Water Taxi Market - By Product, By Propulsion, By Application, By Service, Growth Forecast 2025 – 2034

Water Taxi Market Size

The global water taxi market was valued at USD 24.1 billion in 2024 and is estimated to register a CAGR of 3.4% between 2025 and 2034. Urbanization and traffic problems in metro cities are on the rise which has been the major factor contributing to the growth of the market.
 

With the development of metropolitan cities and road congestion becoming a common occurrence, governments and other transport authorities are looking towards adopting water transportation as a substitute. For instance, the first water taxi service in India was started in February 2022 and was designed to address the connectivity issues between Navi Mumbai and Mumbai.
 

Moreover, in November 2024, the state government revealed plans of buying 10,000 water taxis to transport residents in the suburbs to Navi Mumbai International Airport. This service is expected to reduce the travel time between the two cities from one hour to only seventeen minutes. The initial phase of these services is slated to commence in March 2025.
 

The rising maritime tourism and recreational activities are also driving water taxi market growth. Coastal cities and islands including Venice, Bangkok and Maldives are witnessing high number of tourists looking for unique travel experiences driving the demand for water taxis for leisure and sightseeing. Statista stated that, Venice welcomed over 330 thousand domestic and international tourists in February 2023 as compared to around 200 thousand tourists in February 2022. In this places water taxis help in efficient transportation of tourists between islands, hotels and attractions making them a major part of the tourism infrastructure.
 

Furthermore, as comparison to traditional transportation, water taxis are more affordable and environmentally friendly, using less fuel for maintenance. Building bridges and roads in busy cities is costly and slow whereas water transport is quicker and more economical. In regions with natural waterways, water taxis reduce traffic congestion and provide a dependable, low-cost alternative. Water taxis also incur lower maintenance costs over time and are capable of transporting more people with fewer interruptions. Governments and private operators are increasingly using awards and bonuses for water taxis which boosts their image as a sustainable and economical transport option.
 

Water Taxi Market Trends

• The market is witnessing high adoption of electric and hybrid propulsion systems. With the growing environmental concerns and presence stringent emission regulations, many cities are shifting from traditional diesel-powered boats to electric and hybrid models.
   
• Water taxi operators are launching all-electric water taxi services. For instance, in February 2025, E-lixr, which is a water taxi service operator announced to launch America's first all-electric water taxi service and plans to develop nationwide network of all-electric operators in one brand name to make it accessible easily.
   
• The future of the water taxi market will be filled with autonomous AI driven water taxis for enhancing operational efficiency, safety, and savings. Route determination and obstacle navigation with the help of AI are reducing the dependency of water taxis on drivers and making them more efficient. As intelligent transportation is being developed for cities, autonomous water taxis will transform urban transport fundamentally by incorporating new and more efficient modes of travel.
   
• Major tech firms and startups plan to introduce self-operating water taxis. For example, a South Korean startup, Avikus, owned by HD Hyundai, signed a contract in July 2023 for the operation of autonomous water taxis in Busan. The City of Busan and Korea Marine Consulting and Project Management Company are slated to implement this project in 2025. The service is projected to have NeuBoat and NeuBoat Dock equipped Avikus water taxis that can ferry 6 passengers each, in a distance exceeding 9 miles from downtown Busan and back.
   
• Starting a water taxi business involves considerable investments in the acquisition of boats and the building of dock facilities and fueling depots, all of which are costly to establish and maintain. In addition, the boats purchased must satisfy safety, environmental, and other regulatory requirements which adds to the cost.
   
• Maintaining, repairing, and inspecting the boats further adds to operating expenses. There is a lack of finance access for new entrants and small firms, which makes it difficult for them to comply with regulations and thus leads to a lack of entry and growth into the market.
   

Water Taxi Market Analysis

Based on product, the water taxi market is divided into yacht, cruise, sailboats, ferries and catamarans. In 2024, the ferries segment held a market share of over 35% and is expected to cross USD 11 billion by 2034.
 

• Ferries are becoming an important part of transport systems in coastal cities and islands. They connect with buses, trains, and metro systems, making it easier to travel across water. This convenience is increasing the number of passengers using ferries.
   
• Governments are building ports, terminals, and other ferry service-related infrastructure to upgrade water transport. For example, the Government of India provided an estimated grant of USD 700 million in the Union budget 2025 for modernization of ports announced in February 2025. This type of funding is better regarding the energy efficiency of ferry transportation networks to make them a sound alternative to road and rail transport.
   
• Ferry evolution is being pushed towards greater energy efficiency, and electric and low emission models meeting environment-conscious consumers and urban planners seeking environmentally friendly transportation modes.
   

Based on application, the water taxi market is categorized into public transportation, leiusre & tourism, business & corporate transport, personal use and others. The public transportation segment held a market share of around 41% in 2024.
 

