Inboard Boat Market Size - By Waterways, By Propulsion, By Application, By Horsepower, By Boat, Growth Forecast, 2025-2034

Inboard Boat Market Size

The global inboard boat market size was estimated at USD 4.24 billion in 2024. The market is expected to grow from USD 4.4 billion in 2025 to USD 7.36 billion in 2034, at a CAGR of 5.9% according to latest report published by Global Market Insights Inc.

The market for inboard boats is growing steadily, due to growing recreational boating, technological advancements, and rising disposable incomes. Inboard engines are known for high performance such as various V-drive and direct-drive systems. These engines are gradually connected to technologies that enable advanced hull designs to harness fuel efficiency, torque output, and overall vessel performance.
 

Legislation such as EPA Tier 3/4 in the United States, IMO MARPOL Annex VI on a global scale, and EU RCD2 in Europe requires OEMs to turn to low-NOx combustion technologies, closed-loop fuel control systems, and/or advanced catalytic structure treatment systems. EPA Tier 3 Regulations (scheduled to begin in 2024) require a 60% reduction in NOx emissions and a 50% reduction of emissions of particulate matter compared to Tier 2 standards. Meeting these new regulations responsibilities means that selective catalytic reduction (SCR) or exhaust gas recirculation (EGR) will be required on diesel engines which exceed 600 hp. 
 

COVID 19 affected the inboard boat market significantly, primarily from the supply side. Manufacturing facilities were shut down temporarily, particularly in Europe and North America, causing delays in the production of engines and drivetrain components and production of digital helm systems. Global logistics have also affected scheduling for delivery of raw materials for boats and finished boats to customers. With restrictions on international travel, many consumers turned to recreational boating as a safe, outdoor leisure activity, resulting in increased interest in small-to-mid-size inboard boats and premium leisure yachts.
 

North America holds the distinction of being the largest regional market for inboard boats. This market is largely attributed to the largest global installed base of recreational boats and robust infrastructure in the marine industry. It also has other characterized market factors including a mature market characterized by replacing demand superseding new buyer demand, high average selling prices - mainly driven by the premium wake sports and cruiser segments, and sophisticated distribution with broad dealer and service coverage.
 

According to the National Marine Manufacturers Association (NMMA), recreational boats have approximately 12 million registrations in the US, with inboard boats constituting about 8-10% of the installed base, equating to roughly 25-30% of the total value because of higher average selling prices.
 

Asia-Pacific region signifies the fastest growing regional market segment as it is driven by increases in disposable incomes, marina infrastructure development, and governmental support for marine tourism alternatives. This region also has diverse market conditions varying from mature markets – such as Australia and Japan, to rapidly developing markets such as China and Southeast Asia.
 

One notable development occurred in China with the Ministry of Transport establishing Domestic Emission Control Areas (DECAs) in key port cities like Shanghai, Shenzhen, and Ningbo, where the operating requirements stipulate that vessels are to use fuel with ≤0.5% sulfur content or exhaust gas cleaning systems.  
 

Inboard Boat Market Trends

The development of hybrid-electric and fully electric inboard systems represents the significant technical advancement in marine propulsion since the advent of electronic fuel injection. Major European yacht brands such as Azimut-Benetti, Ferretti Group, and Princess Yachts have brought hybrid models to market for 50 to 80 feet overall, with battery systems designed for installation in hull dead space or other areas that minimize impact in the interior space.
 

Fully electric inboard systems are limited to niche market applications including the electric water taxi, harbor shuttles, and inland waterway and shipping applications where the range required is achievable and frequent recharging opportunities are available on the water. Yamaha's HARMO electric inboard system (50-100 kW) has been used in commercial ferry applications in Japan and Singapore with customer feedback suggesting energy efficiencies of 95% compared to between 35-40% diesel engines.

The development of purpose-built inboard boats designed with integrated ballast systems, surf-system plates traditionally seen only in wake sports, and hull designs intended to maximize wake are in development to support wake sports. Malibu Boats has renewed model line-up in 2025 with the new "Monsoon" engine series that is tuned expressly for wake sports which sees increased torque by 15% at lower RPM compared to its previous generation engine.
 

