Outboard Engines Market size exceeded USD 9.8 billion in 2021 and is projected to expand at over 5.3% CAGR from 2022 to 2030. Stringent emission regulations are pressurizing engine manufacturers to invest in R&D and develop electric & hybrid propulsion systems. Companies are adopting new technologies to increase their engine production to cater to the growing demand for outboard engines.
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Outboard engines offer several advantages, such as easy low-speed maneuvering, enhanced acceleration & fuel efficiency, compared to inboards, thus increasing the acceptance of these engines. They provide opportunities to boat manufacturing companies by offering wide spacious interiors to customers with low maintenance requirements. Additionally, they enable users to keep sensitive parts such as propellers in working condition. Marine engine manufacturers are strategically acquiring outboard engine producers to diversify their businesses and enter the global industry. The growing demand for large outboard engines for leisure boating is a major factor behind the entry of these players into the market.
| 2021 |
| USD 9,821.9 Million |
| 2022 to 2030 |
| 5.3% |
| USD 15,840.1 Million |
| 2018 to 2021 |
| 300 |
| 419 |
| Engine Type, Fuel Type, Power, Ignition Type, Application, Region |
|
|
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Government initiatives are aiding the development of boat manufacturing hubs coupled with significant rise related to the enhancement in manufacturing abilities providing a positive outboard engines market outlook. ASEAN countries witnessed an increase in the GDP rate post-economic problems in the last decade and are set to project a rise in the domestic industry. Trade deals between Asian countries have improved the inter-regional trade flow, leading to potential imports & exports. These are the key aspects boosting the industry growth in the region.
The COVID-19 pandemic had a mixed impact on the recreational boating business. Organizations that are majorly engaged in tourism and production have accounted heavy losses compared to distributors or service providers. Many countries have implemented strict lockdowns to restrict the spread of the virus owing to which citizens are spending time with families outdoors such as fishing or family boating. One of the most surprising events during the pandemic was an unprecedented increase in U.S. boat sales. This trend started in early 2020 and according to NMMA, in 2020, more than 310,000 new powerboats were sold, which is 12% more compared to 2019. Furthermore, many sellers were able to coordinate and make these sales remotely. Nearly half of the sales come from online platforms on account of automated payments, online management, scheduling tools, and online customer communications.
Usage of outboard electric engines for commercial & recreational applications
The electric engine segment will generate demand of over 115 thousand units by 2030. Technology is a major factor escalating the acceptance of electric outboard motors & stringent emission laws and steady increment in battery & motor technologies, positioning electric outboards as an alternative compared to fossil fuel-operated outboard motors. For instance, in March 2018, Torqeedo, a company specializing in designing & manufacturing electric inboard & outboard motors, launched the Ultralight 403C small electric outboard motor. This motor features an integrated lithium-ion battery with a range of up to 100 km on a single charge, making it ideal for fishing and kayaking.
Increasing adoption of diesel fuel to spur the market expansion
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The outboard engines market for diesel fuel type segment is anticipated to reach USD 1.8 billion by 2030. Diesel fuel-operated outboard engines are experiencing expansion primarily due to the increasing demand for high horsepower outboard engines, high fuel efficiency and high-speed cruising capability, making them an ideal choice for commercial applications such as trawling, cruising, search & rescue, and fishing. Apart from mechanical advantage, advancements in diesel outboard engines have also been supporting their widespread adoption.
For instance, OXE Diesel unveiled the latest addition to its portfolio with the introduction of the 150 HP model. The diesel outboard engine is the only fuel type outboard complying with the Tier-3 EPA, Tier-2 IMO, RCD emissions, and environmental laws. Diesel outboard engines are also experiencing a surge in the military & oil & gas industries because of the safety regulations, thus preventing the use of gasoline-operated outboard motors as they are spark ignited.
The consumption of outboard engines for commercial applications
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The commercial segment in the outboard engines market is predicted to observe a 5.5% growth rate till 2030. The increasing power output and efficiency of high-powered outboard engines have enabled the widespread adoption of outboard engines for commercial applications. As commercial watercraft tends to experience demanding conditions and all-day operations, companies across the globe are considering the advantages of high-powered outboards for cost-effective and reliable operations. Technology advancements in diesel outboards are also prominent driving forces in the implementation of these engines offering reliability and fuel efficiency along with new possible applications in the commercial business segment.
North America will dominate the global market
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North America outboard engines market is expected to cross USD 8.5 billion revenue by 2030. This growth is attributed to the rising disposable incomes, high economic growth rates, and customer interest. The increasing popularity of recreational activities, such as cruising, sailing, and powerboat racing, is predominantly stimulating the sector. Moreover, marine engine manufacturers are also constantly innovating new products and offering capable solutions to attract customers, thus surging the market demand.
Product development is one of the major strategic outlooks
The outboard engines market is moderately consolidated with the presence of several small- to large-scale companies around the globe. The industry leaders are focusing on the research & development of new technologies and products to enhance their service portfolios to cater to the growing demand for outboard engines. Strategic joint ventures and enhancements in the product landscape are key initiatives in the global industry.
Major participants operating in the market are Elco Motor Yachts, Cox Powertrain, Tohatsu Corporation, Golden Motor Technology Co., Ltd., Evinrude, LEHR LLC., Honda Motor Co., Ltd., Mercury Marine, Inc., Powertec Group, Suzuki Marine, Torqeedo GmbH, Mudd Hog Mud Motors, LLC, Volvo Penta, Yamaha Motor Co., Ltd., and Yanmar Co., Ltd.
This research report on outboard engines market includes in-depth coverage of the industry with estimates & forecast in terms of volume in thousand units and revenue in USD million from 2018 to 2030 for the following segments:
Market, By Engine Type
- 2-stroke
- 4-stroke
- Electric
Market, By Fuel Type
Market, By Power
Market, By Ignition Type
Market, By Application
- Commercial
- Recreational
- Military
Market, By Region
- North America
- Europe
- Germany
- UK
- France
- Italy
- Netherlands
- Norway
- Russia
- Asia Pacific
- China
- India
- Japan
- Australia
- New Zealand
- Thailand
- Indonesia
- South Korea
- Latin America
- Brazil
- Mexico
- Argentina
- Peru
- Colombia
- Middle East & Africa
- Algeria
- Egypt
- Israel
- Turkey
Authors: Kiran Pulidindi, Akshay Prakash
How big is the outboard engines market?
The market size of outboard engines was around USD 9,821.9 million in 2021 and is anticipated to expand at a CAGR of 5.3% between 2022 and 2030 owing to increasing investments in R&D and the development of electric & hybrid propulsion systems.
Why is the diesel fuel type outboard engines industry share rising?
The diesel fuel type segment revenue is expected to cross USD 1.8 billion until 2030 driven by the rising demand for products with high-speed cruising capability and high fuel efficiency.
How much is the North America market worth?
The North America industry value is anticipated to surpass USD 8.5 billion by 2030 considering the growing customer interest, high rates of economic growth, and rising disposable incomes.
Who are major manufacturers of outboard engines?
Prominent companies in the market comprise Tohatsu Corporation, Torqeedo GmbH, Suzuki Marine, Evinrude, Golden Motor Technology Co., Ltd., Volvo Penta, Yamaha Motor Co., Ltd., Elco Motor Yachts, and others.