Matrix’s Outdoor Recreation and Marine Investment Banking Group
William O’Flaherty, Managing Director  |  Matt Oldhouser, CPA, Vice President
Jason Keyser, CFA, Senior Analyst  |  Hayden N. Daniel, Analyst  | Bing Song Lin, Analyst

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Overview 

Introduction
Despite soft demand in both wholesale and retail markets in 2025, the boat manufacturing industry is undergoing a significant wave of technological innovation and disruption. This shift is driven by a dual imperative:

• Meeting evolving consumer expectations—particularly around sustainability and user experience.
• Serving growing public-sector demand for cleaner, more advanced marine infrastructure and defense capabilities.

As marine innovation increasingly mirrors the evolution seen in the automotive and aerospace sectors, the competitive landscape is tilting toward those firms best able to execute on electrification, autonomy, and smart systems to meet growing consumer demand.

 

 

These innovative trends are not peripheral – they are redefining strategic priorities across the sector. Leading players are increasing their internal research & development spending, pursuing M&A activity to acquire disruptive capabilities, and repositioning their brands around technology leadership.

Eco-Friendly Boats
The trend towards producing eco-friendly boats, which come in two main variations: electric and hydrofoil propulsion, has been marching forward at a remarkable pace with the U.S. electric boat market expected to nearly double in size by 2030 to $14.1 billion.²

The growing customer demand for these models is driven by several factors that we will cover. Shifting consumer sentiment towards more environmentally conscious products is one of the main variables.

Sources: 1. Unmuted Consumer Insights – 2025 U.S. Boat Owners Sustainability Study; 2. Grand View Research – 2025 Electric Boat Market Report

In addition to the environmental benefits, these eco-designs also carry cost benefits – namely the affordability of electric charging which can have a cost differential as high as $89.00/tank.¹ They also offer experience-driven benefits: electric and hydrofoil propelled boats are significantly quieter than those with combustion engines, reducing noise pollution and enhancing the boating experience. The final factor allowing for a significant market expansion over the next five years is increased infrastructure readiness. Akin to the electric automobile infrastructure buildout occurring nationally, improvements in marine charging infrastructure, particularly in coastal and freshwater marinas, are increasing adoption feasibility for eco-friendly boat owners.

San Francisco Bay, for example, recently added fast charge stations at Westpoint Harbor providing boat owners with readily available access to reliable plug and charge facilities. This sprouting infrastructure will develop confidence for consumers to transition away from traditional boats.

Electric Propulsion Boats/Ferries
In the private sector, manufacturers are racing to establish dominance in the electric boat segment, targeting the eco-conscious buyer who expects not only sustainability but also luxury, sleek design, performance, and integrated smart tech—drawing direct parallels to the Tesla effect in automotive.

In the public sector, governments are embracing electric ferries to decarbonize transit systems. For example, Washington state has opened bids to construct five new hybrid-electric ferries over the next six to eight years with a budget of $1.3 billion,² with the goal of reducing the ferries’ air pollution footprint by switching to battery propulsion as much as possible.

Hydrofoil Boats
Hydrofoil technology, which lifts the hull above the water to reduce drag, is a natural partner to electric propulsion. These boats are more energy efficient, faster, and provide a smoother ride. Swedish company Candela is leading the innovation curve, recently launching the first flying electric ferry in the U.S. on Lake Tahoe.

Sources: 1. EV Magazine – “Electric Boats Lead the Way in Sustainable Marine Innovation”; 2. Kitsap Sun – “Bids to build new plug-in Washington state ferries come in high”

 

Autonomous Boats
Another area of the boating market fielding an influx of technologically-targeted investment is the autonomous boating segment. The autonomous boat market is expected to grow at a rate of 9.3% annually and reach a value of $872.0 million by 2029¹ driven by recent advancements in automation, sensor technology, and AI. Government/military investment comprises the majority of autonomous research and development funding as nations compete to keep their fleets on the forefront of marine warfare and turn startups into household names practically overnight. This is the case with Saronic in the U.S. or Kraken Technologies in the U.K.

While it’s unsurprising that autonomous boating research for recreational applications is trailing military applications, there are manufacturers leveraging this technology to add practical functionality for its consumers, such as autonomous docking and virtual co-captains.

