Water Taxi Market Size, Share & Industry Analysis, By Number of Passengers (Upto 12 and Above 12), By Length (Upto 10 m and Above 10 m), By Propulsion (Diesel and Electric), and Regional Forecast, 2024-2032

The global water taxi market size was valued at USD 19.9 million in 2023. The market is projected to grow from USD 20.5 million in 2024 to USD 27.2 million by 2032, exhibiting a CAGR of 3.6% during the forecast period.

A water taxi is a type of boat that provides transportation for passengers along waterways, such as rivers, coastal areas, or lakes. These taxis typically operate on a scheduled or on-demand basis, picking up or dropping off passengers at designated stops or locations along the water. These are often used as a convenient and scenic mode of transportation in areas where water travel is common.

Water taxis are a unique form of transportation that provides services depending on the location and purpose. In cities with waterways, such as Venice, Amsterdam, or Bangkok, these taxis serve as a practical means of transportation, especially in areas where roads are limited or congested. In tourist destinations, these taxis provide a leisurely way to explore a city’s waterfront, offering views of landmarks and attractions from the water. These taxis can be hired for private use, such as special events, sightseeing trips, or transportation to remote locations.

These taxis offer passengers a unique and often scenic way to travel, providing views of the city from the water and a more enjoyable travel experience compared to road-based transport. In tourist destinations, water taxis are popular among visitors looking for a memorable way to explore the city and its waterfront attractions. Investments in waterfront infrastructure, such as improved docking facilities and waterway maintenance, have made these taxis a more viable and attractive transportation option in many cities.

During the COVID-19 pandemic, travel restrictions and lockdowns significantly reduced the demand for these taxi services, particularly in tourist destinations reliant on sightseeing. The drop in demand led to financial difficulties for many taxi operators, as they struggled to cover operating costs with fewer passengers. In response, these taxi operators implemented various safety measures, such as reduced capacity, increased cleaning protocols, and mandatory mask-wearing for passengers and crew to adapt to the pandemic.

Water Taxi Market Trends

Advent of Technology will Propel the Growth of the Market

Water taxi market trends are characterized by technology integration for improving efficiency, enhancing customer experience, and ensuring safety. Many taxi operators have developed mobile apps that allow passengers to book rides, track the location of boats in real-time, and receive notifications about their journey. Digital payment systems, such as contactless payments and mobile wallets, are being integrated into taxi services to make the payment process more convenient for passengers.

GPS technology is used to track the position of taxis and optimize routes, ensuring efficient and timely service. Advanced communication systems, such as onboard intercoms, facilitate communication between passengers and crew, as well as between different boats in a fleet. Some taxi operators use technology to monitor the environmental impact of their operations, such as emissions levels and fuel consumption, in order to reduce their carbon footprint.

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Water Taxi Market Growth Factors

Growing Demand for Travel and Recreation Activities Coupled with Urbanization & Congestion Drive Market Growth

As cities become more crowded, there is a growing need for alternative modes of transportation to reduce congestion. Water taxis offer a convenient and efficient way to travel in densely populated urban areas. With increasing concerns about air pollution and carbon emissions, these taxis are observed as a more environmentally friendly mode of quick point-to-point transportation compared to cars or buses.

These taxis are often used for tourism and leisure activities, offering tourists a unique and enjoyable way to experience a city or waterfront area. Coastal areas offer a variety of recreational activities, such as swimming, surfing, snorkeling, and diving, which appeal to tourists looking for adventure and water sports. Many coastal areas are rich in history and culture, with historic sites, museums, and cultural events that attract tourists interested in learning about the local heritage.

Coastal regions often have unique culinary traditions based on fresh seafood and local produce, attracting food enthusiasts looking to explore local flavors. Coastal areas are often associated with health and wellness tourism, offering spa resorts, yoga retreats, and other wellness activities that appeal to tourists seeking relaxation and rejuvenation. Effective marketing and promotion efforts by tourism boards and travel agencies have helped popularize coastal destinations and attract tourists from around the world.

