In 2022, the yacht market was valued at USD 11.19 billion and is expected to grow to USD 17.48 billion in 2029. The yacht market is expected to grow at a CAGR of 6.58% during the forecast period.
The popularity of yachting is only increasing
The increase in the number of private islands on cruise routes, rising disposable incomes worldwide, the use of alternative energy sources and the rise in the number of wealthy individuals are factors contributing to the growth of the yacht charter market. The ease with which a yacht can be chartered has increased the appeal of yacht holidays among young people who want to celebrate important occasions in style, thus contributing to the growth of the market.
People around the world increasingly prefer relaxation, sporting activities and luxury experiences. Yacht fleet operators rent luxury yachts for corporate meetings, leisure events and special occasions. The use of advanced construction materials such as fibreglass, as well as the creation of customised solutions based on individual requirements and design, are driving the growth of the market. Other factors such as increasing consumer spending power and the use of alternative fuels in the marine industry are expected to drive the market over the forecast period.
Simple online booking of yachts for weekly or monthly trips will create market growth opportunities. Seeing the potential of the market, many related companies such as yacht management are also entering the market, supporting the construction of new yachts and providing new opportunities for market growth. The increase in boating related accidents and fatalities is one of the main factors causing problems in the yacht market. In order to reduce accidents, manufacturers are increasingly introducing safety measures and installing safety equipment on board.
Sport yachts are expected to become the fastest growing segment of the market. The growth of this segment could be attributed to the increasing demand for sports yachts in countries such as China and France. In these countries, adults actively participate in recreational boating activities and sporting events. Nautical tourism, sports tournaments and other leisure activities such as cruising, fishing and other water sports activities are carried out on sports boats.
The most sought-after yachts are 20 to 50 feet in length
The rapid growth can be attributed to factors such as the availability of options that include wind sailing, which helps to save fuel and allows movement in favourable wind directions. In addition, the low maintenance, the low draught that allows anchoring in the water and the lower mooring costs make this vessel the preferred choice among end-users. Yachts of less than 20 feet and between 20 feet and 50 feet can be used for both recreational and personal purposes. The under 20 feet segment is expected to be second only to the 20-50 feet segment in terms of both annual growth and market share in the coming years. The growth of the sub-20-foot segment is due to the fact that they are readily available at affordable prices and have low maintenance requirements. Also, the growing trend of developed economies in the Europe and North America region to use renewable energy sources such as wind power and solar power in offshore vessels is likely to significantly boost the demand for sub-20 foot yachts, as sub-20 foot yachts require less energy to power their engines.
Chartering with crew is most often used
Based on contract type, charter with crew dominates the market. Since the yacht’s customer and crew are essential elements in making a vacation a good vacation that will be talked about forever, this contributes to the growth of the global yachting market. Increasing popularity of booking yachts for corporate and anniversary parties is expected to boost demand over the forecast period. Shifting marine tourism and travel patterns have also contributed to the demand for crew. In addition, crew on board yachts is also required for maintenance, such as engine lubrication and other system checks to ensure smooth operation of the ship’s systems. In addition, high-income earners are incorporating more travel routes in shorter periods of time. A strong desire to spend quality time on short holidays in exceptional and remarkable accommodation has increased the use of crewed yachts over the years.
The most popular choice of yacht is motor yacht
The popularity of motor yachts is due to their high power and ability to develop higher speeds, thus covering longer distances in less time. In addition, motor yachts can navigate in shallow water conditions, offering guests the opportunity to sail almost any archipelago or coastline, whether the passage is narrow or the water is shallow. The significant growth in luxury marine tourism in the recent past is also expected to fuel the growth of this segment over the forecast period. High demand for motor yachts for personal and leisure activities across the globe, especially in the Mediterranean region, has fuelled the growth of the global yacht market. Factors such as increasing demand for recreational activities, tournaments, and product sales due to the growing love for outdoor recreational activities contributed to the growth of the global yacht market during the forecast period.
For reference:
A yacht is a sailing or motor vessel used for pleasure, cruising or racing. The Commercial Yacht Code classifies yachts 79 feet (24 m) and longer as large. Such yachts usually require a paid crew and have higher construction standards. Large yachts are also classified as follows: commercial – carrying up to 12 passengers, private – for owner and guest entertainment only, or by flag – the flag of the country under which it is registered.
Superyachts (sometimes also megayachts) are usually any yacht (sailing or motor yacht) longer than 40 m (131 ft). Racing yachts are designed to focus on performance rather than comfort. Charter yachts are run as a profit-making enterprise. In 2020, there were more than 15 000 yachts of sufficient size to require a professional crew.
Author: Rolands Petersons, logistics expert
