Luxury Yacht Market by Type, Application and Geography - Forecast and Analysis 2023-2027

Luxury Yacht Market Forecast 2023-2027

The luxury yacht market is estimated to grow by 366 thousand units at a CAGR of 11.26% between 2022 and 2027. The increase in recreational tourism is driving demand for luxury travel experiences and accommodations. Digital marketing and increasing social media use are enabling luxury brands to reach a wider audience and engage with consumers in new ways. The increase in the high net worth individual (HNWI) population is leading to higher spending on luxury goods and services. Overall, these factors are contributing to the growth of the luxury market. Tourism holds pivotal importance as a global economic activity, contributing substantially to the economic development, employment generation, and social progress of numerous nations. Its impact reverberates significantly in the market, particularly through various avenues such as commercial yacht operators, fleet operators, yacht brokers and brands, yacht ownership and prices, yacht auctions, and rentals.

What will be the size of the Luxury Yacht Market During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by type (sail yachts and motor yachts), application (commercial and private), and geography (Europe, APAC, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

By Type

The market share growth by the sail yachts segment will be significant during the forecast period. Luxury sail yachts are 80' or longer (up to 230' long). Though they have auxiliary engine power, they use sails as the primary means of propulsion. Factors such as the absence of a large engine, increased automation employed in production, and the introduction of fiberglass hulls, keep the prices of luxury sail yachts lower than luxury motor yachts.

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The sail yachts segment showed a gradual increase in the market share of 195 thousand units in 2017. Luxury sail yachts feature all possible modern conveniences, such as ACs, television, navigation aids, radar, echo-sounding, autopilot, computer-controlled electric winches for controlling the sails, and a reliable power-generating system. These are exclusively used for leisure purposes. Furthermore, our report provides a brief analysis of historical and forecast market share and their segment, along with their reasons for growth from 2017 to 2027. The growth of this segment is primarily attributed to the increasing adoption of the Market by residential consumers, which is driven by an increase in global demand.

By Region

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Europe is projected to contribute 31% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Europe has been the dominant region for luxury goods, with an estimated share of over 40% of the global luxury goods market. The region also continues to dominate the global market in terms of luxury goods manufacturing, with France and Italy as the key production powerhouses and Portugal as an upcoming manufacturing hub for luxury goods. In the case of the market, Europe has one of the largest and most attractive ports.

Market Dynamics and Customer Landscape

The market offers exquisite yacht interiors, amenities, and features that define a lavish yacht lifestyle. From exclusive yacht clubs to extravagant yacht parties and events, these vessels cater to the elite seeking premium experiences. Yacht brokers assist in the acquisition of top luxury yacht brands, and services such as yacht rentals, insurance, maintenance, and refurbishment ensure the continued opulence of these vessels. Yacht customization allows owners to personalize their yachts, while a range of yacht accessories and advanced yacht navigation systems enhance the onboard experience. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The increase in recreational tourism is the key factor driving the market growth. Tourism is a crucial economic activity globally, contributing significantly to the economic growth, job creation, and social advancement of many nations. It also has a notable impact on the market, particularly through commercial yacht operators and fleet operators, as well as yacht brokers, luxury yacht brands, yacht ownership, luxury yacht prices, yacht auctions, and luxury yacht rentals. Countries like Greece, Spain, France, and Italy, with their picturesque landscapes, are popular destinations for tourists, particularly the affluent segment. These countries also attract business events and meetings, where luxury yachts are chartered from fleet operators.

Europe stands out as a major hub for yachting, with the Port of Rotterdam in the Netherlands serving as Europe's largest yacht port, hosting around 77 luxury yachts for high-end tourism. The growth in tourism and recreational activities is expected to be a significant driver for the market in the coming years.

Major Market Trend

The use of advanced materials will fuel the market growth. Most traditional yachts are built using either steel or aluminum, which makes the yachts heavy and reduces their fuel economy. Although steel and aluminum are less expensive than alternative materials, such as glass fiber reinforced materials or pure carbon fiber, yacht makers realize the overall benefits of using carbon fiber in the construction of the boat. Carbon fiber extensively reduces the yacht's weight, which makes the yacht fast and fuel-efficient. This cost-saving from improved fuel economy offsets the additional manufacturing cost incurred by using carbon fiber. Also, carbon fiber provides additional strength and durability to the boat's dynamics, which enables it to withstand harsh conditions in the seas.

Carbon-fiber-based composite is a heavy-duty, military-grade, lightweight material. Due to this, it is a widely used material in yacht manufacturing. The carbon-fiber-based boat draws about 7.7' water as compared to aluminum-based boats that draw about 9'-10' water, which means this boat can easily sail in deep or shallow waters. So growing use of advanced materials in yacht making is fueling the market in focus during the forecast period.

