The global water taxi market size was estimated at USD 15.96 billion in 2024 and is projected to reach USD 19.76 billion by 2030, growing at a CAGR of 3.9% from 2025 to 2030. One of the key drivers behind this growth is the increasing popularity of water taxis in regions that are heavily centered around tourism.

Cities and regions that feature extensive coastlines, islands, or intricate waterway networks—such as Venice in Italy, Dubai in the UAE, and the Maldives—depend significantly on water taxi services to accommodate the needs of tourists looking for distinctive and memorable experiences. In these locations, water taxis are not merely a means of transportation; they contribute to the tourism appeal by offering passengers scenic travel routes and, in many cases, premium or luxury services that enhance the overall journey. With global tourism witnessing a strong rebound in the aftermath of the COVID-19 pandemic, major tourist destinations are experiencing a surge in demand for water taxi services.

Furthermore, the ongoing trend of urban expansion in coastal areas, coupled with escalating traffic congestion in many cities, is expected to contribute positively to market growth throughout the projected period. In urban environments—particularly those that are heavily populated and face frequent land traffic challenges—water taxis are emerging as a viable, efficient, and time-saving alternative to traditional road transport. Metropolitan areas featuring waterfronts, riverbanks, and harbors, especially across regions like North America, Europe, and parts of Asia, are increasingly investing in the development and expansion of water taxi systems. These investments are aimed at easing road traffic congestion and improving overall mobility within urban settings.

Key Market Trends & Insights:

• In 2024, the water taxi industry in North America held a substantial portion of the global market share, highlighting the region's established infrastructure, widespread adoption of water-based transport, and growing investments in alternative urban mobility solutions. The presence of numerous coastal cities and a strong emphasis on sustainable transportation options have contributed to North America's leading position in the global market.

• Meanwhile, the Asia Pacific region is projected to witness robust growth in the water taxi industry over the forecast period. With a projected compound annual growth rate (CAGR) of 4.9%, the region is expected to experience rapid expansion due to increasing urbanization, rising tourism activity, and growing investments in marine transportation infrastructure. Countries such as China, India, Japan, and Southeast Asian nations are recognizing the potential of water taxis as a viable solution to ease congestion and enhance connectivity in cities with complex waterway systems.

• In terms of product segmentation, ferries dominated the market in 2024, accounting for the largest share at 32.8%. This reflects the widespread use of ferries for transporting both passengers and goods across short and medium distances in areas with frequent water travel. Ferries are often preferred for their capacity, reliability, and suitability for both commercial and tourism-related applications.

• From the propulsion perspective, diesel-powered water taxis held the largest share of the market in 2024. Despite the growing interest in electric and hybrid alternatives, diesel propulsion remains the most commonly used due to its established technology, cost-effectiveness, and widespread availability of fueling infrastructure.

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Market Size & Forecast:

• 2024 Market Size: USD 15.96 Billion

• 2030 Projected Market Size: USD 19.76 Billion

• CAGR (2025-2030): 3.9%

• Asia Pacific: Largest market in 2024

Key Companies & Market Share Insights:

Some of the leading companies operating in the global water taxi market include Azimut Benetti S.p.A., Beneteau Group, Austal, Bavaria Yachtbau, among others. These organizations are actively working to expand their customer base as part of their broader strategy to strengthen their market position and achieve a competitive edge in the industry. To achieve this, key players are implementing various strategic initiatives such as mergers and acquisitions, strategic alliances, and partnerships with other prominent companies in the marine and transportation sectors. These efforts aim to enhance product offerings, expand geographic reach, and leverage shared resources for improved operational efficiency.

Azimut Benetti S.p.A., headquartered in Italy, is recognized as a world-class manufacturer of luxury yachts. The company is particularly renowned for its expertise in designing and building megayachts that exceed 24 meters in length. It operates under two primary brands: Azimut Yachts, which focuses on the production of high-end luxury motor yachts for private and commercial use, and Benetti, which is known for its custom-built superyachts catering to ultra-luxury clientele. Through these brands, the company maintains a strong presence in the premium segment of the marine transportation and leisure market.

Austal, based in Australia, is a prominent shipbuilder and defense contractor with a global footprint. The company specializes in the design, construction, and ongoing support of a wide range of both commercial and military vessels. Its product portfolio includes high-speed ferries for public and private transportation, patrol boats, and technologically advanced naval ships such as the Littoral Combat Ship developed for the U.S. Navy. Austal operates significant shipbuilding facilities in Henderson, Western Australia, Mobile, Alabama (USA), and Balamban, Philippines, enabling it to serve multiple markets across different regions with efficiency and scale.

Key Players

• Azimut Benetti S.p.A.

• FERRETTI SPA

• Carnival Corporation & Plc

• Disney Cruise Line

• Royal Caribbean Group

• Austal

• Catalina Yachts

• Beneteau Group

• Bavaria Yachtbau

• Princess Cruise Lines

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Conclusion:

The water taxi market is growing steadily, driven by tourism, urban congestion, and investment in waterfront transport. With rising demand for eco-friendly and efficient mobility, especially in coastal cities, the market is set to expand further in the coming years.