Luxury Yacht Market | Global Size, Share & Industry Analysis

Description

Global Luxury Yacht Market Overview

The Luxury Yacht market estimated at USD 9.09 Billion in the year 2023, is projected to reach a revised size of USD 18.35 Billion by 2032, growing at a CAGR of 8.12% over the analysis period 2024-2032.

A yacht is any type of sea vessel that is mostly utilized for recreational or pleasure purposes like entertaining, cruising, fishing, water sports, or year-round accommodations. Yachts are large enough and have sleeping quarters on board for overnight trips, a kitchen, and a bathroom. Luxury yachts are commonly associated with luxury and opulence, and a symbol of a lavish lifestyle. The yacht industry is expected to witness increased demand for luxury yachts with long-range capabilities and more lavish amenities, given the growing desire of luxury yacht owners for adventure travels to popular locations such as Antarctica and Galapagos. With the development of various software to design yachts, there is a shift towards innovative designs with brighter and open-plan interiors.

Luxury yachts are specifically designed for enjoying outdoor recitational activities and to have a direct, and more intimate experience with the sea. New individuals buying yachts are increasingly demanding high-tech features and gadgets to be integrated into their luxury yachts. Aside from traditional components such as jet skis, canoes, and water skiers, demand for innovative gadgets such as hoverboards, jet lev, and skibob is increasing. Further, yachts with high-quality cinema rooms and media rooms are also gaining widespread popularity among potential customers thus, supporting the development of the luxury yacht market in the forecast period.

Market Dynamics and Key Factors of Luxury Yacht Market

Drivers:

The growing inclination towards recreational boat activities especially for water sports, traveling, fishing, and leisure purposes are the main factors driving the growth of the luxury yacht market during the forecast period. The luxury yacht market is expanding at a high rate, with growing preferences for luxurious pleasure vehicles offering chartered as well as private services. Moreover, the growing trend of spending leisure time on specific destinations, indulging in racing, cruising, and other recreational activities, as well as appealing tourism packages offered by travel agencies to consolidate their market position, are essential factors driving the global luxury yacht market. Yachting is already a lifestyle in many Western countries such as the United Kingdom, the United States, Italy, and France due to the presence of a large wealthy population with a strong likeness for recreational activities.

Due to economic development and the increasing wealth of people, yachting is gradually emerging as a new means of leisure and recreation in several developing regions as well. With the rising corporate events and parties being conducted on yachts, the demand for rental luxury yachts is increasing. Moreover, countries having a natural landscape of sea/ocean as a border attract significant tourists each year such as Bahamas, Australia, New Zealand, Seychelles, Mauritius, and Madagascar. Additionally, many corporate organizations lease their luxury yachts in this region thus, the popularity of luxury yachts is growing. The worldwide rise in the number of billionaires and millionaires in recent times is the main factor stimulating the development of the luxury yacht market in this region.

Restraints:

The rise in the CO2 emission from the marine tourism industry is the main factor hindering the expansion of the luxury yacht industry in the forecast period. Many rules and regulations have been formulated by the International Maritime Organization to reduce greenhouse gas emissions by 50% by 2020 from its previous levels in 2008. The high maintenance price of luxury yachts and the annual expense on storage facility negatively affects the luxury yacht market. For instance, 10% of buying price is required for the maintenance of luxury yachts annually. Additionally, the cleaning complexities, accessories cost, weather damage, and asset depreciation are some of the other factors hampering the growth of the luxury yacht market in the projected period.

Opportunities:

The rising inclination towards boat recreational activities and the growing marine tourism are creating a profitable opportunity for the market players involved in the luxury yacht industry. A large number of individuals are opting for luxury yachts for having parties during the summer season. Moreover, supportive government initiatives to boost marine tourism, lower marine resort taxes, and easy leasing policies are stimulating the expansion of the luxury yacht market. The rise in the number of wealthy individuals and the strategic alliances by leading manufacturers are creating a lucrative opportunity for the market players.

Market Segmentation

Segmentation Analysis of Luxury Yacht Market:

Depending on the type, the flybridge yacht segment is forecasted to dominate the luxury yacht market in the forecast period attributed to the large space at the top which is often utilized for entertaining and dining as well as long-distance cruising. In addition, these are most proffered by business organizations to conduct meetings in the open sea as it offers all the required amenities like air conditioning. Moreover, there are many variants of flybridge available in the market such as sportsbridge, open, and hardtop flybridge. Flybridge yachts provide extra usable space and great visibility for spotting nearby objects. These yachts are the most utilized for leisure purposes in the summer season in both, developed and developing regions thus, promoting the growth of this segment during the analysis period.

