April 20, 2024
Superyacht Market

The Luxurious Superyacht Market is Trending by Increasing High-Net-worth Individuals

The superyacht market is a multi-billion dollar industry that involves the production of luxurious mega yachts of over 100 feet in length. Superyachts come with numerous amenities and facilities for recreation and entertainment such as helipads, beauty salons, swimming pools, jacuzzis and diving centers. They are made from materials like steel, aluminum, and fiberglass which provide strength, durability and lower maintenance. The growing demand for lavish lifestyles among high-net-worth individuals is a major factor driving the growth of superyachts.

The Global Superyacht Market is estimated to be valued at US$ 8.84 Bn in 2024 and is expected to exhibit a CAGR of 7.4% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Superyacht Market are ALS Limited, Asurequality Ltd, SGS SA, Bureau Veritas, Eurofins Scientific SE, Intertek Group PLC, Merieux Nutrisciences Corporation, Microbac Laboratories Inc., Neogen Corporation, Omega Diagnostics Group PLC, Crystal Chem Inc., and Danaher Corporation. Alongside luxury and comfort, modern superyachts focus on environmental sustainability with features like solar panels and underwater hulls for decreased carbon footprint. This aspect is attracting many environmentally conscious customers.
The rising number of millionaires and billionaires globally has resulted in increased discretionary spending power for leisure activities. Superyachts offer an extravagant boating experience along with privacy which is driving wealthy customers from developed nations of Europe and North America as well as growth economies including China, India and Brazil.

Major yacht manufacturers are expanding their global production and service facilities to key markets. In the last 5 years, superyacht shipyards have come up in Australia, South East Asia and South America to cater to rising local demands. Yard partnerships and acquisitions are allowing companies to establish a worldwide presence and provide localized after-sales support.

Market Key Trends

One of the key trends in the superyacht market is the growing customization demands of customers. No longer are customers satisfied with standard designs; they want exclusive features to reflect their personality and needs. This has led yacht builders to offer customized interior layouts, exterior designs, propulsion systems and functional areas based on individual preferences. Custom superyachts help wealthy buyers flaunt a symbol of unprecedented wealth and status.

Porter’s Analysis

Threat of new entrants: The high capital requirements and expertise needed to enter the superyacht market makes threat of new entrants low.
Bargaining power of buyers: Individual buyers have low bargaining power in the superyacht market as these yachts are highly customized luxury goods.
Bargaining power of suppliers: A few specialized suppliers exist for materials and components required in superyacht construction giving them some bargaining power over shipyards.
Threat of new substitutes: There are currently no close substitutes for privately owned superyachts limiting threat of substitution.
Competitive rivalry: Intense competition exists among established superyacht builders to attract high net worth clients and produce the most innovative, luxurious vessels.
Geographical regions: The superyacht market in Europe accounts for around half of global value due to strong presence of shipbuilding companies in Italy, Netherlands and Germany catering to wealthy European clients.

The Asia Pacific region is poised to become the fastest growing geographical segment for superyachts over the forecast period supported by rising ultra high net worth individual population and increasing yachting tourism in coastal countries/territories like China, Australia and Singapore.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research.
2. We have leveraged AI tools to mine information and compile it.