CONFINDUSTRIA NAUTICA: GLOBAL YACHTING MARKET SEES + 11% GROWTH REACHING 33 BILLION EUROS

The global yachting market continues to grow, having reached 33 billion euros over the course of the most recent available year[1], over 25 billion of which derived from the superyacht segment alone. An expanding trend has also been recorded for the Italian boatbuilding industry, having increased by 20% on the previous year with a turnover of 4.4 billion. As is the case on a global scale, yards active in the production of superyachts make up a significant share of Italy’s production, a segment in which Italy is the undisputed world leader, with a share of 54% in terms of volume and 31% in terms of order book value.

This is the snapshot of the global yachting market that emerges from the joint study by the Italian Marine Industry Association and Deloitte entitled “The state of the art of the global yachting market”.

“Our mission at the Italian Marine Industry Association is to provide our members – a consolidated network representing the supply chain through an impressive nine product segments (from superyachts to marinas) – with the most recent data concerning the industry, the market and the evolution of consumer models. This is particularly relevant when it comes to the strong vocation for export demonstrated by the sector’s companies, their determination to increase their responsiveness to rapidly changing global economic scenarios, their ability to penetrate new markets, and their competitive positioning on international markets that follows.

This is why, for decades now, the Italian Marine Industry Association has made use of its own Market Intelligence and Research Department to publish quarterly studies and provide a research and monitoring function for the sector, first and foremost with “Nautica in Cifre” (“Boating in Figures”), acknowledged as an official source of key market data by the Italian Ministry for Infrastructures and Transport and benefitting from the collaboration of important international partners including the Edison Foundation, Deloitte & Touche, McKinsey & Company as well as a number of academic and research bodies.

The same approach is also applied to matters concerning sustainability. During the 64th International Boat Show in Genoa, scheduled to be held from 19th to 24th September this year, we will be hosting the third edition of the World Yachting Sustainability Forum, held in partnership with IBI – International Boating Industry, the world’s number one platform for yachting industry data.

Today, at the Italian Stock Exchange in Milan, we are here to present the second report resulting from our cooperation with Deloitte & Touche, which has taken on board the Italian Marine Industry Association’s project analysing the evolution of the global yachting market based on multiple research strands: from the examination of the superyacht global order book figures to an assessment of the sector’s positioning, from a structural analysis of the industry to the evaluation of consolidation operations underway, from the examination of potential demand penetration capacity to an outlook assessment for the next few years of Italian shipbuilding and its positioning on international markets. This is the most comprehensive study available, aimed at operators, stakeholders and the media,” stated Marina Stella, General Manager of the Italian Marine Industry Association.

“The yachting sector has remained solid throughout 2023, maintaining the same reactive growth trend that has defined the post-pandemic years: turnover in the industrial segments (boatbuilding and the production of marine equipment and engines) is expected to even exceed the record value of 8 billion euros,” pointed out Stefano Pagani Isnardi, Head of the Italian Marine Industry Association’s Market Intelligence and Research Department. “Among the key factors fuelling this growth is shipbuilding exports, having reached an all-time high in exports of yachting units produced in Italy in 2023, exceeding the significant threshold of 4 billion euros, with the USA continuing to be the most important market for our shipyards on the global market.”

“The boating market continues its global expansion, driven by the markedly significant growth of the superyacht segment, which is predicted to continue its role as the main driver of international growth over the coming years. This is good news for Made in Italy companies that, despite often being small and medium-sized businesses, still manage to contribute to Italy’s undisputed leadership in the production of this type of unit thanks their passion and true devotion to quality”, commented Ernesto Lanzillo, Private Leader for Deloitte Italia.

A global yachting market on the rise: +11% growth and 33 billion euros in turnover

The global new build market reached 33 billion in 2022, up 11% year-on-year, thus consolidating a steady rate of expansion that has recorded a compound annual growth rate (CAGR) of +10% since 2014. This significant increase is due in part to a growth in prices but depends primarily on the increased demand of new buyers. Geographically, North America and Europe dominate the market, accounting for approximately 70% of the global market. In terms of propulsion, motorboats represent approximately 90% of the market. In North America outboard engines take the lead at approximately 70%, while in Europe inboard engines represent about 50%.