Digital control systems allow for storage and recall of custom ballast settings, and some models even include smartphone apps so custom ballast settings can be established in advance of arrival to the boat. This level of technological integration has become expected as a standard of the wake sports segment and will continue to adapt to changes in propulsion.
 

The expansion of water sports engagement increased inland tourism and charter operations, and enhancements of marina infrastructure on major river systems and lakes further encourage market growth. China's inland waterways market has exhibited especially pronounced growth, with the Hainan Free Trade Port implementing zero tariffs on imported yachts, and the Ministry of Transport establishing a goal of 100,000 registered yachts in the coming years.
 

Inboard Boat Market Analysis

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Based on waterways, the inboard boat market is divided into seagoing and inland. Seagoing segment dominated the market accounting by around 68% in 2024 and is expected to grow at a CAGR of 5.6% from 2025 to 2034.
 

• Seagoing inboard boats will operate in coastal, offshore, and blue-water settings with high waves, saltwater corrosion issues, and long-range requirements. These types of applications will require inboard propulsion systems that: can withstand corrosive conditions from saltwater, have sealed electrical components and wiring, and have redundancy built into safety features. Typical seagoing inboard propulsion configurations include dual-engine applications for sport fishing vessels in the range of 500-1000hp, single or dual diesel engines in the range of 200-600hp for cruisers and trawlers, and multiple inboard engines that provide high horsepower.
   
• The seagoing category is also growing in the superyacht arena (vessels over the length of 80 feet), particularly among Mediterranean and Middle Eastern markets where the ownership of different luxury yacht vessels and chartering of superyachts are increasing. Both the United Arab Emirates and Saudi Arabia are investing in multiple marina infrastructures for superyachts, and Dubai had 64 superyachts gracing their coastal waters between October 2023 and June 2024. The Red Sea Global in Saudi Arabia is expected to complete and have operational by 2025 the AMAALA Triple Bay Marina which will include 116 berths for vessels up to 140 meters in length.
   
• Inland waterway inboard boats make up 32% of the market share but experienced a much stronger CAGR of 6.6% driven by modernization of freight transportation and growth in commercial recreational cruising on canals. Inland waterways encompass rivers, lakes, canals, and sheltered bays where the operating conditions are typically milder compared to those at sea. Inboard boats for these areas range from recreational runabouts and bowriders to wake sports boats, pontoon vessels, and commercial passenger ferries.
   

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Based on application, the inboard boat market is categorized into leisure, transport of goods, transport of people, fishing, and government use. Leisure segment dominate the market with 55% share in 2024, and the segment is expected to grow at a CAGR of 5.1% between 2025 & 2034.
 

• Leisure applications are leading the inboard boat market, which includes privately owned recreational vessels for activities such as cruising, water sports, fishing, and general enjoyment. This segment is characterized by relatively low yearly usage (around 50–100 hours), a strong sensitivity to both purchase and operational costs, and significant influence from lifestyle desires and aspirational factors on consumer choices.
   
• For example, in April 2025, the UK's Electric Seaway project was finalized, offering dedicated marine charging infrastructure for leisure and commercial electric boats. Aqua Superpower collaborated with its partners to execute this initiative along the southern coast of the UK. This development highlights an increasing emphasis on providing sustainable and advanced technological support for privately owned recreational vessels, thereby promoting growth within the leisure inboard sector.
   
• The fishing segment is experiencing a CAGR of 7.5%, fueled by the rise of charter fishing tourism, an expansion in aquaculture support vessels, and updates to fleets in commercial fisheries. The regulatory landscape is complex; commercial fishing vessels must comply with various fisheries management regulations, safety standards, and emission guidelines that differ based on jurisdiction and fishery type. These fishing boats usually utilize twin diesel inboard engines ranging from 300 to 800 horsepower, configured for long-range offshore use as well as slow-speed trolling applications.
   

Based on propulsion, the inboard boat market is divided into gasoline, diesel, and electric. Diesel dominates the market and was valued at USD 3.11 billion in 2024.
 

