14 • May 2024 • Powersports Business

BY BRENDAN BAKER EDITOR IN CHIEF

As a crossover machine that straddles the line between marine and powersports , the personal watercraft sits in the middle of the boating world as an aquatic motorcycle . And that is purposeful , as original designs of the " Jet Ski " and later PWCs became popular toys for playing on the water . However , the category has evolved in some significant ways over time .

The appeal of personal watercraft transcends age , gender , and geographical boundaries , making it a universally beloved recreational activity . From adrenaline junkies seeking high-speed thrills to families looking for leisurely outings on the water , PWCs cater to a diverse array of preferences and lifestyles .

High-performance models with powerful engines and agile handling characteristics deliver an exhilarating ride experience , and all three of the major manufacturers are rolling out PWCs with bigger horsepower numbers every year .

The price tag also climbs as OEMs continue to push the envelope in 4−stroke technology . Yamaha unveiled a new high-output engine that produces 25 percent more power and a higher top speed . Kawasaki has a 300− plus horsepower PWC , a stand-up " Jet Ski ," and an angler model for fishing . Sea-Doo also covers all bases with a wide range of PWCs , including an angler model , which is gaining popularity in some regions .

While the boating market generally declined a bit in 2023 , coming off the post- Covid demand surge , one category that has yet to fall short is PWC . According to the National Marine Manufacturers Association ( NMMA ), the personal watercraft segment sold about 85,000 - 90,000 new units in 2023 , up 20−25 % over 2022 . However , the rest of the boating industry saw declines in the mid-to-high single digits .

PWC sales have done so well because they

Body 32 %

Safety 9 %

Security 10 %

Luggage 9 %

Nothing 6 %

Luggage 7 %

Security 10 %

Safety 11 %

PERCENT OF PARTS PURCHASED WHEN A TOP 5 PART IS PURCHASED

Body 17 %

Personal Protection

Protection 20 %

Protection 8 %

Body

Security 8 %

Watercraft , Safety / Towable

Nothing 23 %

Electrical 7 %

Anchor 5 %

Luggage 9 % are relatively affordable , especially compared to other types of powerboats . They are also very mobile , so owners can tow them to lakes and waterways nearby or travel further to explore new areas .

According to J . D . Power , most segments of the marine market returned to typical conditions in 2023 , with supply increasing and equity and financing more of a challenge . Looking at individual segments , personal watercraft brought 5.3 % less in November-December than September-October and 15.6 % less in 2023 than in 2022 . Expect the correction to continue in 2024 as headwinds increase .

THE PLAYERS The personal watercraft market is dominated by a handful of manufacturers , including industry giants such as Yamaha , Sea-Doo , and Kawasaki . These OEMs continually innovate product offerings , incorporating cutting-edge technology and design features to enhance performance , safety , and user experience . Each brand has its loyal following , with enthusiasts often swearing by their preferred manufacturer ' s models .

One PWC dealer we spoke with recently says they mostly work on Sea-Doo brand products and shy away from Kawasaki products . He says Sea-Doos have better build quality and materials than Kawasaki , and Yamaha is probably the second-best brand . In terms of market share , this seems to ring true as well . Sea-Doo has a larger percentage of the market in North America , but according to our research , it ' s more of a toss-up between Kawasaki and Yamaha .

With Accessory No Accessory Sold

MARKET TRENDS According to the NMMA , most powerboat segments saw declines in 2023 , with a 5 % to 25 % drop in unit sales . However , the personal watercraft segment saw a significant increase , around 20 % to 25 %, as the final 2023 sales data were calculated . Due to its compact size , PWCs are considered a gateway to the larger boating segment . Given their entry-level pricing and ease of

Electrical 11 %

Control 34 %

Security

Safety 15 %

Electrical

Protection 18 %

Body 27 %

Safety 16 %

Body 30 %

GPS 15 %

Security 12 %

Source : Lightspeed

100 %

90 %

80 %

70 %

60 %

50 %

40 %

30 %

20 %

10 %

30 %

27 % 29 % 31 %

use , they make up a significant percentage of total boat sales ( more than one-quarter of the 258,000 new boats sold were PWCs in 2023 ).

“ With jumps in interest rates and inflation in 2023 , we saw more boating consumers being price sensitive and deciding to wait things out before buying their next boat and , in the meantime , picking up a personal watercraft to enrich their time spent on the water ," Frank Hugelmeyer , NMMA president , comments . " The nearly 1 million people who purchased a boat for the first time during the height of the pandemic continued to spend record time on the water in 2023 , helping drive an economic impact of $ 230 billion . As we enter 2024 , we expect Americans ' desire to be near water to continue as more people seek ways to prioritize health and wellness and enhance their quality of life , which has the industry focused on continued innovation and ensuring greater access to our public waters .”

Recreational boating remains a significant driver to the U . S . economy due to the estimated 85 million Americans who go boating each year , bringing their friends and family and spending on everything from food and marine accessories to marinas , storage , and insurance .

It drives an economic impact of $ 230 billion , up 36 % from 2018 , while supporting 36,000 U . S . businesses and 812,000 American jobs , according to NMMA ' s 2023 Economic Impact Study on Recreational Boating .

One thing to note about 2024 is that many dealers ' inventory levels are very high . NPA ' s

PERCENT OF TOTAL NEW UNIT PURCHASES BY BUYER GENERATION

42 % 44 % 45 % 43 % 42 % 43 % 44 % 43 %

29 % 27 % 24 % 24 %

21 % 20 % 19 % 19 % 22 % 23 % 26 % 28 %

50 %

21 %

24 %

28 %

25 % 27 %

25 % 24 % 21 %

Tony Altieri said in a recent NPDA webinar that dealers have more inventory than they ' ve had for the past few years , and the boating segment is no exception . " The preorder season was okay for most of the ( marine ) dealers we talked to . They had a pretty good boat show season . It wasn ' t like the Covid years , but it was okay . There wasn ' t as much business written at those shows as there is historically , but we ' re hoping for a good retail season this year as we enter summer , when ( PWC dealers ) do most of their business ."

In the charts provided by Lightspeed , we looked at the accessory sales on new units sold . Of the 64,000 units sold , 55 % of new were not sold with an accessory . And 45 % of new units sold during this time had an accessory purchased at the time the PWC was sold .

When the customer purchased a body part ( Top 5 Parts Purchased ): 24 % of the units were sold with a body part . 23 % of the buyers who purchased a body part purchased nothing else . And 20 % also purchased a personal protection part . While 11 % also purchased a watercraft safety or towable product , 10 % a security device , and 9 % purchased luggage ( storage ).

Another interesting note is that 82 % of P & A sold were OEM accessories . And 18 % were aftermarket accessories .

While winter is a big selling season for the recreational boating industry , with dozens of boat shows taking place around the country in January and February in major markets like New York , Miami , and Chicago , dealers typically have their biggest sales around boating season in the Spring . If interest rates begin to drop , the summer could be a big one for PWC sales .

41 % 45 % 44 %

PERCENT OF NEW UNITS WITH ATTACHED ACCESSORIES

55 %

64K New Units Sold

Generation Z Baby Boomer Millennial Generation X

45 %

PERCENT OF OEM VS AFTERMARKET ACCESSORY

18 %

OEM

82 %

Aftermarket

Source : Lightspeed