The global yacht charter market size was valued at USD 15,205.2 million 2022. It is expected to reach USD 48,910.2 million by 2031, growing at a CAGR of 11.1% during the forecast period (2023–2031).
The yacht charter is a motorized or sail-powered boat used primarily for leisure. Yachts can be owned privately (by an individual or a business) or rented out for charter. Large, opulent, professionally crewed motor yachts and sailing yachts with lengths ranging from 75 feet to more than 250 feet are equipped with luxurious amenities. To deliver a seamless luxury experience full of high standards and comfort, many luxury yacht manufacturers also offer yachts for renting and private use. Due to the rising popularity of water sports and marine tourism, OEMs strategically concentrate on creating high-speed yachts to meet consumer demand.
Shift to Alternative Energy Sources, Rising Disposable Income, and Increased Purchasing Power
Yachting is undoubtedly a consumer discretionary activity, so disposable income directly affects the industry's growth. First-tier income-ranking countries no longer drive the world's economy due to solid purchasing power growth in developing nations. Additionally, many OEMs are now concentrating on implementing alternative energy sources for yachting-related purposes. Yachts powered by solar energy are increasingly in demand to replace traditional yachts powered by diesel. For instance, modern technologies like fuel cells, biodiesel, and hydro generators are being used and still offer much room for innovation in place of conventional fuels.
Increase in the Number of Wealthy People
According to the World Ultra Wealth Report, several ultra-high-net-worth individuals had a net worth of USD 30 million or more in 2017. The number of people with ultra-high net worth increased to about 255,810, an increase of approximately 12.9% year over year compared to 2016. Substantial corporate profits and an expansion of the global economy have led to healthy gains in average net wealth, which now totals about USD 31.5 trillion for high-net-worth individuals. Wealthy people enjoy traveling the world and prefer to do so on opulent yachts and planes. Additionally, ultra-high-net-worth millennials are now establishing luxury yachts as status symbols, driving up demand for yacht charter worldwide.
Yacht Charter Comes with a High Price Tag
Yachts have a base price: the monthly cost to rent the vessel. The type of yacht, the charter's location, applicable local taxes, and the base price affect how much a yacht charter will cost. As a result, yacht charters have a wide range of base prices. Additionally, a yacht charter can range from USD 10,000 per week for smaller sailing yachts and catamarans to USD 150,000 per week for the most opulent motor superyachts. The hidden costs associated with yacht chartering also add up to about 15–30% of the base price and include taxes, Value Added Tax (VAT), insurance, crew gratuities, advanced provisioning allowance, and others. Additionally, this small fee is collected before the charter. Many customers in developing nations find such prices to be prohibitive, which hinders the growth of the yacht charter market even more.
Increased Use of Middlemen and Hybrid Business Models
Along with an increase in buyers and charters, the yacht industry is also seeing an increase in brokers' involvement in the market. They are primarily responsible for scheduling viewings, settling the terms of the sale, managing the paperwork, and gathering and distributing the proceeds. Additionally, the ability for customers to view the yachts' actual interiors on their phones and tablets is luring them to rent one. Yachts are also making inroads into the hospitality and leisure industries. For instance, starting in May 2018, the Ritz-Carlton group will offer "The Ritz-Carlton Yacht Collection," which will feature cutting-edge duplex suites, a spa, a signature restaurant, and a bar. Several lines are developing new cruises, including luxury ships and small-ship vacations. Such participation is anticipated to accelerate the growth of the global market soon.
Increasing Demand for Yacht Charters due to Yacht Tourism
Yacht tourism has increased throughout the world. The rise of luxury travel has been equally impressive. Yacht tourism has evolved into an upscale form of leisure with a substantial mass entertainment infrastructure worldwide. Yacht tourism has expanded to include middle-class people as well as aristocrats. Fishing, sightseeing, and leisure sailing are a few of its many variations, with the latter being the most popular. The success of yachting tourism is growing, leading to an increase in the demand for luxury yacht charters in the coming years.
The global yacht charter market is segmented by size, type, and application.
Based on the size, the global market is bifurcated into small (up to 30m), medium (30m-50m), and large (over 50m).
The medium (30m-50m) segment is the highest contributor to the market and is expected to grow at a CAGR of 14.9% during the forecast period. Yachts between 30 and 50 meters in length are included in this segment. By the end of the forecast period, this market segment, which currently holds about half of the global market share, is anticipated to generate $12,002.9 million. Yachts in this category are typically used for relaxing vacations with friends and family. These provide exceptional safety, comfort, and seaworthiness. Medium-sized yachts are becoming more manageable now. Large luxury yachts can now be easily managed because hydraulics and push-button electrics make it possible to manage loads reliably. Additionally, the addition of thrusters at the bow and stern has improved maneuverability, and improvements in deck-gear technology have made handling sails much simpler.
This market segment consists of yachts up to 30 meters in length. By the end of the forecast period, this segment, which currently holds about a third of the global market share, is anticipated to generate $9,971.0 million. Yachts in this category are typically used for sailing and having fun with friends and family. These provide a degree of comfort, safety, and luxury. Improvements in design, style, comfort, liveability, technological innovations, and performance drive the global market for small yacht charters. Efficiency and productivity have continuously increased in recent years. This market is primarily distinguished by excellent interior and exterior space optimization.
