Yachting Industry Analysis - Rodriquez Consulting Ltd.

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Our Yachting Industry Analysis focused (in this case) on large yachts is aimed at industry players or companies looking at the target market of HNWIs as their primary target.
In this document:
Super Yacht market sizing by units,
Super Yacht Market sizing in value
Trends on Super Yacht Orders
Main Geographical Areas,
Super Yachts Segmentation by:
Size, Material, Type of Vessel/Hull, Propulsion
Economic Value of Super Yachts
Yacht Service Market
Yacht Charter Market
Pre-Owned Yachts Vs New Launches and Orders
High Net Worth Individuals geographic distribution
High Net Worth Individuals age segmentation
High Net Worth Individuals sex segmentation
Contact us for a full version: Market@RodriquezConsulting.com

Published in: Business, Design

Yachting Industry Analysis - Rodriquez Consulting Ltd.

  1. 1. The Super Yacht Industry 2011 Market data, trends and forecasts for the years to come Trends, Consolidated data and Forecasts 1 IMPORTANT: Most of the values are not shown contact us for a complete version Wednesday, 17 July 13
  2. 2. Objectives The main objective of this document is to supply readers with the strategic knowledge to operate and take crucial decisions in the Super Yacht industry Highlighting Market drivers and industry drivers, The target market HNWI (High Net Worth Individuals) and sub-clusters, The geography of this global industry with its emerging markets and the established ones that preserve their economic relevance, and The business generated by services to Yachts and specifically that of accessories supply plus public and private yacht marinas and port services. 2 Wednesday, 17 July 13
  3. 3. Definitions • Launches by Value = Yachts delivered (and launched) quantified by their economic value • Order book = Orders to build new yachts collected by shipyards • Investment of Passion = Allocation of financial resources to products or services typically considered passions or status-symbols. • Market Drivers = Main element that influence the market • Yacht Service = Services associated with ordinary and extraordinary maintenance (E.g.: launches, hauling, dry-docking, hull cleanings, zincs replacement) • Yacht Accessories= All those accessories which are essential and non-essential to Yachting (E.g.: Gps, Radar, Bumpers, Sheets, etc..) • HNWI= High Net Worth Individual • CAGR= Compounded Annual Growth Rate • Feet/Foot = Common Measuring unit (1 Mt= 3,28 Feet) • Player = Company in the industry (E.g:. Benetti) • YoY= Year over Year, percentage based on previous year • Billionaire= Highest end of HNWIs having a net worth in excess of 1 billion USD • Materials: Aluminum, Composite (can be Glass Fiber, GRP, Kevlar, Carbon, or mix of these), Steel In order to better understand the content of this study we have included some of the main definitions which are fundamental to make good use of this knowledge. 3 Wednesday, 17 July 13
  4. 4. Definitions and Notes • Yacht Types = A yacht type refers mainly to the design style and and project type as for example open yachts (SEE Slide 8) do not have a flybridge and tend to be faster, therefore equipped with more powerful engines generating a higher fuel consumption and determining a different use of the yacht and type of client (single person with friends Vs Family used yacht in which case Flybridge yachts are preferred) • Pre-Owned Yachts = Pre Owned are essentially second-hand yachts, • De-stock Yachts = Instead are generally Yachts built for sepculative reason or for the simple need of a shipyard to not halt production waiting for orders to come but investing into the building process of a new yacht trying to sell the contract on the way shortening in so doing the delivery time by 30-40% or even 80% which has in many cases proved to be a very successful strategy for emerging economies clients or the so called new-rich willing to pay a premium to have the yacht delivered in a shorter-than-average time. 4 Wednesday, 17 July 13
