The total number of delivered superyachts over 30m is currently 5,4061 and is increasing at a compound average rate of 3.3% (CAGR 2009-2018), with an average of 152 new superyachts being delivered each year since 2014. For GYG’s target segment of 40m+ the total fleet size is 1,986 and is increasing by an average of 79 vessels per year (CAGR 5.4%) over the last 10 years. The larger yacht segments (70-90m and 90m+) are exhibiting the highest growth rates reflecting the market trend for larger superyachts.
The global Order Book1 showed 423 orders for new superyachts over 30m at the end of 2018 and 228 (54%) orders in the 40m+ segment. Growth in the 40m+ fleet looks healthy in the short to medium term with a forecast compound average growth rate over the next 5 years (2019-2023) of 4.2%1. The addressable paint market value of the 40m+ New Build segment over the next 5 years is estimated to be in the region of c.€1.2Bn1.
The overall market growth of the superyacht fleet correlates to the global increase in the number of billionaires (UHNWI’s) which has risen from 1,125 in 2008 to 2,208 in 20182. The growth of the UHNW population to 2023 is forecast to continue its exponential positive growth. Buoyed by a 5-year average growth rate of 12.6%, the UHNW population is estimated to grow by 1,790 from 2,208 to 3,998 in 2023.
The Refit market is driven by the life-cycle of the paint system which is typically 4-6 years depending on the usage and cruising patterns of each yacht. The timing of the re-painting is flexible, although superyachts must undergo regular maintenance cycles every 5 years to comply with insurance and maritime industry regulations. Owners typically take the opportunity to undertake repainting work whilst the yacht is out of service for its Refit survey and, consequently, major paintwork tends to follow a 5-year cycle.
The Refit market is underpinned by 20% of the active fleet due for paintwork each year and continues to grow, as a result of the continued growth of worldwide billionaires buying larger yachts and increasing the size of the global superyacht fleet. Due the fragmented nature of the Refit market there is no accurate industry data on the actual performance of the annual paint market; however, market intelligence1 based on sample data from major international Refit yards suggest that the market has under-performed since 2016. The market intelligence1 suggests a circa 30% reduction in the Refit paint activity based on paintable surface areas between 2016 and 2018, with 2018 down 7.5% in comparison with 2017. Industry forecasts1 predict strong growth in the Refit market, particularly in 2020 and 2021 driven by the 5-year Refit cycles and the growing fleet.
1 Source: Superyacht Intelligence March 2019
2 Source: Forbes.com March 2019
* LOA = Length overall