Depending on the type, the 90-250 feet segment is anticipated to lead the luxury yacht market in the projected period. With larger spaces comes bigger rooms, more space for gyms, spas, and swimming pools. Most of the Ultra High Net Worth Individuals (UHNWI) prefer buying luxury yachts that have privacy in every room and are spacious enough to accommodate television and sofa sets. Furthermore, outdoor spaces are designed for luxurious relaxation while enjoying the sights, sounds, and smells of the ocean. Underwater Observatory or Nemo Lounge is also offered by some prime companies in this segment. These are completely submerged lounge that lets individuals see through the bottom as well as on both sides while enjoying conversation over drinks thus, supporting the growth of this segment.

Depending on propulsion, the motor yacht segment is expected to have the highest share of the luxury yacht market during the analysis period. Motor yachts are more powerful and faster than their counterparts and are capable of covering greater distances in less time. With the motor yachts, individuals can navigate almost any coastline or archipelago, regardless of whether the passage is narrow or the water is shallow. Additionally, motor yachts are easier to operate, and the expenditure on the crew is greatly reduced and the crew recruitment process is easier than a sailing yacht. Motor yachts are easier to handle and thus are a popular choice for individuals having less experience with yachting. Motor yachts offer more space compared with their counterparts and can accommodate facilities such as water toys, and many modern explorer yachts even feature helipads and research facilities thereby, strengthening the expansion of this segment.

Regional Analysis of Luxury Yacht Market:

The European region is anticipated to have the highest share of the luxury yacht market in the forecast period attributed to the large presence of luxury yacht manufacturing companies in this region. The supportive government strategies to increase the growth and jobs in the coastal and marine tourism sector and the rise in the number of High-Net-Worth Individuals (HNWI) and Ultra High Net Worth Individuals (UHNWI) in this region is stimulating the expansion of the luxury yacht market in this region. According to Forbes, the number of billionaires reach 628 in 2021 from 511 in 2020. The coronavirus pandemic added US$ 1 trillion in the net worth of the total individuals combined. Moreover, the growing trend of recreational boat activities among individuals in this region is promoting the expansion of the luxury yacht market during the analysis period.

The North American region is forecasted to have the second-highest share of the luxury yacht market in the forecast period owing to the growing marine tourism and high presence of multi-millionaires in this region. Moreover, the number of new boats sold in the U.S. in 2020 hit a 13-year high of nearly 320,000 vessels, up 13% from the year before, according to the National Marine Manufacturers Association. The surge in the trend of yacht tourism, and the increasing inclination towards leisure and recreational activities among high-net-worth individuals is strengthening the expansion of the luxury yacht market in this region.

The Asia-Pacific region is predicted to have a significant growth in the luxury yacht market in the analysis period attributed to the supportive government initiatives to promote the marine tourism industry in this region. Australia, India, China, Indonesia, and Japan are the prominent tourist hotspot for marine tourism. The Great Barrier Reef in Australia contributes approximately US$ 6.4 billion annually to the Australian economy and supports around 64,000 jobs. Furthermore, the rise in the UHNWI and the growing chartered yacht industry in this region is consolidating the expansion of the luxury yacht market in the projected period.

The Middle-East region is expected to have substantial growth in the luxury yacht market during the projected period. The development in this region mostly in the country UAE is attracting tourists from the rest of the world. Moreover, the growing number of millionaires in this region is the main factor driving the growth of the luxury yacht market in this region.

Players Covered in Luxury Yacht Market are:

Damen Yachting BV (Netherlands)

Azimut|Benetti Group (Italy)

Baglietto S.p.A. (Italy)

BENETEAU (France)

Cheoy Lee Shipyards Limited (China)

Dyna Craft Ltd. (US)

Feadship (Netherlands)

Ferretti S.p.a (Italy)

FIPA Group (Germany)

Fr. Lürssen Werft GmbH & Co. KG (Germany)

HanseYachts AG (Germany) Heesen Yachts (Netherlands)

Horizon (US)

ICON Yachts (Netherlands)

Kingship Marine Limited (China)

O Yachts (US)

Oceanco (Netherlands)

Overmarine Group (Italy)

Perini Navi S.p.a (Italy)

Bavaria Yachtbau GmbH (Germany)

Princess Yachts International Plc (UK)

Sanlorenzo Spa (Italy)

Sunseeker (UK)

Brunswick Corporation (US)

Recent Industry Developments in Luxury Yacht Market

In August 2023, Baglietto Shipyard proudly announced the acquisition of its ninth order in the Dom line, marking the sale of Dom133 hull no. 10256. Designed by Stefano Vafiadis and facilitated by broker Marios Iordanou of Blue Point Yachting in Cyprus, the vessel is slated for delivery in 2025. This sale follows the recent deliveries of MY Perla Bianca and Lee, continuing Baglietto’s successful streak.

In January 2023, Princess Yachts introduced the Princess S72, expanding its S-Class range with a 23-meter vessel. The yacht boasts an opulent interior comprising a lavish saloon and four ensuite cabins. Outdoors, a generous space awaits with dining facilities, a wet bar, and ample sunbeds. The yacht’s garage accommodates a 3.9m tender and two Seabobs, while a separate transom door leads to a twin-berth crew cabin.