Based on the size, the global market is bifurcated into motor yachts and sailing yachts.
The motor yacht segment owns the highest market share and is expected to grow at a CAGR of 15.9% during the forecast period. Motor yachts are more powerful and quick than their competitors because motors power them. These high-end yachts can travel great distances in a short amount of time. Motor yachts have a shallow draft that makes it possible to travel through any archipelago or along any coastline, even in a narrow passage or shallow water. Large motor yachts with lots of deck space are to be expected. In contrast to their competitors, motor yachts are easy to operate. Motor yachts are more popular than sailing yachts, which has led to more significant technological advancements. Infrastructural amenities, living quarters, and recreational opportunities all increase on motor yachts.
Sails on sailboats harness the wind's energy to move forward. Sails are a sailing yacht's primary means of propulsion. The unbridled thrill of navigating the seas using natural forces is offered by sailing yachts. Motor yachts travel faster than sailing yachts. They can be bought for a discounted price. Additionally, they require little maintenance. However, the global market for sailing yachts generates relatively little revenue.
Based on application, the global yacht charter market is bifurcated into vacation/ leisure and sailing.
The vacation/ leisure segment is the highest contributor to the market and is expected to grow at a CAGR of 14.8% during the forecast period. The majority of uses for motor yachts are for leisure purposes. For leisure or travel, companies like Dream Yacht Charter, Fun2 Rent, Incredible Limited, and others offer skippered, sailing, catamaran, and various yachts. Global demand for vacation-based yachts is increasing due to rising disposable income and consumer purchasing power. The yacht leisure sector is expected to expand at a favorable rate due to rising urbanization, falling fuel costs, and global economic advancements. The market's potential for growth will also be expanded by the growing popularity of adult recreational boating and the global tourism sector. The main factor driving the growth of vacation-based yacht charters in the upcoming years is the development of vacation-oriented yachts by considering higher growth.
Sails on sailboats harness the wind's energy to move forward. In addition to being slower than motor yachts, sailing yachts are frequently preferred by those looking for a tranquil sea voyage. There are various sailing yachts, including loops, schooners, catamarans, and ketches. Additionally, sailing presents a rare chance to combine a strenuous sport with a relaxing cruise into a single vacation. Its popularity as a customer favorite is a result of its diversity.
The global yacht charter market is segmented by region: North America, Europe, Asia-Pacific, and LAMEA.
Europe is the most significant revenue contributor and is expected to grow at a CAGR of 14.9% during the forecast period. Italy receives the most orders for luxury yachts in the region, and Europe leads the world in luxury yacht production. Italy has continued to be the world's top producer of luxury yachts in recent years, thanks to strong government support and numerous yacht manufacturers in the area. However, to gain market share, involved stakeholders in the area are now looking into their local and global consumer bases. Manufacturers in the European region are pursuing sustainable growth and improving their efforts to create environmentally friendly yachts. Catamaran, for instance, created a luxury yacht using 75% recycled materials. The Vaan R4 is also constructed of recyclable, circular materials that can be recycled after the boat's useful life. The ship is also made of natural materials, such as certified wood, cork, linen, lyocell, an alternative to silk, and a plant-based leather substitute. Such initiatives offer high-end luxury and have no adverse environmental effects.
Asia-Pacific is expected to grow at a CAGR of 17.6% during the forecast period. During the forecast period, the luxury yacht market in Asia-Pacific is anticipated to grow at the highest CAGR. High yacht project investments in the area are expected to support market expansion. Additionally, it is anticipated that increased production facilities in the China and Taiwan region will increase yacht production in the coming years. In the Asia-Pacific, Taiwan is starting to emerge as a promising location for yacht production. With consistent increases in revenue and average yacht length, Taiwan has drawn attention worldwide for its affordable but luxurious yachts of the highest caliber. Asia-Pacific is anticipated to increase its market share during the forecast period.
America only accounts for a small portion of the global yacht charter market due to the small number of yacht manufacturers in the area. However, the U.S. government is emphasizing the recreational marine craft, part, and accessory industries to open up new growth opportunities for yacht manufacturing in the area. Additionally, the U.S. government has taken steps to assist manufacturers in the recreational marine sector in finding information about market dynamics and chances to expand internal manufacturing capacity. The vibrant beach and sports clubs support the region's yacht charter industry. In addition, more people are using yacht charters due to the region's growing popularity with Alaska and the Sea of Cortez, U.S. Additionally, the growth of yacht tourism in the area has generated new prospects for buyers of various yacht types there.
Latin America, the Middle East, and Africa are all included in the analysis of the LAMEA market. Due to the lower adoption of yacht charters, it is anticipated that this region will grow more slowly than other regions. Although the Middle East and Africa are anticipated to gain momentum during the forecast period, Latin America is anticipated to experience significant growth. The region's yacht charter market is expected to expand due to the region's expanding super and mega yacht manufacturing capabilities. In addition, the government has made significant investments in shipbuilding due to the Turkish Lira's weak position and upgraded the value chain to support market growth in the area. Latin America is also showing increasing interest in on-water living and experiences to support market expansion in the region.
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