Luxury Yacht Market Size, Share, Growth, and Industry Analysis, By Type (Motor Luxury Yachts, Sailing Luxury Yachts), By Application (Private Use, Commercial Use) and Regional Insights and Forecast to 2032

Updated On: 15 April 2024

LUXURY YACHT MARKET REPORT OVERVIEW

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The global luxury yacht market size was USD 9813.6 million in 2019 and will touch USD 14920 million by 2026, exhibiting a CAGR of 6.1% during the forecast period.

A yacht is the definition of a regal craft offering all the luxury of optimum comfort and leisure to the elite. It is an embodiment of wealth and privilege. They are generally of big size and finely furnished. In addition, there are also commodious decks on where passengers are allowed for sunbathing, socializing as well as luxurious cabins that are often used like hotels with well-equipped facilities. High-end kitchens, trendy lounges, and unique entertainment systems satisfy the extravagant tastes of their wealthy guests. They are also equipped with Jacuzzis, swimming pools as well as onboard spas for maximum relaxation. Their crews comprising of highly skilled personnel accustomed to handling the needs of guests, these floating yachts with tailor made itineraries enable tourists to visit only the most exclusive destinations in absolute comfort. This can be normally used for small times with few persons or big parties. It reflects the utmost level of refinement of life on the seas and becomes an illustration of high quality travelling and entertainment.

The luxury yacht market has shown substantial growth throughout the past few years, and is primarily fuelled by multiple factors. Initially, the enlarging wealth of high-net-worth people around the globe has shifted the potential customers of luxury yachts. Since upper class clients are looking for individuality in their experiences and as status symbols, such demand has increased. In addition, developments in yacht design and technology have created more lean stuff, which is another point in favour of own a luxury yacht. Several innovations in the materials, propulsion systems, in-built luxury suites and eco-friendly features have set a new market trend necessitating the upsurge in satiety rates of prospective buyers. Consequently, the increasing popularity of yacht charters and fractional ownership packages has to an extent levelled the playground for wealthy leisure travellers, thereby supporting the expansion of the overall market. Such modalities of ownership give individuals a chance to enjoy the life of a luxury yacht without buying and maintaining a yacht firmly on their own.

COVID-19 Impact: Market Growth Restrained by Pandemic due to Supply Chain Disruptions

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The luxury yacht market has faced a negative influence because of COVID-19. Travel bans, economic uncertainty, and decreased consumer confidence resulted in depreciation of the high-end leisure goods. Many potential buyers postponed or pulled out from the yacht market as a result, and the sales or revenue plans of the manufacturers and dealers were not fully executed. Another significant factor in the decline of market recovery was the inability to exhibit yachts at international boat shows. Furthermore, the supply chain interruptions and postponements of production amplified the difficulties for the sector. Overall, pandemic-induced recession severely damaged the yacht industry, making operators and manufacturers amend their strategies to cope with the new market reality.

LATEST TRENDS

"Rising Demand for Eco-friendly Materials to Drive Market Growth"

The premium yacht industry is constantly retaining the top positions due to the appearance of multiple important trends. One of the notable developments is the rising tendency for green and ecological boats. With ongoing environmental awareness among the yacht owners, vessels with advanced systems of propulsion, alternative fuels like hydrogen or electric, and eco-friendly materials for construction and outfitting are yielded as their demands. Companies are now modifying their production processes with the use of new green technologies to cater to the consumers’ preferences. In addition, more attention in given to the supplementary facilities and offering services. The owners of a yacht are looking for something more than a means of transportation, they dream of a platform with the latest entertainment systems on board, gyms, and kitchens equipped with advanced cooking devices. The more area of personalization options is integrating into such consumers' desire to make their yachts more individualized and respectively their personal preferences and lifestyles are reflected. This also attracts people for exploratory expedition yachts that can cruise into off the beaten track areas and into remote and exotic areas. They blend luxury with a sturdy performance, comprising reinforced hulls, extended range capacities and amenities for adventure activities like diving and exploration.

LUXURY YACHT MARKET SEGMENTATION

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By Type

Based on type the global market can be categorized into Motor Luxury Yachts, Sailing Luxury Yachts.

• Motor Luxury Yachts: These yachts have been fitted with bigger and more powerful engines thus offering slick and advanced cruising features. Luxury yachts with motor units are usually made in spacious interiors, with expensive accessories and the latest technologies provide the needed comfort and the luxury of passengers.

• Sailing Luxury Yachts: Sailing luxury yachts use wind power for navigation with newly updated high-tech sails and rigging systems that provide the maximum performance. Such yachts are a combination of traditional beauty of sailing and a modern luxury, featuring a luxury interior, a gourmet dining, and recreational facilities on the water.