• Governments and cities advocate water-based transportation as an alternative to conventional land modes. Infrastructure development such as docks and terminals is contributing to the growth of water taxis and ferries as parts of public transport systems. These services reduce road traffic and improve mobility in urban areas especially those located near rivers and oceans.
   
• In an attempt to relieve some of the congestion traffic in cities, water taxis are being introduced as a faster and more relaxing alternative to buses and cars. For instance, Miami launched the E-Lixr water taxi system in September 2024 in an effort to decompress some of the stress on roadways. The pilot program consists of two state-of-the-art luxury boats which will navigate through the Biscayne Bay waterway as an example of possibilites offered by marine transportation systems.
   
• The services eco friendly propulsion systems innovations produce almost zero sound and air pollution, increasing the effectiveness of urban water taxis. The services give cities a viable solution for increasing urban traffic coupled with a demand for eco-friendly transport.
   

Based on propulsion, the water taxi market is segmented into diesel, hybrid, electric and others. The diesel segment dominated the market accounting for over USD 9 billion in 2024.
 

• The efficiency of diesel propulsion puts diesel vessels with high total operations as an immediate low cost option while electric and hydrogen driven vessels are still in the development phase. Like ferries, water taxis are far more economical to operate with passenger overload and long distance travel when coupled with diesel engines.
   
• The strong network of ports and fueling stations makes it convenient for the operators to use diesel vessels without the need for expensive new infrastructure that shift towards high speed electric and hydrogen propulsion vessels would demand. This network greatly reduces the business operational expenses.
   
• For very remote locations that do not have access to electricity, diesel powered engines are the only available propulsion option. In these regions, the emission and cost concerns is dominated by the need for fuel tanks and strong propulsion for the busy ferries and water taxis.
   

Based on service, the water taxi market is segmented into scheduled service and on-demand service. The on-demand services segment is expected to grow at a CAGR of around 4% by 2034.
 

• The growth of on-demand water taxi services is seeing high growth. Individuals now choose for convenience and flexibility that leads to the growth of these services. The advanced technology like mobile apps for tracking and booking trips allows users to schedule appointments easily. These services meet the special travel needs by offering quick and particular solutions that appeal to urban residents and travelers.
   
• There is growing demand for private recreation, such as private water taxis for island-hopping or sightseeing. Water taxis offer a more exclusive and private option than scheduled ferry routes, particularly in destinations with stunning coastlines or islands. This is a sign of increasing demand for private and flexible travel among tourists.
   
• Cities and islands are launching on-demand water taxi services to improve tourism. For instance, rhe city of Bangkok launched an on-demand electric water taxi boat services in July 2024 to develop its tourism and intra-city transport. The service complements the city's electric tram, public transport buses, and motorbike taxis, with passengers able to use an app to book journeys for which prices are determined by distance, reflecting a wider move towards integrated and versatile urban transportation.
   

North America dominated the global water taxi market with a major share of around 35% in 2024 and the U.S. leads the market in the region.
 

• Road congestion continues to be an increasing challenge in the U.S. The INRIX Global Congestion Index states that in 2023, the average driver in the U.S. lost an equivalent of 733 dollars in productivity alongside 42 hours in a yearly traffic jam. In 2023, only congestion resulted in losses of USD 70.4 billion for the U.S., reflecting an 15% increase from 2022.
   
• As cities are growing, governments are also introducing water taxis to the total public transport in order to ease the traffic on the roads and effectively cross over rivers and coastal areas.
   
• The American government, alongside local transit authorities, are enhancing the expansion of ferry terminals, alongside the modernization of the fleet of ships within the docking area to increase the usage of water transport.
   

The water taxi market UK is expected to experience significant and promising growth from 2025 to 2034.
 

• Increased flow of tourists into the UK and specifically the cities with rich historical relevancy and picturesque rivers has heightened the use of and need for private and on demand water taxis.  According to Office for National Statistics (UK), in 2023, the number of overseas resident visits to the UK reached 38 million, showing a growth of over 20% from the previous year. 
   
• Also, there is an emerging preference amongst travelers for sightseeing tours via water taxis, which has led to the growth of leisure focused water taxi services.
   
• The river taxi transportation system within London is being improved to keep up with the emerging demand for effective water transport. The effective use of existing services in London has led to greater investments in new routes and services in other cities such as Liverpool and Bristol which are known to have waterways, but as of now they are not being adequately utilized.
   

The water taxi market in China is anticipated to witness lucrative growth between 2025 to 2034.
 

• China is incorporating water taxis into the mass transit system of its rapidly expanding urban areas such as Shanghai and Guangzhou. These small vessels utilize advanced city concepts known as smart city initiatives to help reduce congestion on the roads and improve mobility.
   
• China is modernizing its investments into maritime transport by constructing new ferry terminals in addition to updating fleets. Urban transit systems for cities with coastlines and rivers are integrating water taxis on metros and buses for ferry services.
   

The water taxi market in UAE is expected to experience significant and promising growth from 2025 to 2034.
 

