Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Yacht market.
Trusted Business Insights presents an updated and Latest Study on Yacht Market. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Yacht market during the forecast period.
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
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Industry Insights, Market Size, CAGR, High-Level Analysis: Yacht Market
The global yacht market size was valued at USD 6.19 million in 2018 and is expected to register a CAGR of 5.6% over the forecast period. The demand for yachts has gradually increased over the last few years owing to the increase in disposable income of individuals and their inclination toward leisure or recreational activities. The growing preference of travelers for luxury tourism, personalized service, and exclusive traveling are the primary factors propelling the sales of yachts. The 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, the 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 the flexibility to let engines operate at variable speeds and significantly reduce noise, vibration, and emissions in port and coastal areas. It also helps increase the efficiency of the yacht propulsion system.
The market is expected to witness significant growth in Europe over the forecast period. The growing number of High-Net-Worth Individuals (HNWI) and adoption of technologically advanced yachts are the primary factors driving the growth of the sales of new yachts in the region. High-tech interiors and luxurious amenities provided by the European OEM manufacturers are also predicted to drive the demand for Europe yacht market. The OEM manufacturers have been observed to be continuously investing in R&D activities to offer a unique experience while traveling with onboard luxury accommodation.
Despite the high total cost of ownership associated with a personal yacht, the marine travel and tourism activities have not been significantly affected owing to the easy availability of a yacht on a rental basis. Improved maritime security systems, connectivity, and 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 that provide yachts on a rental basis include Sailogy S.A.; Boatbound Inc.; The Moorings; Fun2 Rent; and Incrediblue Limited.
The recreational boating industry suffered a setback during the period of recession from the year 2008 to 2013. The demand for a yacht in major markets such as Europe and North America was observed to be declining during the economic slowdown. However, the share of some of the European countries is anticipated to increase gradually as they recover from the economic slowdown. Countries such as China, Germany, and France are anticipated to witness substantial growth over the forecast period. Additionally, the growth of the coastal and maritime tourism industry is significantly contributing to the growth of the market.
Type Insights of Yacht Market
The sport yacht segment is expected to emerge as the fastest-growing segment in the market. The segment growth can be attributed to the high demand for a sports yacht 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 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 as a year-round activity as people tend to enjoy outdoor water sports activities in all seasons.
Yacht Length Insights
The lengths of yachts vary from 35 feet to more than 150 feet. The 20 to 50 ft segment dominated the market in 2018. It is expected to continue to dominate the segment over 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 favorable wind direction. Additionally, benefits such as lower moorage costs and shallow draft for water anchorages are also making this length size a preferred choice among the users.
Yachts with length size ranging up to 20 ft can be used for both competitive as well as recreational purposes. Furthermore, in North America and Europe, the emerging trend of using renewable energy such as solar energy and wind energy in sea vessels ismost 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 ft segment.
Regional Insights of Yacht Market
Asia Pacific is anticipated to emerge as the fastest-growing regional market over 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 over the forecast period. However, countries facing economic crises, political instability, and stringent FDI policies are anticipated to negatively influence the growth. Furthermore, the 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.
Europe accounted for the largest market share in 2018 owing to the increased sales of yachts. The demand in European countries is majorly driven by factors such as 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 the attractiveness of the region and recent supportive policies. This is anticipated to increase in 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.
Market Share Insights of Yacht Market
The major players included in the study are Brunswick Corporation, 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), and Princess Yachts Limited, among others. 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. In April 2018, Azimut Benetti S.p.A. planned to reveal two new yacht models, namely the S10 and the Grande Magellano 25 Metri, at the Milan Design Week. In September 2016, Bombardier Recreational Products (BRP) Inc. expanded its North American sales network by onboarding 16 new dealers and four boat builders in the region. In June 2017, Wells Fargo Commercial Distribution Finance announced that it had entered into a strategic agreement with Chaparral Boats, Inc. and Robalo Boats. Under the strategic agreement, Wells Fargo Commercial Distribution Finance agreed to provide inventory-financing solutions to dealers of Chaparral Boats, Inc. and Robalo Boats in the North American region.
Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Yacht Market Research Report
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends for each of the sub-segments from 2014 to 2025. For the purpose of this study, this market research report has segmented the global yacht market report on the basis of type, yacht length, and region:
Type Outlook (Revenue, USD Million, 2019 – 2030)
Long range yacht
Yacht Length Outlook (Revenue, USD Million, 2019 – 2030)
Up to 20 ft
20 to 50 ft
Above 50 ft
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