Super Yacht R&M Market

The global Super Yacht Shipyard Repair and Maintenance Market is anticipated to expand due to the amplifying Superyacht Industry Across the World.

Global Super Yacht Shipyard Repair and Maintenance market, in terms of revenue, was worth USD 871.4 million in 2022 and is expected to reach USD 1,420.3 million in 2029, growing at a CAGR of 7.2% from 2023 to 2029.

A superyacht, also known as a luxury yacht or mega yacht & is, therefore, more expensive. It is a commercially operated, professionally crewed sailing or motor yacht that has a load line length of 24 meters or above. Approximately, there are more than 279 superyachts in the world, of which a quarter are available for charter. Sales of these luxury yacht vessels are rising every year. The shipping industry globally is set for a new phase of growth. Foreign countries are gradually using Indian superyacht shipyards for the service and repair of modern ships. Along with this, shipyards give wide-ranging and cost-effective ship repair and maintenance services. These are made possible by using advanced maritime technology platforms. Customized services are being offered in a cost-effective manner. Therefore, a continuous rise in shipbuilding activities and increasing spending on research activities for the expansion of wireless seaborne trade are expected to create growth opportunities during the forecast period.

The COVID-19 had a negative impact on the superyacht shipyard repair and maintenance services market due to the strict lockdowns and social distancing to contain the spread of the virus. The economic uncertainty and stop in the transportation & marine sectors induced by COVID-19 caused a partial shutdown of business and low consumer confidence, which impacted demand for ship repair and maintenance services. The supply chain got hampered during the pandemic, along with logistics activities. However, the ship repair and maintenance services market are expected to regain its pace during the post-pandemic scenario due to the easing of the restrictions.

Despite this, the growing demand for luxury shipyards among rich and super-rich individuals, mainly in developing and developed countries, is boosting the market share of the superyacht shipyard repair and maintenance industry. According to a report from maritime data firm Vessels Value, nearly 887 superyachts were sold in 2021, a 77% jump from a year earlier and more than double the number in 2019. These superyachts are used for travelling by sea from one destination to another by many rich people, which propels the market to grow. So, superyacht maintenance systems increase the safety and reliability of any yacht, significantly reducing the risk of operational performance failure. Therefore, rising demand in the super yacht shipyard repair and maintenance market.

Excessive adoption of the superyacht shipyard repair and maintenance market has led many businesses to invest millions of dollars in the market. Damen Shipyards Group, Fincantieri S.p.A., MB92 Group, Palumbo Superyachts, Superyacht Shipyard Denia, Port Tarraco Works, S.L., Astilleros Atollvic Morrazo S.A.U., ECHO MARINE GROUP PTY LTD, Amico & Co., Derecktor, Nautech Group and many other businesses are contributing to deepening their roots in this sector by executing organic strategies. For example, in early 2022, Adriatic 42, the all-new superyacht refit facility in Bijela, Montenegro, officially opened. Also, in November 2022, Cochin Shipyard received an order of about Rs 1,000 crore to construct vessels from a European client. All these business strategies are increasing the global sales of super yacht shipyard repair and maintenance market. 

Europe has accounted for almost 48.5% of the market share in the super yacht shipyard repair and maintenance market. This is due to several innovations and recent developments happening in the region. Due to the increase in technological advancement across North American countries, North America is the second-dominating region in the super yacht shipyard repair and maintenance market. Asia-Pacific is the fastest-growing region with a CAGR of 8.5%.

According to BrandEssence Analyst "Huge investments by various businesses and participation in super yacht shipyard repair and maintenance are generating lucrative opportunities for the super yacht shipyard repair and maintenance market worldwide and are projected to reach USD 1,420.3 million in 2029."

The rising Superyacht Industry Across the World is Set to Create a Lucrative Environment for the Market

For several years, the superyacht industry has been thriving. The growing popularity of cruise tourism and the growing preference for ships such as container ships, bulk carriers, tanker ships, passenger ships, and naval ships on the sea are the factors increasing the demand for superyachts. There are 4,476 superyachts in the world today. The superyacht fleet has more than doubled in the last ten years, with almost 5,000 yachts over 24 meters in length presently in service, and the industry directly employs 148,000 to 163,000 personnel worldwide.

This has enhanced the necessity of a superyacht to emphasize comfort, speed, or expedition capability. Rapid growth in superyacht sales and purchases has enabled shipyards to improve services such as repair and maintenance. As a result, this factor is propelling the size of the market for superyacht shipyard repair and maintenance all over the world.

Engagement of Industry Participants in the Growth of Superyacht Shipyard Repair and Maintenance is Booming the Market Size

Repair and maintenance are crucial components of superyacht ownership and operation. Without maintenance, the superyachts could quickly become an environmental hazard. To avoid these, there are several shipyards around the world, that aid in the maintenance of superyachts. This is the reason why large numbers of market players are increasingly investing in this market. MB92 Barcelona is a company that performs the service, refit, repair, and maintenance work on more than 100 superyachts annually, with lengths ranging from 35 to 180 meters. Palumbo Superyachts Refit, for example, is now the largest superyacht maintenance and repair network in the Mediterranean, offering customers a wide range of multitasking and time-sensitive services. Also, Adriatic 42, the all-new superyacht refit facility in Bijela, Montenegro, has officially opened. The expansion of a wide range of superyacht shipyards across the world is significantly boosting the market's value. The contributions of market leaders in superyacht shipyard repair and maintenance are expanding the market's size.

In spite of the high cost of ownership associated with a personal yacht, marine travel and tourism activities have not been considerably affected due to the easy accessibility of a superyacht on a rental basis. The market is also being driven by advanced communication, tracking, and maritime security systems, as well as rising disposable incomes. Moreover, improvements in telematics and IoT platforms are anticipated to increase the industry's potential in the years to come.

All the noteworthy aspects are responsible for generating millions of dollars of market value in superyacht shipyard repair and maintenance. It is expected that the market will grow rapidly in the coming years.