Luxury Yacht Market Research Report and Outlook by 2028

The luxury yacht industry is projected to expand significantly, with an anticipated increase from US$ 6,076.59 million in 2022 to US$ 10,338.10 million by 2028, reflecting a compound annual growth rate (CAGR) of 9.3% during this period.

Heightened awareness of environmental issues and the imperative to reduce the carbon emissions associated with diesel-powered yachts are propelling a transition towards luxury yachts that utilize sustainable energy sources. As the demand for eco-friendly luxury yachts rises, manufacturers are increasingly focusing on solar energy solutions to power their vessels. Given that many yachts operate in sunny regions, the potential for solar energy utilization is particularly promising. For instance, in April 2021, the Eco R&D team at Sunreef Yachts developed an innovative solar power system featuring the industry's first composite-integrated photovoltaic technology, which incorporates ultra-thin, shock-resistant, and highly efficient solar cells.

Numerous players in the luxury yacht sector are adopting solar panel technology to enhance the sustainability of their operations. A notable example is ALVA Yachts, which unveiled the ECO 60 Explorer electric yacht equipped with solar panels in February 2022. This yacht boasts a large roof that integrates solar panels seamlessly. In February 2023, Silent-Yachts introduced the Silent 60, its inaugural solar electric catamaran, at its shipyard in Fano, Italy. This luxurious vessel features four guest cabins on the lower deck, a spacious master suite, and various social spaces, including a bright main saloon, a comfortable bow area, an aft cockpit, and a flybridge. Additionally, in March 2022, Zaha Hadid Architects collaborated with Rossinavi to design Oneiric, a luxury yacht that operates entirely on solar energy, featuring a roof covered in solar panels. The growing trend of incorporating renewable energy into luxury yachts is becoming increasingly prominent in the market.

Effects of the COVID-19 Pandemic on the Luxury Yacht Sector

The COVID-19 pandemic had a significant impact on countries such as Germany, the UK, France, and Italy in 2020. The pandemic disrupted yacht manufacturing operations, forcing many companies to halt production or operate with reduced staff, which adversely affected product delivery timelines. Furthermore, global supply chain disruptions led to shortages of essential electronic components, negatively impacting the luxury yacht market in Europe. However, as lockdown measures were eased in 2021, manufacturing activities resumed, and the luxury yacht market began to recover. The demand for luxury yachts from affluent consumers is expected to drive market growth. In October 2021, Marina Port Vell, a Spanish firm, announced plans to construct 23 new berths for superyachts in response to the increasing demand for these vessels. Collectively, these factors are anticipated to contribute to the growth of the luxury yacht market in Europe throughout the forecast period.

The luxury yacht market is categorized by size into three segments: 75?120 feet, 121?250 feet, and over 250 feet. Among these, yachts measuring 121?250 feet are the most sought after globally. However, the rising trend of personal yacht ownership among billionaires is driving significant interest in the 75?120 feet category.

Yachts within the 75?120 feet range are commonly referred to as superyachts. These vessels are typically lightweight and designed for sports activities. Due to their size, luxury yachts in this category often lack multiple rooms, making them less suitable for extended travel or tourism purposes. Nevertheless, the growing popularity of water sports among both private and commercial users is boosting the demand for luxury yachts in the 75?120 feet range.

Key players in the global luxury yacht market include Azimut Benetti S.p.A., Bavaria Yachtbau GmbH, DELTA MARINE, Brunswick Corporation, Cheoy Lee Shipyards Limited, Damen Group, FINCANTIERI S.p.A., Heesen Yachts Sales B.V., Palumbo Superyachts Ancona s.r.l, and Oceanco, all of which are featured in this market analysis.