Yacht Market Size, Share & Trends Analysis Report By Type (Super Yacht, Flybridge Yacht, Sport Yacht, Long Range Yacht), By Length (Up To 20 Meters, 20 To 50 Meters, Above 50 Meters), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global yacht market size was valued at USD 8.91 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 5.8% from 2023 to 2030. The demand for yachts has gradually increased in the last few years, owing to increase in disposable income of individuals and their inclination toward leisure or recreational activities. Growing preference of travelers for luxury tourism, personalized service, and exclusive traveling are the primary factors propelling the sales of yachts.

Manufacturers are focusing on including luxury features for offering improved performance characteristics and customer experience. The processes involved in manufacturing yachts have also undergone drastic changes over the last few years. Yachts were manufactured using wood and fiber-reinforced polymers. However, use of composites has gained popularity owing to benefits such as corrosion resistance, lower maintenance costs, and better strength-to-weight characteristics.

The use of electronically controlled fuel injection systems offers flexibility to let engines operate at variable speeds and significantly reduce noise, vibration, and emissions in port and coastal areas. It also helps increase efficiency of the yacht propulsion system.

The market is expected to witness significant growth in Europe during the forecast period. The growing number of High-Net-Worth Individuals (HNWI) and adoption of technologically advanced yachts are few primary factors driving the regional sales growth of new yachts. High-tech interiors and luxurious amenities provided by the European OEM manufacturers are also predicted to drive the demand for the yacht industry. The OEM manufacturers have been observed to be continuously investing in R&D activities to offer a unique experience when traveling with onboard luxury accommodation.

Despite of high total cost of ownership associated with a personal yacht, marine travel and tourism activities have not been significantly affected owing to easy availability of a yacht on a rental basis. Improved maritime security systems, connectivity, tracking, and increased disposable incomes are further driving the market. Furthermore, advancements in telematics and IoT platforms are expected to improve the industry potential over the coming years. The key vendors providing yachts on a rental basis include Sailogy S.A.; Boatbound Inc.; The Moorings; Fun2 Rent; and Incrediblue Limited.

The COVID-19 pandemic has had an adverse impact on the yacht market, including the yacht chartering business. The emergence of the pandemic and subsequent lockdowns imposed by the governments on various nations, coupled with severe travel restrictions, affected the global market for yachts. Also, supply chain disruptions became a major hindrance to manufacturability.

However, the prolonged stay-at-home orders made people more inclined toward engaging in leisure activities, and therefore, the market started to recover as restrictions were eased. The manufacturing companies also witnessed an increase in the number of orders for new yachts as more people were willing to travel alone with their families.

Market Dynamics

The number of Ultra-High Net-Worth Individuals (UHNWI) and High Net-Worth Individuals (HNWI) have fluctuated in recent years; however, the number of UHNWI is expected to increase. According to CREDIT SUISSE, a Switzerland-based financial services company, in 2021, the number of UHNWI with more than USD 50 million net worth was 264,200 in the world. The growth in the number of UHNWI was over 46,000 in 2021 from 2020.

Recreational spending has been increasing among the world’s population in recent years. According to the U.S. Department of Commerce’s data, from 2013 to 2022, the share of recreational spending in the U.S. consumer spending increased by around 3.5%. In 2021, in the European Union (EU), the general government expenditure on recreation, culture, and religion amounted to 1.2% of the GDP. In developing countries, recreational spending is growing at a considerably high rate due to growing consumer incomes and increasing free time.

The yacht industry has witnessed a significant increase in technological advancements in recent years, making yachts simpler to operate. Yacht manufacturers are investing in developing specialized yachts, including the use of sustainable power sources, greener propulsion systems, and recyclable materials. The use of 3D printing in yacht manufacturing has also increased. 3D printing technology is making it possible to manufacture custom parts that can be used to build decks and hulls. The technology is also helping manufacturers save costs due to reduced wastage of materials.

Type Insights

The super yacht segment dominated the market with a revenue share of more than 31% in 2022. The high share of this segment can be attributed to high popularity of these yachts among the end-users. Sport yacht is expected to emerge as a fast-growing segment in the market. This can be attributed to the high demand for sports yachts in countries such as China and France.

These countries have witnessed active participation of adults in recreational boating activities and sporting events. Sports yachts are used for marine tourism, sports tournaments, other recreational activities such as cruising & fishing, and other water sports activities.

Furthermore, increasing demand for recreational tournaments and a growing affinity for outdoor recreational activities are expected to drive the segment growth. The recreational tournaments are also offering employment opportunities. They are emerging as a source of revenue generation for yacht caterers, clothing outlets, chandlers, and boat builders, among others. Boating can be considered a year-round activity, as people tend to enjoy outdoor water sports activities in all seasons.

Propulsion Insights

The motor yacht segment was dominant in the global market for yachts, with a share of more than 82% in 2022. The high share of this segment can be attributed to the benefits offered by these yachts including high speed and power, and large distance coverage, among others. Also, these yachts are highly preferred by people for their advanced systems and equipment installed in the motor yachts. Modern equipment acts as a key enabler for the high sales of such yachts in the global market. Also, the segment is also forecasted to emerge as the fastest-growing segment during the projection period.

