River Cruise Market Size, Share & Growth | Forecast [2031]

Report Description

River Cruise Market Outlook

The Global River Cruise Market was estimated at USD 1,838.8 Million in 2021 and is anticipated to reach USD 2,812.7 Million by 2030, expanding at a CAGR of 5.03% during the forecast period.

River cruise comprises watercraft that is utilized to travel through water bodies. It is specially designed to travel across river waters or shallow waters. River cruising is a leisure activity carried in inland waterways. With small ships and itineraries that take voyagers to big cities and small villages, and breathtaking landscapes, river cruise lines offer a unique experience.

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River cruise is a major part of the tourism industry in countries such as the UK, India, US, Italy, and Spain, among others. River cruises are equipped with amenities such as hotel-style beds, private bathrooms, individual climate control, refrigerators, safes, and TVs. Higher stateroom categories have French balconies, verandas, and separate sleeping and sitting quarters.

A typical river cruise carries 150 to 250 passengers and the tours last for a minimum of a week. According to Cruise Critic observations, the age of river cruise passengers ranges from 30 to 80. Moreover, the demographics change based on the destinations and amenities included.

Macro-economic Factors

Increasing Middle Class population

According to the 2021 Credit Suisse (CS) Global Wealth Report, the global middle-class, defined as adults whose assets range between USD 10,000 to USD 100,000, has been tripled to 1.7 billion in mid-2020 from USD 507 million in 2000. This indicates to an increased purchasing power and result in a high requirement for consumer products and services.

In a market-driven economy, the middle-class population is the backbone of the economy and market. The population tends to make economically based choices with a combination of material consumption and enjoyment. Spending on tourism is increasing by the middle-class population. This is impacting the overall tourism industry, and in turn, boosting the river cruise market.

Conspicuous Consumption

Conspicuous consumption is a major macroeconomic factor propelling the market. Cruise advertising companies devise appealing promotions of river cruise amenities. This is typically based on consumer experience. Moreover, the inclusion of psychological tactics and neuromarketing strategies in advertisements, is attracting a large number of customers to cruise tourism.

Political and Economic factors

The tourism sector and politics are closely related to each other. Economic strategies such as tariffs, visa, border restrictions, and waterways regulations, among others can influence the flow of visitors in a region. Political governance plays a major role in the efficiency of the economy.

Tourists prefer places that are safe, peaceful and economically viable. Thus, river cruise market is majorly concentrated in European regions that are economically stable and have flexible strategies.

River Cruise Market Dynamics

Market Driver- Expanding Tourism Sector

The cruise tourism industry is rapidly expanding. According to Cruise Lines International Association (CLIA) reports, the global cruise industry contributed USD 154 billion to the global economy in 2019, accommodating 30 million passengers. Cruise tourism is a part of enclave tourism.

Enclave tourism is tourism that takes place in a space that is segregated from the community outside. Cruise tourism significantly contributes to the global economy due to local and regional economic impacts. It generates employment opportunities for the local people that improves their standard of living.

An increasing number of passengers, opening up of lockdowns, and societies returning to normal after the Covid-19 pandemic are propelling the tourism sector. This is conducive significantly to the global river cruise market globally.

Market Driver- Increasing Capacity of River Cruises

Technological and mechanical advancements in river cruises are major factors driving the market. Cruises are built bigger and faster than ever, and cruise passengers are finding it convenient to travel over the cruise. Increase in the on-board revenues is attributed to ever-increasing size—or capacity, in nautical parlance—that are more technologically sophisticated, safer, more complex, and equipped with more onboard facilities.

A cruise ship combines each of the four aspects of the tourist sector: traveling, lodging (including food and drink), attractions, and tour operators. Thus, cruise ships are major competitors for land-based resorts. Cruise companies are constantly offering in introducing new regions and new destinations for tourists to explore. This, in turn, is fueling the market.

Market Restraint- Environmental Concerns

Environmental concerns, pollution, the threat to marine life, and climate change are hampering the market. River cruises require a substantial amount of fuel and electricity, which increases the emission of harmful substances that are fatal for aquatic life. Water transport is one of the most polluting sectors emitting high amounts of nitrogen oxides and carbon dioxides.

Motorized vessels pollute the water, and may present hazards to river wildlife. Hence, the International Maritime Organization, a branch of the United Nations, has established regulations to check the shipping industry’s emissions. Growing environmental concerns are likely to hamper the market.

