Water Taxi Market Size

Water Taxi Market Size

Water Taxi Market size was valued at over USD 380.9 billion in 2017 and is estimated to exhibit 4% CAGR from 2018 to 2024.

Rising travel and recreational activities owing to increasing disposable income across the globe are driving the industry growth. Water taxis offer various sightseeing opportunities such as riverfront tours, waterfront cruises, sunset cruises, and nature tours, further attracting the customers. Substantial improvement in the economic conditions has resulted in increased spending on leisure activities, further positively impacting the water taxi market share over the next seven years.

The product facilitates faster river crossings that reduces overall travel time. Moreover, it also provides multiple benefits such as reduction in traffic congestion on roadways and quick ‘point to point’ transportation at fixed speed. They are also used for more economic passenger transportation as compared to other modes. These benefits will contribute significantly towards the revenue generation from water taxi market over the forecast timeframe. Rising prominence of green movement has resulted in significant demand for electric ferries. This can be attributed to various benefits offered such as reduction in human efforts, durability, and minimal noise & water pollution.

Industry participants are witnessing intense competition from substitutes such as roadways and railways, which will hamper the water taxi market growth over the coming years. High capital requirement & operational costs along with high fuel consumption are further posing challenge before the industry participants.

Continuous advancements in technologies has led to increased preference towards transportation through water taxis. Autonomous water taxi is an emerging technology that has gained prominence in the industry. It is electrically powered by water energy and solar panels in their docking stations. They range from about 80 to 100 kms on water. Moreover, innovative usage of vessel tracking data from the U.S. Coast Guard’s Automatic Identification System (AIS) to measure ship dwell time is another industry trend that has resulted in high customer preference towards the product. These trends are anticipated to induce immense potential to the water taxi market size till 2024.