  5. 5. Notes on production cycle • Please Note that as far as Super Yacht Order Books and deliveries/ launches are concerned data shown in 2010 are considered to be actual as in most cases construction time goes from 12 to 40 months. • For example a 130 feet Power Yacht ordered (signed) at the Monaco or Genova Yacht show in Sept-Oct 2010 is most likely considered to be launched in 2012. IMPORTANT 5 Wednesday, 17 July 13
  6. 6. Agenda Super Yacht Market Yachting Service Market Market of Yachting Supplies/Accessories 6 Wednesday, 17 July 13
  7. 7. Agenda Super Yacht Market ✓ Segmentation Order Book Market Overview Market Driver Forecasts Yacht Service Market Accessories/Supplies Market 7 Wednesday, 17 July 13
  8. 8. Segmentation of Super Yacht Market 8 Super Yacht Market Propulsion Size Segments Types* Power Sail 80’-89’ 90’-99’ 100’-119’ 120’-149’ 150’+ Flybridge Open Fisherman Others Wednesday, 17 July 13
  9. 9. Agenda 9 Super Yacht Market Segmentation ✓ Order Book Market Market Drivers Forecasts Yachting Service Mkt. Accessories/Supplies Market Wednesday, 17 July 13
  10. 10. Super Yacht Order Book Evolution 10 0 250 500 750 1,000 1,250 2005 2006 2007 2008 2009 2010 Super Yacht Order Book by Volume CAGR 05-10 CAGR 09-10 +3% -26% In 2010 the Super Yacht order book is worth 750 units showing a 26% decrease on the previous year. The main reason is identified in the combined effect of previous order cancellation and lack of new orders. Source: Created by Rodriquez Consulting with OMN Università Roma Torvergata IMPORTANT: Most of the values are not shown contact us for a complete version Wednesday, 17 July 13
  11. 11. Super Yacht Order Book Evolution Macro Type Segmentation: Power Vs Sail 11 0 250 500 750 1000 1250 2005 2006 2007 2008 2009 2010 Motor Sail The power category is about 90% of the Super Yacht order book, in 2010 decreased by 30% alone. Source: Processed by Rodriquez Consulting, OMN Universita’ Roma Torvergata/Show Boat CAGR 05-10 CAGR 09-10 +3% -26% +5% +9% +3% -29% Super Yacht Order Book by volume Power Vs Sail IMPORTANT: Most of the values are not shown contact us for a complete version Wednesday, 17 July 13
  12. 12. Super Yacht Order Book Evolution: Power Yacht Size Segments Super Yacht Order Book break down in size segments CAGR 05-10 CAGR 09-10 +3% -29% +12% -14% +7% -19% +1% -23% +1% -40% -5% -46% Within power yacht it the segment over 120 feet is much more resilient to the financial crisis than other size segments. 0 200 400 600 800 1000 2005 2006 2007 2008 2009 2010 80’-’89 90’-’99 100’-119’ 120’-149’ 150’+ Source: Eleborated by Rodriquez Consulting with OMN Universita’ Roma Torvergata/Show Boat 12 IMPORTANT: Most of the values are not shown contact us for a complete version Wednesday, 17 July 13
  13. 13. 13 0 250 500 750 1000 2005 2006 2007 2008 2009 2010Flybridge Open Fisherman Others Super Yacht order book segmented by type/style of vessel CAGR 05-10 CAGR 09-10 +3% -29% +9% -25% +11% -10% -5% -31% +3% -29% The Flybridge segment is about 80% of the order book while so-called “open” yachts (generally faster yachts) are increasingly less in demand. Source:: Elaborated by Rodriquez Consulting with OMN Universita’ Roma Torvergata/Show Boat Super Yacht Order Book Evolution: Type of Yacht Segments IMPORTANT: Most of the values are not shown contact us for a complete version Wednesday, 17 July 13
  14. 14. 14 0 200 400 600 800 1,000 2005 2006 2007 2008 2009 2010 Composite Steel Aluminium Order book by Construction Material CAGR 05-10 CAGR 09-10 +3% -29% +5% -11% +19% +17% -3% -44% The Segment of steel yachts grows by 17% in 09-10 whereas the Composite materials decrease by 44% and Aluminim by 11% Source: Elaborated by Rodriquez Consulting with OMN Universita’ Roma Torvergata/Show Boat Super Yacht Order Book Evolution: Materials used Yacht Segments IMPORTANT: Most of the values are not shown contact us for a complete version Wednesday, 17 July 13
