Luxury Yacht Market Size, Share & Trends Analysis Report 2020-2027
The global luxury yacht market is estimated at USD 7.12 Billion in 2019, growing at a cagr of 6% over the forecast period as per the new research report by UpGraph Research. Growing International tourism, especially marine tourism, corporate tourism is expected to substantially improve the demand for luxury yachts over the forecast period.
Luxury yacht manufacturers are focusing on organizing lucrative water sports and events to attract customers from around the world. The trend of yacht renting is also increasing in some regions as many users who cannot afford to buy a yacht prefer renting one for their usage. The usage of yacht substantially increased for corporate events in recent years. Yachts have become a symbol of luxury for many people and organizations.
Based on length, the Luxury Yacht market has been segmented into 75-120 feet, 121-250 feet, and Above 250 feet. The 75 to 150 feet segment accounted for the largest yacht market size in 2019, this size is ideal for low distance business traveling, these yachts have a low maintenance cost, fuel efficiency, and ease of traveling. The sports yacht accounted for the largest market size in 2019, with more than 20% luxury Yacht market share. Luxury Yachts offer a greater area for recreational activities, have more features, and a luxurious feel compared to normal yachts.
The coronavirus has critically affected the demand for a superyacht as the tourism industry has operations has halted due to countrywide lockdown in various countries. Mini Marine sport event involving your train has been either postponed or canceled due to the COVID-19 pandemic. For instance, the 2020 Australian Yacht Rendezvous, which was expected to be organized in October 2020 is canceled by the authorities due to coronavirus.
World’s largest global economies United States, China, Japan, and United Kingdom are impacted by the coronavirus, the rate of unemployment in this country has jumped, industries are facing losses; therefore many people are refraining from buying any luxurious goods, this situation has emerged as a serious challenge for the yacht industry.
The luxury yacht market has been segmented based on type into sailing, motorized, and other yachts. The motorized Yacht segment incorporates numerous types of yachts including a sedan bridge, Yacht pilothouse, aft cabin among others. The motorized segment is expected to witness high growth between 2020 to 2027, growth can be attributed to greater board facilities, and large space for recreational activities. The sailing yacht segment is growing at a moderate growth rate it is anticipated to gain growth traction over the forecast period.
The luxury Yacht market can be segmented based on the type of material used for building the yacht into FRP/composites, metal/alloy, and others. Technological advancement in the manufacturing process of yachts has substantially increased the demand in the last decade. Better manufacturing material ensures a high quality of yachts and better safety features. The type of material is selected based on the type of Yacht to be manufactured, for example, Yacht with rigorous and heavy usage such as sports are generally made using metal or alloys for sturdy performance. Fiber-reinforced plastic (FRP) is widely used in the manufacturing of luxury yacht, as it is lightweight Therefore it is highly useful in making the Yacht lightweight, improve payload capacity, and reduces fuel consumption. FRP is corrosion-resistant material which is useful considering the Long term usage of yachts in the water. FRP segment accounted for the largest market size in 2019, it is expected to continue to dominate the market over the forecast period.
With greater than 60% market share, the North America and Europe region emerged as the key stakeholder in the Global Yacht market. An increase in the population of high net worth individuals, including millionaires and billionaires around the world, is anticipated to increase demand for yachts in upcoming years. Although the high net worth individuals account for less than 1% of the global population, they have almost 40% of the worldwide wealth as per the latest publication by the World Bank. The growing popularity of water sports and fishing is expected to boost the European Yacht market.
The Asia Pacific market is expected to attain the highest growth rate for the luxury Yacht market from 2020 to 2027. The original per capita income and living standards have enhanced substantially in the last decade, people’s attraction towards luxurious goods has increased significantly in the Asia Pacific region, therefore, the market is expected to grow in the region. Additionally, the governments of countries such as India China Japan are focusing on improving tourism by organizing various events and Developing tourist attractions. Aur instance the Government of India launched the Incredible India initiative to promote tourism, which is expected to boost the Indian Yacht market.
The growing trend of recreational boating in countries such as China, Japan, and France has increased the demand for sport Yacht exponentially. The trend of organizing sports events & tournaments has led to increased demand for sports yachts around the world. These yachts are used for corporate tourism, marine tourism, cruising, sports tournaments, and other water-related activities.
The luxury Yacht market is a low competition market owing to high initial investment and advanced technology requirements for entering this industry. The market is dominated by companies such as Alexander marine company limited, Daman shipyards group, FERRETTI S.P.A, and Viking Yacht company. The key players in this industry mainly focus on acquiring orders from high-income customers, tourism agencies, water sports organizers, and governments.
|Base year for estimation||2019|
|Actual estimates/Historical data||2017 – 2019|
|Forecast period||2020 – 2027|
|Market representation||Revenue in USD Billion & CAGR from 2020 to 2027|
|Regional scope||North America, Europe, Asia Pacific, Latin America, Middle East & Africa|
|Country scope||U.S., Canada, UK, Germany, France, China, India, Japan, South Korea, Taiwan, Brazil, Mexico, UAE, and KSA|
|Report coverage||Market size estimates and forecast, company market share analysis, competitive landscape, market dynamics, drivers, restraints, opportunities & challenges, qualitative analysis and trends|
|25% free customization scope (equivalent to 9 analysts working days)||Do you have any additional requirements? We can incorporate the same at no extra cost.|
For the purpose of this report UpGraph Research has segmented the Global Luxury Yacht Market based on size, type, material, and by region as mentioned below:
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