Luxury Yacht Market

Luxury Yacht Market: Introduction

• Factors such as a rise in water-based tourism; an increase in the number of billionaires and millionaires from new sectors of the economy who want to indulge themselves in the latest luxuries; acquisition of super yachts by heads of different states; and emerging trend of remote exploration of underwater natural beauty in seas as well as faraway islands by high-net-worth individuals are estimated to boost the luxury yacht market during the forecast period
• Luxury yachts are luxury watercraft manned by dedicated crews and range from 75 feet to more than 250 feet in length. They are primarily used for recreational activities.
• Luxury yachts are anchored offshore to provide short-term shelter to their owners on the sea
• Luxury yachts are primarily used by high-net-worth individuals and heads of states for their recreational activities
• The prevalent trend in the luxury yacht industry is the induction of mega yachts or superyachts that exceed 150 feet in length and can accommodate 50 to 60 guests

Key Drivers of Luxury Yacht Market

• Governments around the world are increasingly acquiring or chartering luxury yachts for their chiefs to conduct official meetings as well as for recreational activities. This is anticipated to drive the luxury yacht market.
• Growth in water-based tourism and a booming number of high-net-worth individuals are also boosting the global luxury yacht market
• Gradual lifting of travel restrictions related to the COVID 19 pandemic has also augmented the global luxury yacht market
• Increase in the number of travel companies offering water-based adventure sports and water-based luxury tourist experiences is also propelling the global luxury yacht market

Challenges in Luxury Yacht Market

• The ongoing Russia-Ukraine War has put many sanctions on Russian high-net-worth individuals in their business dealings with the West. These sanctions have eroded their net worth significantly, and many high-net-worth Russian clients of yacht builders have canceled their orders for new yachts. This is expected to hamper the luxury yacht market.
• The COVID-19 pandemic and the resulting lockdowns and travel restrictions severely affected the expansion and even survival of the global luxury yacht industry. Many smaller players went out of business, while some were acquired by the larger players. This led to significant consolidation of the number of companies offering yacht charter services in the industry leading to a significant rise in the cancellation of new orders previously booked by the yacht builders from these yacht charter service providers.
• Luxury yachts require very high budgets for their design and construction. Thus, luxury yachts are very expensive to buy, charter, and maintain. This results in the global luxury yacht market being a very niche industry with limited expansion.
• Operational costs of luxury yachts are much higher compared to regular yachts and other leisure watercraft. Many high-net-worth owners and yacht charter companies had to sell their luxury yachts during the financial crisis of 2008-09 and the COVID-19 pandemic to service their debts and improve their liquidity. This limits the appeal of luxury yachts to numerous high-net-worth individuals who prefer other investments over buying their luxury yacht, thus hampering the global luxury yacht market.

Opportunities in Luxury Yacht Market

• Luxury yachts are being increasingly used for official purposes, such as conducting business meetings, official tours, and various seminars. These trends are opening up several new revenue generation opportunities for yacht charter companies. This is anticipated to provide a significant boost to the global luxury yacht market since some of these yacht chartering companies have begun to replace their old yachts with new ones to cater to these new business streams.
• Many luxury yacht owners are demanding increased levels of customization, such as equipping their yachts with saunas, personal gymnasiums, swimming pools, home theatre systems, Wi-Fi, and in some cases even helipads. This has driven up the revenue earned per yacht for yacht builders, considerably improving their profitability. This is also anticipated to create many new expansion opportunities in the global luxury yacht market during the forecast period.
• Entry of several new technology-based yacht charter startups is considered to be the next most significant opportunity driving the global luxury yacht market

Luxury Yacht Market Worldwide to Expand Significantly

• Europe is predicted to be the dominant region for the global luxury yacht market due to the presence of several yacht builders; many high-net-worth individuals; a beautiful and extensive coastline in the Mediterranean, and a well-developed tourism industry with a large number of international tourists visiting the continent every year
• North America is also likely to be a vital region of the global luxury yacht market due to a large number of high-net-worth individuals and an extensive and scenic coastline in countries such as the United States, Mexico, and the Caribbean, which attract many tourists who charter luxury yachts
• Asia Pacific is estimated to be the fastest expanding market due to rise in tourism and scenic beaches in countries, such as Maldives, Thailand, Indonesia, Malaysia, Australia, and New Zealand where many high-net-worth individuals around the world come for holidaying and partying and the number of billionaires emerging from legacy as well as technology-based industries who love to spend on luxury yachts in countries such as China
• Middle East & Africa are also predicted to be big markets for luxury yachts because many high-net-worth individuals and the ruling elite from the royal families of the Middle East prefer to buy their luxury yachts rather than charter them and well-developed sailing culture.

Key Players Operating in Luxury Yacht Market

The luxury yacht market is fairly consolidated at the top with a handful of major players dominating the global market. Major players operating in the global luxury yacht market are:

• Alexander Marine International
• Azimut - Benetti S.P.A.
• Brunswick Corporation
• Christensen Shipyards LLC
• Damen Shipyards Group N.V.
• Feadship Holland B.V.
• Fincantieri S.p.A. (CDP Industria S.p.A.)
• Heesen Yachts Sales B.V.
• Horizon Yacht USA
• Palumbo Group S.p.A
• Princess Yachts Limited
• Sanlorenzo S.p.A
• Sunseeker International (Wanda Group)
• Viking Yacht Company

Global Luxury Yacht Market: Research Scope

Global Luxury Yacht Market, by Type

• Sailing Luxury Yacht
• Motorized Luxury Yacht
• Others

Global Luxury Yacht Market, by Length

• 75-120 feet
• 121-250 feet
• More than 250 feet

Global Luxury Yacht Market, by Material

• Fiber Reinforced Plastics (FRP)/Composites
• Metals/Alloys

Global Luxury Yacht Market, by Application

• Commercial
• Private

Global Luxury Yacht Market, by Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Nordic Countries
  • Russia and CIS
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • ANZ
  • South Korea
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • South Africa
  • Turkey
  • Rest of Middle East & Africa
• South America
  • Brazil
  • Argentina
  • Rest of South America