Checking the numbers should be the very first activity of any enterpreneur, any company, any sector, both for good management reasons as well as for good reputation. Nevertheless, only this year, after the recent birth of Nautica Italiana, a market research has been commissioned to an international auditing company. Why only today? The question comes naturally up as reaction to the comments made by prominent names of the sector, such as Mr Vitelli (Azimut|Benetti) and Mr Galassi (Ferretti Group), when both stated at the end of the presentation that for the first time the sector has told the truth. We can only conclude, as in most happy ending stories, it’s never too late!
According to what emerges from the first market insight of the international recreational boating industry, carried out by Deloitte and Fondazione Altagamma on behalf of Nautica Italiana, for 2015 the global market of new boats has a value of 19 billion Euro, recording an increase by 12% versus 2014 (17 billion Euro): new boats sold are about 800,000, compared to 700,000 boats sold in 2014, thus a growth by 14%. The research, presented to a selected professional audience and to the international press journalists during the Cannes Yachting Festival, highlighted that as to the superyacht segment (over 30mt in lenght), the 2016 order book of superyachts (boats longer than 30 meters) amounts to 295 boats, excluding on hold and “ghost” orders, with an overall value of 8.7 billion Euro. 44% of these are new orders. The pre-owned boats market has an estimated value of 14 billion Euro and the Refit & Repairs and Superyacht Charter market has an estimated value of 1 billion Euro based on the annual report of key global players. Italy is the second largest manufacturer after the USA, but first in the superyacht segment. With 48% North America is the main market, while Europe represents a 20%. 86% of sales are motoryachts, sailing yachts impact for 12%, the rest is represented by inflatables.
“For the first time we have true data” is the comment by Mr Paolo Vitelli. “The positive news is that the boating market has returned to increase”. Mr Alberto Galassi, who at the presentation sat in the first row, next to Mr Vitelli, added “the yachting industry has needed such a report for long time. For the first time we have told the truth.” It is not clear if the comment was implicitly addressed to those shipyards that used to hide their data or if it was directed to the Anglo-Saxons, which – as finally stated Mr Tacoli – “have made us suffer a little bit so far because of their negative attitude towards the Italian shipbuilders”.
Italy has confirmed its leadership in the sector of new boats: it is the leading producer of boats at the European level with a production value amounting to 1.7 billion Euro – that is 10% of the global value – followed by the UK (6,9%), the Netherlands (6,5%), Germany (6,4%) and France (5,7%). At the global level, Italy ranks second after the US (43%).
The penetration of the superyacht market is estimated at 2.5% in relation to the richest segments of the world population corresponding to 15.4 million people and has recorded a compounded yearly growth rate by 7.5% from 2009 to 2015.
“The industry opportunity – as well as its duty – is to attract and obtain the most demanding and wealthy customers who continue to grow annually by 7.5% all over the world, which is what the luxury industry is currently doing as a whole”, says Armando Branchini, Deputy Chairman of Fondazione Altagamma.
The main insights of the report are:
- In 2014 the global market of new recreational boats (longer than 2.5 metres) has a value of 17 billion euro, reached with 700,000 boats sold
- North America is the main geographical market with a share of 48%, while Europe has a share of 20%
- The segment of motor boats weights 86%, while the sailing boats are 12% and inflatable boats are worth 2%
- The inboard and sterndrive market is worth nearly 10 billion euro globally, 45% in North America and 21% in Europe
- The market of sailing boats is worth 2.1 billion euro, 74% of the value is represented by the boats in between 12 and 30 meters
- The segment of superyachts (length over 30 meters) is worth 2.9 billion euro, the motor yachts segment weights 95% of these market
- In 2014 the pre-owned boats market is worth 14 billion euro – based on the asking price – of which 2.6 billion is in the cluster over 30 meters, 7.4 billion euro by boats between 12 and 30 meters, while 4.2 billion euro under 12 meters
- The segment of Refit & Repairs and superyachts Charter are worth at least 1 billion euro in 2014
- Italy, with a production value of 1.7 billion euro, represents 10% of the global new recreational boats production (2014) and is the second manufacturing country in the world, after the United States (43%) and followed by the UK (6,9%), the Netherlands (6,5%), Germany (6,4%), France (5,7%) and China (4,1%)
- The estimated global value for 2015 of new recreational boats (deliveries) is 19 billion euro, growing by 12% compared to 2014, and 800,000 boats sold: plus 14% versus previous year
- From 2009 to 2015 the new orders of superyachts decreased yearly by 8.8% and deliveries by 7.5%, while the pre-owned boats market increased by 10.6% yearly
- In 2015 new orders of superyachts grew up by 6.6% compared to 2014
- In 2015 Italy has a market share in the segment of superyachts equal to 42% of total deliveries (62 out of 147 units) and 35% of their value (~1 out 2,9 billion euro)
- The order book of superyachts in 2016 is estimated at 295 units – excluding on hold orders and ghost boats – with an overall value of 8.7 billion euro
- In 2016 the new orders of superyachts account for 44% of the order book
- In 2016 the speculative orders of superyachts account at least 53% of the order book
- In 2016 Italy has a 39% market share of the superyachts order book, that decreases to 25% when the overall value is considered
- In 2015 the richest segments of the world’s population (High Net Worth Individuals) are equal to 15.4 million people: 5,1 in the Asian-Pacific area, 4,8 in North America, 4,2 in Europe, 0,6 in the Middle East and 0,5 in South America
- The compound average growth rate (CAGR) of HNWI from 2009 to 2015 has been 7.5%
- The superyachts market penetration is estimated around 2.5% of the Ultra-HNWI population, highlighting an untapped potential market that has to be conquered