Superyacht Market Is Estimated To Witness High Growth Owing To Increasing High Net Worth Individuals (HNWIs) And Luxury Travel & Tourism
The Superyacht market is estimated to be valued at US$ 19.44 Bn in 2024, exhibiting a CAGR of 10.9% over the forecast period (2024-2031). Factors such increasing high net worth individuals (HNWIs) globally along with rise in luxury travel & tourism are contributing towards the market growth. Furthermore, rising disposable income in developing countries is also supporting the superyacht market expansion.
Market Dynamics:
The growth of the global superyacht market is determined by two key drivers - increasing high net worth individuals population globally and rise in luxury travel and tourism activities. Firstly, the population of high net worth individuals (HNWIs) having investible assets of US$ 1 Mn or more has been rising steadily over the past few years. The global luxury travel and tourism industry has witnessed formidable growth over the past decade. Superyacht vacation rentals or charters have emerged as a popular luxury travel option for affluent travelers. This has significantly boosted the demand for superyachts across major tourism destinations worldwide.
Market Drivers
Increased Affluence Among High Net Worth Individuals
One of the major drivers of the global superyacht market is the increased affluence and wealth among high net worth individuals worldwide. As per various wealth reports, the number of millionaires and billionaires globally has increased significantly over the past decade. With rising incomes and growing wealth, more high net worth individuals now have the means and desire to invest in luxury assets like superyachts. This growing pool of wealthy individuals is directly fueling demand in the superyacht market.
Rising Popularity of Luxury Travel by Private Yachts
Another key driver is the rising popularity of luxury travel experiences by privately-owned superyachts. More wealthy individuals are opting for exclusive yacht holidays and cruises as a status symbol and sign of immense affluence. They want to escape the crowd and enjoy a personalized travel experience with family and friends aboard a luxurious private yacht. This rising preference for luxury private yachting among the ultra-wealthy is encouraging higher demand in the global superyacht market.
Market Restraints
High Construction and Ownership Costs
One of the major restraints faced by the superyacht market is the exorbitantly high construction as well as ownership costs associated with these luxury vessels. Custom-building a new superyacht typically costs anywhere between US$10 and US$ 500 million depending on size, features, and design complexity. Even annual operating expenses ranging from 10-30% of purchase price pose a significant financial burden. This extremely high cost of acquisition and maintenance poses challenges for wider adoption and restrains the market growth potential.
Stringent Environmental Regulations
Growing environmental concerns worldwide have led regulatory authorities to implement stringent regulations regarding emissions and waste disposal applicable to large private vessels as well. Superyachts face tough compliance requirements regarding fuel efficiency standards, sewage treatment, and air pollution control. While necessary from an ecological perspective, tighter norms directly increase production costs and administrative complexities for shipyards and yacht owners. This acts as a major deterrent in some regions and slows market expansion.
Market Opportunities
Growing Yachting Tourism Industry
One of the key opportunities for superyacht manufacturers and dealers lies in the growing global yachting tourism industry. Many countries and coastal regions are proactively promoting their locales as superyacht destinations and offering exclusive marina berths and infrastructure. This creates lucrative opportunities to base luxury yachts in different tourism hotspots throughout the year and cater to short affluent holiday rentals. Entry into the booming yachting tourism markets opens new revenue streams.
Personalization and Advanced Features
Another major opportunity area is increased customization and integration of latest technologies aboard superyachts. Wealthy buyers constantly seek unique personalized designs and features to suit evolving lifestyles and preferences. Shipbuilders leveraging technologies like AI, IoT, augmented reality, etc. to develop advanced superyacht concepts with unique onboard experiences can charge premium prices. This opens avenues to tap innovations and enhance market values.
In conclusion, while high costs and regulations restrain the global superyacht market to some extent, growing affluence of HNWIs and rising luxury travel trends will continue driving demand in the coming years. Additionally, leveraging opportunities around yachting tourism and advanced customizations can help overcome challenges and boost future market prospects.
Link: https://www.coherentmarketinsights.com/market-insight/superyacht-market-2333
Key Developments:
- The fourth Amels 60 superyacht was launched by Damen Yachting in July 2023. This 60-metre, 830 GT vessel features an exterior design by Espen Øino, naval architecture by Damen Yachting, and a custom interior created through the collaborative efforts of Studio Indigo and Pure Living. The Amels 60 can accommodate up to 12 guests across six staterooms.
- Damen Yachting has announced plans to expand its facilities in Gorinchem, Netherlands. The company intends to invest in additional repair services and a new 150-tonne ship lift at the Gorinchem yard. Once the upgrades are complete, the Gorinchem shipyard will serve as an ideal location for designing, maintaining, repairing, converting, and constructing vessels up to 90 metres in length. Prior to the project's conclusion, Damen Yachting will divest its yard in Hardinxveld-Giessendam.
- In June 2021, Sanlorenzo unveiled the 44-metre X-Space superyacht model. This vessel features an expansive 495 GT interior and is designed with a focus on privacy, dedicating the upper deck exclusively to the owner's use. The private owner's deck includes a personal apartment, study, living room, and a large master cabin.
- In March 2020, Sanlorenzo introduced three new models: the 34-metre SX112 crossover yacht, which serves as the flagship of the innovative SX crossover line, and the 44Alloy and 62Steel superyachts. The SX112 embodies a new approach to life at sea, eliminating barriers and opening the yacht to the outside, thereby fostering a close connection with the marine environment.
Key Players:
Amels, Azimut Benetti, Blohm Voss Heensen Yachts, Burgess, Christensen Shipyards, Feadship, Ferretti SpA, Fincanteri, Holland Jachtbouw, ISA Yachts, Lürssen, Moonen Shipyards, Mulder Shipyards, Nobiskrug, and Oceanco
