IYC CEO Raphael Sauleau on What's to Come in 2025 - Maritime Observer Newsletter [January 2025]
The first edition of The Maritime Observer for 2025.
Happy new year and welcome back to the first edition of The Maritime Observer newsletter for 2025. For the first dispatch of the year, I sit down with Mr. Raphael Sauleau, chief executive of IYC, a leading brokerage firm in the superyacht industry. Over the course of our conversation, we delved into a wide range of topics, observing the state of the sales and charter market in 2025, prognosticating the ascendance of technology and sustainability in the superyacht industry, examining the potential and challenges of The Middle East as a yachting hub and much more.
Superyacht Industry Forecast For 2025 & Beyond with IYC CEO Raphael Sauleau: Sunny Skies or Stormy Weather Ahead?
Conscripting Raphael Sauleau into a box is a fool's errand. For some, he is known as an ironman, a sobriquet earned after his success as a triathlete, not to mention an endurance runner and a cyclist, while others may have come across the elysian content posted on @Raphael_Sauleau, the Instagram repository where Sauleau keeps his 343,000 followers abreast with videos and factoids of superyachts new and old. And within the superyacht industry and wider business world, Raphael Salueau holds a cachet as the genial chief executive of IYC, a leading yachting firm with 15 offices across the globe, providing services for every facet of the industry from sales to ownership and charter.
But whether he is on the track field, the sea, or in the office, Sauleau subscribes to the same guiding principles and alacrity of spirit that allowed him to excel in any objective he pursued: discipline, motivation, consistency, and drive. With over 25 years of experience at the helm of several yacht companies, Sauleau’s depth of profundity makes predictions for the coming year - whether it comes to sales, charter, technology, new destinations, and the environment - come more as reassurances rather than anticipation.
Sales Numbers: Good Enough?!
Going into 2025, IYC witnessed an increase in sales starting from the second quarter onwards, despite a slow start to 2024 and a slowdown across the overall industry, which Sauleau ascribes to a concatenation of factors that were bound to happen after a record-breaking period for the industry owing to the COVID-19 pandemic. “We’ve been going through quite an intense last four years where the industry saw a tremendous boom in regards to sales and charter,” said Sauleau. Though the numbers are no longer reaching pandemic-time levels, Sauleau remains resolute in the market’s direction. “The fact that we’re seeing - what we like to call - a normalization of sales” in 2023 and then followed up by 2024 is relatively normal.”
Meanwhile, the state of the U.S. economy - the market with the most sway in the superyacht industry, and representative of 50-60% of IYC’s revenue, - has contributed to the market’s slowdown, according to Sauleau. Interest rates and the fate of the U.S. presidential elections precipitated a period of stagnation, where prospective buyers put a pause on their plans until the uncertainty subsided, Sauleau explains: “The U.S. market, which is usually leading the charge in terms of sales worldwide, was also a little slower last year. That also triggered the worldwide results of the sales market. Potential owners in the entry-level to mid-level segment have been on the fence waiting to see whether or not the interest rates will lower. Worldwide instability and macroeconomics have also played a role in the mindset of some buyers.”
Now on the other side of the presidential race, all signs are optimistic for 2025 as it pertains to the superyacht market, “The last couple of months of 2024 have given us strong hopes for a good and strong 2025 which I think is also the result of some optimism to some extent with the election of Trump in the U.S., triggering a stronger appetite for investment in yachting.” said Sauleau.
The Omission of Russian Buyers
Three years after sanctions regimes instituted by the UK, US, and EU, following the Russian invasion of Ukraine, caused a steep decline in Russian buyers, their absence has been supplanted by the rise in the number of individuals from multiple markets. “When the sanctions were imposed on Russian nationals and residents, we saw an influx of newcomers to the industry, which alleviated the fact that Russians were not able to transact any longer. That was largely compensated by the U.S. customer base and to some extent, European and Middle Eastern customers,” said Sauleau, crystallizing the need for firms to have a diverse mix of clientele. “Companies that were predominantly dealing with Russian customers saw a big hit and struggled to recover, whilst others who have, and had, a healthy mix of clientele were not so impacted.“
However, contrary to accepted industry wisdom, Sauleau dislodged the belief that the sanctions have caused a profound effect on the market as the media has suggested, since Russian buyers chiefly operate in the larger end of yacht segments, making the news of their frozen assets ripe for the headlines. “We have to remember that Russian-owned, big boats always made the big headlines, but overall it represented close to 10% of the industry. The bulk of your market today, where you do the most transactions, is within the 30-40 meter segment and the average selling price is $7 million. It’s not just about the 100 meter + boats in our industry.”
A Wave of Younger Superyacht Owners
It was not just buyers from other nationalities filling in the gaps of the Russian market, but perhaps a new age demographic that emerged as a byproduct of both the restrictions and opportunities brought about by the pandemic, a trend that Sauleau was among the first to observe and point out. A wave of younger owners who have placed an emphasis on exploration and wellness, some even turning their vessels into private sanitoriums. “The stock market and COVID, to some extent, created new wealth in the medical and financial worlds. Young people accessing wealth faster wanted to try a new way of life that was traditionally more related to the so-called “older generation” as well.” said Sauleau. From his point of view, attracting a younger crowd was always undoubtedly in mind for Sauleau as part of IYC’s strategy, and the pandemic only aided in fast-tracking this phenomenon. “This was good for yachting because many of us were trying to find a strategy to find younger generations and make sure we had a succession plan of yacht ownership, but it came to us naturally.”
