Total market value reaches €22bn
The annual Boating Market Monitor, prepared annually by Deloitte for Nautica Italiana, shows that the global market continued to rise in 2018 and reached a value of €22bn, with the Italian industry accounting for 2%. The findings were presented last week at the Versilia Rendez-Vous in Viareggio, Italy.
The Monitor reflects that the global boating market has shown consistent growth over the past five years, rising from €14.8bn in 2014 to €22bn in 2018. This means that the market has yet to reach the value recorded pre-global financial crisis with a value of €25bn being recorded in 2008.
Through 2014-17 the CAGR (compound annual rate of growth) increased by 11.7%, while between 2017 and 2018 it went up 7%. The figures in the Boating Market Monitor do not include PWCs (personal watercraft) or small boats under 2.5m (8ft).
With regards to craft composition, the Monitor shows that motorboats accounted for 88.8% of the total and sailboats 11.2%. Of the motor vessels, 52.9% were inboards and 35.9% were outboards. In geographical terms, North America accounted for 49.9% of the total; Europe, including the 2% of Italy, 20.6%, and the rest of the world such as the Middle East and Asia Pacific, 34.5%.
Looking at the superyacht market, the Monitor reports that in 2018 the total number of deliveries increased by 19 units compared with 2017 to reach a total of 160. The breakdown was as follows:
An analysis of superyacht deliveries by type over the past four years shows a 2.9% increase over the period, but with motor showing a 15.3% increase and sail a 10% decrease.
In respect of the superyacht order book, in the year to end December 2018 the Monitor reports that of the top superyacht builders globally, eight were Italian. The country’s shipyards accounted for 45.7% of the world order book by percentage and 30.7% of gross tonnage.
|Area||Orderbook (%)||Gross Tonage (%)|
The Monitor’s assessment of the new-build production value trend at Italian shipyards identified an 11% growth between 2017 and 2018, confirming the continuing industry growth. Regarding the CAGR, through the period between 2006-2008 it was +6.2%; between 2008 and 2012 it fell 21.2%, and from 2012 to 2018 it has risen 10.7%.
|YoY change (%)||N/A||11.4||1.2||-25.7||-24.8||-11.0|
In assessing the luxury yacht presence in the total global luxury market, the Monitor discovered that in 2018 this market was valued at €1.2tr and had a CAGR between 2008-18 of 6.8%, with an anticipated 5.8% CAGR up to 2023.
Within this huge market between 2008 and 2013, the luxury yacht market experienced a 2.1% decline but from 2013 onwards it achieved a rebound which saw grow in the five years up to 2018 by 12.2% compared to the luxury market growth of 7.8%. However, overall yachts represent less than 2% of the global luxury market, despite the rebound over the past five years. Yachts also have a much lower marginality than other luxury market areas, standing at just 4% – the same as private jets but well below the 14% average for the luxury market as a whole.
Regarding ownership of superyachts, high net worth individuals (HNWI) or ultra HNWIs account for an average 3% penetration across the luxury yacht market. The monitor showed that the level of penetration related to yacht sizes varied as follows:
|Superyacht size range||UHNWI/HNWI penetration|