The global luxury yacht market size was USD 7.3 Bn in 2022 and is expected to reach USD 12.7 Bn by 2031, expanding at a CAGR of 7.9 % during 2023–2031. Growing trends of luxury tourism and personalized traveling services are boosting the market.
A luxury yacht is a sailing vehicle equipped for racing and cruising. It is usually called an upscale boat or a sailboat. It is a craft used for sports and leisure, and the name origins from the Dutch word ‘jaght’, translated as ‘hunter’.
The price of the yachts depends upon the size, model, year, and condition. A luxury yacht of fewer than 12 meters is called a cabin cruiser or a cruiser, whereas a superyacht is normally 24 meters or longer. However, a mega yacht is 50 meters or longer, and the world’s biggest yacht is 728 feet long.
One of the world’s first luxury yachts Cleopatra’s Barge was built in 1816 when the Dutch and English discovered a way over the Atlantic to America by racing their new yachts. Cleopatra’s Barge was 23 feet wide and 192 tons in weight. The yacht had features including indoor plumbing fixtures and luxury interiors.
Excessive heat may damage the yacht material if sun rays are not reflected instantly. The white color reflects sunlight instantly in comparison with other colors on surfaces, which helps in keeping the temperature low. Thus, most of the yachts are white in color, as it suits for long-hour exposure to the sun in an open sea environment.
The COVID-19 pandemic hampered the overall shipping and travel services due to the preventive measures imposed by governments such as lockdowns and travel restrictions across countries to curb the virus spread. Closed borders, restricted travel activities, and economic severity limits to the global luxury yacht market.
Luxury Yacht Market Dynamics
Major Drivers
Increasing inclination toward sporting activities and experiencing exclusive traveling is expected to drive the market. The usage of advanced materials and increasing customizing solutions as per specific structural designs are anticipated to fuel the market.
Existing Restraints
High cost of ownership for personal yachts and lack of infrastructure are expected to restrain the market. Heavy import tax upon owning a yacht is restraining the luxury yacht market.
Emerging Opportunities
The use of composites to prevent corrosion, low maintenance costs, and enhanced strength-weight balance are projected to create lucrative opportunities in the market. Increased government initiatives toward yacht facilities for the travel & tourism industry create opportunities in the market. Moreover, manufacturers focus on improving luxury features to offer better performance and customer experience.
Scope of Luxury Yacht Market Report
The report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Luxury Yacht Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Type (Motorized Yacht, Sailing Yacht, and Others), Material (Composites/Fiber-Reinforced Plastic (FRP), Metals/Alloys, and Others), Size (75-120 Feet, 121-250 Feet, and Above 250 Feet), and Application (Commercial and Private)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Cool Charters Vilamoura; Emerald Cruises; Lexus; Sunreef Yachts; Azimut | Benetti Group; Christensen Shipyards LLC; Brunswick Corporation; Horizon; Princess Yachts Limited; and palumbo group spa
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Market Segment Insights
Based on type, the luxury yacht market is divided into motorized yacht, sailing yacht, and others. The motorized yacht segment is expected to expand at a significant growth rate during the forecast period due to various facilities such as more room space and experiencing activities including gymnasiums, Jacuzzis, fishing corner, and spas. Motorized yachts have various styles such as flybridge, sedan bridge, aft cabin, yachts pilothouse, and large express-style, which further boosts the segment.
On the basis of material, the luxury yacht market is segmented into composites/fiber-reinforced plastic, metals/alloys, and others. The composites/fiber-reinforced plastic (FRP) segment is expected to register a robust pace during the forecast period due to its increased applications in marine environments.
Composites/fiber-reinforced plastic is a preferred material in manufacturing yachts, as it is lightweight, allows speed movements, increased payload, and reduced fuel consumption. Additionally, it provides high corrosion resistance and less stiffness, which in turn, provides flexibility in yacht construction, thus propelling the segment.
On the basis of size, the global market is segregated into 75-120 feet, 121-250 feet, and above 250 feet. The 75-120 feet segment is projected to register a considerable CAGR during the forecast period, due to the improved style, design, livability, and comfort. Technical innovations and performance are projected to propel the segment. Furthermore, optimization in the interior and exterior designs results in a high preference for the 75-120 feet yachts, which in turn, results in segment growth.
Based on application, the market is bifurcated into commercial and private. The commercial segment is anticipated to expand at a significant growth rate during the projection period. The growth of the segment is attributed to the increasing usage of yachts in commercial activities such as rental services and holiday experiences. Commercial luxury yachting is preferred for small parties and water body locations to promote coastal tourism across various countries. These factors further propel the commercial yacht segment.
In terms of region, the global luxury yacht market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the projection period due to increasing disposable income and standard of living. This untapped region is a potential yacht-selling place among the major manufacturers. Moreover, rising number of investments made by companies in the region is likely to fuel the market in the region.
Segments
The luxury yacht market has been segmented on the basis of
Type
- Motorized Yacht
- Sailing Yacht
- Others
Material
- Composites/Fiber-Reinforced Plastic (FRP)
- Metals/Alloys
- Others
Size
- 75-120 Feet
- 121-250 Feet
- Above 250 Feet
Application
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Cool Charters Vilamoura
- Emerald Cruises
- Lexus
- Sunreef Yachts
- Azimut | Benetti Group
- Christensen Shipyards LLC
- Brunswick Corporation
- Horizon
- Princess Yachts Limited
- Palumbo Superyachts Ancona s.r.l
Competitive Landscape
Key players operating in the global luxury yacht market include Cool Charters Vilamoura; Emerald Cruises; Lexus; Sunreef Yachts; Azimut | Benetti Group; Christensen Shipyards LLC; Brunswick Corporation; Horizon; Princess Yachts Limited; and palumbo group spa.
These companies adopt strategies such as acquisitions, partnerships, collaboration, mergers, R&D investments, and product launches to boost their market share. For instance,
- In April 2022, Palumbo Superyachts Ancona s.r.l, an Italy-based company announced the introduction of ARIA SF, a 45-meter superyacht in their Gran Turismo portfolio. The yacht has a sporty and sharp exterior, with three decks connected by side arches.
- In December 2020, Benetti Group launched Motopanfilo 37 meters in a class category and custom superyacht FB284. The yacht supports high livability standards, with a style designed to improve connectivity.
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