Market Trends of Europe Luxury Yacht Industry
Motorized Luxury Yacht Type Segment to Fuel the Market Demand -
Motorized luxury yachts are gaining popularity among consumers in the region due to their numerous benefits. These include high speed, greater privacy in each room, easier handling without requiring sailing knowledge, an attractive appearance on the water, and the added convenience of usually coming with a crew (for boats 50 feet and longer) so that users do not have to worry about the boat at all.
Motor yachts are popular for their speed and power. These yachts are designed to be sleek and stylish, without the restrictions of sails and rigging that come with other types of boats. As a result, they offer more space and comfort. Depending on their size, motor yachts can also provide a wide array of amenities, such as beach clubs, gyms, elevators, saunas, and hammams, making them the ultimate luxury for ocean travel.
Manufacturers are developing sustainable and environment-friendly innovations, such as solar electric yachts, which are expected to contribute to the growth of this segment in the coming years. For instance,
• In May 2023, TYDE, a German luxury yacht manufacturer in partnership with BMW, introduced THE OPEN, setting a new benchmark as the world's largest foiling motor yacht during a prestigious unveiling event in Dubai. This announcement follows the introduction of THE ICON electric watercraft in May 2023. THE OPEN has dimensions of 14.8 meters in length and 4.5 meters in width. Moreover, by incorporating hydrofoil technology, THE OPEN achieves an impressive 80% reduction in energy consumption, significantly outperforming traditional day yachts that typically use over 150 liters of fossil fuel per hour.
The luxury yacht market is expected to grow due to increasing demand for competitive and recreational boating activities, a rise in purchasing power, becoming a preferred destination for luxury yachts, and the development of tourist attractions and luxurious hotels. For instance,
• In 2022, Participation in boating activities in the United Kingdom increased from 2020 to 2022. As of 2022, 18.5 percent of the British population participated in boating activities. This figure showed a slight increase compared to the previous year.
Owing to these factors, the adoption of motorized luxury yachts is increasing in the region. Such positive trends are expected to enhance the growth of the European luxury yacht market over the forecast period.
Italy is Anticipated to Hold a Significant Market Share -
The luxury yacht market in Italy is experiencing a significant phase of growth, buoyed by the country's rich maritime heritage and its status as a global center for yacht design and manufacturing. The luxury yacht industry in Italy is also witnessing a trend towards customization and personalization, with buyers seeking unique, tailor-made vessels that reflect their personal style and meet their specific needs.
This trend is contributing to the overall expansion of the market, making luxury yachting accessible to a wider audience and encouraging a culture of yachting across different consumer segments. A blend of rich maritime heritage, advanced technological capabilities, and a strong culture of innovation and design underpin this expansion. For instance,
• In September 2023, accommodation establishments in Italy recorded approximately 14 million tourist arrivals, including international and domestic travelers.
Italy, with its extensive 4,723 miles of coastline and strategic location in the Mediterranean basin, stands as a testament to its maritime vocation. The country's deep-seated connection to the sea has fostered a thriving yacht industry, renowned worldwide for its exquisite craftsmanship, elegant designs, and pioneering technology. Owing to this, several players in the country are introducing various business strategies to enhance their market offerings in the yacht industry. For instance,
• In January 2024, The Italy-based yacht manufacturer Benetti unveiled the 40.8-metre Benetti Oasis 40M superyacht, BO116, at its Livorno shipyard in Italy.
Hence, owing to these aforementioned factors, Italy is expected to see significant market growth and is likely to create opportunities for the luxury yacht market over the forecast period.
