by Outboard engines are marine propulsion systems that operate as detachable external motors to power small boats and watercraft. They are powered by gasoline or diesel and are equipped with propellers for thrust and directional control. The growth of marine tourism and recreational boating activities is creating new growth opportunities in the market. Also, developments such as electric and hybrid outboard engines are gaining traction.
The Outboard Engines Market is estimated to be valued at US$ 5.89 Bn or in 2023 and is expected to exhibit a CAGR of 3.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing marine tourism and water sports activities: Increasing popularity of boating, water sports, and other marine recreational activities is a key driver for the outboard engines market. Tourist activities such as fishing, sailing and adventure water sports require motorized boats which significantly contribute to the market growth. According to NFCOE (National Federation of Coroners and Oceanography), there has been over 5% annual growth in marine tourism globally in the past decade.
Developments in electric and hybrid technologies: Manufacturers are increasingly focusing on electric and hybrid technologies to minimize fuel consumption and emission from conventional outboard engines. Advancements such as hybrid gasoline-electric technology provides better fuel efficiency. Also, battery-powered electric outboard engines are gaining consumer interest due to low noise and zero emissions. This transition towards eco-friendly engines will support market expansion over the forecast period.
Segment Analysis:
The outboard engines market is segmented into low-power engines and medium-power engine segments. The medium power engine segment is currently the dominating segment, accounting for nearly 60% of the market share. Medium power engines, with horsepower ratings between 30-200 HP, are increasingly being used in recreational motorboats, fishing boats and small commercial boats due to their compact size and versatility in maneuverability.
PEST Analysis:
- Political: Initiatives towards rural electrification and development of boating infrastructure such as marinas and jetties in emerging economies are driving the demand for outboard engines.
- Economic: Growth in disposable incomes and rising participation in water sports is positively impacting the sales of outboard engines globally.
- Social: Increasing interest of youth in recreational boating and fishing is supporting the market growth.
- Technological: Advancements in fuel injection systems, smartphone connectivity and development of electric outboard engines are shaping the future of the industry.
Key Takeaways:
The Global Outboard Engines Market Demand is expected to witness high growth, exhibiting CAGR of 3.7% over the forecast period, due to increasing participation in recreational boating and fishing activities. The market size is estimated to reach US$ 8.3 Bn by 2030 from US$ 5.89 Bn in 2023.
Regional analysis The Asia Pacific region currently dominates the global market due to large consumer base and growth in marine tourism. China holds a major share within the region supported by increasing domestic demand and exports. North America is another major market for outboard engines driven by boat ownership and lakefront properties in the US and Canada.
Key players operating in the outboard engines market are Yamaha Motor Co. Ltd, Honda Marine, Suzuki Motor Corporation, Tohatsu Corporation, and Brunswick Corporation. Yamaha dominates the global market with wide product portfolio for various boat types and horsepower ranges. Honda is another key player focusing on expanding dealership networks and infrastructure to strengthen regional footprint.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
