Market Overview and Growth Highlights
Cruise ships are the means of waterway transportation. The cruise ships often serve the purpose of luxury travelling and touring with numerous facilities on board. Cruise ships vary in sizes depending upon their purpose of use. Different types of cruise ships are equipped with different passenger carrying capacity. Few cruise ships also provide facilities such as casinos, bars, restaurants, gym and other luxury amenities. Cruise ships are a boon to the waterway tourism industry and has helped to advance the industry in a larger way.
The global cruise ships market is exhibiting substantial growth on account of rising cruise travelers across the globe which is raising the demand amongst cruise lines operators worldwide for ordering considerable number of cruise ships. Additionally, the stable cost of steel in developed regions around the globe is helping to ensure the increase in profitability for the production of cruise ships amongst the manufacturers. Steel is considered as one of the major metals used in the production of cruise ships. Moreover, major proportion of cruise line travelers are represented by millennial and generation Y who are equipped with high purchasing capacity. Such factors are anticipated to drive the growth of the global cruise ships market. The market was valued at USD 12,350 million in the year 2018 and is slated to achieve USD 20,165.5 million by 2027 with a CAGR of 5.66% over the forecast period 2019-2027. CLICK TO DOWNLOAD SAMPLE REPORT
Regional Growth Highlights
The global cruise ships market is segmented by regions into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Among these regions, Europe is expected to hold the largest market share of around 32.10% in the year 2027 on account of high concentration of cruise ship buildings in the region. Additionally, high per capita income in the nations, such as, UK, Germany, France, Italy, Netherlands and others, which evince high disposable income, are directed towards the touring activities. Such a factor is anticipated to bolster the cruise ship market in the region during the forecast period.
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
Market Segmentation Synopsis
By Type
The global cruise ships market is segmented by type into mainstream, mega cruise, expedition cruise, river cruise and others, out of which, the river cruise segment is anticipated to hold the largest market share of around 38% in the year 2027. Increasing prevalence of river cruises in nations across the globe, along with the developments of new cruise routes, for instance, river Ganga in India, Irrawaddy in Myanmar, Yangtze in China and others, river cruises are increasingly becoming popular for tourists across many tourist places worldwide. The river cruise segment was valued at USD 4789.4 million in the year 2018 and is anticipated to reach USD 7660.0 million by the end of 2027 with a CAGR of 5.42% during the forecast period and growth of 1.60x in between the period.
Market Drivers & challenges
Growth Indicators
Rising Demand of Voyaging in Generation X and Y
According to the Society for Human Resource Management (SHRM), the millennial or Gen Y generation bracket in India is projected to be 50% of the workforce by 2020. Additionally, according to Pew Research Center, millennials in the U.S. accounted for a population of 71 million in 2016 and is expected to overtake baby boomers in the forthcoming years.
In leading nations across the globe, millennials are the major earning population bracket. Over the years, the prevalence of cruising amongst millennials have significantly increased on the back of rising per capita income and increase in luxury expenditure amongst the age bracket. Prevalence of larger number of millennial populations along with their strengthening purchasing capacity coupled with substantial demand for voyaging among the generation Y and generation Z, on the back of surge in luxury expenditure, all such factors are anticipated to contribute significantly towards the growth of the global cruise ships market.
Rise in Global Tourism and Hospitality Industry
According to Cruise Lines International Association (CLIA), the number of global ocean cruise passengers was estimated to grow from 23.06 million in the year 2015 to 30 million in the year 2019.
The tourism is one of the emerging sectors across the globe. Various governments of the nations across the world are taking initiatives to uplift the tourism industry. Various market forces, for instance, global competition, new innovative offerings and packages, services and expeditions amongst others are transmuting towards the growth of the tourism industry. Additionally, inclusion of various tourism technologies and the adoption of internet of things, service robots, augmented and virtual reality (AR and VR), artificial intelligence (AI) and others are some of the factors revolutionizing the cruise tourism industry worldwide. For instance, according to another statistics by CLIA, in Asia, the number of cruise ships deployed in Asia grew by more than 53% since 2013 till 2017, multiplying the capacity from 1.51 million passengers in 2013 to 4.24 million passengers in 2017. Such factors are anticipated to drive the growth of the global cruise ships market during the forecast period.
Barriers
Delay In Delivery And Induction Of Cruise Ships
Lack of resources to fulfill sudden influx in the demand of cruise ships translates to the delay in delivery and induction of cruise ships. Additionally, the delay in delivery of the cruise ships also hampers the selling price of the ship, affecting the profitability of the manufacturer. Such factors are considered to impact negatively towards the growth of the global cruise ships market.
Competitive Landscape
Some of the affluent industry leaders in the global cruise ships market are Neptun Werft GmbH & Co. KG, FINCANTIERI S.p.A., Mitsubishi Heavy Industries, Ltd., Fujian Shipbuilding Industry Group Corporation, Genting Hong Kong Limited, Daewoo Shipbuilding & Marine Engineering Co., Ltd., and Samsung Heavy Industries Co., Ltd.
Furthermore, other key and niche manufacturers are constantly working on technical advancements in the cruise ships technology and the expansion of product portfolio in order to gain competitive edge in the global cruise ships market.
