Yacht Market size is slated to reach over USD 15 billion by 2027, according to a new research report by Global Market Insights Inc.
Increasing government support in tandem with high private investments is driving the yacht industry demand. Rapid growth in digitalization and advancements in technologies to provide improved connectivity along with safety are supporting the market statistics. Modern technologies are revolutionizing different areas of yacht management with improved cybersecurity and remote cruising to provide a luxurious onboard experience to the guests & crew. Modern yachts are integrated with smart sensors that are connected via Bluetooth or Wi-Fi to monitor systems including the interior temperature, high water alarms, state of battery charge, and bilge pumps.
High investments and maintenance costs of yachts are major factors restraining the business growth. According to the U.S. Superyacht Association, the minimum budget required annually for the maintenance and repair of yachts is an estimated USD 1 million. Additional expenses include fuel, crew, insurance, and dockage coupled with depreciation costs.
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The yacht market was negatively affected in the first two quarters of 2020 due to the COVID-19 pandemic. Shipbuilders were forced to shut down their operations owing to stringent lockdown and travel restrictions. Reduced investments due to financial insecurities, supply chain & logistics disruptions, and the shortage of skilled labor resulted in declined market revenue. In the last two quarters of 2020, there has been a surge in demand for superyachts among wealthy individuals to spend quality time with family in seclusion and avoid the threat of COVID-19.
Analyst view: “The growing popularity of water sports and rising tourism is poised to boost the industry growth. The rapid digitalization and integration of smart solutions with yachts to enhance navigation and safety will propel the yacht market size.”
Robust features and versatile design of flybridge yachts will spur the market demand
The flybridge yacht segment is anticipated to register growth rate of above 4.5% with shipments to cross 1,000 units by 2027. The positive market statistics can be attributed to improved comfort and performance. Industry participants are launching spacious flybridge yacht models to cater to the growing demand. For instance, in May 2021, Maritimo, one of the leading manufacturers of yachts in Australia, launched the M55 flybridge motor yacht to provide higher comfort and efficient performance.
Browse key industry insights spread across 270 pages with 319 market data tables and 22 figures & charts from the report, “Yacht Market Size By Type (Flybridge Yacht, Sports Yacht, Cruiser Yacht), By Length (Below 24 meter, 24 - 45 meter, Above 45 meter), By Propulsion (Motor, Sail), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Price Trend, Competitive Market Share & Forecast, 2021 - 2027”, in detail along with the table of contents:
Rising demand for recreational sailing among the youth population
Sailing propulsion yachts accounted for more than 15% of the market share in 2020. Sailing yachts use the sail as propulsion and depend on the wind speed, thereby reducing market demand. Increasing disposable incomes of the middle-class population coupled with growth in nautical tourism in North America & Europe are aiding the industry statistics.
The booming tourism industry in Europe will augment the yacht market growth
The European market size is expected to grow at over 5.5% CAGR through 2027 led by the presence of large shipyards and prominent companies including Heesen Yachts, Italian Sea Group, Ferretti S.P.A. & BAGLIETTO S.P.A. According to the European Commission, there are 150 large shipyards in Europe and the industry employs over 12, 000 people. Moreover, the rise in nautical tourism and shifting preference for water sports activities will enhance the regional industry growth.
Prominent yacht market players include FERRETTI S.P.A., Bavaria Yachts, Royal Huisman Shipyard B.V, Viking Yacht Company, King Marine Yachts, Riveria Australia Pty Ltd., Azimut Benetti S.P.A., Hanse Group, Damen Shipyards Group, BAGLIETTO SPA, San Lorenzo S.P.A., Overmarine Group SPA, Princess Yachts, The Italian Sea Group, and Sunseeker International Ltd. Companies are focusing on investments to launch new yachts and acquisitions for the expansion of their revenues & business operations in international markets.