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Luxury Yacht Market

Luxury Yacht Market Size, Share & Trends Analysis Report By Hull Material (Fiber Reinforced Polymers and Composites, Metals and Alloys, Others), By Type (Sailing Luxury Yacht, Motorized Luxury Yacht, Other Luxury Yacht), By Size (75-120 feet, 121-250 feet, Above 250 feet) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRAT55580DR
Study Period 2019-2031 CAGR 9.4%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 6.6 Billion
Forecast Year 2031 Forecast Year Market Size USD 14.8 Billion
Largest Market Europe Fastest Growing Market North America
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Market Overview

The global luxury yacht market size was valued at USD 6.6 billion in 2022 and is projected to reach a value of USD 14.8 billion by 2031, registering a CAGR of 9.4% during the forecast period (2023-2031). The expanding affluence of affluent individuals and their interest in private leisure activities, the increasing emphasis on experiential luxury, the rise of marine tourism, and the introduction of luxury charter services are some factors driving the luxury yacht market growth.

A luxury yacht is a private, upscale vessel for leisure and amusement. These boats are renowned for their extravagance, elegant styling, and cutting-edge amenities, which offer their owners and visitors a unique and opulent experience.

The global market is primarily driven by rich individuals' increasing affluence and interest in exclusive leisure activities. By this, an increase in private charters and a penchant for bespoke, high-end designs adapted to particular tastes are also driving the industry. Furthermore, the booming tourist industry and the desire for isolated, premium travel experiences are key growth drivers. Furthermore, technical developments in navigation, propulsion, and onboard entertainment are increasing the appeal of these vessels. Strategic alliances and collaborations among yacht manufacturers and designers drive the luxury yacht market share.

Market Dynamics

Global Luxury Yacht Market Drivers:

Growing High Net Worth Individuals (HNWI)

The global increase in high-net-worth individuals has a direct effect on the market for luxury yachts. Rich people frequently aspire to acquire opulent and exclusive experiences, such as owning a yacht. Globally, the proportion of people with high net worth has increased recently. As an illustration, Knight Frank's yearly "Wealth Report" offers information on wealth distribution patterns. The report claims that the number of HNWIs has increased significantly in Asia-Pacific, with China and other nations making major contributions to this expansion. The number of HNWIs has increased significantly in the Asia-Pacific area. With over 3.4 million, Japan had the highest number of HNWIs in the area in 2019. About 1.3 million HNWIs lived in China in 2019. In 2022, there were 7,97,714 HNIs in India with assets valued at $1 million or more. By 2027, it is anticipated that there will be 16,57,272 HNIs.

Wealth-X projected that there will be 395,070 UHNWIs in the globe in 2023. According to Altrata's World Ultra Wealth 2023 report, were 395,070 UHNWIs globally. The increasing number of high-net-worth individuals (HNWIs) suggests that their purchasing power has increased, allowing them to purchase luxury goods like yachts.HNWIs frequently look for specialized and unique experiences. Their aspirations for seclusion, exclusivity, and the capacity to travel the world in unmatched comfort align with owning a luxury boat. Many people are becoming wealthy, increasing demand for upscale and private activities like owning a yacht. The luxury yacht market trend is evolving as a result of this trend.

Global Luxury Yacht Market Restraints:

Economic Downturns

Financial crises, recessions, or economic downturns can greatly impact the market for luxury yachts. During difficult economic times, individuals with high net worth may defer or reevaluate non-essential expenditures, such as purchasing a luxury yacht. The luxury products market, including the yachting sector, saw a significant downturn in 2008 amid the global financial crisis. Consumer confidence fell due to the crisis, and discretionary expenditure was reassessed. The high net-worth individuals who postponed or rethought luxury purchases impacted the boat market.

Economic indicators that shed light on the possible effects of recessions on the luxury yacht industry include GDP growth rates, consumer spending trends, and stock market performance. For example, a slowdown in GDP growth and consumer spending could indicate a drop in the market for high-end luxury goods. A slowdown in discretionary spending by individuals and businesses during economic downturns may affect even the market for luxury yacht rental. Therefore, to successfully navigate difficult times, boatmakers and industry participants must be flexible, use effective mitigation techniques, and carefully monitor economic indicators.

