The yacht market is expected to witness significant growth by 2027 owing to rising disposable income of consumers worldwide. Additionally, mounting popularity of water-based sport activities like surfing, kayaking, and cruising, is likely to bolster market growth through the forecast timeline.
Prevalent demand for sustainable electric motorboats and yachts in order to reduce harmful emissions has prompted market players to focus on designing and building battery-operated yachts. This has positively influenced industry expansion in key regions across the globe.
Furthermore, major industry participants are implementing lucrative business strategies to strengthen their foothold in the market by launching products, establishing partnerships, and so on, thereby enhancing market dynamics. For instance, in May 2021, MarineMax, Inc., a leading yacht and recreational boat manufacturer, announced the acquisition of KCS International, Inc., also known as Cruisers Yachts, a Wisconsin-based manufacturer of premium yachts. The strategic expansion broadened MarineMax’s product portfolio with the integration of Cruiser’s premium yachts.
To cite another instance, in April 2021, Concordia Damen, the Netherlands-based shipbuilding company, introduced its river cruise ship dubbed E-MOTION vessel, which is equipped with an electric engine powered by battery for zero-emission operations. The cruise ship measures 17.7 feet across and contains 140 cabins, children’s play area, sauna, restaurant, and swimming pool, among other facilities.
Similarly, in July 2020, Azimut Yachts, a leading yachts designer and manufacturer, launched Magellano 30 METRI, a motor yacht with a dual mode hull lynchpin that operates efficiently both at higher speeds and displacement mode.
The yacht market has been segmented on the basis of length, propulsion, type, and region. Based on type, the market has further been divided into sports yacht, flybridge yacht, and cruiser yacht. The sports yacht sub-segment is anticipated to witness substantial growth over the study time span owing to rising interest in water sport activities, including wakeboarding and fishing.
In terms of length, the market has been categorized into below 24 meters, 24-45 meters, and above 45 meters. The above 45 meters sub-segment is slated to expand at a robust pace over 2021-2027. Surging preference for luxurious cruising is likely to drive segmental expansion in the coming years.
With respect to propulsion, the market has been classified into motor and sail. The yacht market from the motor sub-segment is projected to garner a considerable valuation by 2027, expanding at a CAGR of approximately 4% over the forecast timeline. Enhanced speed and navigation capabilities of motor yachts is set to boost product adoption in the forthcoming years.
On the regional spectrum, the Middle East & Africa yacht market is speculated to expand at more than 2.5% CAGR through the projected period to attain a notable share in the overall industry revenue by the end of 2027. Increasing tourism activities in UAE is speculated to propel regional market growth over the forecast period.