Market Restraint- High Infrastructural Costs

River cruises require high capital investments in the initial stages. Additionally, infrastructure and maintenance costs are substantially high.Rising inflation and growing political factors such as taxes, and regulatory perspectives are restraining the tourism industry directly. Factors such as unavailability of port infrastructure and cruise terminals are likely to impede the market.

Market Opportunity- Increasing Global Integration

With the emergence of globalization, there has been a healthy integration of social and cultural aspects in across society. In the past two decades, the studies on social and cultural effects of tourism have been emphasized.

Gibson and Bentley (2006) cited that “social effects are broad-ranging and refer to the ways in which tourism contributes to changes in value systems, family relationships, individual behavior, safety levels, moral conduct, collective lifestyles, creative expressions, traditional ceremonies, and community organizations.”

The emergence of ideologies such as individualism, booming service sector, and attractive advertisements based on consumer experience are attracting a significant number of passengers to river cruising across the globe. Moreover, the cruise industry is growing at a rate of 12% annually. This is expected to create lucrative opportunities in the river cruise market during the forecast period.

Scope of River Cruise Market Report             

The report on the global River Cruise market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

River Cruise Market Segmental Outlook

Based on types, the global river cruise market is bifurcated into steel, wood, and others. The steel segment is dominating the market, owing to its versatile properties and chemical resistivity. Steel is extensively used in the shipbuilding industry. Steel has various properties, such as heat resistance, corrosion resistance, flexibility, and cost efficiency, thus increasing its utility in river cruises.

Maintenance costs and the environmental impact of steel restrains the use of steel in river cruises, thus leading to the use of other structural materials, such as aluminum or composite materials, in the construction of river cruises. 

By manufacturing ship structures in these lightweight materials, the structural weight can be reduced, the engine power can be decreased, and the payload can be increased. Plain carbon and mild steel are the common grades of steel used for shipbuilding, as they have many qualities that make it uniquely suited for marine engineering.

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Based on size, the global river cruise market is segmented into less than 250ft, 250-400ft, and more than 400ft. The less than 250ft segment is projected to expand at a CAGR of 3.8% during the forecast period. River cruises that are less than 250ft in size are expected to grow in popularity, due to their ability to ferry and serve a small number of consumers, and low cost of maintenance. A river cruise ship of 205 ft in size carries up to 180 passengers.

AmaMagna, which was launched in 2019, has a width of 72 ft and was the largest ship in the fleet of AmaWaterways. Such cruises are equipped with a small crew to fulfill the requirements of the passengers, which is expected to increase the popularity of river cruises during the forecast period.

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On the basis of propulsion equipment, the global river cruise market is categorized as outboard, inboard, and sterndrive. The inboard segment is dominating the market with 54.6% in 2021, owing to its fuel efficiency and lightweight.

An increasing number of cruises owing to growth in the volume of passengers is boosting the preference for inboard equipment. This equipment needs less handling and incur lower maintenance costs than outboard or sterndrive propulsion equipment. 

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Based on propulsor type, the global river cruise market is differentiated into fuel, electric, and others. The fuel segment is expected to expand at a CAGR of 5.1% and occupy a large market share during the forecast period.

Fuel-based propulsor systems are popular, due to their proven reliability and abundance of choice in terms of power sources. The conventional drive or diesel engine-based drive are the simplest and the most conventional. The ignition caused by fuel in the combustion chamber pushes the pistons creating a thrust of magnitude force to overcome the standstill stance of the ship.

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Regional Outlook

On the basis of regions, the global River Cruise market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

The market in the Asia Pacific is projected to expand at a 4.4% CAGR during the forecast period, owing to the presence of a large number of players in countries such as China. China is a major producer of River Cruise. T

The region comprises of some famous locations such as the Yangtze River in China, the Mekong River in Vietnam, and the Irrawaddy River in Myanmar. The region held market share of 21.5% in 2021. The market in the region is projected to expand at a CAGR of 2.6% during the forecast period.

North America accounts for 30.2% share of the market, due to the increasing production of River Cruise in the US. The market in Latin America is expected to expand at a CAGR of 3.3% during the forecast period. In Latin America.

The popularity of river crises in the US is increasing due to the rising number of cruises on the Mississippi river. Additionally, the great lake cruise is picking up an extended number of passengers due to increasing popularity.  Tadoussac whale cruises are expected to account as a majority reason for increasing market share for Canada during the forecast period.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global River Cruise Market

• Historical, Current and Projected Market Size in terms of Value

• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered

• Industry Drivers, Restraints, and Opportunities Covered in the Study

• Recent Industry Trends and Developments

• Competitive Landscape & Strategies of Key Players

Neutral Perspective on Global River Cruise Market Performance