• In Abu Dhabi and Dubai, luxury water taxi services are in high demand by both international tourists and residents. With Palm Jumeirah and Dubai Marina as prime destinations, water taxis offer luxury services which increases demand across the market.
   
• The UAE government is investing heavily in marine transport infrastructure, such as RTA’s plans to expand water taxi services. The plans to connect water taxis with other public transport systems is in sync with the country’s smart city objectives.
   

Water Taxi Market Share

• The top 5 companies operating in the water taxi industry include Sunseeker International, Ferretti, Azimut Benetti, Cargotec, and Beneteau Group. They collectively hold a market share of around 20% in the water taxi market.
   
• Beneteau Group is designing low cost, midrange water taxis for professional and recreational use in private and public sectors, focusing on developing regions in Asia and South America. The company pioneers the integration of sustainable solutions in the marine industry, creating efficient hull forms, hybrid electric marine propulsion systems and flexible and modular sustainable designs.
   
• Ferretti Group is looking into green water taxis such as hybrid and electric boats in response to modern emission regulations and eco conscious patrons. The business is pursuing urban transportation systems along with partnerships with city governments in Europe and Asia.
   
• Azimut Benetti is introducing eco-friendly water taxis geared towards VIP and luxury resort transfers with hybrid and electric propulsion for emissions control. Azimut Benetti is servicing rapidly emerging countries in the Middle East and Asia Pacific by providing cost effective modular fleet leasing and management services to cetain operators.
   
• Cargotec is focusing on automation and electrification of water taxis in an effort to increase sustainability. Cargotec is partnering with cities to build smart ferry terminals that manage passenger flow and encourage the use of urban water taxis.
   

Water Taxi Market Companies

Major players operating in the water taxi industry include:

• Azimut Benetti
• Bavaria Yachts
• Beneteau
• Cargotec
• Catalina Yachts
• Ferretti
• Munson Boats
• SeaBubbles
• Sunseeker International
• Uber Boat
   

The water taxi market is getting more competitive, with large maritime transport operators, shipbuilders, and technology-based mobility companies propelling growth. Traditional players use their expertise in shipbuilding, marine engineering, and intelligent transport systems to consolidate their market position. New businesses, on the other hand, focus on propulsion system development, AI fleet management systems, and cost-effective on-demand water transport service to penetrate this fast growing industry.
 

Such businesses broaden their scope of activities by integrating autonomous navigation systems, passenger real-time monitoring systems, and multimodal transport systems that integrate water taxis with other urban transport. Sustainable marine mobility is further facilitated by emission reduction policies provided by governments, intelligent docking facilities, and efficient route planning for vessels using artificial intelligence to make the operations more effective.
 

Water Taxi Industry News

• In January 2025, Oman's Ministry of Transport, Communications, and Information Technology (MTCIT) revealed plans to introduce water taxi services. The ministry is inviting local and international investors to assist in developing, managing, and operating the project. The move is part of the Greater Muscat Structure Plan (GMSP) to enhance public transport and minimize the use of private vehicles.
   
• In December 2024, Uber launched its first water transport service in India, allowing users to book shikara rides through its app on Dal Lake in Srinagar. Called Uber Shikara, it is Asia’s first water transport service, similar to those in European cities like Venice. The service started with seven shikaras, and Uber plans to add more based on demand.
   
• In December 2024, Jawaharlal Nehru Port Authority (JNPA) has declared the commencement of electric ferry services between Mumbai and Jawaharlal Nehru Port (JNP) from January 2025. As part of the Harit Sagar or 'Green Port' project, the service intends to offer zero-emission, eco-friendly journey while cutting travel time by 20 minutes.
   
• The fibre-reinforced polymer ferries, which are 12-15 metres in length, can accommodate 20-24 passengers with air-conditioned seating. The ferry operates at a speed of 12 knots and has a three-hour operational radius and takes 75 minutes for complete recharging. Tickets, which will be handled by JNPA, will be issued through an online system with easy check-in facilities.
   
• In November 2024, U.S.-based FlyTahoe partnered with Swedish company Candela to introduce an electric ferry at Lake Tahoe in California’s Sierra Nevada Mountains. The Candela P-12 electric ferry aims to reduce congestion for the 15 million visitors to the area each year. The ferry offers a 30-minute cross-lake service, can carry 30 passengers, and has space for sports equipment. It is expected to become a key link to the region’s ski resorts and biking trails.
   

The water taxi market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) and volume (Units) from 2021 to 2034, for the following segments:

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Market, By Product

• Yacht
• Cruise
• Sailboats
• Ferries
• Catamarans

Market, By Propulsion

• Electric
• Diesel
• Hybrid
• Others

Market, By Application

• Public transportation
• Leisure & tourism
• Business & corporate transport
• Personal use
• Others

Market, By Service

• Scheduled services
• On-demand services
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • UAE
  • South Africa
  • Saudi Arabia