More Superyachts on the Seas, More Demand
As of November 2024, there are 6,006 superyachts over 30 meters in operation, according to the latest Superyacht Times Gulf Report, a figure up from the 5,325 superyachts over 30 meters in August 2021. Thus with the increased number of vessels comes an increased demand for berthing and mooring options, illustrating the need for the industry to establish new cruising grounds. “I think what you will, and already see throughout the world, is the lack of marinas and berths. The increase of yacht purchases in the last four years has triggered a clear indication that we don’t have enough marinas. The fact that some new destinations are welcoming yachts with the latest technologies and marinas available is good.” Said Sauleau. It is no surprise that slowly gaining traction, among these new cruising grounds, is the Middle East.
Emerging Markets: The Middle East
The developments made by several countries including, but not limited to, Saudi Arabia, Dubai, and Egypt in the investment in infrastructure, modernizing of regulations, and hosting of worldwide sporting events - in an effort to cultivate superyacht tourism - has transformed the region into a destination that can provide- an alternative to popular winter staple the Caribbean, a belief backed by Sauleau, although it does not come without its challenges. “In the summer it is challenging to be there [The Middle East], it puts quite a strain on the yachts. But in the winter, as an alternative destination to the Caribbean, there is a card to play for destinations like Dubai, Saudi Arabia, and others which are not necessarily yet made famous for being yacht-welcoming destinations, but what they can offer is amazing,” said Sauleau. IYC, which opened its Dubai branch in 2023, is studying the potential to expand its presence in The Middle East, and Sauleau emphasizes that these emerging destinations have the opportunity to lean into a peculiar untapped audience: “The interest will come from yachts which are not necessarily doing dual season today, but are only doing a winter season. They may see the opportunity to do dual seasons for both charter and their own usage. That's where I think the urgency may be..”
Technology: Convenience or Intrusion?
As is the case in every industry, technology, more specifically the rise of artificial intelligence (AI), has permeated the superyacht sector, but to mixed reception. Where some find the encroachment of AI unwelcome in an industry built on the human touch, IYC has embraced the times and has even become the proprietor of their own technology company. “Technology is one area whereby we are not shy to invest and not shy to come up with new investments and ideas. We are investing into new apps, software and utilizing AI,” said Sauleau, who believes that catering to a new generation of owners means staying up to date with the utilities now embedded in their daily lives. “ We saw an interest in our online facility, Reserve, whereby people are taking ownership by looking into yachts they would like, making their selection, and looking at the calendar to book. That is what comes with the younger generation, who are used to all these tools like Uber and similar applications. We have been already doing some relatively good numbers with this functionality.“ It could also be argued that the rise of technology has also benefited the industry’s movement towards sustainable yachting.
Environmental Efforts: It Takes Two To Tango
Hydrogen, fuel cells, electric-hybrid: new concepts that have entered the lexicon of today’s superyacht builders, who have used the past few years to invent new, cutting-edge alternatives to the fossil fuels damaging our seas, taking a page from the efforts made by the wider maritime sector. However in the superyacht sector, the commissioning of any new build is a two-party effort, with the final word coming from the buyers themselves, begging the question: Are owners willing to invest and take the risk in trying new, greener methods of superyachting? Indeed they are Sauleau posits. “What yachting has achieved in the past few years in terms of propulsion systems and materials used on board is remarkable. Of course, it’s very easy for some to point fingers at yachting for not being green, but we have to remember there is a lot of progress that has been made in the yachting industry thanks to the shipyards, but also owners, who are, for many, taking the leap and investing, challenging and researching their own methodologies to implement onboard their yachts. We see a movement whereby there is a great effort and desire for all parties to come up with new ways to do yachting.”
Whether small or big sustainable additions are being implemented in today’s fleet, owners are not only paving the way for a greener future but, as sustainability slowly continues to play a role in the future of yacht financing, are also investing in the future resale value of their vessels. “. “Some banks are making a point to only provide financial support to yachts which are making the decision towards more sustainable technologies. While you are investing a little more initially, you will have a return going forward but also immediately, especially if you are running on battery packs, for example. “ said Sauleau. “ Building a more sustainable asset is going to play a positive role in your investment. This is definitely the way forward, to promote, invest and implement new technologies onboard.
Finishing Words
To finish our interview, I asked Sauleau if he had any advice to impart to anyone reading this interview, with the stipulation that this advice could only be taken from his life and experiences, not from a textbook or otherwise. “Believe in what you do, never take no for an answer, and be consistent. You can fail, but you can also rise and you can succeed. Second, always believe in yourself. This is the key.” Sauleau replied. He also remarks to me that his advice does not “reinvent the wheel”, and perhaps this idiom is the true nugget of wisdom dispensed by Sauleau. The importance of individuality and identity is what should move us forward in 2025 and beyond.
Click here to read the unfiltered interview in full, where we delved into an array of topics from the need for boat shows in 2025, why chartering will have significance in any brokerage firm, and more.