The monopoly effect
The Superyacht Intelligence Annual Report 2016's analysis of the world's top 50 shipyards confirms that monopoly a building elite has over the global market, although there are some surprising movements within it.…
This year represents the first time The Superyacht Intelligence Annual Report has featured a competitor performance review, identifying as we have, the top 50 shipyards based on the cumulative LOA of their yachts delivered since 2011.
When reviewing these figures, as one might expect, the new build market appears to be something of a monopoly for not only the top 50, but even more pointedly, the top 10.
As we look ahead to 2016 and beyond these 10 shipyards account for almost a third of the current global order book. ‘No surprise there’, one might say. After all, building superyachts is a niche market.
However, what may be more surprising to some, is that the stranglehold these 10 market leaders have has actually loosened, when orders are compared to the deliveries they’ve made over the last five years –around 40 per cent of the total market. So, contrary to popular opinion, the new build market has actually diversified, to an albeit negligible degree.
Image courtesy of Mark Strozier via Visual Hunt / CC BY.
But while the market is becoming more diverse, the actual number of shipyards delivering yachts worldwide continues to fall. In an industry where working capital is king, the key to survival, and for a lucky few –profitability, is consistency.
The average number of orders per shipyard is lower than the average number of deliveries per yard between 2011, and even for our exalted top 10, the numbers represent a drop.
The specifics of our shipyard analysis, including the identity of the top 50 shipyards, their historical performance and the distribution of the current global order book, will be published in full in The Superyacht Intelligence Annual Report 2016, which is available to order now.
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