By Application

Based on application the global market can be categorized into Private Use, Commercial Use.

• Private Use: Luxury yachts are often bought for private needs by people or families who want to recreate on the water. Personal use includes leisure purposes, whether it is recreation, relaxation, and entertainment which entails activities that range from inshore and offshore cruising, sunbathing, social events and excursions by the coastal destinations.

• Commercial Use: Luxury yachts can be used for commercial purposes as they can be employed as operators of charter vessels to provide an opportunity for the people or groups, who desire a luxurious mode of maritime travel. Commercial purpose includes chartering the yacht to the customers who would use it for events like corporate meetings, weddings, parties or luxurious travels.

DRIVING FACTORS

"Economic Prosperity and Wealth Distribution to Boost the Market"

A key factor in shaping the luxury yacht market growth is the economic growth because it tends to be positively correlated with global wealth production. Along with the economic development, the incomes of the affluent class tend to increase providing them with opportunities to engage in luxury leisure activities like yacht ownership. The regions that are observing a vibrant economic growth, and in particular the emerging markets with a growing wealthy class, fuel the development of this market. The lavish yachts, in turn, represent the paragon of symbolic status, demonstrating the owner's wealthy and distinguished social standings. Many times the luxurious lease of a yacht connotes extravagance and is in high demand amongst the wealthy elites who wish to prove their success and flamboyant life style. The need to be a member of an exclusive circle and the admiration received from friends continue to strengthen the demand for luxuries yachts. The high demand for yacht chartering among the wealthy and large companies is another critical factor driving the growth of the market. Chartering provides flexibility in terms of departure and end of charter date, and offers access to a big fleet of yachts without a long term commitment. In addition to this, yacht managers are able to generate revenue through charter management where they not only invite private yacht clients to hire the yacht but also a steady flow of clientele in the charter management market.

"Technological Advancements to Expand the Market"

Breakthroughs in technology have introduced new frontiers in luxury yacht design, manufacturing and on-board features, making them of interest to the sophisticated buyers of who crave nothing but the state of the art and the ultimate. Technology advancements in components, propulsion systems, internal navigation, and entertainment open gateways to improving the efficiency, comfort, and luxury of yachts, and more buyers feel encouraged to invest in the latest model features for unprecedented sophistication and convenience. Personalization has become one of the main factors that help to generate the demand for luxury yachts as affluent customers buy yachts that have features that are suited to their expectations and individual lifestyles. Yacht builders and designers provide maximum customization that enables customers to be the sole decision makers in any part of the ship design from layout and décor to amenities and onboard features.

RESTRAINING FACTORS

"High Cost of Maintenance to Impede Market Growth"

Luxury yachts incur huge expenses for maintenance, such as berthing charges, crew salaries, insurance and repair costs. These costs can prevent the yacht interest buyer and the owner from investing in a yacht, especially in the circumstances of economic uncertainty or in the circumstances when budgets are restricted. The ongoing maintenance requirements also form as a hindrance to getting started with the yacht ownership by an individual.

LUXURY YACHT MARKET REGIONAL INSIGHTS

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"Europe Dominating the Market due to Presence of a Large Consumer Base"

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

Europe has emerged as the most dominant region in the global luxury yacht market share.  Europe's predominance in the market can be attributed to its vast coastline, which stretches thousands of kilometres featuring a variety of sailing conditions and attractive landmarks. The Mediterranean is a magnet for high net worth individuals who prefer luxury yachts as their mode of travel or are charterers. This region has scenic beaches, secluded coves and glamorous ports that receive expats from all over the world. Among these, the French Riviera, the Amalfi Coast, and the Greek Islands feature the epitome of luxury yachting, featuring a blend of the natural beauty, the cultural heritages, and the exclusive facilities.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

The luxury yacht market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of wardrobe options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development, introducing innovative designs, materials, and smart features in luxury yachts, catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List of Market Players Profiled

• Azimut/Benetti (Italy)
• Sunseeker (U.K.)
• Sanlorenzo (Italy)
• Feadship (Netherlands)
• Oceanco (Netherlands)
• Ferretti Group (Italy)
• Princess Yachts (U.K.)

INDUSTRIAL DEVELOPMENT

January 2023: Princess Yachts introduced the Princess S72 which is an S-Class boat that is 23 meters long. The interior represents a luxurious saloon with four cabins and the outer space designed for eating, a wet bar, and sunbeds. The hull allows storing 3.9m tender and two Seabobs, while a compartment opposite the transom opens to the crew cabin.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.