• Inboard diesel engines tend to make more efficient and reliable use of fuel than gasoline engines, generating better torque characteristics and range, which is why diesel engines are largely favored for bigger boats, commercial applications, and long-range cruising. Major producers of diesel power, including MAN, Volvo Penta, Cummins, Caterpillar, and Yanmar have a wide spectrum of engines for the European inboard market, from smaller units producing 200 hp for cruising tanks, to larger units exceeding 2,000 hp, produced for superyachts. The Ferretti 940 uses two MAN V12 2,000 hp engines generating a top speed just over 25 knots and a cruising speed of over 21 knots.
   
• Electric propulsion is showing a trailing CAGR of 15.1 percent, led by rapidly changing technology, regulatory support, and consumer demand for sustainable alternatives. Volvo Penta's electrification program is utilizing around six years of development and previous support from parent company Volvo Group for developing electromobility solutions, with a target for limited scale manufacture of hybrid-electric propulsion systems by the end of 2025.
   

Based on horsepower, the inboard boat market is divided into below 200 hp, 201 to 500 hp, 501 to 1000 hp, and Above 1000 hp. 201 to 500 hp dominate the market and was valued at USD 1.48 billion in 2024.
 

• The 201-500 hp category accounts for the greatest power segment by volume and contains most recreational inboard boats including wake sports boats, express cruisers and performance boats. The 201-500 hp segment is experiencing premiumization, as digital helm systems, integrated diagnostics, and joysticks are increasingly adopted, adding USD 3,000-8,000 in costs but improving user experience and safety. Examples of common engine families in this power band include the Volvo Penta D6 series, the Yanmar 8LV series, and the Cummins QSB series.
   
• The under 200 hp segment includes small inboard engines used for inland recreational boats, small for commercial vessels and auxiliary propulsion. The under 200 hp segment has been growing at a 7.0% CAGR driven by increased entry level recreational boat and growth of inland waterway tourism in developing markets. Two examples of vessels with this power engine capacity are Delphia electric boats and Beneteau's Oceanis 37.1 electric propulsion system, demonstrating it is possible to achieve zero emission for coastal and inland waterway vessels.
   

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The US dominated North America inboard boat market with revenue of USD 1.89 billion in 2024.

• The U.S. market is influenced by several technical and regulatory drivers that will impact demand and technology adoption. The EPA Tier 3 emissions standards are enforced, effective 2024, reducing NOx emissions by 60% and PM emissions by 50% compared to Tier 2 emissions standards. In addition, for gasoline engines, three-way catalytic converters will be required, and for diesel engines over 600 hp engines, SCR will be employed.
   
• States in the US, including Florida and those along the Gulf Coast, show considerable demand for offshore fishing boats designed with twin diesel inboard engines and optimized for offshore extending operation. The Great Lakes region captures a distinct preference for cruising vessels designed with considerations for range based on comfort for multi-day trips. The replacement cycle for inboard engines tends to be around 7-10 years, with the repower market accounting for roughly 25-30% of total engine sales.
   
• In Canada, the market is regionally concentrated with Ontario (Great Lakes region) and British Columbia (Pacific coast) accounting for approximately 60-70% of total inboard boat sales. Quebec is an emerging destination for vessels serving the inland waterways of the St. Lawrence River system. Within the Canadian market, there is growing demand for aluminum inboard boats designed for heavy-duty use and commercial fishing applications with manufacturers like Kingfisher, and Silver Streak gaining market share within that contingent.
   

China inboard boat market will grow tremendously with CAGR of 7.5% between 2025 and 2034.
 

• Asia-Pacific represents the fastest-growing regional market with 8.0% CAGR driven by rising disposable incomes, marina infrastructure development, and government support for marine tourism. Chinese manufacturers are expanding production capacity and moving upmarket, with builders including Heysea Yachts, Kingship, and Cheoy Lee targeting 50–100-foot yacht segment. The industry benefits from extensive fiberglass and composite manufacturing capabilities developed in other industries, skilled labor force, and government support including subsidized land and tax incentives.
   
• Australia demonstrates mature market characteristics with 905,000 registered recreational boats and USD 6.29 billion in total marine industry turnover according to Boating Industry Australia. Australian Maritime Safety Authority (AMSA) implements comprehensive safety and environmental regulations, with increasing focus on emission standards aligned with international requirements. The Australian market shows strong preference for diesel inboard engines in larger vessels (above 35 feet) due to long-range offshore operation requirements and fuel efficiency considerations. Boatbuilding output reached USD 1.10 billion in FY2023, with strong export orientation to New Zealand, Pacific Islands, and Southeast Asian markets 
   

The Europe inboard boat market in Italy will experience robust growth during 2025-2034.
 

