Yacht Charter Market Expected to Reach $20.2 Billion by 2032—Allied Market Research

According to a recent report published by Allied Market Research, titled, “Yacht Charter Market by Type, Size, and Application: Global Opportunity Analysis and Industry Forecast, 2023-2032”, the global yacht charter industry was valued at $11.40 billion in 2022, and is estimated to reach $20.2 billion by 2032, registering a CAGR of 6.9% from 2023 to 2032. By type, the motor segment was the highest revenue contributor in 2022, accounting for $8.9 billion, and is estimated to reach $15.4 billion by 2032, registering a CAGR of 6.6% during the forecast period. In 2022, the Europe region accounted the major market share of the market.

Europe dominates the market in terms of revenue, followed by Asia-Pacific, North America, and LAMEA. In Asia-Pacific, Japan dominated the yacht charter market in 2022, whereas rest of Asia-Pacific is expected to grow at a significant rate during the forecast period.

The growth of the yacht charter market is driven by the increasing number of private islands on cruise itineraries, use of alternative source of energy & improvised purchasing power across the globe and increase in number of high-net-worth individuals.

Furthermore, the increase in the demand for leisure activities due to a rise in disposable income and hectic lifestyles. The ease of booking a yacht has led to a rise in the popularity of yacht vacations among the youth to celebrate events in luxury, which is estimated to boost the market growth. Natural calamities and high costs associated with yacht charter are the key restraining factors of this market. Moreover, increased involvement of intermediaries & hybrid business models, rapid changes in yacht infrastructure and yacht tourism are estimated to boost the demand for yachts charter in the upcoming years. In addition, the rising popularity of boats and the increasing preference for luxurious & large-sized yachts that can accommodate large groups will further propel the market growth in the forecast period.

Sailing yachts primarily use natural winds as force for propulsion. The single-hull design of the sailing yachts ensures a comfortable and steady voyage, even when facing demanding sea conditions, a crucial factor for sailors undertaking ocean crossings. These types of yachts provide generous interior space, enabling comfortable living quarters and amenities during extended journeys. The increasing fascination with multi-hulls is attributed to their capacity to harmonize performance and comfort, meeting the changing desires of contemporary sailors who prioritize efficiency, spaciousness, and thrilling sailing adventures.

Boatsetter, Inc., MARTELLO YACHTING & COMPANY, SAILOGY S.A., Northrop & Johnson, Ionian Catamarans, IYC, ZIZOOBOATS GmbH, Yachtico, Inc., Boatjump, S.L., and West Coast Marine Yacht Services Pvt. Ltd., among others are the major players operating in the yacht charter market.

Furthermore, the yacht charter distinguishes between two type of renting i.e. bareboat yacht chartering and chartering with the skippers/ crew.  

In addition, global yacht charter market is expected to remain influenced by eternal need for luxury and change in lifestyle. Moreover, introduction of new materials such as structural glass has allowed yacht architectures to reach new levels of sophistication.

Growth in number of yacht production, under construction projects is estimated to have a significant growth for the yacht charter market. Featuring helipads, swimming pools, saunas, hot tubs, and more yachts are epitome of luxury. Also, the key operating players in this business are adopting acquisition and expansion strategies to have their presence internationally.

The yacht charter market remained one of the few bright spots in an otherwise troubled global economy. With strong underlying drivers such as rise in ultra-net worth of individuals, surge in inclination toward recreational & expeditions, and rise in trend of yacht tourism, the market is expected to witness significant growth during the forecast period. At the same time, the sector is facing restraint i.e. high cost, and natural calamities.

Furthermore, the increase in the demand for leisure activities due to a rise in disposable income and hectic lifestyles also responsible for the growth of market. The ease of booking a yacht has led to a rise in the popularity of yacht vacations among the youth to celebrate events in luxury, which estimated to create an opportunity for the market growth.

Natural calamities and high cost associated with yacht charter are the key restraining factor of this market. Moreover, increased involvement of intermediaries & hybrid business models, rapid changes in yacht infrastructure and yacht tourism to boost demand for yachts charter in the upcoming years. In addition, the rising popularity of boats and the increasing preference for luxurious & large sized yachts that can accommodate large groups will further propel the market growth in future.

KEY FINDINGS OF THE STUDY

• In 2022, by type, the Motorized type segment generated the highest revenue.
• In 2022 by size, the medium segment was the highest revenue contributor.
• In 2022, by application, the vacation/leisure segment was the highest revenue contributor.
• In 2022, region-wise, Europe contributed the highest revenue, followed by Asia-Pacific, North America, and LAMEA.