The superyacht market: +21% growth for a value of 25 billion euros

During the most recent year to be analysed, the global superyacht order book reached 600 units: up 21% compared to the previous year, the value of which stands at 25.3 billion euros and 60% of which is generated by the over 60m segment. The demand for new orders is primarily fuelled by the segment representing units measuring between 30 and 40m, with yachts built using steel and composite materials, thanks to the growing number of new buyers.

An increase in the yachting industry’s penetration of the luxury market

Although the superyacht and ‘high-end’ yacht segment represents a niche within the luxury market (approx. 1%), a remarkable compound annual growth rate (CAGR) since 2019 of +5.4% was still recorded. In terms of margins, the yachting industry finds itself below the average of other luxury sectors. However, a continuous recovery trend in profitability has been underway over the course of recent years, with a 5.5% increase from 2015 to 2022.

Ownership & market penetration

In 2022, a slight drop in potential demand was recorded (4% less “billionaires” in 2022 against 2021) while the superyacht order book shows an opposite trend (+21% in 2022 against 2021). However, the superyacht market continues to present a limited degree of penetration compared to its potential demand (approx. 3%), revealing significant untapped potential. Over the coming years, U-HNWI growth forecasts are positive (+5% CAGR 23-28) and primarily driven by emerging markets.

M&A across the global yachting industry: 400 deals worldwide, 30 in Italy

From 2021 to 2023, the yachting market witnessed approximately 400 M&A deals, most of which were concentrated in the downstream segments of the value chain (around 57%) and took place primarily in North America (around 58%). Marine operators accounted for approximately 60% of these M&A deals, while financial investors contributed around 20%, marking a slight increase on the previous period analysed (+3%). In Italy, 30 M&A deals took place, of which around 50% were related to marine components and equipment, while approximately 40% involved shipyards active in the construction segments of the industry.

Italian shipyards: a growing trend of 20% for 4.4 billion euros, 90% of which is marked for export

The production value of the Italian shipbuilding industry was worth approximately 4.4 billion euros in 2022, an increase of 20% over the previous year. 70% was generated by yards that are also active in the production of superyachts. Compared to the global market, Italian shipyards are focused primarily on the production and sale of inboard boats (91% against 52%), registering a compound annual growth rate of 15.6% over the period between 2017 and 2022. The export figure recorded is also significant with approximately 90% of all domestic production destined for international markets.

The yachting industry is Made in Italy, world leader of superyachts

The Italian yachting sector continues to be highly fragmented, with a high presence of small to medium-sized manufacturers. 90% of operators generate 17% of national production, while the top 10 producers account for 83% of the sector’s value. In the superyacht sector, Italian shipbuilding is the global leader with a market share of 54% in terms of volume and 31% in terms of order book value. Furthermore, the Italian shipbuilding industry is the second largest on the world stage with a market share of approximately 15% in terms of international yacht production – an increase of 2 percentage points compared to the previous year – a share which reaches around 25% when it comes to the inboard segment.

A positive outlook for the Italian and global markets

With regards to the year 2023 (of which final figures are not yet available but will be presented by the Italian Marine Industry Association on 19th September during the 64th Genoa International Boat Show), growth in value of the Italian shipbuilding production segment (new build) is estimated to reach an average increase of between 5% and 15%, driven in part by the delivery of orders collected throughout the Covid pandemic period.

Moreover, growth in the global retail yacht market (new build) is expected to reach +8%, subsequently normalising over the course of the following three years with a predicted compound annual growth rate of 6% between the years 2024 and 2026. Large yachts will act as the most significant driving force behind market growth, while the craft boats segment is expected to slow down. The sailing segment will, instead, continue its positive trend with a growth rate of approximately 3/5%.