THE

INTERNATIONAL

BOATING

INDUSTRY

MARKET

TRENDS

Mr Andrea RAZETO Vice President of UCINA

Vice President of ICOMIA

2018 TAIWAN INT’L BOAT SHOW

16 MARCH 2018

1.

BOATING INDUSTRY

FACTS AND FIGURES

3

In some geographical areas boating is an immensely popular

activity:

100 million boaters in the US and Canada

36 million boaters in Europe

5 million boaters in Australia

Global fleet of 30 million boats (90% < 8m)

25 000 marinas

Effects in industry

100 000 direct companies (primarily SMEs)

1 million direct employees

More than 45 billion euro in manufacturing turnover

BOATING IS AFFORDABLE FOR A MAJORITY OF MIDDLE INCOME EARNERS

The glamourous luxury segment only represents 2% of the industry in volume terms

THE RECREATIONAL BOATING WORLD

The basic figures

THE MARINE INDUSTRY IN THE MATURE MARKETS

A long and complex supply chain

BOATBUILDING + REFIT BOATING TOURISM + SERVICES

MAINTENANCE + REPAIR MARINE EQUIPMENT

THE MARINE INDUSTRY IN THE MATURE MARKETS

A long and complex supply chain

Extensive indirect economic contributions from highly varied

supply chain and array of services related to recreational boating

2 examples from 2 different studies:

ITALY: For every 1 job in the core

boating manufacturing, further 7,4 jobs

are supported in the wider boating economy.

UK: The total economic contribution of boating tourism in terms of

Gross Value Added (GVA) is 14 times larger than the core boating

tourism industry.

2.

THE GLOBAL

BOATING INDUSTRY

MARKET

THE GLOBAL BOATING INDUSTRY MARKET

Key figures

100 000 direct companies (primarily SMEs)

1 million direct employees

More than 45 billion euro in manufacturing turnover (>20 for new boats)

3 leisure marine manufacturing segments + boating tourism sector

YARDS + EQUIPMENT + ENGINES MARINAS + SERVICES

TRADITIONAL, DEVELOPING AND EMERGING BOATING MARKETS

RUSSIA

GULF

BRASIL

SOUTH

AFRICA

CHINA

SOUTH

AMERICA

INDIA +

SRI LANKA

SOUTHEAST

ASIA

SOUTH KOREA

NORTH

AMERICA +

CARIBBEAN

EUROPE

AUS +

NZ

JAPAN

TAIWAN

COMPANIES CONCENTRATION MIN MAX

THE BOATING INDUSTRY

Yards localization in the two main manufacturing areas

source: Orbis database, 30.12 code Year 2015 (or 2014 if n/a)

COMPANIES CONCENTRATION MIN MAX

source: Orbis database, 30.12 code Year 2015 (or 2014 if n/a)

THE BOATING INDUSTRY

Yards localization in the two main manufacturing areas:

Focus on EUROPE

THE BOATING INDUSTRY

Geographical localization of the boatbuilding companies by turnover

source: Orbis database, 30.12 code Year 2015 (or 2014 if n/a)

3.

EXPORTS IN THE

BOATING INDUSTRY

MARKET

0

500

1,000

1,500

2,000

2,500

3,000

M$

Italy The Netherlands Germany UK USA

BOATING INDUSTRY EXPORT

Global export trends in boat production (M$)

source: ITC and UN-Comtrade HS 2012 classification, 890392 code

I

NL

D

UK

US

Rank Country Inflatables Sailboats Inboard Outboard TOTAL

1 Italy 54,8 41,7 1.793,7 35,9 1.926,1

2 The Netherlands 5,0 252,7 1.571,4 15,2 1.844,2

3 Germany 5,0 154,4 1.234,4 16,0 1.409,8

4 US 13,2 41,6 610,4 656,0 1.321,3

5 France 25,6 594,5 488,1 27,4 1.135,7

6 UK 19,0 90,0 871,5 12,1 992,7

7 Mexico 3,8 0,0 509,3 31,0 544,1

8 Poland 4,7 14,0 53,0 301,1 372,9

9 China 123,3 10,8 31,0 136,0 301,1

10 Finland 0,01 88,4 103,7 71,8 263,9

BOATING INDUSTRY EXPORT

2016 global export in boat production (M$)

source: ITC and UN-Comtrade HS 2012 classification, 8903 codes

BOATING INDUSTRY EXPORT

Opportunities and barriers

Opportunities:

Disclosing new markets and new customers

Showing new types of products to traditional customers

Market recovery leads to a demand increase

Competition on price or quality

Importance of boat shows and B2Bs

Barriers:

Well-settled competitors

Different boaters’ habits and sea/weather environments

Technical standards, regulations and certification

Tariffs and import taxes

Trade red tape and distribution

Transport costs and boat show participation

4.

A GLANCE AT

SUPERYACHTS,

AN EXCELLENCE

OF THE

BOATING INDUSTRY

17 17

DESIGN + TECHNOLOGY + MATERIALS + INTERIORS

+ HIGHLY SKILLED MANPOWER

BUILDING SUPERYACHTS

The formula for excellence

Top boatbuilding know-how

Sophisticated customization

Superb design

Unique style in the interiors

THE GLOBAL SUPERYACHT ORDER BOOK (>24m)

Top building yards, 2018

source: Boat International 773 SY on order in 2018

Top 5 building countries: Italy (353), Turkey (75), Netherlands (65), Taiwan (61), UK (55)

Top 3 builders are Italian

1900

3400

5200

5900

1997 2007 2017 2022

source: The Superyacht Group

THE GLOBAL SUPERYACHT FLEET (>30m)

Growth trends

constant

growth

5.

BOATING INDUSTRY

MARKET TRENDS

source: ICOMIA International Council Of Marine Industries Associations

MARKET TRENDS FIRST SEMESTER 2018

The World

source: ICOMIA International Council Of Marine Industries Associations

MARKET TRENDS FIRST SEMESTER 2018

Europe

THE BOATING INDUSTRY

Future trends in the global market

After a constant growth, the 2008 global crisis suddenly hit the sector

Many manufacturing countries registered turnover drops over 60%

and 50% decline in new boat registrations

Recovery in the US market since 2011 and in Europe since 2015

The positive signals from the operators and from the boat shows

show a structural improvement in all the traditional markets

source: ICOMIA International Council Of Marine Industries Associations

AVERAGES 2-3 YEAR INDUSTRY OUTLOOK: 2013-2017

ICOMIA’s annual mid-2017 survey of MIAs, representing 24

countries

Progression in industry sentiment from 2013 to 2017

The most recent responses show the highest average

assessment (+1.04) received from MIAs in 5 years

Thank you

Andrea RAZETO