Changing Seascapes – The Evolution of Superyacht Owners and How the Industry is Adapting

The world in general has seen significant changes in the last five years, most notably significant climate change, a global pandemic, Brexit, the war in Ukraine and now the war in Gaza. The economic impact of these, plus the sanctions imposed on Russia as well as the re-election of Trump, the rise of AI and the acceleration in the accumulation of wealth through technology driven solutions have had a significant impact on the world of superyacht ownership. There are some constants as these assets continue to attract the attention of the wealthy, as my colleague Nic Arnold noted in a recent Citywealth article on trends in this industry as well as private aviation.[1] So just what has changed and is the industry managing to keep up?

Age – Buyers are getting younger, in some cases knocking 10-30 years off the previous age demographic. This is unsurprising given the number of HNWIs is increasing at a faster rate than ever before thanks to tech innovations, the rise of crypto currencies and economic changes that effectively have made many millionaires overnight. Combine this with what is purported to be the greatest transfer of wealth in history means buying stats have moved down from the 60s into the 40s and late 30s.*

Broader wealth trends – There is an influx of buyers from more diversified wealth backgrounds.  “The shift in both the age of the clients and the origin of their wealth is significant. Thirty years ago, if you owned a 50–60 metre motor yacht you were very likely to be a royal family member or the head of a major multi-national conglomerate and likely involved in ‘traditional’ businesses. You were likely to be in your mid-fifties to early sixties. Now we are seeing large yachts being bought, sold and commissioned by a younger, dynamic clientele comprised of tech innovators, entrepreneurs, athletes and the like. What they want out of their yachts is in some respects similar to the earlier generation of yacht owners – privacy, luxury, relaxation – but in other respects very different: they want a platform that they can live and work on – in some cases for quite lengthy periods of time – with high-speed internet, smart systems, and integrated workspaces. Others are focused on wellness and sustainability, requesting onboard gyms, spas, and hybrid propulsion systems and solar technology.”[2]

Gender – Increasingly there has been an uptick in female ownership. Five years ago less than 5% of superyacht UBOs were female, but this figure has since doubled.[3] It’s still a male dominated industry but change is afoot. It is unsurprising that female ownership is much lower, given for example that it wasn’t until 1975 and the passing of the Sex Discrimination Act in the UK that women could apply for credit and open a bank account in their own name without the permission of a male relative and in other countries primogeniture ruled and in some places still does.

Like cars, yachts have on balance drawn the focus of men over women, whereas women have a greater preference for the living beast over the machine, for example horse ownership.

However, we must be cautious with these figures, as both now and in the past yachts have often been placed in structures owned by the female spouse for taxation advantages, so all is not necessarily as it seems.

Is there an obvious difference then in what female owners or owners from less traditional wealth sources look for in a yacht?

“Increasingly these new buyers look for a greater sense of independence when onboard. Younger owners want to be able to be self sufficient when needed. They want to be able to access the galley and not ask the crew to make them a sandwich. We’ve even seen pantries built into the main guest suite as well as the adjacent corridor accommodating drinks facilities so that the owner can access basic food stuffs and beverages independently of their crew.” [4] This drive for independence, reflects cultural expectations of these self-made UHNWIs, plus many are working remotely whilst on board and not just holidaying, so want to maintain a sense of normality.

The desire for useability of design rather than simply for opulence is further highlighted with the work of the D-iD design team. The boutique design studio run by design duo Kate and Dimitri Hadjidimos creates designs that are flexible, generous, and intelligently crafted to support life without overwhelming it. For the design duo it is about “the creation of ingenious and inhabitable works of art.” Their work is complex, creating showpieces that are also intuitive, practical, and liveable spaces that reflect how families and guests actually spend time on board confirming they are designed for enjoyment rather than a gallery view.

Regional shifts – Globalisation and the development of certain key economic regions have meant that there has been significant growth in Southeast Asia, the Middle East as well as owners coming from India and Africa. Russian sanctions have seen a decrease in owners from this region which was previously significant and this has allowed the spotlight to move to other parts of the globe. Within these markets it is interesting to see how buyers approach things differently. With Middle Eastern clients, often we see the older generation purchasing larger vessels and gifting their current smaller yachts to younger family members. Thus, they keep a fleet rather than selling a vessel and buying a new one. This diverges from European and American buyers, who tend to do ‘one in one out’ or just keep a couple of vessels. The USA continues to prosper and grow as a market, “although we are seeing shifts, with the obvious imposition of sanctions and change in buyers’ source of wealth, geographically speaking many of the industry’s largest clients still come from the USA. The percentage of market ownership is still predominantly dominated by American money.” [5]

However, Dubai is an outlier here, it is a growing market but not necessarily fitting in with the rest of the Middle Eastern market given that many of these new buyers are ex-pats taking advantage of the tax friendly environment. Many are on the look out for day boats, and glitz and glamour are at the forefront.

Sustainability and technological innovation – We talk about it all the time but what are buyers asking for and what is the industry doing to respond to these needs? It is clear that buyers are more technologically savvy and environmentally conscious. Signs of this are everywhere from the latest prototypes to newly launched designs with hybrid engines coupled with eco- friendly materials, such as cork and energy saving designs and solar panels. More advanced onboard technology and connectivity is a must. We’ve seen only this month that Bill Gates’ vessel’ Breakthrough’, the $645 million 390-foot hydrogen fuelled yacht, which was sold by Edmiston to the Canadian billionaire Patrick Dovigi broke new ground with its advanced energy design. When asked why he invested so much in the project Bill responded ‘someone has to be the first’. The idea was to create something wonderous but to explore the art of the possible. Only then could it be scaled and then ultimately become something that might be accessible to other areas of the market at a lower cost base.

In what we all see as the ever-changing technological field it seems there are some constants as clients continue to request ‘faster and bigger but the solutions have become far more advanced. Technology and design are now centred around complex integrations, with flat panel connectivity taking the lead and VSAT repositioned as a secondary backup. At the same time, the latest in MicroLED panels, vast videowalls and immersive audio systems are being specified, creating onboard environments that are not only connected but also visually and acoustically state-of-the-art.[6]” So what buyers want remains constant but the route to get there is where things are changing.

When visiting the Cannes Yachting Festival earlier in September it was interesting to see the range of yachts, in particular those that are powered in a much more climate friendly way. Millikan Boats, the French based outlet was one example of this, although not a superyacht the boat I was shown, the M10 was fully solar powered and could cruise for up to eight hours. It certainly captured my attention and excitement for the future and development of such vessels.

Lifestyle and utility –  Owning a superyacht is a status symbol, it’s a club not many can enter. However, there was a time when this was the focus along with having a nice holiday. With the change in ownership demographics the rationale for becoming an owner has shifted. During COVID we saw a great rush to buy up the existing fleet, driven by the shrunken stream of new builds exiting the shipyards and the desire for vessels as a safe haven and a place to keep people out. Off the back of this and the reopening of the world, owners want to continue to use them for remote working, but also for wellness and family get togethers.

The other interesting area has been the increased interest in adventure travel and the request for explorer yachts that can undertake longer and more remote voyages. Tired of cruising in the Med and Caribbean, people are looking for new areas to explore by sea. Damen and Fedship has built some innovative explorer yachts and Pelorus and Cookson Adventures for example offers luxury charters. For those not in the superyacht league, Viking Cruises also offers people the chance to explore both the Artic and Antarctic. Some clients are not looking for adventure and instead just want to be a little more off  the ‘standard yacht grid’, escape the staged opulence of St Tropez and Monaco and instead tuck themselves away in remote places like Tahiti, where the extra distance puts off those friends who want to pop on and stay as guests for a few nights!

So it appears that some things don’t change; it’s still a male dominated landscape to a large extent, the bulk of buyers are still fuelled by American money and clients want ‘faster and bigger’ as they always have. Yet there is change and it’s happening fast. There’s a demand for more independence and liveable yachts that are functional as well as beautiful, and the need for high tech systems is a must, as is consideration for making these huge vessels less fuel guzzling and more environmentally friendly. The younger clientele wants comfort and elegance but intertwined with practicality, whilst some want only to avoid the spotlight their predecessors craved. The industry is moving to attempt to accommodate these changes but it should strive to accelerate its thinking, to move at speed proactively to partner with and shape the face of the new era of yachting alongside the next generation of yacht buyers for the world moves more quickly now more than ever before.

References

[1] Monaco Yacht Show & Cannes 2025: Superyacht Trends, Aviation × Yachting & Asia’s Rise Nic Arnold, Head of JTC Private Office UK

*Superyacht Market Report 2024, The Superyacht Group; The Changing Face of Superyacht Ownership,” Boat International, June 2024; Fraser Yachts Annual Market Intelligence, 2024

[2] Mark Needham, Co-head of the Superyacht & Luxury Asset Group at the specialist London based law firm, Hannaford Turner

[3] Boat International – Annual Superyacht Report, June 2024

[4] Dean Smith, Founder and Director at Hampshire Marine.

[5] Richard Higgins, Yacht Broker, Northrop & Johnson

[6] Chris Beedie, Technology Consultant with SMART Technology Advisers