RESTRAINING FACTORS

High Purchase and Operating Costs May Hamper Market Growth

The high purchase cost of water taxis is due to the specialized design and construction required for waterborne transportation, the need for durable materials to withstand marine environments, the cost of propulsion systems (often electric or hybrid), and safety features such as life-saving equipment and navigation systems. Additionally, the limited scale of production compared to traditional vehicles can also contribute to higher costs.

Water taxis are subjected to significant operational costs along with high fuel consumption. These costs include fuel costs, maintenance expenses, insurance costs, labor costs (for skilled crew members), and regulatory compliance costs (for safety and environmental regulations). Additionally, the need for infrastructure such as docks and terminals can add to operational expenses.

Water Taxi Market Segmentation Analysis

By Number of Passengers Analysis

Rising Demand for Tourism and Shuttle Services will Propel the Product Demand with Upto 12 Passengers

By number of passengers, the market is segmented into upto 12 and above 12.

Water taxis for upto 12 passengers captured the largest water taxi market share in 2023. These taxis are typically smaller vessels that offer a more personalized and flexible transportation option compared to large taxis. They are designed to carry a limited number of passengers, usually up to 12 individuals. However, the exact capacity will vary depending on the design and regulations in the area of operation. Overall, these taxis offer a convenient, efficient, and environmentally friendly transportation option for various purposes, particularly in areas with extensive waterways.

Water taxis with capacity of above 12 passengers will grow at a faster pace during the forecast period. These taxis often feature comfortable seating, climate control, onboard restrooms, and other amenities to enhance passenger comfort during longer journeys. While not as fast as speedboats, larger taxis can still travel at moderate speeds, making them a relatively quick and efficient mode of transportation for medium to long distances.

By Length Analysis

Favorable Trends Associated with Public Transportation will Drive the Growth of Taxis with Above 10 m Length

In terms of length, the market is fragmented into upto 10 m and above 10 m.

Taxis with a length above 10 m will grow at a rapid pace within the forecast period. Taxis with a length above 10 m offer a more spacious and comfortable transportation option, suitable for a range of uses in urban, coastal, and island environments. These taxis are considered medium-sized vessels, offering a balance between capacity, comfort, and maneuverability. These taxis serve a variety of applications, including public transportation, event transportation, tourism, and emergency services. These are particularly well suited for routes that require carrying a larger number of passengers or longer distances.

Taxis with a length of upto 10 m are ideal for individual travelers and smaller groups. Due to their small size, these taxis are highly maneuverable, enabling them to navigate through narrow waterways and access docks and terminals with ease. This segment will grow at a steady rate within the forecast period.

By Propulsion Analysis

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Environmental Advantages and Efficiency to Bolster the Growth of Electric Water Taxi

On the basis of propulsion, the market is categorized into electric and diesel.

Electric segment will grow at a highest CAGR during the forecast period. Battery-powered or electric taxis are indeed gaining popularity due to their environmental benefits, cost-effectiveness, and efficiency. These offer a clean alternative to traditional taxis powered by fossil fuels, reducing emissions and noise pollution in waterways. Governments and private companies in various cities are increasingly investing in electric taxis as part of their efforts to promote sustainable transportation. Advances in battery technology have made electric taxis more efficient and practical.

The diesel-powered taxis will grow at a slower pace than electric taxis during the forecast period. The demand for these taxis is generally declining due to growing concerns about environmental pollution and the shift toward more sustainable transportation options. While diesel fuel may have lower upfront costs compared to electric propulsion systems, the overall operating costs of diesel-powered taxis can be higher due to fuel and maintenance expenses.

REGIONAL INSIGHTS

Based on geography, the market is divided into North America, Europe, Asia Pacific, and the rest of the world.

