Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Luxury Cruise Ships Market size was over USD 9.73 billion in 2024 and is anticipated to cross USD 27.11 billion by 2037, growing at more than 8.2% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of luxury cruise ships is assessed at USD 10.41 billion.
This boost is anticipated by the slated expansion of new and innovative luxury services such as water coasters, bars & pubs, planetariums, treatment centers, and many more. Such offers along with the planning to start the cruise journey at new destinations, and untapped locations are expected to expand the landscape. According to a report by Forbes, about 45% of cruise travelers were predicted to be first-time cruisers, who expect their destinations to be at the hidden sites.
Luxury Cruise Ships Market: Growth Drivers and Challenges
Growth Drivers
-
Growing focus on sustainability- The luxury cruise ship sector is also expected to witness a change in consumer preferences, with an increased focus on sustainability and environmental protection. This is leading to increased investments in eco-friendly and fuel-efficient ships, making luxury cruising more accessible and sustainable. The air pollution emitted by the luxury cruise giant is about 10 times more than all of Europe’s cars.
-
Improvement in the environmental impact: Due to the rising focus on sustainability and environmental well-being is at surge, the adoption of new and innovative initiatives to reduce the environmental impact of cruise ships is increasing such as the introduction of more eco-friendly and fuel-efficient ships.
Furthermore, this adoption of sustainable practices on board, and the utilization of clean and green energy sources would act as a growth driver for this landscape in the forecasted period. According to a report, Norway, Europe was the highest consumer of renewable resources, which was about 71.63% in 2022. -
Growing adoption of advanced technologies & data: Automation and retail industries are integrating and exploring the usage of advanced technologies such as IoT, machine learning, Artificial Intelligence, computer vision, blockchain, and analytics. The availability of such large data sets and their usage can lucratively increase the efficiency and effectiveness of retail. According to the United Nations, digital technologies are rapidly increasing and have reached more than 50% of the global population.
-
Changing demographics: The luxury cruise ship sector is likely to experience positive growth from a changing demographic profile, with an aging population there is an increase in travel and leisure spending. The demand for luxury travel and leisure experiences is expected to rise, driving the growth rate of the luxury cruise ship landscape. According to the United Nations, the world population is projected to surpass 9.7 billion from 7.7 billion by 2050.
-
Growing Gen-Z and millennial consumers: the rising demand for luxury travel among millennial and Gen-Z consumers and the aging population is increasing travel and leisure spending, which are expected to further contribute to the luxury cruise ships market growth. Overall, the luxury cruise ship industry is expected to grow significantly in the coming years, driven by several factors, including innovation, the increasing demand for luxury and comfortable travel experiences, and the changing demographic profile. According to a report, Gen Z consists of about 30% of the global population while millennials are about 23% of the global population.
Challenges
-
High cost: The luxury cruise ship sector is characterized by a high cost, both for the passengers and for the overall operation. This can limit the luxury cruise ships market expansion as fewer consumers will be able to afford a luxury cruise experience.
-
Competition from other travel options: The luxury cruise ship industry is also facing significant competition from other travel and tourism options, including land-based resorts and all-inclusive package tours. These travel options can provide a comparable or even better experience at a lower cost, limiting the growth of the luxury cruise ships market share.
Luxury Cruise Ships Market: Key Insights
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
8.2% |
|
Base Year Market Size (2024) |
USD 9.73 billion |
|
Forecast Year Market Size (2037) |
USD 27.11 billion |
|
Regional Scope |
|
Luxury Cruise Ships Segmentation
Cruising Type (Ocean, Luxury, Adventure, River, Expedition)
By the end of 2037, ocean cruising segment is anticipated to account for more than 57% luxury cruise ships market share owing to the increase in adventure activity that involves a significant amount of amusement, energy, and equipment for cooking, water supply, and plumbing, among other essential facilities on board. This leads to high consumption of energy and power, posing various environmental concerns.
