MARKET OVERVIEW- GLOBAL LUXURY YACHT MARKET
A luxury yacht, often known as a superyacht, is a big and opulent pleasure vessel used for recreation. These yachts are either rented or purchased by the ultra-rich or by a firm for its employees. Luxury yachts belong to the ultra-luxury category, along with other products such as cars, jewellery, luxury watches and private jets. Manufacturers of custom-built luxury yachts give tourists access to multiple helipads, movie theaters and more while sailing. The rise in the maritime and coastal tourism industry further contributed to the growth of the luxury yacht market.
MARKET DRIVERS
The demand for yachts has increased gradually in recent years due to the increasing disposable income of individuals and the tendency to pursue leisure and recreation. With rising income levels of people around the world, spending on leisure activities is increasing, driving the market. In the UK, for example, customers spent around £52bn on their leisure activities in 2019, more than in 2018. Rising travelers' preference for luxury tourism, personal service and special trips are the main factors driving yacht sales. Increasing sports activities and luxurious experience private owner across the globe is also expected to enhance the demand for the luxury yacht market. Manufacturers focus on including luxury features to improve performance and customer experience. Furthermore, an increase in the number of billionaires around the world is likely to drive the market. For instance, in the year 2021, there were 2,668 billionaires around the world, which is 567 more than 2018’s number. This is an increase of around 20% in the number of billionaires around the world during these years. Moreover, the government initiative to boost tourism in the region is the major factor for growth in the market. All these factors will propel the growth of the global luxury yacht market during the forecast period.
MARKET OPPORTUNITY
The growing number of high net worth individuals (HNWI) and the introduction of technologically advanced yachts are expected to provide an ample opportunity for the luxury yacht market. Further, OEM manufacturers are observed to continuously invest in research and development activities to provide unique travel experiences with luxury accommodations. Besides, improved maritime security, connectivity, tracking, and increased disposable incomes are expected to create lucrative opportunities for the luxury yacht market. Moreover, the growing spending on recreational activities is another factor providing opportunity for the market. For instance, in the year 2021, the total spending on recreational activities in the United Kingdom was around GBP 44 billion, 12% higher than that of 2020. This, factors is expected to drive the market.
MARKET RESTRAINT
The market has a major restraining factor as the high cost of scooter and limited application. The period of recession also affects the luxury yacht market because of high price and maintenance cost of luxury yachts.
MARKET GROWTH CHALLENGES
Luxury yachts have higher operating costs, including salaries for qualified professional staff. Chefs, room service professionals and more. Also, the Covid-19 pandemic hampered the growth of the market to a major extent, which has created a major challenge for market growth.
CUMULATIVE GROWTH ANALYSIS
The report provides in-depth analysis of the luxury yacht market, market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. Rising traveler’s preference for luxury tourism, personal service across the globe is fueling the growth of the market and is expected to witness are growth at a CAGR at a specific CAGR from 2023-2029.
GLOBAL LUXURY YACHT MARKET SEGMENTAL OVERVIEW
The luxury yacht market comprises of different market segment like type, size, material and geography.
GLOBAL LUXUAY YACHT MARKET BY TYPE
By type, the luxury yacht includes key segment of
- Motor Yacht
- Sailing Yacht
- Other
The motor yacht is expected to dominate the market over the forecast period. The advantages offered by these yachts, such as high speed and performance, long range coverage. Also, these yachts are highly preferred by people due to the advanced systems and equipment on board the motor yachts. Further, the growth of this segment is mainly attributed to more broad facilities, more room space and more opportunities for recreational activities. The increasing technological advancement is further anticipated to fuel the growth of motor yachts in the global market. On the other hand, the sailing yacht is expected to register the fastest CAGR during the forecast period. Sailing yachts use sails as their propulsion system, so movement depends on wind speed. Sailing yachts offer soothing, stimulating and relaxing experiences.
GLOBAL LUXURY YACHT MARKET BY SIZE
By size, the luxury yacht includes key segment of
- 20-30M
- 30-50M
- 50-100 M
- Above 100M
The 30-50 meter is expected to dominate the market over the forecast period. Growth of this segment is attributed owing to benefits such as low maintenance costs and light wind sailing capabilities that help conserve fuel and ensure sailing in favorable wind directions. On the other hand, 20 meters can be used for both competitive as well as recreational purposes. Further, between 2012 and 2016, Italian yards completed 40% of new 30-meter to 40-meter yachts worldwide.
GLOBAL LUXURY YACHT MARKET BY SIZE
By material, the luxury yacht includes key segment of
- Alloy/Metal
- Composite
- Others
Composite material offers tremendous potential for applications in a marine environment. Composite is the most preferred material by the yacht manufacturers owing to its numerous advantages, such as good parameters for weight and durability. Composite also have improved shock absorption characteristics, perfect for ocean racing applications.
GLOBAL LUXURY YACHT MARKET BY GEOGRAPHY
By geography, the luxury yacht includes key segment of
- North America
- Asia Pacific
- Europe
- RoW
The Asia Pacific is expected to dominate the market over the forecast period. Due to the government initiatives to develop tourism activities such as, Swadesh Darshan Scheme and Incredible India, they are anticipated to boost the market growth of the regional market during the forecast period.
The European region is expected to register the fastest CAGR during the forecast period due to the growing disposable income and the increasing popularity of water sports and fishing activities. Further, the coastal and maritime tourist passenger numbers are anticipated to grow significantly owing to the attractiveness of the region and recent supportive policies. European customers purchased nearly 40% of all 40 meter new builds worldwide. This makes Europe hold a sizable share of the market.
COVID-19 IMPACT ANALYSIS ON GLOBAL LUXURY YACHT MARKET
The outbreak of the COVID-19 pandemic is expected to have a noticeable impact on market growth. Lockdowns imposed to stem the spread of the disease have disrupted supply chains and manufacturing operations around the world. Massive lockdowns and travel restrictions imposed to combat the pandemic are altering human behavior, disrupting industrial activity, and creating challenges and uncertainties for the global economy and human societies. Due to lockdowns, 81% of the global workforce remained at home by early April 2020, and global manufacturing output fell by 20% in April 2020. The various industries have suffered greatly from COVID-19, with production lines halted, supply chains disrupted, and consumer demand contracted. The COVID-19 pandemic has had a negative impact on the yacht market, including the yacht business. Although the pandemic has slightly reduced the global yacht market, net income, and the production of yachts, in the upcoming years, the market is expected to slowly pick up.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of the luxury yacht market is majorly focused on expanding the global growth of the luxury yacht market with new product innovation, business expansion, and an increasing presence of a range of manufacturers operating in the market has led to the growing demand for the market. Besides, the market offers a range of products to fulfil the required demand of consumers, which is further contributing to healthy growth in the market.
The key players studied in market are
- Amels
- Bloom + Voss
- Christensen Shipyards
- Sunseeker International Ltd.
- Feadship
- Azimut Benetti S. p.A
- Marine Max
- Heesen Yachts and Oceano
- Princess Yachts Limited
- Damen Shipyards Group
- Horizon Yatch USA
RECENT DEVLOPMENT
APRIL 2022: Italian builder SA Yachts has announced the debut of ARIA SF, a new 45m superyacht in its Gran Turismo line. A sharp and sporty appearance with three decks connected by vertical and horizontal bows.
February 2022: Damen Yachting launched its 74m Amels 242-07 yacht, the seventh yacht to be launched from the company’s Limited Editions design from the drydock in the Netherlands.
AUGUST 2019: Bavaria Yachtbau GmbH announced the launch of two new sailing yachts, C45 and C50 in France.
