Boat Steering System Market to be CAGR of 8.9% till 2027

The Global Boat Steering System Market, By Propulsion System (Inboard, Outboard, Stern drive), By Steering Type (Manual Steering, Hydraulic Steering, Electric Power Steering and Electro-Hydraulic Steering), By Sales Channel (Original Equipment Manufacturer (OEM) and Aftermarket), By Boat Type (Small, Mid-Size and Large) and by Region (North America, Europe, Asia Pacific, Latin America, Middle East and Africa) - Global Forecast to 2027”, is expected to be valued at US$ 1,332.4 million by 2027, exhibiting a CAGR of 8.9 % during the forecast period (2019-2027).

Overview

The boat steering system is an apparatus used to maneuver effectively while traveling on the water bodies such as canals, seas or rivers. The steering system works as a stimulating mechanism and a connection between engine and steering wheel controlled by the helmsmen located on the deck of the boat. A boat’s steering system determines the boat’s course when the steering wheel is turned. Similar to other systems on a boat, it requires timely maintenance and inspection during the boating season. A boat steering wheel is part of the helm that connects to hydraulic, electric or mechanical systems.

The global boat steering system market was US$ 672.5 Mn in terms of value and 742,293 in terms of volume by 2019

Market Driver

High growth of coastal and marine tourism is expected to boost the global boat steering system market growth over the forecast period

Coastal tourism refers to land and sea-based travel for leisure activities that take place on the coast or in close proximity to the sea such as swimming and surfing. Marine tourism is similar to coastal tourism albeit it is more focused on sea-based activities. According to Coherent Market Insights’ analysis, the global tourism industry has witnessed significant growth in the recent past, recording over billion tourists for the first time in 2012 and growing at around 4% annually. This, in turn, has benefited coastal and marine tourism with Europe registering as the world’s most visited tourist region. Furthermore, the World Trade Organization (WTO), the number of tourists visiting Europe is growing 6% annually, with a large percentage of tourists concentrating on the Mediterranean Coastal region, which has been registering an average of 200 million visitors yearly. Hence, such factors are expected to propel the global boat steering system market growth during the forecast period.

Market Opportunity

Major growth of marine transportation is expected to provide lucrative growth opportunity

Marine transportation has emerged as an ideal alternative where roads and railways are not convenient modes of transportation. Increasing number of ports in countries such as Rotterdam, Riga, Hamburg, Amsterdam, and London is expected to increase the demand for sea trade activities. Furthermore, islands such as Caribbean Islands, Greenland (Australia), New Guinea, Broneo (Asia), Madagascar (Africa) and Baffin Island will provide lucrative business opportunities for market players in the near future.

Market Restraint

Major uncertainties related to international export policies are expected to hamper the global boat steering system market during the forecast period

The U.S. has the highest number of boat sales and production and over 95% of boats and ancillaries manufactured in the U.S. are sold locally. However, significant growth in coastal tourism in Europe, GCC countries, and ASEAN countries have opened new opportunities for higher sales. That being said, new trade policies imposing higher taxes on imports, manufacturers of boats and boat steering systems will have to alter their raw material supply route to local suppliers rather than foreign suppliers to reduce selling prices. Therefore, major uncertainties regarding international export policies are expected to hinder the global boat steering system market growth in the near future.

Market Trends

Growing preference for simple hydraulic steering systems over advanced systems

Electro-hydraulic steering and electric power steering systems have proven to be efficient than other systems. The corresponding segments are expected to have slow growth rate, owing to higher installation and product costs, as well as difficulty in maintenance. Hydraulic steering systems and manual steering segments are expected to hold dominant position, as they are easy to construct and their replacement during the failure is easier than its electronic-based counterparts. Moreover, casual boaters are expected to adopt electro-hydraulic steering or electric power steering systems. This is owing to the ease they provide in handling the boats. Furthermore, enthusiastic boaters are expected to prefer hydraulic steering, owing to preference of experiencing feedback from the steering system, thereby making them feel the water while negotiating the surface.

Increasing prices of mid-size boats are expected to shift consumer preference to small boats

The length of the boat plays a crucial role in the selection of the type of boat steering system. Small boats with LOA less than 25 feet have manual steering systems installed in them, which is followed by hydraulic as a large percentage of small boats are majorly powered by outboard motor units. Furthermore, mid-sized boats whose lengths range from 25-55 feet have majorly adopted hydraulic steering systems followed by manual steering. A relatively small figure of large boats sales directly impacts the market value and share of electric power steering and electro-hydraulic steering systems.

Competitive Section

Key players operating in the global boat steering system market are HyDrive Engineering Pty Ltd., Lewmar Limited, Vetus B.V., SeaStar Solutions, Lecomble & Schmitt, Excel Controlinkage Pvt. Ltd., Kobelt Manufacturing Co. Ltd., Techno Italia Kft., Twin Disc Incorporated, ZF Friedrichshafen AG, Northrop Grumman Sperry Marine B.V., and Uflex USA.

Key Developments

Key players in the market are involved in the product development, in order to gain competitive edge in the market. For instance, in March 2017, Lecomble & Schmitt developed a new kit for mounting their hydraulic systems cylinders for outboard motors on Honda 115, 135, and 150 HP motors. This kit helps to integrate LS cylinders type VHM EX 125, 175, and 225 HP without any specifications.
Key companies in the market are focused on mergers and acquisitions, in order to enhance their market presence. For instance, in February 2017, SeaStar Solutions acquired complete electrical proprietary systems of Marine Digital Integrators (U.S.). The company will continue their normal operations with the current management team. This acquisition will help SeeStar to enhance its product portfolio with more integrated solutions and smart systems.

Segmentations

Market Taxonomy: