The Monaco Yacht Show, which took place from 25 to 28 September 2024, reaffirmed its role as a central event for the global superyacht industry, attracting more than 30,000 visitors, including yacht owners, brokers and industry professionals. Despite a slight drop in attendance compared to previous years, the event offers its usual unique experience, showcasing 120 yachts with a total value of more than €4.7 billion and showcasing the latest innovations of elite yacht shipyards, introducing new trends that will shape the future of the sector.
However, this occasion is also a time to take stock of the market for these luxury yachts, which have experienced unprecedented acceleration in the years following the pandemic. As a result, the superyacht market is expected to return to 2019 levels by 2024 after a record growth of 2021-2022.
According to mid-year data, global transactions are down 12% compared to 2023, with both new and pre-owned yacht sales down 25%. Overall, yacht sales fell by 29%, with only 366 units sold in the first half of 2024. This slowdown is less pronounced in the 30-metre plus segment, where sales of new yachts are down 17% compared to last year. Therefore, the most affected are those small yachts with a length of up to 24 meters, which are usually made of composite materials and can be mass-produced.
At Monaco's historic Port Hercule, home to the Monaco Yacht Show, the yachts on display have an average length of 158 feet (48.17 meters), including 80 superyachts making their debut. Lürssen's 122-meter Kismet was the flagship of the event. The show once again reflects the state of the market, with several shipyards still having a large number of orders for 40 to 60-meter metal yachts, which are dominated by Italy shipyards, which will be delivered in the next two, three or even four years.
The success of the Italy shipyard is due to the quality of its build, the flexibility to customize the yacht even during production, the strong brand value and the undoubtedly more competitive price compared to the traditional Nordic shipyard. Conversely, some Netherlands shipyards seem to be losing market share, and although they have built a good reputation, some of that share is being eroded by players from Italy and Turkey, which are more competitive in pricing while guaranteeing superior quality.
Another noteworthy trend at the Monaco Yacht Show is that sail-assisted yachts, especially new models, have all but disappeared from the exhibition. Given the growing focus on yacht sustainability, and the fact that wind and sail are still the only truly green propulsion systems available to shipowners today, the limited number of products is disappointing, especially as analysts predict the growth of the sail yacht market. Currently, sailing yachts account for about 15% of the total market, with the rest dominated by motor yachts, but this number is expected to rise in the coming years.
On the other hand, companies engaged in the tuning industry are thriving. This market is driven by the need for technological upgrades to the existing fleet, as well as functional and aesthetic redesigns to enhance the onboard experience according to the latest standards. In 2023, the superyacht conversion market was valued at approximately $2.5 billion and is expected to grow significantly by around 8% in 2024. However, despite the growth, green solutions have yet to gain substantial traction, with some industry players noting that their high cost and limited efficiency still prevent yacht owners from adopting them.
One of the most talked-about aspects of this year's Monaco Yacht Show is the shipyard's ongoing commitment to building sustainable new yachts. The show's "Sustainability Center", a section entirely dedicated to green yachts, was first launched in 2022 and returns again this year, with several companies showcasing innovative technologies to reduce the environmental impact of their yachts. As people pay more and more attention to the environmental impact of yachts, eco-friendly yachts and green technology have become the focus of attention. Hybrid propulsion systems, electric engines, and solar-powered yachts were all on display, underscoring the industry's commitment to reducing its carbon footprint.
Superyacht manufacturers such as Oceanco and Sunreef Yachts have showcased their advancements in energy-efficient design, while others have focused on reducing plastic waste and promoting sustainable materials in yacht interiors. These innovations are likely to shape the future of yacht design, where luxury and sustainability will go hand in hand.
Another emerging trend is the incorporation of smart technologies. Some exhibitors introduced new systems that enable yacht owners and captains to easily control onboard systems. From smart lighting and temperature control to virtual reality yacht tours, new technologies are playing an increasingly important role in making yachting more enjoyable and efficient.
The Monaco Yacht Show also hosts a number of debates and conferences on this topic, with a particular focus on the adoption of alternative fuels and solutions to reduce emissions. Energy efficiency is a central theme, and component suppliers have the opportunity to showcase the latest technologies and innovations. However, it is worth noting that despite the push for green solutions, real innovation in this area is still limited.
The Monaco Yacht Show 2024 highlights the continued growth and development of the luxury yachting industry. The focus on eco-friendly solutions, combined with the latest technological advancements, indicates a shift towards a more sustainable and intelligent yachting experience. However, the event also stays true to its roots, celebrating the timeless beauty and luxury of traditional superyachts.
For attendees and exhibitors, the biggest takeaway from the Monaco Yacht Show 2024 is that the yachting industry is booming. Despite the uncertainties in the global economy, the demand for high-quality, innovative yachts and luxury goods is clear. The exhibition remains the pinnacle of luxury in the yachting world, setting the standard for what's next in yachting.
The Monaco Yacht Show 2024 showcases luxury, innovation and sustainability. From state-of-the-art superyachts to eco-friendly technology and luxury brands on display, the show offers a glimpse into the future of the yachting world. For those lucky enough to attend, this is a unique experience that blends the best of the yachting industry with the charm of Monaco itself.