Blog | Navigating Success: Exploring Current Market Trends in the Yachting Industry

Navigating Success: Exploring Current Market Trends in the Yachting Industry

In the realm of luxury yachting, trends are more than just ripples—they’re the driving forces shaping the industry’s landscape. As we set sail into 2024, let’s embark on a journey to uncover the latest market trends, from the surge in mega yacht deliveries to the rise of aluminum construction and more.

Surge in Mega Yacht Deliveries:

Since 2020, the yacht industry has witnessed a steady rise in the delivery of mega yachts measuring 30 meters and above. This trend reflects a growing demand for larger vessels among affluent buyers seeking opulent experiences on the high seas. In 2022, 170 mega yachts were delivered, and by 2023, this number climbed to 201—a clear indication of the market’s buoyancy.

Preference for Aluminum Construction:

Over the past couple of years, there has been a notable shift towards aluminum boats over traditional fiberglass vessels. In 2023, we noticed a 7% decrease in consumers purchasing fiberglass yachts. This transition, observed since 2022-2023, can be attributed to aluminum’s durability, lightweight nature, and increased customization options, appealing to both builders and buyers alike.

Exploring Yacht Pricing Trends Beyond the COVID-19 Pandemic:

Yacht pricing has experienced significant fluctuations in the wake of the COVID-19 pandemic, with noticeable differences emerging in both pre- and post-COVID eras. Historically, yachts have been subject to depreciation annually, reflecting wear and tear as well as advancements in technology and design. However, the pandemic sparked unprecedented shifts in the yacht market.

As the effects of the pandemic begin to recede, the yacht market is gradually stabilizing, albeit with notable differences from pre-COVID times. While prices may have moderated compared to the peak of the pandemic, they remain higher than historical norms in many cases. Experienced yacht brokers play a crucial role in navigating this evolving landscape, assisting sellers in determining realistic pricing strategies based on depreciation trends, market conditions, and buyer expectations.

26 North has proprietary data to help better understand what “normal” depreciation is and can be requested on demand. The market is facing a significant price correction as a whole right now with many inexperienced and even experienced brokers outside of 26 North Yachts ill equipped to understand. With inflated prices yachts will linger on the market for a year or longer until a seller or the broker understands how to accurately price a boat for today’s market. Sold boat data shows us the 26 North depreciation model designed pre-covid falls right back in line with current sold boat data. The rest will languish on the market hoping for an offer that will never come until they understand today’s market is not the covid market which is difficult for sellers to understand who are first time yacht owners in the past couple of years.