Leisure Marine Industry

OceanTech’s Thrust: Next Generation Leisure Marine

OceanTech’s goal is to find an acquisition target within its core competency sector : market-leading companies and/or assets within the Marine / Yachting industry, predominantly those embracing technology and digitization as a competitive advantage.

The Yachting / Marine Business Landscape & Potential

The luxury yachting sector is a niche in the global maritime market : highly lucrative, driven by the dramatic growth in the numbers of UHNWI, and awaiting disruption through sought-after advances which are fast moving in.

Consider the growth in terms of numbers of the super-yachting industry –

  • The global fleet jumped from 3,924 crafts in 2009 to 5,568 in 2019
  • The very few publicly listed companies in the yachting industry present great scope
  • The new-build market alone is projected to reach a value of US $ 10.2 billion by 2025
  • The industry is set to be worth US $100 billion by 2025 of which 10% being the Yacht Charters share
  • The over 25,000 yacht owners worldwide today, represents just under 10% of the global UHNW population
  • In 2019, there were 290,720 individuals with a net worth above US $ 30 million. Each could easily own or engage with the yachting space

The Marketplace & Drivers Propelling the Boom

We have an in-depth knowledge of all aspects of the yachting/maritime industry – the largest value of domain expertise, track record and IP of which is embedded within the shipyards. The next layer comprises leading  OEM’s which supply key systems, equipment and hardware to construct the yachts. Apart from the new yachts, the level below is the refit shipyards who drive the pre-owned brokerage market. This enables owners to acquire a yacht which is 5-15 years old and within a relatively short time to have the benefit of a highly modernized platform. A large network of specialized sub-contractors with domain expertise and know-how related to the actual installation and integration required by every project supports all these activities and operations. While we may acquire a business in any industry, our focus is the yacht/marine industries of Europe, USA and other developed countries because:

It’s a Large Target Market

The yachting sector benefits from positive macroeconomic trends and substantial actionable targets of meaningful scale that fit our acquisition criteria. The yachting industry up to 30 million is estimated at over US $ 39 billion, while the super-yachting industry above 30 million is over US $ 25 billion per annum.

Broad Universe of Potential Targets

Our investment efforts will focus on the pillars of the yachting/marine industry. Our investment and operating expertise in the multiple verticals of the yachting Industry will provide us a large, addressable universe of potential targets. The diversity of the target universe and the number of largely uncorrelated sub-sectors will enable us to identify and execute an attractive transaction.

Limited Competition

Our expert consultant team believes that the exclusivity of the yachting industry acts as a barrier to entry. Thus investors will be required to have significant sector-specific expertise to identify and appropriately analyze investment opportunities. Lack of technical know-how / operations, understanding of the UHNWI landscape and complexities may well deter competition from generalist SPAC firms.

Favorable Trends

Total global expenditure has grown at a pace substantially above the rate of inflation in the recent past. This growth is projected to continue over the years to come. The super-yachting growth rate is over 7% per annum, which has further accelerated over COVID-19 pandemic and is showing an upward trend. We have at our disposal latest technologies, strategic alliances, an increasing expertise pool of services and the wherewithal for any eventuality in this industry segment.