Luxury yacht market seen doubling to $12.8 billion by 2031

A new Allied Market Research report says the global luxury yacht market will rise from $5.8 billion in 2020 to $12.8 billion by 2031, fueled by yacht tourism, customization and demand from ultra-wealthy buyers. Europe and Italy held the biggest shares in 2020, while the 75-120 feet segment led the market.

Why it matters: - The luxury yacht market is growing fast as wealthy buyers spend more on private travel, leisure and status assets. - The market’s projected expansion to $12.8 billion by 2031 points to continued demand for large, customized vessels and the suppliers that serve them. - The report also highlights where growth is concentrated, which matters for builders, material makers and charter operators.

What happened: - Allied Market Research published a report titled “Luxury Yacht Market by Size, Type, and Material: Global Opportunity Analysis and Industry Forecast, 2022–2031.” - The report values the global luxury yacht market at $5.8 billion in 2020. - The market is expected to reach $12.8 billion by 2031. - The forecast calls for 8.0% compound annual growth from 2022 to 2031. - Europe held about two-thirds of the global market by volume in 2020.

The details: - Luxury yachts are defined in the report as vessels 75 feet and above. - The 75-120 feet segment was the largest contributor in 2020 and is projected to grow at a moderate pace through the forecast period. - Fiber reinforced polymer and composites accounted for about three-fourths of the market in 2020. - That material segment is projected to post the fastest growth during the forecast period. - Motorized luxury yachts are expected to grow quickly because of easier maneuverability, higher power and more onboard amenities. - Italy accounted for about 50% of global luxury yacht volume in 2020. - The report profiles Alexander Marine Co Ltd, Damen Shipyards Group, AzimutBenettiS.p.A., Feadship, FERRETTI S.P.A., Horizon Yacht USA, Princess Yachts International plc, Sanlorenzo Spa, Sunseeker International Limited and Viking Yacht Company. - The report says luxury yachts now feature amenities such as Jacuzzi spas, gymnasiums, saunas and sun pads. - The report also cites demand for jet skis, tenders, DJ booths and floating perspex dance floors. - The report links market growth to improved design, style, comfort, liveability, technological innovation and performance. - The report says hydraulics, push-button electrics, bow and stern thrusters and better deck-gear technology have made large yachts easier to manage.

Between the lines: - The biggest demand signals are coming from ultra-high-net-worth individuals, especially millennials treating yachts as status symbols. - Yacht tourism is becoming a broader leisure category, with fishing, sightseeing and sailing all supporting demand. - The strongest growth areas appear to be customization, chartering and remote exploration, suggesting buyers want more than simple ownership. - The report’s emphasis on Europe and Italy suggests the industry remains heavily concentrated in established maritime markets.

What's next: - The report expects demand for luxury yachts to keep rising as yacht tourism expands and customization remains a key purchase driver. - Builders focused on composite materials and motorized models may see the strongest near-term upside. - The market is likely to keep favoring larger, highly personalized yachts aimed at a narrow but wealthy customer base.

The bottom line: - Luxury yachts are moving from niche indulgence to a faster-growing global market, with the 75-120 feet segment and composite-built vessels leading the way.