As 2022 winds down, investors are already looking to 2023 and the potential opportunities that await. One area that is set up for a big 2023 is the electric vehicles market. According to Reuters and other news outlets, 2023 is shaping up to see a big kickstart in mass production efforts for the EV market.
However, the growth in EVs will not be limited to just cars, vans, and trucks. Electric boats continue to see heightened demand, as consumers look for alternatives to traditional combustible-engine-powered boats. A big portion of this demand is from potential big savings from less maintenance, no gas costs, and more eco-friendly compared to traditional boats.
According to ResearchandMarkets, the global electric boating market is estimated to grow from $5 billion in 2021 to an estimated $16.6 billion by 2031. This represents a compound annual growth rate (CAGR) of 12.9% between 2022 to 2031.
Vision Marine Technologies, Inc. (NASDAQ: VMAR) is an electric boating company that has already proven itself as a potential leader in the emerging industry after its recent collaboration with boating industry giant, Groupe Beneteau.
Electric Boating Partnership: VMAR and Beneteau Enter Into a Master Supply Agreement
On December 13, 2022, Vision Marine and Groupe Beneteau announced they had entered into a formal Master Supplier Agreement. Under the terms of the supplier agreement, Vision Marine will supply Groupe Beneteau with its E-Motion 180E electric outboard motor, which is one of the world’s first purpose-built, fully electric outboard motor and powertrain systems, which will be equipped on Beneteau’s upcoming Four Winns H2e electric boat model.
The Four Winns H2e boat is the first electric runabout available to consumers, which will be jointly marketed by both companies to Beneteau’s vast dealer network. Across five continents, Beneteau maintains a network of 400 dealers, including 72 dealers throughout the United States.
Vision Marine’s E-Motion 180E outboard motor has undergone extensive testing and validation over recent months. Given the outboard motor’s design and durability, Beneteau saw the product as a perfect complement to its Four Winns H2e boat model. Keep in mind that Vision Marine’s E-Motion 180E outboard motor was also clocked as the fastest electric motor by reaching a top speed of 109 MPH at the 34th annual Iconic Lake of the Ozarks shootout in August 2022.
See the Four Winns H2e In Action At the Vision Marine Technologies Testing Facility in North Miami, Florida: https://www.youtube.com/watch?v=bZ8VVnagS0Y
“We are proud to enter into this strategic global supplier alliance with Groupe Beneteau. This represents an exciting milestone and inflection point for Vision Marine and its shareholders. We look forward to sharing our mutual mandates, and to assist Beneteau to expand its global carbon neutral goals via the electric transition of global waterways.” stated Alex Mongeon, co-founder, and CEO of Vision Marine. “We expect our order book to show continuous growth as we approach the formal introduction of the H2e, as well as other offerings by Beneteau.”
Vision Marine Receives First Purchase Order from Beneteau for 25 E-Motion 180E Motor Systems
Following the announcement of the master supplier agreement, Vision Marine disclosed that Groupe Beneteau has also placed its initial purchase order for 25 E-Motion 180E outboard motor and powertrain systems. In addition, Beneteau says it will provide Vision Marine with a quarterly rolling forecast, which will include additional purchase orders for more outboard motor systems.
The purchase order marks a big milestone for both companies. For Vision Marine, the purchase order from a major firm like Beneteau is a clear “proof of concept” for its E-Motion 180E system. Through all the testing and validation, VMAR has developed a quality product that is worthy of use in a trusted brand like Four Winns and Beneteau.
Furthermore, the purchase order further solidifies the companies’ partnership, as Beneteau aims to adapt its boating models to electrification by 2030. There is currently nothing else available on a commercial scale to OEMs or consumers, giving Vision Marine the key leadership role with its E-Motion system.
“This initial order sets an important commercial milestone and reflects not only the value but also the trust Beneteau places in our innovative technology, as we expand fully electric propulsion systems globally across Beneteau’s formidable portfolio of brands,” stated Alex Mongeon, co-founder & CEO of Vision Marine.
While the two companies did not disclose a specific price associated with the purchase order, there are clues out there that we can use to help determine the value. For instance, Vision Marine received a purchase order from The Limestone Boat Company (TSXV: BOAT) back in September 2022 for 25 E-Motion 180E powertrains.
While unconfirmed, investors can estimate that Beneteau’s purchase order, which is also for 25 E-Motion 180E powertrain systems, is likely around the $2 million mark as well. Given Beneteau says it plans to provide additional purchase orders on a rolling basis, this represents a big opportunity for Vision Marine to grow revenues and further expand its operational milestones.
Overall, 2022 has been a breakthrough year for Vision Marine. Throughout the year, Vision Marine has expanded its partnerships with Octillion Power Systems, Nextfour Solutions, Ltd., Groupe Beneteau, and more, to develop its proprietary powertrain system. This year also saw rigorous testing and validation of the powertrain system, which blew past expectations and is still the most powerful electric outboard motor available today.
2023 is shaping up to be a big year for Vision Marine. After laying a strong foundation in 2022, the company can now focus on expanding focus on sales, further developing its product line of electric boat models, and its revenue-generating boat rental business, which just recently expanded to Portside Ventura Harbor, California. Investors should take some time to take a deeper look into the over-looked electric boating market and the massive opportunity it presents through the next several years.
To learn more about Vision Marine and its innovative electric boating technology, visit https://visionmarinetechnologies.com and https://investors.visionmarinetechnologies.com
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