Global Luxury Yacht Market Opportunity:

Rising Popularity of Charter Services

The demand for upscale experiences without the commitment of boat ownership has resulted in a notable rise in the luxury yacht charter market. Profiting from this trend, charter businesses across the globe are providing professional crews and well-maintained fleets of luxury yachts to meet the increasing demand. Charter services are available to individuals who can enjoy luxurious boat experiences without yacht ownership's long-term financial commitment and responsibility. This fits nicely with the shifting tastes of contemporary customers who emphasize experiences more than material goods. From well-known yachting hotspots in the Mediterranean and Caribbean to newly popular locations in Southeast Asia and the South Pacific, charter companies are broadening the scope of destinations they offer for charter. Numerous nations are revising their tax laws and regulations about the yacht charter industry. 

For example, charter contracts executed after March 30, 2020, will be impacted by an official tax advisory issued by the French Tax Authorities in January 2020. When the yacht is sailing in EU waters, the VAT will be levied at a rate of 20%; however, when cruising in international waters, the VAT will not be applied. Any boat that is in EU waters is liable to VAT. This diversity draws in a diverse clientele. The growing demand for luxury yacht charter services offers the sector a sizable window of opportunity.

Regional Analysis

Europe Dominates the Global Market

The global luxury yacht market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Europe is the most significant global luxury yacht market shareholder and is estimated to grow at a CAGR of 9.6% over the forecast period.Due to the rapid rise of maritime tourism and the variety of tourist locations, this region has the potential to dominate the industry. Croatia, Greece, France, Spain, and Italy are the region's most popular tourist attractions and largest earners. The expanding popularity of fishing and water sports and the country's growing upper-class population will likely fuel market development in the region throughout the projection period. Upper-middle-class (UMC) families increased from 13% in 1979 to 37% in 2019. The proportion of wealthy persons increased from less than 0.5% in 1979 to 3% in 2019. 

Moreover, rising European air ticket bookings, high online demand for yacht charter service providers, and increased vessel permit issuance likely boost regional market expansion. The wealthy population of the region is also expected to boost market expansion. For example, in December 2022, the European Union Council approved the European Agenda for Tourism 2030 to make European tourism more digital and environmentally friendly. Yacht sales were high in 2021, and a spike in demand caused it to set a new record for yachts in 2022, with 606 yachts launched into the market. Furthermore, countries such as Greece, Croatia, Spain, Italy, and France are popular tourist destinations, with increased fishing and water sports as important driving factors. 

North America is anticipated to exhibit a CAGR of 9.9% over the forecast period. North America is the market's second-largest area, with the region's numerous coasts becoming popular cruise destinations., The United States dominates this regional market because of large charter hubs within the country. Furthermore, North America has the highest number of billionaires in the globe. North America will have over 1,000 billionaires by 2022. With 955 billionaires, the United States has the most billionaires of any country. This represents 30% of the world's billionaires. The annual increase in the number of billionaires, along with a gain in wealth, which results in high purchasing power, will fuel market growth. 

Furthermore, North America's well-established yachting infrastructure is critical in sustaining and fostering the luxury yacht market. The presence of world-class marinas, cutting-edge shipyards, and a wealth of supporting services ranging from yacht maintenance to concierge assistance guarantees clients a flawless and luxurious yachting experience. This infrastructure makes yacht ownership more convenient and creates a healthy environment for yacht enthusiasts.

Asia-Pacific is predicted to be the fastest-expanding region in the next several years, according to luxury yacht market insights. This expansion has been attributed to urbanization, rising living standards, and more disposable income. Fishing and water sports are increasingly popular in Thailand, Malaysia, Singapore, China, Japan, and Australia. Maritime tourism is also rising, which presents major prospects for yacht manufacturers. Furthermore, active government measures to enhance marine tourism, particularly in India and China, will likely boost regional market growth. The market is being driven by increased expenditure on recreational activities as people's income levels rise worldwide. According to the International Monetary Fund, China's GDP will be roughly 40% larger by 2028.

Report Scope

Report Metric Details
By Hull Material
  1. Fiber Reinforced Polymers and Composites
  2. Metals and Alloys
  3. Others
By Type
  1. Sailing Luxury Yacht
  2. Motorized Luxury Yacht
  3. Other Luxury Yacht
By Size
  1. 75-120 feet
  2. 121-250 feet
  3. Above 250 feet
Company Profiles Azimut Benetti Sanlorenzo Ferretti Group Feadship Princess Yachts Sunseeker Yachts Fr. Lurssen Werft ISA Yachts Ocean Alexander Kingship Marine
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global luxury yacht market is segmented based on size, type, hull material, and region.

The market is further segmented by Size into 75-120 feet, 121-250 feet, and Above 250 feet.

121-250 feet accounts for the largest share of the market.

