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The global yacht market continues to grow, led by the superyacht category. In a market now worth €33 billion, over 25 billion came from the superyacht segment, the Italian Marine Industry Association and Deloitte said in a new report on July 15, 2024.

Confindustria Nautica’s Stefano Pagani Isnardi presented findings

Italy, a world leader in superyacht production, holds a 54 per cent market share. The country’s total boatbuilding industry has also continued to grow, with a 20 per cent increase on the previous year, with a recorded turnover of €4.4 billion.

The global new-build market reached 33 billion in 2022, up 11 per cent year-on-year, primarily led by an increased demand of new buyers, with growth in prices also a consideration.

“The yachting sector has remained solid throughout 2023, maintaining the same reactive growth trend that has defined the post-pandemic years: turnover in the industrial segments – boatbuilding and the production of marine equipment and engines – is expected to even exceed the record value of €8 billion,” said Stefano Pagani Isnardi, Head of the Confindustria Nautica, or Italian Marine Industry Association’s, Market Intelligence and Research Department, who released the report called The State of the Art of the Global Yachting Market, with Deloitte.

“Among the key factors fuelling this growth is shipbuilding exports, having reached an all-time high for yachting units produced in Italy in 2023, exceeding the significant threshold of €4 billion.”

Findings show that North America leads the global new build market

North America and Europe account for approximately 70 per cent of the global market, with motorboats representing approximately 90 per cent of the market when it comes to propulsion.

In North America, outboard engines take the lead at approximately 70 per cent, while in Europe inboard engines represent about 50 per cent.

The report highlighted the dominance of the global superyacht sector. New orders reached 600 units, up 21 per cent, and are valued at €25.3 billion.

New orders show a significant demand for yachts measuring between 30m and 40m, built using steel and composite materials and 60 percent are in for yachts over 60m.

Despite clear growth in the superyacht category, actual penetration remains limited, which reveals a significant untapped potential, the report said. Demand potential is estimated to be at about 3 per cent and is swayed by positive forecasts for a rise between 2023-2028 for ultra-high net worths in emerging markets, which show a 5 per cent compound annual growth rate (CAGR). 

The yachting industry finds itself below the average of other luxury sectors, the report said, possibly due to a 4 per cent decline in 2022 of the number of recorded billionaires.

The market for superyachts is growing with untapped potential to increase further

Report measures 400 M&A deals worldwide

From 2021 to 2023, the yachting market witnessed approximately 400 merger and acquisition (M&A) deals, with about 57 per cent in downstream segments of the value chain. About 58 per cent of these sales came from North America, with marine operators accounting for approximately 60 per cent and financial investors 20 per cent.

In Italy, 30 M&A deals took place. About 50 per cent of sales were related to marine components and equipment, and about 40 per cent were involved shipyards that are active in construction segments.

Italy’s yachting industry remains a dominant force – also led by superyachts

With a market share of 54 per cent, the Italian superyacht sector remains a global leader. Its overall shipbuilding industry represents a 15 per cent share of international yacht production. Its value rose 20 per cent in 2022 to about €4.4 billion, with about 90 per cent of production exported to international markets.

Compared to the global market, Italian shipyards remain focused primarily on the production and sale of inboard boats (91 per cent versus 52 per cent), with a CAGR of 15.6 per cent over the period between 2017 and 2022.

Despite being a fragmented sector, with many small to medium-sized manufacturers, the country’s top 10 producers account for 83 per cent of the sector’s value, the report said.

Some new growth can be attributed to delivery of orders made during the Covid pandemic

Global yachting growth predictions

Looking forward, annual growth for the global retail market is expected to reach 6 per cent between 2024 and 2026. Large yachts will be a significant driving force behind the growth, while the craft boats segment is expected to slow. The sailing segment will continue a positive trend of about 3 – 5 per cent growth, the report forecasts. New builds in the Italian shipbuilding segments will be driven in part by the delivery of orders made during the Covid pandemic period and are expected to increase between 5 per cent and 15 per cent.

The State of the Art of the Global Yachting Market is the second report from the Confindustria Nautica (Italian Marine Industry Association) and Deloitte and offers insights from 2021 onwards. Final figures for 2023 will be presented by the Italian Marine Industry Association in September during the 64th Genoa International Boat Show.

confindustrianautica.net

salonenautico.com