Luxury Yacht Market by Type (Motor Luxury Yachts, Sailing Luxury Yachts) by Distribution Channel (Private Use, Commercial Use, Special Use, Others): Global Industry Size, Share, Statistics and Forecast 2015 - 2027

Luxury yachts are large and lavish, with professional crews, state-of-the-art technology, comfortable rooms, and high-quality food. The yacht experience is a status symbol for the world's most elite classes and provides comfort and high standards. The yacht market is set to grow in the following years because of improved designs, style, comfort, livability, technology, and performance innovations.

The luxury yacht market is segmented by type of yacht and by region. There is type, length, and propulsion to consider when it comes to yachts. The yacht types include the superyacht, sports, flybridge, and many others. By size, yachts can be divided into three categories: between 75-120 feet, 121-250 feet, and above 250 feet. The demand for 121-250 feet size yachts is expected to rise the most and dominate the market.

Amid negative economic conditions on account of COVID 19, the Luxury Yacht market has performed well around the world, with a decline of just over 10% in its revenue in the year 2020. However, coping with the economic situation at a rapid pace, the demand for Luxury Yacht is expected to generate revenue of over USD 11.90 billion by the end of 2027, growing at an attractive CAGR of around 8.28%.  

Interesting Facts about Luxury Yacht Industry

• The world has more than 2,750+ billionaires as of now
• The number of operational yachts totaled around 9,895 as of today
• The world's longest yacht measured over 180 meters in length
• The U.S. has the highest number of yachts, followed by France, Italy, Spain, and Greece
• More than 750 superyachts are under construction at any given point in time      
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Motorized Yacht Segment

In propulsion, there are two options, the sailing yacht, and the motorized yacht. The motorized yacht segment is expected to have the highest growth rate between 2021 and 2027.  

Europe to Head Yachts Market

The luxury yacht market is expected to grow the most in Europe by region. Europe is projected to be the fasted growing region for the market due to higher disposable incomes and a rise in living standards. Coastal leisure activities in the area such as snorkeling, kayaking, and scuba diving have also increased, which can be linked to the increased demand for yachts. With a large number of high wealth population and growing tourism industry, the need for yachts is growing in Mediterranean regions, i.e., Italy, Spain, and Greece. There is also expected growth in the markets in France. Italy is the leading producer of yachts, followed by the U.K. and the Netherlands. Taiwan is emerging as a prominent producer of yachts in the Asia Pacific region.

The slowdown in Demand from Turkey and China

One of the major concerns for the manufacturers includes slowing down demand from Turkey and China, which are some of the leading countries for yachts. During 2019 and 2020, Turkey and China reported fewer orders than deliveries made in the same year. However, this is expected to be countered by growing demand from countries like Netherland. 

Yacht Tourism to Boost the Demand

Having a CAGR greater than 8% means that the market is growing reasonably well. Several factors driving the luxury yacht market can be considered. The first of these is the increase in global disposable incomes and more and more high-net-worth individuals emerging. As a result of higher payments, more people are investing in luxury goods like yachts in search of more luxurious lifestyles.

Yacht tourism is the second most important driving factor in the market. Yachts are more accessible to charter and rent, increasing demand, especially among younger consumers. Yacht tourism has also increased due to increased sea and water-related leisure activities. More private islands have also become accessible and added to cruise ship itineraries.  

Some key market players are Alexander Marine International, Azimut Benetti S.P.A., Brunswick Corporation, Damen Shipyards Group N.V., Feadship Holland B.V., Horizon Yacht USA, Sanlorenzo S.p.A., Sunseeker International (Wanda Group), and Viking Yacht Company. However, going by the trend, yachts manufacturers mainly focus on motorized yachts as sailing yachts are struggling to find buyers.