The sailing yachts use sails as a propulsion system and therefore depend upon speed of the wind for movement. Although sailing vessels can cover long distances, the design, deck space, and onboard facilities offered by motor yachts makes them a more attractive option to the buyers. The rising focus on recreational activities and increasing technological advancements is further anticipated to bolster the growth of motor yachts in the global market. The motor yacht segment is expected to grow at a CAGR of 5.9% from 2022 to 2030.

Yacht Length Insights

The 20-to-50-meter segment dominated the global market with a revenue share of over 57% in 2022. It is expected to continue to dominate the segment during the forecast period. The growth of the segment can be attributed to benefits such as low maintenance costs and light wind sailing capabilities that help save fuel and ensure traveling in a favorable wind direction. Additionally, benefits such as lower moorage costs and shallow drafts for water anchorages are also making this length size a preferred choice among the users.

Yachts with length sizes ranging up to 20 m can be used for both competitive as well as recreational purposes. Furthermore, in North America and Europe, emerging trend of using renewable energy such as solar energy and wind energy in sea vessels is most likely to play an important role in reducing fuel usage and emissions from ships. A yacht of this length size operating on renewable energy is generally compact and lightweight, as it requires less energy to sail. This is also a prominent factor augmenting the growth of the up to 20-meter segment.

Regional Insights

Europe accounted for the largest global market share with a revenue contribution of over 35% in 2022. The high share can be attributed to increased yacht sales in the region. The demand in European countries is majorly driven by factors such as an increasing number of HNWI and the growing popularity of water sports & fishing activities. In the upcoming years, passenger traffic in coastal and marine tourism is expected to increase drastically due to attractiveness of the region and recent supportive policies.

This is anticipated to increase investments in coastal areas and recreational activities such as fishing, sail training adventures, white-water rafting, kayaking, and one-day boating adventures, in addition to scuba diving, free diving, and snorkeling. The increasing number of trade shows hosted by manufacturers and recreational boating events are supporting the market growth in the region.

Asia Pacific is anticipated to emerge as the fastest-growing regional market during the forecast period. The rise in disposable income and improved standard of living are some of the critical factors responsible for the changing preference of the regions’ populace with respect to yacht travel. Furthermore, government initiatives for the development of tourism activities such as the Swadesh Darshan Scheme and Incredible India are expected to boost the regional market growth during the projection period.

However, countries facing economic crises, political instability, and stringent FDI policies are anticipated to negatively influence growth. On the other hand, the surging demand for recreational activities supported by the increasing participation of people in marine recreational activities in countries such as Singapore, Thailand, China, and Australia is also expected to bolster the growth of the regional market.

This is anticipated to increase investments in coastal areas and recreational activities such as fishing, sail training adventures, white-water rafting, kayaking, and one-day boating adventures, in addition to scuba diving, free diving, and snorkeling. The increasing number of trade shows hosted by manufacturers and recreational boating events are supporting the market growth in the region.

Asia Pacific is anticipated to emerge as the fastest-growing regional market during the forecast period. The rise in disposable income and improved standard of living are some of the critical factors responsible for changing preference of the regions’ populace with respect to yacht travel. Furthermore, government initiatives for the development of tourism activities such as the Swadesh Darshan Scheme and Incredible India are expected to boost the regional market growth during the projection period.

However, countries facing economic crises, political instability, and stringent FDI policies are anticipated to negatively influence growth. On the other hand, surging demand for recreational activities supported by increasing participation of people in marine recreational activities in countries such as Singapore, Thailand, China, and Australia is also expected to bolster the growth of the regional market.

Key Companies & Market Share Insights

In order to gain a higher market share, the key market incumbents are undertaking initiatives and adopting strategies such as entering into partnerships, making investments, engaging in mergers & acquisitions, launching new products and services, and maintaining competitive prices for their products and services. Some of the prominent players in the yacht market include:

• Azimut Benetti S.p.A.

• Damen Shipyards Group

• Heesen Group

• The San Lorenzo S.p.A

• Sunseeker International

• Ferretti S.p.A.

• Alexander Marine International Co., Ltd. (AMI)

• Princess Yachts Limited

• Viking Yacht Company

Recent Developments

• In March 2023, FERRETTI S.p.A. announced the acquisition of a production site in Ravenna, Italy, spanning over 70,000 square meters. The acquisition involved an initial investment of approximately EUR 40 million. The company also plans to invest an additional EUR 40 million over the next three years to develop new production areas and establish a dedicated Research and Development (R&D) center at the site. This strategic move demonstrates Ferretti Group's commitment to expanding its operations and enhancing its capabilities in the marine industry.

• In March 2023, Sanlorenzo Spa announced its recent acquisition of a 49% stake in Sea Energy S.r.l., a company involved in the design, manufacture, and installation of electronics and electrical systems for the yachting industry. This transaction holds significant strategic importance for Sanlorenzo as it aligns with the company's ongoing efforts to integrate its key suppliers vertically.

Yacht Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global yacht market report based on type, yacht length, propulsion, and region:

• Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Super Yacht

  • Flybridge Yacht

  • Sport Yacht

  • Long Range Yacht

  • Others

• Yacht Length Outlook (Revenue, USD Million, 2017 - 2030)

  • Up to 20 Meters

  • 20-50 Meters

  • Above 50 Meters

• Propulsion Outlook (Revenue, USD Million, 2017 - 2030)

  • Motor Yacht

  • Sailing Yacht

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa (MEA)