Large yachts, sometimes referred to as superyachts, are defined as those that measure between 120 and 250 feet. These boats are perfect for longer trips and entertaining larger groups because they have plenty of living and entertainment areas. A 180-foot superyacht can accommodate up to 180 guests in luxury and includes amenities including a theater, water toys, various lounges, a gym, a main suite, and VIP cabins. Additionally, yachts between 121 to 250 feet are attractive to high-net-worth individuals seeking luxurious experiences and visiting far-flung locations because they offer exclusivity, grandeur, and long-range cruising capabilities.

Medium-sized luxury boats are defined as those between 75 and 120 feet long. These boats are ideal for various cruising locations since they usually provide a fair mix of space and maneuverability.

The market is sub-segmented based on type into sailing luxury and motorized luxury yachts.

Motorized Luxury Yacht holds the major market share

Motorized luxury yachts are faster and more efficient because they use motors for propulsion. These yachts are renowned for their strength, adaptability, and speed over extended distances. Luxury motor boats are in high demand because they provide greater rooms and amenities. They operate exceptionally well and reach great speeds. Luxury motor yachts are fantastic for individuals who like to cruise more regions in less time. Since wind isn't as much of an issue, they provide more flexibility because less preparation is needed.

Luxury sailing yachts are distinguished by their main propulsion system: sails. These yachts are renowned for providing a more conventional, romantic, and environmentally responsible sailing experience. They are propelled by wind energy. Sailing yachts can cruise farther since they consume less fuel than motor yachts. Additionally, sailing vessels can travel to far-off places not commonly visited.

The segment can be further bifurcated by hull material into FRP/Composites, Metal/Alloys.

FRP/Composites influenced the market growth.

Carbon fiber, fiberglass reinforced with plastic, and other composite materials are used to construct luxury yacht hulls constructed of FRP or composites. This building technique offers flexibility, strength, and durability to accomplish complex structures. The mechanical qualities of the fiber and matrix, their respective volumes, and the length and orientation of the fibers within the matrix all affect the properties of fiber-reinforced polymers (FRPs). Steel, concrete, masonry, and timber constructions can be reinforced with FRPs. The following four primary types of Fibers are utilized in FRP: glass, carbon, natural, and aramid. More design freedom is provided by FRP/composite hulls, which enables yacht builders to produce inventive and beautiful designs.

Steel and aluminum are used to construct luxury boats with metal or alloy hulls. Metal construction offers strength and durability for larger ships, prioritizing stability and safety. Yachts made of aluminum require less upkeep, are simple to fix, and hold their worth over time. Although less pliable in design, metal and alloy hulls are renowned for their durability.

Market Size By Hull Material

Market Size By Hull Material
  • Fiber Reinforced Polymers and Composites
  • Metals and Alloys
  • Others
  • Recent Developments

    • June 2023- Sanlorenzo debuted the 47-meter expedition yacht Para Bellum. The eleventh yacht in the company's best-selling 460-500 EXP line. It is propelled by twin Caterpillar engines capable of cruising at 13 knots.
    • June 2023- The Azimut|Benetti Group and Eni Sustainable Mobility agreed to supply and use HVOlution, a biofuel made from 100% renewable raw materials*. This is the first yachting industry agreement aimed at reducing carbon emissions.
    • November 2023- The new Ferretti Yachts INFYNITO 90 is the first model in the INFYNITO line, which is defined by its signature "Further than you can Sea" concept, which perfectly expresses the yacht's defining characteristics: environmental focus, extensive customization, unprecedented layout innovations, and visual continuity between interiors and exteriors.

    Top Key Players

    Luxury Yacht Market Share of Key Players

    Luxury Yacht Market Share of Key Players
    Azimut Benetti Sanlorenzo Ferretti Group Feadship Princess Yachts Sunseeker Yachts Fr. Lurssen Werft ISA Yachts Ocean Alexander Kingship Marine Others

    Frequently Asked Questions (FAQs)

    How big is the Luxury Yacht Market?
    The global luxury yacht market size was valued at USD 6.6 billion in 2022 and is projected to reach a value of USD 14.8 billion by 2031, registering a CAGR of 9.4% during the forecast period (2023-2031).
    Europe dominates the Luxury Yacht Market.
    Factor like Growing High Net Worth Individuals (HNWI) drive market growth.
    The key players in the global market include Azimut Benetti , Sanlorenzo , Ferretti Group , Feadship , Princess Yachts , Sunseeker Yachts , Fr. Lurssen Werft , ISA Yachts , Ocean Alexander , Kingship Marine.
    The global market is segmented by hull material, type and size.

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