The Worldwide Yacht Industry is Anticipated to Reach $15 Billion by 2026

The global yacht market in 2021 was valued at US$10.80 billion. The market is anticipated to reach US$15.15 billion by 2026.

This report provides an in-depth analysis of the global yacht market by value, by propulsion, by category, by type, by length, by export, by operational fleet, by region (North America (The US and Canada), Europe (Italy, Netherlands, Germany, UK, France, and Rest of Europe), Asia Pacific (China, Japan, and the Rest of the Asia Pacific), Latin America, and the Middle East & Africa), etc. The report also provides a detailed analysis of the COVID-19 impact on the global yacht market.


The Worldwide Yacht Industry is Anticipated to Reach $15 Billion by 2026



Much of the expertise in the luxury yacht building market is concentrated in only a few countries, including Italy, Turkey, the Netherlands, the US and Germany. The Italian manufacturers benefit from a worldwide reputation for quality and style. This market's customer base is composed of extremely wealthy individuals who can afford the significant purchasing price of a large yacht as well as the maintenance costs.

An increase in income inequality, higher disposable income, and a positive macroeconomic scenario are some of the factors driving the market growth. The market is expected to grow at a CAGR of 7% during the forecast period of 2022-2026.


Global Yacht Market Dynamics:

  • Growth Drivers: One of the most important factors impacting the yacht market is the increase in the UHNWI population. As the HNWI increases, the addressable customer base of the yacht industry also increases. This provides a strong tailwind for the manufacturers of yachts. In addition to a growing customer base of UHNWIs, the size of their wealth is also expected to grow in the coming years. This would translate into an increasing average size of yachts or customers shifting towards models with a higher degree of customization and premium features. In both cases, this should support growth in the average selling price of yachts. Therefore, the market would experience tremendous growth. Furthermore, the market has been growing over the past few years, due to factors such as growing demand for luxury tourism, rising construction of super yachts, growing number of boat shows, favorable government initiatives, and increasing demand for yacht charter, etc.
  • Challenges: However, the market has been confronted with some challenges specifically, high investments and upkeep costs associated with yachts, cyclicality of the yachting industry, etc.
  • Trends: The market is projected to grow at a fast pace during the forecast period, due to various latest trends such as customization and personalization, acute focus on eco-friendly and sustainable products, the internet of things, yachts run quieter due to tech advances, explorer yachts are continuing to rise in popularity, etc. Explorer yachts are a popular demand for yacht enthusiasts. Whether a client is keen to purchase or charter, explorer yachts are among the most demanded vessels, due to their peculiarity, great cruising performance, an immense ability to travel in remote locations. Changing demographics among HNW and UHNW individuals have ushered in a new and exciting demand for explorer yachts and adventure travel excursions. This trend is expected to further propel the growth of the yacht industry in the coming years.


Impact Analysis of COVID-19 and Way Forward:

The COVID-19 pandemic has adversely affected the yacht market in the first half of 2020. However, COVID-19 has changed the way target customers live. People tend to start spending more on leisure activities. This has increased the sale of both motor yachts and sailing yachts in the year 2021. Moreover, as the number of billionaires grows and COVID-19 has added to incentives for avoiding crowds, the multi-billion-dollar global yacht industry is rebounding fast after near-paralysis at the onset of the pandemic. On the other hand, the pandemic has prompted digitalization initiatives in the market.


Competitive Landscape:

The global yacht market is moving toward consolidation. Following the 2008 financial crisis, some yacht companies went bankrupt (e.g. Aicon, Rodriguez, Royal Denship, etc.), others were rescued (e.g. Ferretti itself, Baglietto, Bavaria, Dalla Pieta, Perini) or decided to join forces together with other smaller shipyards and form a larger conglomerate (e.g., Tecnomar, Admiral, Cantieri Apuania combined as Italian Sea Group). As a matter of fact, it has been witnessed increasing concentration in the industry, with a declining number of shipyards and increasing number of orders, leading to a higher number of deliveries per shipyard.

The key players of the global yacht market are:
  • HanseYachts AG
  • LVMH Moet Hennessy Louis Vuitton (Princess Yachts Ltd.)
  • Lurssen Yachts
  • Sanlorenzo S.p.a
  • Ferretti Group
  • Azimut Yachts
  • Sunseeker International Ltd.
  • Westport LLC
  • Alexander Marine Co., Ltd. & Subsidiaries
  • Feadship Yachts
  • Bilgin Yachts
  • Oceanco
  • The Italian Sea Group
SOURCE Research and Markets

Editor's note:

This article was not sponsored or supported by a third party.
Powered by Blogger.