25 September 2016

4 Feb 2014

UHNW superyacht spending to grow 25 per cent by 2020

By

A study undertaken by Boston Consulting Group and Altagamma has revealed that luxury consumers will spend 880-billion euros on personal items and experiences in 2020 – a predicted growth of 20 per cent. This increase is linked to the expected rise in the number of luxury goods consumers – currently at 380 million and expected to grow to 440 million in 2020.

The survey outlined that the largest proportion of luxury consumers spend on average 10,000 euros a year on luxury goods, excluding cars, accounting for a significant 40 per cent of the market. This figure falls significantly under the average of the average Ultra-High-Net-Worth (UHNW) individual, Wealth-X told SuperyachtNews.com, however this figure and the survey’s results still provide significant implications for the superyacht industry.

“In 2013, the average UHNW spent $400,000 on luxury items. What we certainly see throughout the luxury sector is the rise of bespoke luxury and purchases of experiences that are unique. This type of personalisation caters to the superyacht lifestyle and we believe is a good sign for the future of the industry,” Wealth-X chief executive officer, Mykolas Rambus, told SuperyachtNews.com.

Wealth-X estimates that of the total luxury spend, $65,000 per UHNW goes towards yachting assets, accounting for an industry total of $13 billion, yet since the global financial crisis UHNW individuals continue to remain cost conscious when it comes to this niche industry of yachting, a trend that has manifested itself in the form of the purchasing of second-hand yachts, chartering or even buying smaller yachts with a lower fuel price tag.

However, economic movement is on the horizon, according to Wealth-X, who told SuperyachtNews.com: “In the next five years, Wealth0X expects the UHNW population to grow to just over 240,000 individuals [it currently stands at 199,235], with total UHNW wealth increasing from $27,8 trillion to over $36 trillion.” These figures, moreover, are expected to have significant impact on the superyacht industry, with Rambus adding: “We estimate that by 2020, UHNW spending on superyachts will reach $16.3 billion – a growth of twenty-five per cent overall.”



Wealth-X added that those markets that today produce those typically less enthusiastic superyacht owners, where wealth is generally less liquid, will be the source of industry growth, though initial growth is expected to arise from the cheaper alternative choices coming from Italian and Dutch superyacht owners. The luxury consumer survey, meanwhile, predicted named China as the primary source of these core consumers, while noting the expectation of those within the European Union, United States and Japan to reduce their spending by an estimated four-billion euros.

The results of the survey are promising, and while only three to five per cent of the world’s 199,235 UHNW individuals own or regularly use a superyacht, with the mean net worth of today’s superyacht owners at an impressive $680 million, the potential for industry growth is tangible. However, the state of the global economy is still playing its part, with Wealth-X postulating that the industry’s core clients will remain cautious in their relationship with superyachts, focus on remodeling or financially most sustainable options. “In other words,” the financial conglomerate concluded, “while the superyacht industry will see some of the growth expected in the wider luxury market, it has some years to go before it fully recovers from the global financial crisis aftermath, especially as it tries to penetrate new markets.”

To receive breaking news notifications, download our free app.


Profile links

Boston Consulting Group

Wealth-X

Comments

Add a comment

1800 character limit

Having problems? Let us know editor@superyachtnews.com

Other Business News

The Superyacht Owner's VIP Lounge Returns to Virage

After an extraordinary turn of events the Superyacht Owner’s VIP lounge returns to its traditional home. Make sure your name is on the guest list More

Inspiration or just PR?

As concepts arrive on our desk in the run up to Monaco, we look at the line between inspiration and PR More

Eight superyacht losses in 2016

Thus far 2016 has seen eight serious incidents that have resulted in the loss of superyachts, nearly five more than the average numbers of yacht fires between 2010 and 2015.  More

When one yacht crew receives €60,000 of prizes...

