Brief summary of 2024: how has yachting changed?

A year of victories, a year of defeats

The outgoing year 2024 has become one of the most controversial in the past five years. In 2019 and 2020, the world and yachting in particular came to terms with a new reality. COVID and lockdowns initially hit the economy of the entire planet hard, but the yachting industry managed to adapt in time. The whole of 2021 and the first two months of 2022 passed in an atmosphere of industry recovery - many new people, equipment, projects and long-awaited acclimatization to post-COVID life.

2022-23 has been a year of war and turmoil. Sadly, 2024 is no exception. The war in Ukraine and the global economic crisis have had a profound impact on everything we have seen in yachting this year. However, it is against this darkness that the light becomes more visible than ever.

In 2024, the yachting industry was replenished with new shipbuilders and equipment manufacturers, new factories were built, distribution agreements and business partnerships were announced. And although a huge number of companies declared that now is a bad time for new contracts, in fact, almost every day there was news about mergers, cooperation, etc.

The biggest challenge for 2024 was the worsening economic situation in many EU countries. There was a lot of news that, in fact, despite some positive developments, the industry was still in turmoil, and more serious challenges could lie ahead.

This article is adapted from the article “2024 – What we learned” by IBI News.

Mergers and acquisitions are still trending

The level of activity in the merger sphere shows that the industry is gradually but very confidently developing. Key market players are trying to conclude the most profitable deals for themselves to acquire smaller companies, guided by two goals:

• break away from competitors and get unique features for your own brand,
• to join a new sub-brand that already has significant achievements.

Here are just a few of this year's takeovers:

• Patrick acquires Sportech
• Yamaha Acquires Torqeedo
• Quick Group acquires Yachting Marine Service
• MarineMax acquires Williams Tenders USA, then Aviara.
• Amphenol Acquires Airmar
• Zerojet teams up with Tectrax

The list goes on. The main thing is that the brands continue their work and contribute to the development of the yachting industry

Supplies are our everything

The yachting industry has already been through a lot of supply shocks over the years and has survived. 2024 will show and prove once again how critical reliable supply chains are. For Europe and the European yachting industry, 2025 will be another test thanks to Donald Trump, who wants to raise tariffs once again.

An interesting trend that dates back to COVID is the downsizing of factories. Some experts believe that a large number of mini-factories can provide more reliable supply chains than, say, one factory for an entire region. And there is some truth to this.

Export is what you should pay attention to

The yachting industry in Europe and the US saw a decline in consumer demand in 2024. But Latin America pleasantly surprised even the seasoned "sharks" of the yachting business. The South American region became one of the most active players in the market and a large number of boats were exported to these countries.

This process is called “weak market compensation.” In this case, the “weak market” is the EU and the US, where sales and revenues are declining, and the South American region acts as that compensation. This is evidenced by “a striking number of announcements throughout the year of new partnerships, distributors, and companies opening foreign offices.”

A pathetic copy and a unique original

Creating a great product is only half the battle. The other half is ensuring that the product is certified and tested in real-world conditions. 2024 has shown that yacht equipment manufacturers are increasingly investing heavily in independent certification and product validation to “bury” copycats. 

Business is about collaboration

Real business requires owners with an iron grip and a “shark-like” sense. However, this is not enough in the long term. The ability to build strong cooperation and camaraderie is the key to success. 2024 has once again confirmed this conclusion for the yachting industry.

The trend of collaboration and unexpected brand collaborations is gaining momentum. Some brands seem to be in parallel realities, but this does not prevent them from collaborating effectively. One of the most striking examples of recent years: Candela and the car manufacturer Polestar with their joint project Candela C-8 Polestar.

The main factor of cooperation in the yacht industry is the ability to use the experience and technological solutions of a partner, knowing that the partner company will come to the rescue if necessary. And it is the partnership of two companies from different fields that increases the efficiency of production.

Cautious optimism

What will 2025 be like? I want to believe in the best, even with all the events happening. According to industry experts, there is every reason to believe that 2025 will be a “qualitative and quantitative improvement compared to 2024.” Let’s hope.

New video on the Interparus channel!

At the end of the year, we decided to diversify our classic videos a little with an unusual episode about airplanes! Sasha Goron will talk about Dragon Fly airplanes - and making your dream of the sky come true🛫

Don't forget to rate the content! Other interesting articles can be found at the links below or in the "News" section.

28.12.2024