Luxury yachting and its economy have never been in better shape than in recent years. Luxury yachting is a fast-growing sector, representing an important market for economies around the world. It generates significant revenues for yacht builders, equipment manufacturers, management and maintenance services, and ports and marinas. Indeed, the Covid crisis in 2019 even seems to have given this high-luxury sector a boost. So let’s take a look at the future trends and prospects for an already very promising market.
Trends to watch in the luxury yachting economy
If you follow the growth curve for these luxury boats, you can see that the market is flourishing, and with good reason:
Market growth despite the health crisis
The health and economic crisis that followed Covid-19 does not seem to have affected the luxury sector, and even less so the yachting sector. In fact, the luxury yachting market continued to grow in 2022. This exponential increase is the trend that emerges from The Insight Partners’ Global Luxury Yacht Market Report 2023. The global luxury yacht market is expected to reach a value of US$10.338 billion by 2028, up from US$6.077 billion in 2022. This represents a compound annual growth rate (CAGR) of 9.3% over the forecast period.
The rise in the number of billionaires
The luxury yachting economy is thriving because there is a strong demand for its supply. The number of billionaires is growing. The number of billionaires worldwide rose by 8.5% in 2022, to 2.658 million. Is this a consequence of the economic crisis? Whatever the case, billionaires are increasingly inclined to own their own luxury yacht.
The development of the second-hand market
The second-hand market is an important part of the luxury yachting economy. A second-hand yacht is bound to be cheaper than the same model fresh from the shipyard.
The attractiveness of second-hand prices makes luxury yachts more accessible to a larger number of people, and therefore helps to develop the economy.
The emergence of new players
New players have emerged in the luxury yachting market in recent years. These new players include yacht builders, equipment manufacturers, and management and maintenance services. The emergence of new players is an important growth factor for the luxury yachting market, as it creates new products and services, and makes the sector more competitive.
What are the emerging prospects for the luxury yachting sector?
If the trends are all right when it comes to the luxury yacht economy, the outlook for the future is just as bright.
The dominance of emerging markets
The United States is currently the world’s largest purchaser of luxury yachts (both new and pre-owned). It accounts for some 25% of the world market. The other continents, Europe, Asia-Pacific and the Middle East, are following the US trend. However, new markets for luxury yachts are emerging. China, India and Brazil are expected to grow faster than other markets in the coming years. China is the most important emerging market for luxury yachting, with a market share of 15% by 2022. With more and more Chinese billionaires, it’s a safe bet that this outlook will only get stronger.
The development of technology and innovation
Technology and innovation could play an important role in shaping the luxury yachting market in the years ahead. New technologies such as robotics, artificial intelligence and virtual reality could enable the development of new products and services, which could stimulate market growth.
Imagine, for example, that robotics could be used to automate yacht maintenance tasks. This could reduce operating costs. Artificial intelligence could be used to improve yacht safety, by preventing collisions and other accidents. Virtual reality could be used to create immersive experiences on board yachts, which could make voyages more attractive to customers.
All these technological innovations are the new breeding ground for the luxury yachting economy.
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