities.
Further, the major countries studied are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: Water Taxi Market Share By Region 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Among these regions, Europe is anticipated to hold a prominent market share in the water taxi market. Europe has a well-developed tourism industry, with numerous coastal destinations attracting a large number of tourists. The region also has a strong focus on sustainable transportation and is adopting battery-powered or electric water taxis to reduce emissions and promote eco-friendly tourism.
However, the Asia-Pacific region is projected to experience significant growth in the water taxi market. Rapid urbanization, increasing disposable income, and growing tourism activities in countries like China, India, and Japan are driving the demand for convenient transportation options, including water taxis. Additionally, the presence of numerous coastal areas and popular tourist destinations in the region further contributes to market growth.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the water taxi market grow even more. Market participants are also taking strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the water taxi industry must offer cost-effective and environment friendly water taxi to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the global water taxi industry to adopt electric water taxies. The market players have been collaborating to expand their product portfolio in electric water taxi segment. For instance, in July 2022, recreational boating company- Groupe Beneteau and Vision Marine Technologies have formed a partnership to integrate Vision Marine's high-power outboard motors on board several of Groupe Beneteau's models. The partnership will offer Vision Marine's fully electric E-Motion 180bhp outboard motor, which features a battery capacity of 70kWh of continuous power. The first commercial offering will be launched under the Four Winns brand, with deliveries scheduled for spring 2023. The technology will then be rolled out by other Groupe Beneteau brands in the North American and European markets.
In April 2023, Princess Cruises has announced the debut of its newest and largest ship, the Sun Princess, anticipated to be launched in the United States in October 2024. With a weight of 175,500 tons and 21 decks, the ship will be able to host 4,300 guests. The Sun Princess will feature the largest casino out of all Princess Cruises, as well as more entertainment venues and relaxation areas. The ship is the first in the Princess fleet to be powered by Liquified Natural Gas (LNG).
In January 2023, Brunswick Corporation launched Veer, a new boat brand designed for electrification and first-time boaters. The Veer X13 is a small fishing boat with a 13-foot LOA, a 48-inch beam, and a draft of 6.3 inches. It can accommodate up to two people and weighs just 382 pounds. The boat is designed to support electric propulsion and can be powered by the Mercury Avator electric propulsion systems or a fossil fuel motor.
in August 2022, Dutch operator Watertaxi Rotterdam has launched its first hydrogen boat, the H2 water taxi MSTX 22. The boat integrates components from various providers, including EKPO and the SWIM consortium of Enviu, Flying Fish, and zepp.solutions. The boat is fully hydrogen-electric and was developed by SWIM, a partnership between Enviu, Flying Fish, and zepp.solutions.
| Report Attribute/Metric | Details |
| Market Size 2021 | USD 215.5 billion |
| Market Size 2022 | USD 222.7 billion |
| Market Size 2030 | USD 281.3 billion |
| Compound Annual Growth Rate (CAGR) | 2.7% (2022-2030) |
| Base Year | 2022 |
| Forecast Period | 2023-2030 |
| Historical Data | 2018 & 2021 |
| Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Product, Fuel type, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Bavaria Yachtbau (Germany), Sunseeker International (United Kingdom), Ferretti (Italy), Azimut Benetti S.p.A.(Italy), American Sail Inc. (United States), MacGregor (Finland), Catalina Yachts (United States, Beneteau Group (France), Princess Cruise Lines, Ltd. (United States), Brunswick (United States) |
| Key Market Opportunities | Growing adoption of electric water taxies |
| Key Market Dynamics | Increasing demand for convenient and eco-friendly transportation options Growth in the tourism industry |
Frequently Asked Questions (FAQ) :
The water taxi Market size was valued at USD 281.3 Billion in 2030.
The global market is projected to grow at a CAGR of 2.7% during the forecast period, 2022-2030.
North America had the largest share in the global market
The key players in the market are Bavaria Yachtbau, Sunseeker International, Ferretti, Azimut Benetti S.p.A., American Sail Inc. , MacGregor, Catalina Yachts , Beneteau Group, Princess Cruise Lines, Ltd., Brunswick
The diesel-powered water taxi market Segment.
The battery-powered or electric, diesel, and hybrid segments of the water taxi market are classified according to the fuel type.
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