Leisure Boat Marine Coatings Market Size

Leisure Boat Marine Coatings Market Size

Leisure Boat Marine Coatings Market Size was estimated over USD 1 billion in 2016 and the industry will likely grow by a CAGR of about 6.5% up to 2024.

The global leisure boat marine coatings market growth will be chiefly propelled by rising demand for luxury vessels for recreational activities. These vessels are principally sought after by the high-income individuals for personal and sports activities owing to the soaring prices involved in their purchase along with maintenance. These boats need special coatings for protection against deterioration as well as aesthetic enhancement. They protect the hulls of ships from corrosion and foul formations and hence boost a boat’s performance and life.

The rising number of high net worth individuals (HNWI) across the globe will be a major growth enabler for the leisure boat marine coatings market during the forecast timeframe. The global HNWI’s wealth growth was registered at around 4% from 2014 to 2015 with Asia Pacific overtaking North America as the highest wealth market. More than 60% of the global HNWI population was concentrated in the U.S., Japan, Germany, and China. The number of HNWI individuals in the U.S. increased from 4,351 in 2014 to 4,458 in 2015. During the same period, the HNWI population in Japan and Germany also increased from 2,452 to 2,720 and 1,141 to 1,199 respectively. China registered the highest HNWI population growth rate of 16% from 890 in 2014 to 1,034 in 2015. This global trend is likely to continue in the future and will drive the leisure boat demand which will in turn propel the leisure boat marine coatings market during the forecast timespan.

The revival of the U.S. economy from the downturn in 2008 will also be a major driving factor behind the leisure boat marine coatings market growth. The economic downturn had a significant negative impact on the U.S. recreational boating industry by reducing customer spending and lowering the credit securing ability of individuals. Many boatbuilders and dealers faced difficulty in funding their operations resulting in bankruptcies and business closures. However, the U.S. recreational boating industry has made a comeback in the last few years with demand increasing by around 8% per year till 2016. The industry has been driven by gains in customer disposable income as well as spending along with a rapidly strengthening financial sector. The disposable income per capita of individuals in the U.S. witnessed stable gains after 2008 reaching close to USD 39 thousand in 2016 from around USD 35 thousand in 2010. These factors have led to the revival of the U.S. recreational boating industry and is likely to spur the leisure boat marine coatings demand for manufacturing, maintenance, and repairing of boats.