Europe Dominates The Market For Luxury Yachts Followed By The North America Region

Luxury Yacht Market is Estimated to Reach at Around US$ 19,924.7 Million by 2033. 

The luxury yacht market refers to the segment of the marine industry that specializes in the production and sale of high-end, luxurious vessels designed for leisure and pleasure purposes. These yachts typically feature state-of-the-art technology, lavish amenities, and sophisticated design elements.

According to the recent findings by Future Market Insights, the global luxury yacht market is anticipated to bode well over the forecast period from 2023 to 2033. The market is expected to generate revenue of US$ 8,812.4 Million by the end of 2023. In the long term, the luxury yacht market is estimated to reach around US$ 19,924.7 Million in 2033. The prominent stakeholders of the luxury yacht market are yacht manufacturers, brokerage firms and brokers, designers, harbor management services, equipment and accessory sectors, journalists, and potential buyers.

The word yacht is derived from the Dutch word ‘jacht’ meaning hunt. Luxury yachts are also known as “Floating Palaces or Floating Real Estates”. They are the epitome of luxury spending. Luxury yachts are privately owned, professionally crewed, and highly expensive motor yachts. In addition to that, the luxury yacht market is both a B2B and B2C market as HNWI (high net worth individuals) and UHNWI (ultra-high net worth individuals) are the direct customers, also there are companies that buy luxury yachts for commercial purposes.

Luxury yacht manufacturing companies are obsessively focused on quality because it is the prime differentiating factor between luxury yachts and non-luxury yachts. These companies manufacture luxury yachts using fast patrol vessels, frigates, and interceptors, which are used by world navies for high security. Growing awareness of environmental protection has led to the manufacture of solar luxury yachts.

Yachting along coastal locations is gradually becoming popular across various countries. The formulation of favorable policies has been effective in promoting coastal and marine tourism which has consequently led to a boost in yachting tourism as well.

The adoption of private boats for leisure, client meetings, and large-scale parties has become quite prevalent. In order to explore new locations with a smaller crowd, regions such as Asia Pacific, Antarctica, and the Middle East are preferred for yachting.

Another crucial reason for the growth of luxury yachting tourism has been the availability of renting of charter boats. Rentals for yachts are available on a weekly basis which further increases the accessibility of luxury yachting. With increased government participation to create yacht facilities and to invest in yachting, the future looks bright and full of potential.

Over the upcoming years, the number of ultra-wealthy households consisting of assets worth $100 a million or more is projected to increase by 70% in the next five years. Shipyards have therefore started to invest in new facilities and technologies to meet the expected demand which will eventually lead to growth in the market for Luxury Yachts.

The millennials from the new generation ranging from the age group 35 to 45 years have become highly environmentally conscious. This is extremely important to factor in since up to 40% of yacht buyers are now millennials. Therefore, the sector is slowly switching to green yachting by adopting a eco-friendlier approach.

2050, the International Maritime Organization has instructed the maritime industry to reduce greenhouse gas emissions by 50 percent from 2008 levels by the year 2050 and to reduce the carbon footprints of their boats. Electric yachts are also becoming quite popular.
Competitive Landscape

Dominant players across the global luxury yacht market comprise 60% of the total market share. In addition to that, the semi-custom luxury yacht market has seen a surge in demand in recent years which might be due to these categories of yachts offering a good balance of customization and off-the-shelf predictability and simplicity.

The European region is anticipated to dominate the global luxury yacht market over the assessment period.

Europe is predicted to dominate the global market followed by the North American region. Owing to the vast coastlines and a significant percentage of boating charters taking place in the Mediterranean Sea, Europe has become a favorable nautical tourism hotspot.

European countries such as Greece and Croatia have been witnessing a surge in tourists wanting to explore water adventures thus driving the growth of the global luxury yachts market.