Yacht Market Size, Share, Growth & Industry Trends [2031]

Report Description

Yacht Market Outlook 2031

The Global Yacht Market size was USD 9.35 Billion in 2022 and is likely to reach USD 13.98 Billion by 2031, expanding at a CAGR of 5.8% during 2023–2031. The market growth is attributed to the large number of High-Net-Worth Individuals (HNWI) and the high demand for eco-friendly yachts.

Increasing demand for environmentally sustainable yachts is expected to fuel the yacht market. Modern yachts are being built lighter and with more fuel-efficient designs than their traditional counterparts, which minimizes environmental impact for even diesel-powered engines.
 

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Yacht buyers are increasingly seeking environmentally friendly alternatives to traditional powered engines. For instance, Herley Boats introduced the Herley Powercat 3400, a luxurious high-performance hybrid vessel that is designed for the ultimate cruising experience. This vessel combines innovation and luxury to build the perfect platform for cruising, fishing trips, and family outings.

The market report finds that the COVID-19 pandemic hindered the yachts market, due to the strict lockdown imposed by the government. During the pandemic, manufacturing delays, travel restrictions, and disruption in the supply chain impacted production which hampers the market. Yacht shows, events, and other programs are canceled due to the shutdown.

Impact of Artificial Intelligence in the Yacht Market

Artificial intelligence (AI) technologies are anticipated to boost the yacht market during the forecast period. AI technologies are used in the yachting industry to improve safety, efficiency, and navigation. It is used to improve the sailing experience by providing real-time information on weather conditions and optimizing routes. AI predicts the best destination to position a yacht for charter success by investigating data points and then calculating the best place to anchor and the fuel usage to get there.

• In April 2023, Rossinavi No Stress a first hybrid yacht equipped with artificial intelligence. No Stress is an all-aluminum sporty yacht with a fast-displacing hull. The ship has a double power system; two MTU 16V 2000 M96L diesel engines and two electric motors motorized by both the battery pack and generators. The system is managed by AI which monitors its consumption.

Yacht Market Dynamics

Major Drivers

Increasing demand for personalized yachts is expected to drive the yacht market during the forecast period. Manufacturers are offering extensive customization options that allow customers to design vessels that align with their specific desires. Modern consumers expect the ability to customize anything and everything to fit their individual preferences.

• In July 2023, Columbus Yachts launched M/Y Anjelif, the new 50-meter full custom-built yacht constructed entirely in aluminum. A model tailored to the needs of its experienced owner and packed with technological and stylistic advances such as hybrid and diesel-electric propulsion.

Existing Restraints

High maintenance costs of yachts are expected to hamper the yacht market in the coming years. Yachts require lots of maintenance and continuous cleaning, as they are moving platforms in harsh environments. If there are more equipment in the boat such as a water maker, electronics, generator, and others, where more maintenance is needed, thus, in turn, is likely to hamper the market.

Emerging Opportunities

Increasing advancements in developing new technologies is expected to create lucrative opportunities for the market players. Several companies are focusing on developing innovations such as hydrogen power and electrical power with a strong engine with lighter body weight and high horsepower.

• In October 2023, BLUE INNOVATIONS GROUP INC launched its flagship creation, the R30 electric boat. The R30 is a 30-foot marvel, that boasts a 221-kWh battery pack with an 800HP dual motor powertrain and integrated UI. The boat can accommodate up to 12 people for 8 hours.

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Scope of Yacht Market Report

The market report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Yacht Market Segment Insights

Type Segment Analysis

Based on type, the yacht market is divided into sport, superyacht, cruisers, flybridge, dufour, and others. The superyacht segment is expected to expand at a significant pace during the projection period, due to the increasing popularity of these yachts. Superyachts are large and luxurious pleasure vessels and ranging from 40 meters to more than 180 meters.

They are designed to emphasize speed, comfort, and expedition capacity. There are five different areas in a superyacht group such as captain, chef, interior staff, deck crew, and engineers. All superyachts have below-deck crew areas, which usually consist of a crew mess, laundry rooms, and crew cabins.

• In August 2023, ABEKING & RASMUSSEN launched a masterpiece called the majestic superyacht LIVA, measuring a remarkable 118.20 meters in length. This iconic yacht has a sleek black hull that stands out on the water as an icon of elegance and sophistication.

The sport segment is anticipated to hold a key share of the market in the coming years, owing to the increasing demand for sports yachts in emerging countries such as France and China. Sports yachts are used for sports tournaments, marine tourism, and other activities.

High demand for recreational tournaments and increasing affinity for outdoor recreational activities is expected to boost the sport yacht in the market. Sport yacht has a stylish and sleek-looking flybridge and an open deck for a better experience and it reaches speeds from 30 knots to 50 knots. They are also deployed for racing purposes.

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Propulsion Segment Analysis

In terms of propulsion, the global market is segregated into sailing yachts and motor yachts. The motor yachts segment is projected to register a considerable CAGR during the forecast period, due to the high speed and power and others. Yachts are highly preferred for their advanced equipment and systems that are installed in the motor yachts. Several consumers are purchasing motor yachts owing to their speed, convenience, and ease of handling. The segment growth is further attributed to the increasing demand for motor yachts for personal and recreational activities in emerging countries.

The sailing yachts segment is anticipated to account for a major market share in the coming years, owing to the increasing technological advancements and growing focus on leisure activities. Sailing yachts are eco-friendly, cheaper, thrilling, and safer and these yachts use wind power to move through the water.

They are typically built with wood, fiberglass, and a combination of the two. Sailing vessels cover long distances, deck space, design, and onboard facilities that are offered by motor yachts which makes them a more attractive option to the customers, which increases the demand for the segment in the market.

Yacht Length Segment Analysis

On the basis of yacht length, the yacht market is segmented into up to 20 meters, 20 to 50 meters, and more than 50 meters. The 20 to 50 meters segment is expected to register a robust growth rate during the forecast period, owing to the low maintenance costs and light wind sailing capacity. Yachts ranging up to 20 meters are used for both competitive and recreational activities, which is expected to boost the segment in the market.

Several yachts in 20 to 50 meters size brackets are semi-custom models and built on a standard platform. They are the most cost-efficient to run compared to larger yachts and the running costs per meter are proportionally lower.

Regional Analysis

In terms of region, the global yacht market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Europe is expected to dominate the market during the projection period, owing to the increasing yacht sales and rising popularity of water sports & fishing activities.

The regional market growth is further attributed to the increasing investments in recreational activities and coastal areas such as sail training adventures, kayaking, fishing, and others, and the rising number of trade shows hosted by recreational activities and manufacturers.

The market in North America is anticipated to expand at a rapid pace in the coming years, due to the increasing disposable incomes of individuals and rising economy. The regional market growth is further attributed to the increasing popularity of chartering yachts for vacations and innovative technologies and designs.

• According to the US Bureau of Economic Analysis (BEA), in 2021 the outdoor recreation economy accounted for 1.9% (USD 454.0 billion) of current-dollar GDP for the nation.

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