Significant  Market Challenge

The high cost of operations is a major challenge to global market growth. Motor types have every modern convenience installed onboard, such as ACs, television, navigation aids, radar, echo-sounding, and autopilot. To power all these amenities, luxury yachts require a reliable power-generating system. Thus, these yachts use gasoline or diesel-powered internal combustion engine ICEs to sail along with powering these modern conveniences and charging onboard batteries. As these yachts need to run at speeds up to 70 knots, the ICEs that are needed to power the amenities and run the yachts are huge and have high fuel requirements. However, any potential customer can avail of the booking facility through a third-party broker instead of the central agent, where both brokers share commissions.

In one way, such arrangements allow potential clients to avail or access a wide range of information on fleet booking and thereby select a suitable booking option based on their comfort. However, due to the involvement of multiple participants, both the operational cost and complexities in availing services augment further. Thus, the high cost of operations hinders the market growth during the forecast period.

Key Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Luxury Yacht Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

oceanalexander.com - The company offers luxury yachts such as Divergence, Revolution, and Explorer. Also, the company offers a yacht series designed by Evan Marshall and Arrabito Naval Architects, which offers unwavering safety, luxurious spaces, and sleek design.

The report also includes detailed analyses of the competitive landscape of the market and information about 120 market companies, including:

• Alexander Marine International
• Azimut Benetti SpA
• Christensen Shipyards LLC
• Damen Shipyards Group
• Feadship Holland BV
• FERRETTI SpA
• Fincantieri Spa
• Fr. Lurssen Werft GmbH
• Gruppo Fipa Srl
• Heesen Yachts Sales BV
• Horizon Yacht USA
• Nobiskrug Yachts GmbH
• Overmarine Group Spa
• Palmer Johnson
• Palumbo Group Spa
• Perini Navi Spa
• Sanlorenzo Spa
• Viking Yacht Co.
• Westport Yachts

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

You may be interested in the regional reports:

Europe Luxury Yacht market - The market witnessed sales of 412 luxury yachts in 2014, and the European market emerging as its largest contributor with revenues close to USD 2 billion. 

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Type (Sail yachts and Motor yachts), Application (Commercial and Private), and Geography (Europe, APAC, North America, South America, and Middle East and Africa).

• Type Outlook
  • Sail yachts
  • Motor yachts

• Application Outlook 
  • Commercial
  • Private

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market encompasses a range of high-end offerings, from superyachts to mega yachts. Buyers can choose between luxury yacht sales or opt for luxury boat rentals and luxury yacht charters for more temporary enjoyment. These vessels often boast luxury yacht amenities and luxury yacht features designed to provide a lavish Luxury yacht lifestyle. The market is supported by luxury yacht builders who specialize in luxury yacht design and construction. Despite its exclusivity, the market faces luxury yacht market challenges such as yacht maintenance and yacht refurbishment. However, with the right yacht insurance and yacht technology, the luxury yacht market continues to grow, offering unique yacht events and luxury yacht vacations to affluent consumers.

The market is a dynamic sector that continues to evolve with new yacht propulsion technologies and innovative yacht construction techniques. Luxury yacht market analysis reveals trends indicating steady Luxury yacht market growth and a positive Luxury yacht market outlook. The market is driven by various Luxury yacht market dynamics, including consumer demand for unique experiences and the allure of luxury lifestyles. As the market expands, luxury yacht market segmentation becomes more refined, catering to niche markets. This competitiveness drives luxury yacht market competition, prompting companies to seek new luxury yacht market opportunities and luxury yacht market trends for growth and differentiation.

The market is driven by a passion for recreational and leisure activities and the desire for livability on the seas. These yachts, often made from fiber reinforced polymers or metal/alloys, boast impressive lengths and innovative technological innovations to enhance the onboard experience. They offer a luxurious lifestyle, attracting buyers from the affluent segments of society. Key considerations for buyers include fuel consumption, stiffness, and corrosion resistance. Despite the allure of these vessels, the market faces challenges from the threat of substitutes and the threat of new entrants, alongside the bargaining power of buyers seeking the ultimate sailing luxury yacht experience.

Luxury Yacht Market Scope
Report Coverage	Details
Page number	154
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 11.26%
Market growth 2023-2027	366 thousand units
Market structure	Fragmented
YoY growth (%)	10.98
Regional analysis	Europe, APAC, North America, South America, and Middle East and Africa
Performing market contribution	Europe at 31%
Key countries	US, China, Japan, UK, and Germany
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	Alexander Marine International, Azimut Benetti SpA, Christensen Shipyards LLC, Damen Shipyards Group, Feadship Holland BV, FERRETTI SpA, Fincantieri Spa, Fr. Lurssen Werft GmbH, Gruppo Fipa Srl, Heesen Yachts Sales BV, Horizon Yacht USA, Nobiskrug Yachts GmbH, Oceanco SAM, Overmarine Group Spa, Palmer Johnson, Palumbo Group Spa, Perini Navi Spa, Sanlorenzo Spa, Viking Yacht Co., and Westport Yachts
Market dynamics	Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period.
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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