  15. 15. 15 Order Book Sail Super Yachts in Sales Volume CAGR 05-10 CAGR 09-10 +5% +9% +17% +10% +5% -6% +1% +29% +6% +18% -4% -4% The Sail Yachts segment grows by 9% compared to 2009 with 76 orders in total registered in 2010 0 20 40 60 80 2005 2006 2007 2008 2009 2010 80’-’89 90’-’99 100’-119’ 120’-149’ 150’+ Source: Elaborated by Rodriquez Consulting with OMN Universita’ Roma Torvergata/Show Boat Super Yacht Order Book Evolution: Sail Yachts by size Segments IMPORTANT: Most of the values are not shown contact us for a complete version Wednesday, 17 July 13
  16. 16. 16 0 20 40 60 80 2005 2006 2007 2008 2009 2010 Composite Steel Alluminium CAGR 05-10 CAGR 09-10 +5% +9% -4% 0% -7% -38% +8% +18% Composite material is the main technology used for the Sail Super Yachts with 60 Yachts over 75 total units ordered. Source: Elaborated by Rodriquez Consulting with OMN Universita’ Roma Torvergata/Show Boat Order Book Sail Super Yachts in Sales Volume Super Yacht Order Book Evolution: Sail Yachts by Construction Material IMPORTANT: Most of the values are not shown contact us for a complete version Wednesday, 17 July 13
  17. 17. Agenda 17 Super Yacht Market Segmentation Order Book ✓ Market Market Drivers Forecasts Yachting Service Market Supplies and Accessories Market Wednesday, 17 July 13
  18. 18. Market Evolution by Delivery Volume 18 0 200 400 600 800 2005 2006 2007 2008 2009 2010 Deliveries/Launches of Super Yachts by volume CAGR 05-10 CAGR 09-10 +1% -31% In 2010-2011 the market as recorded a solid 30% decrease mainly due to the effect of the financial crisis Source: Elaborated by Rodriquez Consulting with OMN Universita’ Roma Torvergata IMPORTANT: Most of the values are not shown contact us for a complete version Wednesday, 17 July 13
  19. 19. Super Yacht Market Evolution Macro segments: Power Vs Sail 19 0 200 400 600 800 2005 2006 2007 2008 2009 2010 Power Sail Total deliveries in 2010 are 472 units out of which 425 power super yachts: this macro segment shows a decrease of 34% vs 2009 as a whole the market shows a flat trend with a Compounded Annual Growth Rate (CAGR) ’05 - ’10 of 1% Source: Elaborated by Rodriquez Consulting. with OMN Universita’ Roma Torvergata CAGR 05-10 CAGR 09-10 +1% -31% +4% +9% +1% -34% Deliveries/Launches of Super Yachts: Power vs Sail IMPORTANT: Most of the values are not shown contact us for a complete version Wednesday, 17 July 13
  20. 20. Market evolution of Power Super yachts: Size Segmentation 20 Deliveries/Launches Super Yachts a volume CAGR 05-10 CAGR 09-10 +1% -34% +12% -14% +6% -20% +1% -24% +1% -40% -5% -46% The financial crisis had it highest impact on the <30 mt (<99 ft) decreasing by 40% at the global level. 0 160 320 480 640 800 2005 2006 2007 2008 2009 2010 80’-’89 90’-’99 100’-119’ 120’-149’ 150’+ Source: Elaborated by Rodriquez Consulting su dati OMN Universita’ Roma Torvergata IMPORTANT: Most of the values are not shown contact us for a complete version Wednesday, 17 July 13
  21. 21. Market Evolution Power Super Yachts: Segmeted by type of yachts 2111 0 175 350 525 700 2005 2006 2007 2008 2009 2010 Flybridge Open Fisherman Other Types Launches of Super Yachts by Volume CAGR 05-10 CAGR 09-10 +1% -34% +7% -31% +9% -17% -7% -36% +1% -35% In terms of types the Flybridge type of yachts are those taking the biggest hit from the financial crisis Source: Elaborated by Rodriquez Consulting and OMN Universita’ Roma Torvergata IMPORTANT: Most of the values are not shown contact us for a complete version Wednesday, 17 July 13
  22. 22. 22 Deliveries of Sails Super Yachts by volume CAGR 05-10 CAGR 09-10 +4% +9% +18% +13% +6% 0% 0% +14% +7% +22% -3% 0% Sail Super Yachts demonstrated to by much more resilient to the crisis althought the make 10% of the overall market. 0 10 20 30 40 50 2005 2006 2007 2008 2009 2010 80’-’89 90’-’99 100’-119’ 120’-149’ 150’+ Source: Created by Rodriquez Consulting with OMN Università Roma Torvergata Market Evolution Sail Super Yachts: Segmented by size IMPORTANT: Most of the values are not shown contact us for a complete version Wednesday, 17 July 13
