Global Yacht Battery Market: Introduction
- Yachts are recreational boats designed for pleasure, cruising, or racing. They also possess luxury amenities. Yacht batteries are used for propulsion, start, ignition, and lighting proposes.
- Yacht battery manufacturers are focusing on developing more efficient batteries for propulsion systems due to rise in environmental concerns and stringent rules enacted by various countries to lower carbon emission
Key Drivers and Restraints of Global Yacht Battery Market
- Increase in spending on recreation and leisure activities is the key driver of the yacht battery market. Household income as well as disposable income of consumers has increased significantly over the last decade due to rapid industrialization and urbanization. Tourism, recreation, and leisure activities have risen substantially in North America and Europe. The global tourism industry has been transforming, with increasing popularity of marine and coastal tourism activities. Thus, increase in spending on recreation and leisure activities is expected to drive the global yacht battery market during the forecast period.
- Over the last few years, adoption of hybrid and full electric propulsion systems in yachts has increased significantly. This can ascribed to various benefits such as lower carbon and greenhouse gas emission. Hybrid and full electric propulsion systems also help reduce engine operating costs. Furthermore, the use of renewable energy, such as solar and wind energy, as power sources of power has increased across the globe.
- Lead-acid batteries are primarily used in yachts, as they provide cost-effective and reliable power supply. However, lead-acid batteries have short lifespan. According to battery manufacturers, the standard lifespan of the lead-acid batteries is three to five years. Improper and illegal disposal of lead-acid batteries results in pollution of drinking water. Thus, short lifespan and environmental impact of lead-acid batteries are expected to hamper the yacht battery market in the near future.
Global Yacht Battery Market: Segmentation
- The global yacht battery market can be segmented in terms of battery type, power rating, and propulsion type
- In terms of battery type, the global yacht battery market can be divided into lithium-ion, lead-acid, fuel cell, and others. Lead-acid was the dominating segment of the market in 2019, as these batteries are cost effective, reliable, and offer steady power supply. However, the lithium-ion segment is expected to expand at a high CAGR as they are environmentally-friendly batteries with long battery life.
- Based on power rating, the global yacht battery market can be classified into up to 1 MW, 1.1 MW to 1.5 MW, 1.6 MW to 2 MW, and above 2 MW. The up to 1 MW segment dominated the market in 2019. It is estimated to maintain its dominance during the forecast period.
- Based on propulsion type, the market can be segregated into fully electric, hybrid, and conventional. The hybrid segment led the market in 2019. It is projected to dominate the market in the near future due to high adoption rate of hybrid propulsion engines in yachts.
Global Yacht Battery Market: Regional Outlook
- Based on region, the global yacht battery market can be split into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
- North America dominated the global yacht battery market in 2019. This can be ascribe to higher demand for yachts in the region due to rise in spending on recreation and leisure activities. The U.S. is likely to lead the market in North America during the forecast period.
- The market in Europe is projected to expand at a high CAGR during the forecast period, due to significant rise in sea tourism in the region
- The market in Asia Pacific, Middle East & Africa, and Latin America is estimated to expand at a steady CAGR during the forecast period, due to steady growth of the marine industry in these regions
COVID Impact on Global Yacht Battery Market
- The coronavirus outbreak has paralyzed the sea tourism industry. According to the United Nations World Tourism Organization, the global international tourist arrivals is expected to decline by 20% to 30% by the end of 2020 compared to that in 2019. This could translate into a loss of US$ 300 Bn to US$ 450 Bn in spending by international visitors.
- Many battery manufacturing companies have completely or partially shut their manufacturing plants, due lower demand for batteries across the globe
Key Players Operating in Global Market
- Exide Technologies
- GS Yuasa International Ltd
- Saft Groupe SA
- Trojan Battery Company
- Optima Batteries, Inc.
- Victron Energy B.V.
- WhisperPower B.V.
- Power Sonic Corporation.
Global Yacht Battery Market: Research Scope
Global Yacht Battery Market, by Battery Type
- Fuel Cell
Global Yacht Battery Market, by Propulsion Type
- Fully Electric
Global Yacht Battery Market, by Power Rating
- Up to 1 MW
- 1.1 MW to 1.5 MW
- 1.6 MW to 2 MW
- Above 2 MW
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