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The global luxury yacht market is on track for impressive growth, with projections indicating it will touch USD 12.8 billion by 2031, according to a newly published report by Allied Market Research. The market, which was valued at USD 5.8 billion in 2020, is anticipated to expand at a compound annual growth rate (CAGR) of 8.0% from 2022 to 2031. Europe dominated the market in 2020, accounting for roughly two-thirds of the global volume.
The term “yacht” originates from the Dutch word “jaght,” meaning “hunt” or “pursue.” Today, yachts epitomise luxury and sophistication, targeting a niche audience of ultra-high-net-worth individuals. These vessels, typically 75 feet and above, come equipped with extravagant amenities like Jacuzzis, gyms, saunas, and sun pads.
According to the World Ultra Wealth Report, the number of individuals with a net worth of USD 30 million or more increased by 12.9% year-on-year in 2017. This surge has significantly boosted the luxury yacht market, with high-net-worth individuals now valuing yachts as status symbols.
Yacht tourism has experienced exponential growth, becoming a preferred leisure activity worldwide. Offering various activities such as fishing, sightseeing, and leisure sailing, yacht tourism has led to a surge in global luxury yacht orders.
Over the years, designs of luxury yachts have become more advanced, adventurous, and extravagant. Improvements in design, comfort, technological innovation, and performance have driven the market’s growth. The integration of hydraulics, push-button electrics, and advanced deck-gear technology has made managing large yachts more accessible.
Customisation remains a significant aspect of the luxury yacht industry, with customers demanding recreational equipment like jet skis and DJ booths, further driving market demand.
Italy Emerges as the Leader in Luxury Yacht Production
Italy leads luxury yacht production, followed by the UK, the US, the Netherlands, and Taiwan. The Italian industry commands over 42% of global production, thanks to favourable government initiatives and a focus on international markets.
Taiwan is emerging as a promising region for yacht manufacturing in the Asia-Pacific, known for producing high-quality luxury yachts at competitive prices.
Key Findings:
- The 75-120 feet segment was the largest contributor to the market in 2020 and is expected to grow moderately.
- Yacht tourism continues to generate significant global demand, with substantial growth projected.
- Trends such as personalisation, chartering, and remote exploration are shaping the market.
- The FRP/composites segment held about three-fourths of the market share in 2020 and is projected to grow at the highest CAGR.
- Motorized luxury yachts are expected to see rapid growth due to their ease of maneuverability and onboard facilities.
- Italy accounted for approximately 50% of the market volume in 2020.
Interviews with industry executives indicate significant growth in the luxury yacht market – driven by an enduring desire for luxury and a trend toward remote exploration. New materials like structural glass are enabling new levels of yacht sophistication.
The rising number of millionaires and affluent millennials, who prioritise unique experiences, is driving demand. Despite challenges such as high maintenance costs and regulatory hurdles, the market’s future looks promising.