  23. 23. Super Yacht Market Evolution: Macro geographical areas segmentation 23 Super Yacht launches by volume CAGR 05-10 CAGR 09-10 +1% -31% -6% -20% +2% -35% +3% -31% The global market downturn is substatially driven the North American (-35%) and European market size drecrease (-31%) 0 200 400 600 800 2005 2006 2007 2008 2009 2010 Europa Nord America RoW Source: Created by Rodriquez Consulting with OMN Università Roma Torvergata IMPORTANT: Most of the values are not shown contact us for a complete version Wednesday, 17 July 13
  24. 24. Evolution new launches vs. de-stock and pre-owned market 24 Breakdown Super Yacht volume supply In 2010, solid increase of the impact of pre-owned/de-stock on the total demand of super yachts due to the effect of the financial and economic crisis. 0% 25% 50% 75% 100% 2005 2008 2010 New Launches Usato/De-stock Source: Rodriquez Consulting IMPORTANT: Most of the values are not shown contact us for a complete version Wednesday, 17 July 13
  25. 25. Market Evolution Value of Super Yachts 25 0 2 4 6 2005 2006 2007 2008 2009 2010 Deliveries of Super Yacht by total value in billion Euros CAGR 05-10 CAGR 09-10 -1% -24% In 2010 and pre season 2011 the value of deliveries has recorded a loss of 24%; which shows almost a flat trend from 2005 of about 4 €/billion in total value worldwide. Source: Elaborated by Rodriquez Consulting with OMN Università Roma Torvergata IMPORTANT: Most of the values are not shown contact us for a complete version Wednesday, 17 July 13
  26. 26. Market Evolution: Economic value of Super Yachts 26 CAGR 05-10 CAGR 09-10 -1% -24% -2% +10% 0% -31% -1% -28% In 2010 Emerging Counties are the only market area that shows some growth as compared to Europe and North America which are significantly down. 0 2 4 6 2005 2006 2007 2008 2009 2010 Europa Nord America Row Deliveries of Super Yacht by value in billion Euros Source: Created by Rodriquez Consulting with OMN Università Roma Torvergata IMPORTANT: Most of the values are not shown contact us for a complete version Wednesday, 17 July 13
  27. 27. Agenda 27 Super Yacht Market Segmentation Order Book Market ✓ Market Drivers Forecasts Yacht Service Market Supplies and Accessories Market Wednesday, 17 July 13
  28. 28. 28 The HNWI family is the target market of Super Yacht builders. Segmented as shown above and this clusters relates to specific sizes and often move up or down depending on wealth gain or loss Source: Elaborated Rodriquez Consulting, extract Nautica Super Yacht (Sept. 2011) Super Yachts Market Driver : Identified and Clustered Customer Targeting Yachting Segments Reference Price Luxury Yacht Value Mkt 2010-11 Giga Yachts >150 feet Super Yacht 80-150 feet Yachts 40-80 feet >35/40M€ 5M€ - 30/35M€ < 3/4M€ ~15% ~20% ~65% HNWI Family Wednesday, 17 July 13
  29. 29. 29 In 2010-11 HNWIs are 10,9 milion people, growing despite the economic crisis by 9% as compared to the previous years Trend: Number of HNWI by macro geographical areas 0 2 4 6 8 10 12 2005 2006 2007 2008 2009 2010 North America Europe Asia-Pacific Latin America Middle East Africa N. High Net Worth Individuals Year over Year xx% 8,5% xx% 8,5% xx% 8,5% xxx% 8,5% xx% 8,5% Values In Millions Source: Elaborated by Rodriquez Consulting extract Nautica Super Yacht (Sept 2011) tot xxx tot xxx tot xxxx tot xxxx tot xxxx tot xxx IMPORTANT: Most of the values are not shown contact us for a complete version Wednesday, 17 July 13
  30. 30. Our Services 30 •Market Analysis and Strategic Market Research & Development •Niche Market Analysis (e.g. Yacht Paints) •Business Planning •Sales Process Training, sales network building & management and Sales performance management •Business Process and Cost Analysis [Organization Consulting] Wednesday, 17 July 13
  31. 31. Our Services 31 •Joint Venture and cooperation development •Branding & Luxury Brand Digital Management [Building intangible assets] •Financial Analysis •M&A Support and Valuation •International Marketing Planning •Revenue Management Wednesday, 17 July 13
  32. 32. Contacts 32 Contact us to receive a complete table of content of our most recent Yacht Market Analysis with forecasts to 2015 Market@RodriquezConsulting.com or Call: +44 (0) 7445 30 86 22 Wednesday, 17 July 13

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