We delivered €60,000 of prizes to the crew of motoryacht Secret, the winner of The Crew Report's Superyacht Golden Ticket survey. More

business News Archive

Most Recent Comments

  1. SY Kaori comes to the aid of a yacht in distress More
  2. Bureaucracy hits superyachts cruising Italy More
  3. Back to basics More
  4. Cannes increases security as Balearics increase business More
  5. Brokers - Sailors or salesmen...? More
SuperyachtNews app available now. Click here to download.
The Superyacht Intelligence Annual Report is out now. Subscribe today and access your digital copy instantly. Subscribe now.

E-Newsletter

Get regular updates from SuperyachtNews with our weekly Email Newsletter.

Submit

SuperyachtIndex.com

Latest Premium Listings

Cummins Inc.

Cummins Inc.

Nlightened Software Ltd

Nlightened Software Ltd

Cogs 4 Cancer

Cogs 4 Cancer

Zytexx International Ltd

Zytexx International Ltd

Melita Marine Group

Melita Marine Group

Raytheon Anschuetz

Raytheon Anschuetz

Kahlenberg Industries, Inc.

Kahlenberg Industries, Inc.

Directory. Add your logo here with a premium listing.
 
 
 
 
 
 
 
 
 
 

Featured Listings

Engine Room, HVAC & Refrigeration

ASEA POWER SYSTEMS
ASEA POWER SYSTEMS is the Marine Industry Leader for Shore Power Conversion equipment ranging in power from 8kVA - 1000kVa.
www.aseapower.com

Shore Power Convertors

ATLAS MARINE SYSTEMS
Atlas Marine Systems, the world leader in the design of marine electrical power systems, offers a full range of engineering services necessary to define the onboard electrical distribution system or simply the application of the Atlas power conversion products.
www.AtlasMarineSystems.com

Paint & Protection

Wrede
WREDE Consulting is an independent paint consultant and paint surveyor company who has worked for most of the 200 largest yachts worldwide in coating, paintwork and equipment areas. WREDE Consulting engages in quality management and objective quality assessment for the coating of mega- and superyachts. www.wrede-consulting.com
www.wrede-consulting.com

Satellite Communication

Marlink AS
Marlink offers seasonal, flexible contracts to match regional sailing requirements. Through our dedicated account managers & customer services, we develop personal relationships with customers & drive innovations to develop digital solutions & smart applications that take you beyond just connectivity.
www.marlink.com

Water Treatment & Watermakers

Jets Vacuum AS
Jets Vacuum has for over 30 years been the leading innovator in vacuum sanitation technology. With over 11,000 Jets systems in operation on all types of ships, Jets are known for high quality, flexible cost efficient solutions backed up by first class world wide service
www.jetsgroup.com

Electrics, Environmental Solutions, Propellers & Propulsion, Software, Training

ABB Marine and Ports
ABB is a leading supplier of electrical power and propulsion systems for ships. We provide innovative, safe and environmentally-friendly solutions and qualified services worldwide. Our Azipod® propulsion has proven its efficiency and reliability on yacht vessels with its ultimate silent and ecological solution.
www.abb.com/marine

Tenders & Toys

Superyacht Tenders & Toys
Superyacht Tenders & Toys have a high level of expertise in providing new build and custom tenders, chase boats, RIBs & all popular yacht toys. With an unrivalled global service network, maintaining a personal & bespoke service, wherever you are in the world, Superyacht Tenders & Toys can help.
www.superyachttendersandtoys.com

Navigation, Satellite Communication, Security

Raytheon Anschuetz
Integrated Navigation Systems based on state-of-the-art technology and decades of experience in the superyacht industry. Ultimate knowledge and flexibility in system integration. Dedicated customer care throughout the whole project and beyond.
yacht.raytheon-anschuetz.com

Add your company listing here

Add a featured listing here and your advert will appear on every page of SuperyachtNews.com, SuperyachtIndex.com, TheSuperyachtReport.com and TheCrewReport.com.

Add my company listing