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. The increasing popularity of water taxis in tourism-driven regions is a major factor contributing to the growth of the water taxi industry. Coastal cities, island nations, and destinations with extensive waterways such as Venice, Dubai, and the Maldives depend heavily on water taxis to meet the transportation needs of tourists seeking unique and memorable travel experiences. Beyond serving as a convenient mode of transport, water taxis enhance the overall tourism experience by offering scenic routes, premium amenities, and, in some cases, luxurious services. As the global travel and tourism industry continues to recover following the pandemic, demand for water taxi services in major tourist destinations is witnessing a notable resurgence.

The growing rate of urbanization in coastal cities, combined with increasing traffic congestion on road networks, is expected to further fuel market growth over the forecast period. Water taxis provide an efficient, time-saving, and flexible alternative to traditional road-based transportation, especially in densely populated urban areas where traffic delays are common. Cities with established waterfronts, harbors, rivers, and canals particularly across North America, Europe, and parts of Asia are increasingly investing in water taxi infrastructure and services as part of broader urban mobility and congestion management strategies. These investments are aimed at improving connectivity, reducing travel time, and enhancing public transportation options in coastal and waterfront urban environments.

In addition, the integration of advanced technologies such as app-based booking platforms, GPS navigation, and real-time tracking systems has significantly improved the accessibility and convenience of water taxi services. These digital solutions allow passengers to easily book rides, monitor vessel locations, receive real-time updates, and plan their journeys more efficiently. The adoption of such user-friendly technologies is enhancing customer satisfaction and operational efficiency, thereby supporting the expansion of the water taxi market across both tourist and commuter segments.

Key Market Trends & Insights:

• Asia Pacific dominated the water taxi market with a revenue share of 36.04% in 2024, supported by the presence of extensive coastlines, island economies, and a strong tourism sector across the region. The Asia Pacific water taxi industry is anticipated to grow at a CAGR of 4.9% during the forecast period, driven by rising tourism, urban waterfront development, and growing investments in maritime transport infrastructure.
• By product type, the ferries segment accounted for the largest market share of 32.8% in 2024, as ferries are widely used for short-distance passenger transport in coastal and urban waterway settings. Meanwhile, the cruise segment is expected to grow at the fastest CAGR over the forecast period, supported by the increasing integration of cruise tours with tourism and leisure travel packages.
• By propulsion type, the diesel segment held the largest market share in 2024, primarily due to the widespread availability and established infrastructure for diesel fuel. However, the electric segment is expected to register the fastest CAGR during the forecast period, driven by the growing emphasis on eco-tourism, environmental sustainability, and the adoption of low-emission transportation solutions.

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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 key companies operating in the global water taxi market include Azimut Benetti S.p.A., Beneteau Group, Austal, Bavaria Yachtbau, and others. To strengthen their competitive positions, market participants are focusing on expanding their customer base and enhancing service offerings. As a result, leading players are actively pursuing strategic initiatives such as mergers and acquisitions, partnerships, and collaborations with other major companies in the maritime and tourism sectors.

• Azimut Benetti S.p.A., headquartered in Italy, is a prominent manufacturer of luxury yachts and specializes in the production of a wide range of vessels, particularly megayachts exceeding 24 meters in length. The company operates through two primary brands: Azimut Yachts, which focuses on luxury motor yachts, and Benetti, a premium yacht builder known for custom-built superyachts.
• Austal, an Australian-based shipbuilding company and defense contractor, specializes in the design, construction, and support of commercial and military vessels. The company offers a diversified product portfolio that includes high-speed ferries, patrol boats, and advanced naval vessels such as the Littoral Combat Ship for the U.S. Navy, and operates major shipbuilding facilities in Henderson, Western Australia; Mobile, Alabama; and Balamban, Philippines.

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Conclusion:

The global water taxi market is witnessing steady growth, supported by rising tourism activities, increasing urbanization in coastal regions, and the need for efficient alternatives to congested road transport. Water taxis play a dual role by providing convenient mobility while also enhancing travel experiences through scenic routes and premium services, particularly in tourism-driven destinations. Post-pandemic recovery in global travel has further strengthened demand in major waterfront cities and island economies. Technological advancements such as app-based booking platforms and GPS-enabled tracking systems have improved accessibility, reliability, and customer convenience, accelerating market adoption. Regionally, Asia Pacific leads the market due to rapid urban development, expanding tourism, and investments in maritime transport infrastructure. Segment-wise, ferries continue to dominate due to their high passenger capacity, while cruise-based water taxis are gaining momentum through integration with tourism packages. Additionally, the gradual shift toward electric propulsion, driven by eco-tourism trends and sustainability goals, is expected to shape the future growth trajectory of the water taxi market.