The new-build market has enjoyed a strong financial upturn in recent years, but as the sector descends from the highs of the new-build boom, there is still ample room for continuous growth in the future. In 2022, the new-build industry saw revenues of €33 billion 2022, with over €25 billion attributed to superyachts alone. This was an increase of 11 per cent compared to the previous year, according to the study by Confindustria Nautica and Deloitte ‘The State of the Art of the Global Yachting Market’.

The study examines the superyacht market's global order book, evaluates the sector's positioning and analyses the nautical industry’s structure. It also assesses the ongoing consolidation activities, explores the industry’s ability to tap into potential demand, provides an outlook for the coming years and evaluates the Italian shipbuilding industry’s position in international markets.

“The recreational boating sector remains solid in 2023, continuing the trend of reactive growth that has characterised the post-pandemic years: the turnover of the industrial sector (shipbuilding and production of marine accessories and engines) should exceed the record value of as much as €8 billion,” explains Stefano Pagani Isnardi, Director of the Research Office of Confindustria Nautica.

“Among the determining factors that have fuelled this growth is the exploit of exports of nautical shipbuilding production, with an all-time high for the export of recreational units produced in Italy in 2023, which exceeded the threshold of €4 billion, with the USA continuing to be the most important market at a global level for our shipyards.”

This consistent expansion has maintained a compound annual growth rate (CAGR) of 10 per cent since 2014. This significant increase is attributed to rising prices and a surge in demand from new buyers. Geographically, North America and Europe dominate the market, accounting for around 70 per cent of the global market.

The Italian shipbuilding industry is still experiencing considerable growth, with a turnover of €4.4 billion, marking a more than 20 per cent increase compared to the previous year. In Italy, 70 per cent of this turnover is generated by shipyards specialising in superyacht production. The Mediterranean nation remains the world leader in this sector, holding a 54 per cent market share in volume and 31 per cent in order portfolio value.

In 2022, the global superyacht order book reached 600 units, marking a 21 per cent increase compared to the previous year. The market value stands at €25.3 billion, with 60 per cent generated by yachts over 60 metres. The demand for new orders is primarily driven by yachts between 30 and 40 metres, constructed from steel and composite materials, due to the growing presence of new buyers.

In terms of profit margins, yachting is below the average of other luxury sectors, but there has been a continuous recovery in profitability, with an increase of 5.5 per cent from 2015 to 2022.

In 2022, there was a slight contraction in potential demand at an international level (a 4 per cent decrease in the number of billionaires compared to 2021). However, the superyacht order book is defying this trend with a 21 per cent increase compared to 2021. The superyacht market continues to have limited penetration compared to potential demand (around 3 per cent), indicating significant unexpressed potential. Forecasts for UHNWI growth are positive (5 per cent CAGR 2023-2028), primarily driven by emerging markets.

From 2021 to 2023, there were around 400 M&A transactions in the marine sector, mainly concentrated in the downstream segments of the value chain (around 57 per cent) and primarily occurring in North America (about 58 per cent). Operators in the nautical sector accounted for around 60 per cent of these M&A transactions, while financial investors contributed around 20 per cent, marking a slight increase compared to the previous period (3 per cent). In Italy, 30 M&A transactions were recorded, with about 50 per cent related to nautical components and accessories, and around 40 per cent involving shipyards active in boat construction.

In terms of propulsion, motorboats represent about 90 per cent of the market. In North America, outboard engines are prevalent (around 70 per cent), while in Europe, inboard engines dominate (about 50 per cent). Unlike the global market, Italian shipyards predominantly focus on inboard boats, 91 per cent compared to 52 per cent globally, with a CAGR of 15.6 per cent from 2017 to 2022. Notably, nearly 90 per cent of national production is destined for international markets.

The final data for 2023, which will be presented by Confindustria Nautica on 19 September at the 64th Genoa International Boat Show, indicates an estimated growth in the value of production in the Italian new-build sector, with an expected average increase between 5 and 15 per cent. This growth is partly driven by the delivery of orders collected during the COVID-19 period.

The global new-build market is anticipated to grow by 8 per cent, then stabilise over the next three years with a compound annual growth rate of 6 per cent between 2024 and 2026. The expansion of the market will be predominantly fuelled by large yachts, whereas the craft boats segment is anticipated to experience a deceleration. Sailing yachts will also maintain its positive trend, with a growth rate of around 3 to 5 per cent.

"The nautical market continues its global expansion driven by the very significant growth of superyachts, which will continue to be the main driver of growth at an international level in the coming years,” adds Ernesto Lanzillo, Private Leader of Deloitte Italia.

“This is good news for Made in Italy companies that, despite often being small and medium-sized, can contribute to Italy's undisputed leadership in the production of this type of vessel thanks to passion and a cult of quality.”

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