The luxury yachting sector is proving to be solid and expanding, with steady growth even after the pandemic crisis. Thanks to operational improvements and effective production management, the main shipyards increased capacity and deliveries during the crucial 2021-2023 period, consolidating the industry’s margins.
Growing Demand and a Market Driven by the Supply Gap
The luxury yachting industry continues to be strongly driven by demand, which exceeds supply and contributes to a steady rise in prices, thereby supporting the sector’s margins. This trend is fueled by several key factors. On one hand, there is an increasing demand for customization and tailor-made solutions, confirming the market’s ongoing premiumization. On the other, there is a growing preference for large motor yachts positioned in the top tier of the sector. Moreover, the growth outlook is decidedly positive: forecasts indicate an annual increase of 6% in the period 2024-2030, driven by the expansion of the ultra-high-net-worth individuals (UHNWI) client base, which is expected to grow at a 9% CAGR between 2022 and 2026—an acceleration compared to the 4% CAGR recorded between 2017 and 2022.
“The luxury yachting industry is experiencing an unprecedented phase of expansion, with demand continuing to outstrip supply. Industry players must invest in innovation and production capacity to meet the needs of an increasingly sophisticated and customization-oriented clientele,” comments Claudia D’Arpizio, Global Head of Fashion & Luxury at Bain & Company.
Italian Leadership in the Production of Super Yachts
Italy confirms itself as a global leader in the production of super yachts, with the three main Italian shipyards—Azimut-Benetti, Ferretti Group, and Sanlorenzo—leading in both the number of projects and the size of the vessels. Alongside these, Taiwanese, Dutch, and British players stand out, recognized for their manufacturing capabilities, design, and reliability. In particular:
- 50% of the total length of vessels produced globally in 2023 comes from Italy, which is the undisputed leader in the super yacht segment;
- Northern European players such as Feadship, Damen, Lürssen, and Oceanco establish themselves as global leaders in constructing large yachts (giga-yachts);
- New trends, such as green and solar-powered yachts, could redefine the market, favoring both the consolidation of established players and the entry of emerging new ones.
An Evolving Sector with Growing Margins
The luxury yachting industry has demonstrated a strong ability to adapt, recording an acceleration in orders and deliveries in 2022-2023. Thanks to process optimization and the stabilization of production cycles, the main shipyards expect to maintain a large order book for the coming years. However, the sector’s growth will be driven mainly by rising prices rather than further expansion of production capacity, with a focus on:
- A higher share of customized and premium yachts;
- A preference for longer motor yachts, with increased demand in segments over 60 meters;
- Growing interest in chartering, on both the demand and supply sides.
Among the risks are possible impacts arising from geopolitical factors, supply chain disruptions, and international sanctions. Even in the event of a recession, the luxury yachting market is expected to be more resilient than other sectors, thanks to the UHNWI clientele being less sensitive to economic fluctuations. However, players focused on mid-to-low range vessels could be more adversely affected by potential economic turbulence.
“To remain competitive in an increasingly selective market, shipyards will need to focus on differentiation strategies and on strengthening customer experience. The ability to offer customized and technologically advanced solutions will be a key element of success in the coming years,” adds Pierluigi Serlenga, Managing Partner Italy at Bain & Company.
Refitting and the Secondary Market: Growth Opportunities
In addition to the production of new units, the refitting sector is experiencing significant growth, with investments in new facilities by major European players. This segment benefits from the expansion of the global yacht fleet (+2-3% CAGR), which fuels the demand for renovations and technological upgrades.
At the same time, the used yacht market remains an important driver for the sector, promoting fleet renewal and encouraging the replacement of older vessels with newer, more high-performing models.
“Luxury yachting continues to register sustained growth, driven by a solid order book, an expanding customer base, and a demand increasingly oriented towards customization and technological innovation. Italy, with its long tradition and leadership in the sector, confirms itself as the main global hub for the production of super yachts, destined to maintain its primacy in the coming years,” concludes Andrea Alori, Partner at Bain & Company.