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Europe captured the largest market share within the forecast period. The rising demand for these taxis in the Netherlands is part of a more significant trend toward sustainable and efficient urban transportation. Dutch cities, known for their extensive canal systems, are increasingly turning to these taxis as a viable mode of transport. These taxis offer a convenient and eco-friendly way to navigate the country’s many canals and rivers, especially in cities such as Amsterdam and Rotterdam, where water transport is an integral part of the local infrastructure.

Asia Pacific will grow at the fastest rate during the forecast period. Many Asian cities are experiencing rapid urbanization, leading to increased congestion on roads and a growing need for alternative transportation options. These taxis provide a convenient mode of transport, particularly in cities such as Bangkok, Singapore, and Hong Kong. Asia is home to some of the world’s most popular tourist destinations, many of which are located near water bodies. These taxis offer tourists a unique way to explore these destinations, offering scenic views and access to attractions that may not be easily reachable by land.

The water taxi market growth will exhibit steady growth in North America over the next few years. Many cities in the U.S. are revitalizing their waterfront areas, making them more attractive to residents and visitors. These taxis provide a convenient and scenic way to travel between these waterfront destinations. Cities with iconic waterfronts, such as San Francisco’s Bay Area and Seattle’s Puget Sound, have witnessed increased demand for taxi services.

Many cities in the Middle East, such as Dubai, Abu Dhabi, and Doha, are rapidly expanding and developing their waterfront areas. The Middle East is a famous tourist destination, with many visitors attracted to its beaches, resorts, and cultural attractions. Governments in the Middle East are increasingly investing in water transportation infrastructure as part of their efforts to improve urban mobility and reduce traffic congestion.

KEY INDUSTRY PLAYERS

Key firms Are Adopting New Product Developments to Gain Competitive Edge

The water taxi market includes several market players who are adopting various strategies to gain a strong foothold in the market. These strategies include product differentiation and development, mergers and acquisitions, strategic partnerships and collaborations, and expansion of production capacity, all aimed at enhancing profitability. Additionally, these companies are also investing heavily in research & development activities to develop new products with improved operational characteristics.

List of Top Water Taxi Companies:

• Mercan Yachting (Turkey)


• Moggaro Aluminium Yachts (Spain)


• Bord à Bord (Spain)


• Izmir Shipyard (Turkey)


• LarsenB (Finland)


• Quer Barcelona (Spain)


• Artemis Technologies (U.K.)


• WATERBUS SC (Poland)


• ARES SHIPYARD INC. (Turkey)


• Estaleiros Navais de Peniche (Portugal)


• Navalt (U.K.)


• Munson Boats (U.S.)


• Streamline Marine Composite Developments Ltd (U.K.)


• Uniwork Boats (U.K.)


• Alumax Boats (Netherlands)

KEY INDUSTRY DEVELOPMENTS:

• March 2023 – Artemis’s EF-24 Passenger won a commercial project at the Foiling Awards. It won the award for its 24 meter passenger ferry capable of carrying 150 passengers. The company is expected to launch this ferry in Belfast in near future.


• September 2022 – Artemis Technologies unveiled the world’s most advanced 100% electric passenger ferry. This ferry has a top speed of 36 knots and a foiling range of 95 nautical miles at 25 knots.


• January 2022 – Artemis Technologies opened a new manufacturing facility in Belfast. The facility’s area is 42,200 sq ft and will house the company’s manufacturing and engineering teams.


• September 2020 – Moggaro Aluminum Yachts delivered a unit of the Moggaro 950 Taxi Boat in Albufeira, Portugal. This taxi is powered with Volvo D6 340 API, and the maximum speed is 36 Kt with 44 pax.


• June 2019 – Moggaro Aluminum Yachts developed a new taxi boat for commercial passenger transport. This boat has a maximum speed of 36 Kt and Engine Volvo D6 330 sterndrive.

REPORT COVERAGE

The water taxi market research report provides a detailed analysis of the industry and focuses on key aspects such as leading companies, product types, end-users, design, and technology. Besides this, the report offers in-depth analysis and insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market’s growth in recent years.

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Report Scope & Segmentation