In addition, according to a report by the Canadian Parks and Wilderness Society, in 2019, the cruisers dumped more than 32 billion litter which is about 8.45 billion gallons of waste in Canadian waters. This increases the surge in the usage of second-hand appliances that are energy and water-efficient, durable, and reliable and can help reduce the environmental impact of ocean cruising, thus facilitating a more sustainable experience.
Services (Restaurants, Water Sports, Bars & Pubs, Adventurous Sports, Snow Rooms, Planetarium, Cruise Fares, Theaters, 4D Movie In-suite Spa, Treatment Centers)
The restaurant segment is estimated to gain a robust market share and is likely to remain the second largest segment in the services of the luxury cruise ships market attributed to the continuously evolving restaurant and culinary space with new and innovative ideas for reducing the waste production and to increase the sustainability. According to a report, more than 79% of customers say that with the increase in technology, there is an increase in convenience.
Booking Mode (Online, Offline)
In luxury cruise ships market, online segment is set to register more than 8.9% growth from 2024 to 2037. The reason behind this impact is projected by the increase in the vacation offers that the travel brokers offer, all while taking care of the budget and comfort of their clients.
Moreover, this also helps the landscape to reach a worldwide audience while expanding its reach using an online booking platform. According to a report, more than 72% of travelers prefer online booking mode for their trip or vacation.
Our in-depth analysis of the luxury cruise ships market includes the following segments:
|
Cruising Type |
|
|
Services |
|
|
Nature of Device |
|
Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
Luxury Cruise Ships Industry - Regional Synopsis
North American Market Statistics
Asia Pacific industry is likely to hold largest revenue share of 50% by 2037. The landscape's substantial growth in the region is expected to be credited to the surge in the number of passengers and tourists on luxury cruise ships. According to the World Travel & Tourism Council, the travel & tourism landscape contributes about 9.1% to the GDP.
According to the Cruise Lines International Association, in the United Stated about 37 million passengers are estimated to travel in luxury cruise ships. This was earlier 31.5 million in 2023, which was 6% more than the passengers that sailed in 2019.
On the occasion of Wave Season, Pearl Seas Cruise along Canada’s coast announced their free airfare along with additional savings from May to early August 2024.
APAC Market Analysis
The Asia Pacific region will also encounter a huge influence on the luxury cruise ships market size expansion during the forecast period with a notable CAGR and will account for the second position attributed to the increasing cruise lines in the region. According to reports, Cruise World Asia 2023, Asia’s cruise industry is expected a positive growth, more than 296 cruise lines and several port leaders, travel agents, and travel experts were gathered at CruiseWorld Asia 2023, mainly for sharing, exchanging, and networking their ideas coupled with other industry colleagues and friends.
MSC Cruises is expected to launch two ships- MSC Splendida and MSC Bellissima into China.
Japan Maritime along with Nihon Shipyard Co., Ltd. was granted Approval in Principle from the Nippon Kaiji Kyokai for the concept of a multi-functional offshore windfarm support vessel.
Companies Dominating the Luxury Cruise Ships Market
- Royal Caribbean International
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Oceania Cruises S. de R.L.
- Viking Ocean Cruises
- Crystal Cruises
- Silversea Cruises
- American Cruise Lines
- Norwegian Cruise Line Holdings Ltd.
- Regent Seven Seas Cruises
- Seabourn Cruise Line Ltd.
Most of the companies are continuously collaborating, expanding, making agreements, and joining ventures for the growth of this revenue share and are estimated to be the major key players in this landscape.
Recent Developments
- Oceania Cruise, announced the World Voyage Abroad in their Newest Ship- Vista, for a 180-day world journey across six continents, visiting 43 different countries.
- American Cruise Lines, 14 March 2024, announced their new summer season cruise, which is a part of New England cruises, and is the only coastal itinerary in that region that could visit the U.S. ports of call.
Author Credits: Saima Khursheed
- Report ID: 2990
- Published Date: Jan 03, 2025
- Report Format: PDF, PPT