Brunswick, in particular, is seeking to differentiate itself by developing modular systems enabling retrofitting of legacy vessels and integration of the Internet of Things (IoT) ecosystems with vessel performance management.

 

Sources: 1. “MarketsandMarkets” – 2024 Autonomous Boats market Report; 2. AUVSI – FY 2025 DoD Budget Report

Final Observations
Innovation is directly impacting valuation multiples in the marine sector. Investors are rewarding companies with defensible IP, first-mover status in autonomy or electrification, and early government contracts. As a result, strategic M&A activity is accelerating, focused on acquiring core technological assets, skilled labor, and production capabilities.

Technological disruption in the boat manufacturing industry is no longer speculative, it’s underway. Electrification, autonomy, and smart systems are catalyzing a redefinition of performance, user experience, and industrial capability in both private and public maritime sectors. While commercial and defense applications are likely to lead the way, consumer adoption is clearly taking hold as well. Infrastructure support will likely limit the pace of market interest; however, we see manufacturers and their supply chains continuing to charge ahead given the clear demand from consumers.

Firms that embrace this transformation through internal research and development, external partnerships, and bold M&A are likely to capture premium valuations. Those that fail to adapt, risk obsolescence in a rapidly modernizing seascape. Differentiation in product, particularly in a challenging demand environment hampered by interest rates and tariff headwinds, is imperative.

Investment banks can serve as valued advisors for businesses in the boat manufacturing space (both OEMs and supply chain partners) as market innovation drives the need for capital raising to support investment in equipment, facilities, engineers and other R&D related activities.

Moreover, larger operators who are less agile in driving innovation internally may do well to engage advisors to assist in a strategy of adding new technological competencies through acquisition. Regardless, changes in markets create a need for thoughtful, industry-focused advisors to support management as they decide the best strategic alternatives given various business-specific narratives.

 

State of the Marine Market – Key Industry Data

Marine Key Macroeconomic Indicators

Sources: Federal Reserve Economic Data

Operational Indicators and Measurements

Broad-Based Declines in 2025 Powerboat Sales, Expect Recovery Fueled by Stabilizing Margins and Early Signs
of Segment-Level Resilience

Sources: NMMA; Capital IQ

 

Marine Market Data & Updates

Market Valuation & Performance

Amid Slowing Global Economic Growth and Persistent Inflation, Valuations Remain Elevated and Analyst
Sentiment is Resilient

Based on Capital IQ data as of September 15, 2025; see page 15 for additional detail on companies included in each category; composite analyst sentiment excludes company outliers that would materially impact market takeaways

Marine Public Trading Group

Based on Capital IQ as of September 15, 2025; 1. EV/EBITDA and P/E multiples above 30.0x and below 0.0x considered not meaningful (“n.m.”)

 

Deal Spotlight / Key Recent Transactions

Acquisition Spotlight: Twin Vee Acquires Bahama Boat Works

Sources: Based on Twin Vee investor presentations; ACCESS Newswire

 

Marine Select Recent Transactions

Strategic and Financial Buyers Continue to Illustrate Interest in Large Growing Brands

Sources: Capital IQ; various industry publications

What We’re Reading

What We’re Reading – Growing Demand for Electric and Autonomous Watercraft

 

Appendix A: Outdoor Recreation & Marine Public Trading Analysis

Outdoor Recreation & Marine Public Comparable Universe

Based on Capital IQ as of September 15, 2025; 1. EV/EBITDA and P/E multiples above 30.0x and below 0.0x considered not meaningful (“n.m.”)

Based on Capital IQ as of September 15, 2025; 1. EV/EBITDA and P/E multiples above 30.0x and below 0.0x considered not meaningful (“n.m.”)

 

 

Disclaimer

The contents of this publication are presented for informational purposes only by Matrix Capital Markets Group, Inc. and MCMG Capital Advisors, Inc. (“Matrix”), and nothing contained herein is an offer to sell or a solicitation to purchase any of the securities discussed. While Matrix believes the information presented in this publication is accurate, this publication is provided “AS IS” and without warranty of any kind, either expressed or implied, including, but not limited to, the implied warranty of merchantability, fitness for a particular purpose, or non‐infringement. Matrix assumes no responsibility for errors or omissions in this presentation or other documents which may be contained in, referenced, or linked to this publication. Any recipient of this publication is expressly responsible to seek out its own professional advice with respect to the information contained herein.