Personal watercraft (PWC), often known as a jet ski, is a watercraft that can carry as many as three people. A PWC Sit-Downs is defined as a vessel specifically designed to haul up to three riders in a sitting position, one in front of another. A PWC Stand-Up is a type of PWC designed for one rider standing or kneeling on the watercraft.
The PWC has wide uses, ranging from recreation and racing to many types of utility. PWCs are used to help with rescue missions as they are small, fast, and easy to operate. Local and county law organizations use PWCs to ensure the safety and security of persons engaged in watersports.
Market Size. According to Power Systems Research, the global market size for PWCs is expected to grow at a CAGR of 5.7% between 2022 and 2030. Global revenue for 2030 is forecasted to be $3.01 billion.
Drivers. There are several key drivers for the global PWC market ranging from technological improvements to global economic improvements. For example:
- Technology. Advancements in cleaner and quieter watercraft using new materials and battery power.
- DISPOSABLE INCOME. An improving global economy provides more disposable income for consumers.
- INCREASED RECREATIONAL opportunities in water sport activities. Multi-passenger PWCs and changing lifestyles driven by the COVID pandemic have increased the desire for water recreation.
- GROWING Demand by water law enforcement units and corporate applications.
- MORE POPULAR PWC events and championships are being developed which draw increased attention to PWC use.
- A Rise in PWC rental business as pricing of individual units continues to climb.
Challenges. However, several challenges face the PWC segment, including retail pricing and emissions and noise limitations.
- High costs of PWCs are a continuing concern. The retail purchase price for new units is high and maintenance costs and fuel continue to climb.
- REGULATIONS covering emissions and noise restrictions often limit the use of PWCs in urban areas. Many communities near recreational water bodies are enacting strict laws limiting noise and emissions.
Global Trends. While the number of fatalities and accidents associated with PWC use continues to rise, manufacturers are continuing to provide PWC units with advanced safety features and technology. The creation of multi-faceted PWC is a growing area of interest for personal watersports OEMs as they continue to develop safer products.
Producers are focusing on implementing improved technology, such as nanocomposite technology, to develop hull materials, which lowers the weight of the liner, deck, and hull. Using nanotechnology gives end users more control over the way material flows during the molding process. To produce PWCs as economically as possible, OEMs are adding plastic as a key component.
OEMs are putting heavy resources into developing technologically advanced PWCs that cut pollution. Historically, PWCs have been powered by two-stroke engines, but today they are driven by state-of-the-art four-stroke engines.
Regional Trends. North America is the biggest market for PWCs, but these units are becoming increasingly popular in Europe and Asia.
- North America is expected to remain the largest market for personal watercraft during the forecast period. The region accounts for more than 80% of the global market. This is largely due to the presence of numerous original equipment manufacturers (OEMs) and the increasing demand for personal watercraft in the region for recreational and sports applications.
- Increasing investments in sports and recreational activities in several European countries is expected to drive the region’s personal watercraft market during the forecast period.
- Tourism in Pacific/Asian countries will continue to grow, and this will drive sales and rentals of PWCs.
PSR Analysis. PWCs increasing demand will drive the growth of the personal watercraft market over the forecasted period. However, stringent emission norms and safety regulations could derail some of the growth for the personal watercraft market. PSR
Michael Aistrup is a Senior Analyst at Power Systems Research
