One minute, Polaris is forecasting further layoffs, and the next, BRP is posting year-over-year profit. To understand where the powersports industry is heading, you need to look at the micro, not the macro. We need to look more closely at the markets that make up the industry to see what areas are keeping businesses in the black—right now, it's personal watercraft (PWCs).
The entire powersports industry experienced pandemic-driven growth, but unlike the PWC market, not all areas have continued to grow. According to PowerSports Business, this isn't just an idea, it's a fact, as Yamaha WaterCraft General Manager, Bryan Seti, said 45% of PWC buyers are first-time owners. But in such uncertain socioeconomic times, how is such a pricey hobby continuing to grow? Well, the term 'pricey' is relative.
An entry-level Yamaha JetBlaster starts at $8,499, while Sea-Doo's entry-level machine, the Spark, starts at just $6,999. Both options are cheaper than any full-size UTV, and way cheaper than a boat. PWCs are being bought at nearly a threefold rate when compared to the aluminum or pontoon segments. Even beyond the pontoon market, new boat sales are down around 9-10% in 2025 compared to 2024.
Historically, the boat market wouldn't have been in such direct competition with the PWC market, but as budgets tighten, the two worlds draw ever closer, and PWC manufacturers are capitalizing on this by producing more dynamic models.
There are PWCs with all you need to go fishing, from extra storage to rod holders, but the real innovation is happening on high-end models. Yamaha's CrossWave, pictured in the main image, blurs the line between a PWC, which folks are now calling compact utility boats. I wouldn't look at you sideways if you called the CrossWave a massive PWC or a very small boat.
PWCs show a clear advantage in terms of accessibility, not just because of a lower entry price, but because everything from storage to hauling and fueling is more affordable and easier. It's not all doom and gloom for boats and the marine industry, however, as PWCs still remain the main gateway vehicle to larger watercraft. According to Sea-Doo's Global Product Strategy Director, James Heintz, “Barriers are reduced, and we are driving a lot of people out on the water... Many eventually move into boats.”
Now that pro watercraft racing is making a comeback, it's likely the PWC market will see continued interest due to getting more exposure. And whenever the next recession hits and passes, those PWC families might become boat families, and continue to feed the industry.
