It’s been a busy first two months of the winter boat show season. We are seeing shows across the country spurring first-quarter sales and driving interest among consumers, even as we navigate some headwinds largely driven by continued economic uncertainty.
Coming off 2023, when new powerboat retail sales were estimated to be down 1% to 3% to 258,000 units, the industry is poised to see new-unit sales on par with those levels. Looking beyond interest rates and shifts in consumer confidence, marine manufacturers are focused on continuing to deliver innovative new products. They are showcasing emerging technologies ranging from hydrogen propulsion systems to boats powered fully by sustainable marine fuels.
While most categories of new powerboats saw unit declines from 5% to 25% last year, the personal watercraft segment saw a double-digit increase, projected to be up between 20% to 25% as final 2023 sales data are calculated. PWC remain a gateway to boating for many, given the product’s entry-level pricing and ease of use. PWC are expected to make up 85,000 to 90,000 of the 258,000 new units sold at retail in 2023.
With jumps in interest rates and inflation last year, it was no surprise that we saw more boating consumers being price-sensitive and deciding to wait out things. Some picked up a personal watercraft instead of a pricier boat.
Even still, the million people who purchased a boat for the first time during the height of the pandemic continued to spend record time on the water in 2023, helping to drive economic impact. Recreational boating remains a significant driver of the U.S. economy, with 85 million Americans who go boating each year, bringing their friends and family, and spending on everything from food and marine accessories to marinas, storage and insurance. Boating drives an economic impact of $230 billion, up 36% from 2018, and supports 36,000 U.S. businesses and 812,000 American jobs, according to the 2023 Economic Impact Study on Recreational Boating from the National Marine Manufacturers Association.
Two months into 2024, we expect Americans’ desire to be near water to continue as more people seek ways to prioritize health and wellness, and to enhance their quality of life. All of us are focused on continued innovation and ensuring greater access to our public waters. Our industry has a long track record of new product innovation and self-regulation to support its boating consumers. Within the U.S. transportation sector, recreational boats represent 0.7% of greenhouse gas emissions. The industry’s commitment to further reducing this impact can be found in the new products and technologies being released at winter boat shows — products that differ greatly from the technologies seen at auto shows.
Recent global research by ICOMIA and Ricardo found that there is no “one-size-fits-all” approach to this goal. Instead, a variety of technological solutions must be considered to continue decarbonizing recreational boating. Boats can run on sustainable fuels, as well as hydrogen, electric and hybrid propulsion systems.
We are all in the business of providing transformational experiences — relaxation, fun and freedom — which is why we must remain committed to enhancing the boating experience for generations to come. Supporting innovations in a marine environment means adopting a technology-neutral decarbonization approach, as well as accelerating the distribution of sustainable marine fuels, establishing marine electric technology standards, and expanding R&D investments in electric battery density and hydrogen propulsion systems.
As we navigate waves of change in the economy, society and our industry, it’s clear that innovation, sustainability and consumer engagement will remain at the forefront of our efforts. With continued dedication to these strategic priorities, we are poised not only to weather current headwinds, but also to thrive in the years ahead, providing unforgettable experiences that only boating can offer.
This article was originally published in the February 2024 issue.
