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AUGUST 15, 2022
Vision Marine Propels the Burgeoning Electric Boat Market
According to a study by Allied Market Research released in July 2022, the global electric boat market (which includes fully electric and hybrid) generated $5 billion of revenue in 2021, and is expected to reach $16.6 billion by 2031, which equates to a CAGR of 12.9% during that time frame.
The study, which recognizes Vision Marine Technologies (VMAR: NASDAQ) on a short list of global industry leaders in electrification, noted that the passenger boat segment has maintained its leading market position, accounting for the largest (and increasing) market share, and contributed to more than two thirds of the global electric boat market. A primary driving factor is that passenger boats are primarily used for recreational purposes, and as widely reported, the recreational boating market has also seen enormous growth over the last few years.
As previously mentioned, the recreational powerboat segment essentially caters to families and more recently, millennials, which represent two distinct groups which traditionally have incrementally greater discretionary income. Certainly another factor is the increase of “staycations” due to the pandemic, which most boat OEMs view as the new normal. It should be noted that the pandemic also had a negative impact on the global boating industry, as production delays due to the supply chain issues (i.e. battery packs, semiconductors, etc.), workforce shortage, and shortages of raw materials, slowed inhibited production and sales growth. Furthermore, for a period of approximately two years, Covid caused the suspension of global boat shows, which is the primary mechanism by which the industry demonstrates and sells all products to OEMs and consumers.
Accepting the challenges presented by the pandemic, Vision Marine made significant strides solidifying its supply chain via its partnership partnerships with global battery manufacturers Neogy and Octillion Power Systems, and signing a Manufacturing & Supply Agreement with McLaren Engineering, which will enable mass production for Vision’s proprietary E-Motion™ 180E (180 hp) electric outboard motor and powertrain system.
Presently, global government mandates and new regulations continue to further drive carbon neutral goals. This has been a major contributing factor in the electric boat market surge, and major OEM adoption is expected to exhibit growth in coming years.
E-Motion™ is presently the only high performance electric outboard motor and powertrain system on the market. There are many OEMs that have developed their own respective electric outboard technologies, but they have all been low voltage, lower power, thus low performance. Vision Marine’s disruptive E-Motion™ technology exhibits enormous power and torque, as well as zero emissions, zero pollution, a noiseless environment, minimal maintenance, a 90+% reduction in energy cost, and a highly competitive TCO as compared with ICE engines.
