A new research report has been published by the market research and strategy consulting firm, Global Market Insights; Water Taxi Market to grow at over 4% CAGR from 2018 to 2024.
Increasing disposable income along with high standards of living has led to a substantial growth in recreational and travel activities, primarily driving the industry growth over the forecast timeframe. Rising preference towards water taxis is attributed to provision of numerous sightseeing opportunities including waterfront cruises, historic landmark cruises, snorkeling, and scenic tours. Continuously improving economic conditions across the globe is further strengthening the water taxi market penetration owing to increased expenditure on recreational activities.
Sail boats are leading the product segment and will continue its dominance with approximately 78% volume share over the next seven years. Substantial production of these boats coupled with their high usage for covering short distances will primarily drive the industry growth. Cost effective nature of the product will further support the segment’s dominance. Ferries will witness over six percent CAGR from 2018 to 2024 owing to their lesser travel rates as compared to the counterparts. They are used for the passenger transportation, majorly for the work purposes. Their proliferating production is another factor positively influencing the industry growth till 2024.
Various benefits offered such as quick point to point transportation and considerable reduction in road & rail traffic congestion are increasingly attracting the customers. Their high usage as comparatively economical transportation mode than others will further propel the water taxi market growth over the next seven years. Electric ferries have witnessed a surging demand over the past years owing to rising vitality of green movement across the globe, further impacting their production significantly. However, capital intensive nature of these taxis along with high operational costs may curb the growth of water taxi market participants.
Increased preference towards the product has led to regular innovations which in turn will drive the market size from 2018 to 2024. Advent of autonomous water taxis is a trend which has gained traction among the customers and industry participants. They are totally battery-powered by solar panels and water energy and range from about 80 to 100km. Adoption of vessel tracking data from the automatic identification system of U.S. Coast Guard is another technological advancement that assists in measuring ship dwell time. These emerging trends are expected to offer stable growth prospects to the market over the forecast timeframe.
Diesel is expected to dominate the water taxi market with over 58% volume share by 2024. Strong prevalence of the fuel in the marine industry coupled with high presence of diesel-driven taxis across the globe will essentially contribute to the revenue generation. Hybrid taxis will exhibit over five percent CAGR over the next seven years owing to provision of various benefits including lesser noise and water pollution. Strengthening penetration of green movement will further promote their usage, further propelling the industry growth.
North America water taxi market share will dominate the overall industry, surpassing $287bn by 2024. Established marine industry coupled with presence of prominent manufacturers will primarily contribute towards the revenue generation. The marine transportation has witnessed increasing passenger traffic in the countries including Canada and U.S., further supporting the regional dominance. Asia Pacific market will witness growth at over five percent from 2018 to 2024 owing to their increasing production of across the region. Easy availability of cheap labour along with shifting consumer preference towards usage of these taxis due to increasing traffic congestion on roads and railways will drive the region’s growth.
Ferretti, Sunseeker, Brunswick, Beneteau Group, and Azimut-Benetti are among the prominent water taxi industry vendors. Other noticeable players include Catalina Yachts, Hunter, Mac Gregor, American Sail Inc., Bavaria Yachtbau, and Princess. The industry participants are continuously focusing towards continuous advancements to gain competitive edge. They are increasingly adopting emerging technologies such as autonomous water taxis and marine hybrid propulsion to enhance their visibility in the industry.