• Europe is the second largest regional market, reporting significant market concentration in Mediterranean countries, with a more sophisticated yacht manufacturing industry than the North American markets. Italy predominates in inboard boat production across Europe, as the concentration of luxury yacht manufacturers, like Azimut-Benetti Group, Ferretti Group, or some smaller more specialty builders account for approximately 90% market share.
   
• Confindustria Nautica, the Italian trade association for the boating industry, reports that the sector contributes USD 5.8 billion to Italian GDP with 23,000 direct jobs. Italian manufacturers are taking the lead on hybrid-electric propulsion systems, with Azimut-Benetti launching the Seadeck 9 hybrid-electric model, which features of a 140-kWh battery system. Ferretti Group has developed hybrid-electric variants in more than one of their model lines.
   
• The UK market, a historically strong market for motor-yacht production, has struggled in the aftermath of Brexit with some customs delays, regulatory divergences and labor shortages. British Marine, the UK marine industry trade association, reports total marine industry revenue of USD 5.57 billion with 3,000 member companies. UK Maritime and Coastguard Agency (MCA) implement local regulations like MSN 1823 and marine equipment approved "for sale in the UK," which diverge from EU regulations in the aftermath of Brexit.
   
• Norway has implemented purchase tax exemptions for electric boats and is rolling out charging infrastructure in major national marina networks. The Netherlands shows a strong market for inland waterways vessels through its extensive canal system, preferring to employ displacement hull forms and diesel propulsion optimized for fuel efficiency.
   

The Latin America inboard boat market in Brazil will experience robust growth during 2025-2034.
 

• Latin America, while a modest but emerging regional market, has a high degree of concentration in Brazil, a long shoreline and inland waterways, and marina states in development. Brazil holds 60.5% market share in Latin America, owing to its 4,660-mile-long Atlantic shoreline, extensive Amazon River system, and an expanding domestic sector in yacht manufacturing. According to the Brazilian Association of Boat Builders (ACOBAR), 4,500 boats were produced for the domestic market in 2024, with exports expanding from USD 18 million (2020) to USD68.8 million (2024), or approximately ten-fold, again with 65% (2,895) of all boats exported from Brazil being motorboats with inboard engines.
   
• Similarly, Argentina demonstrates strong sailboat design and manufacturing tradition, with 8,397 km of coastline and growing yacht market. The Argentine Coast Guard, known as the Prefectura Naval Argentina, implements MARPOL regulations pursuant to Act 24,089 (1992), and made News in June 2021 as Argentina became the 100th State to accede to MARPOL Annex VI, bringing total global coverage to 96.65% of world tonnage.
   
• Likewise, Mexico is also a growing and presently active market in yacht manufacturing primarily due to tourism development along both its Caribbean and Pacific Coasts, and the demand for private charter fishing boats and cruising boats. While tourism drives the yacht market, Mexico's operations and yacht manufacturing markets benefit from the proximity of the active U.S. market and cross border trade.
   

UAE inboard boat market will grow tremendously with CAGR of 4.6% between 2025 and 2034.
 

• The Middle East & Africa region signifies the smallest regional market, yet remains the region displaying attractive growth potential, primarily because of the development of the luxury yacht market in the Gulf states and the prioritization of investment in marine tourism infrastructure. The UAE exhibits the largest and most advanced market for luxury yachts in the region, driven by ownership of superyachts, the development of marina infrastructure, and the demand for marine tourism.
   
• The UAE Maritime Vision 2030 provides a strategic framework for the proactive development of the UAE maritime sector with an emphasis on sustainable growth and competitiveness in the international maritime industries. The UAE joined the International Maritime Organization's MARPOL Annex VI in 2019, setting fuel sulfur limits and NOx emissions standards for commercial vessels operating in its territorial waters.
   
• Saudi Arabia is implementing the Vision 2030 strategy relating to the commitment to a massive programme of investment into marine tourism, specifically through the USD 22.4 billion Red Sea development project that includes multiple luxury resorts with yacht marinas. The Red Sea Global project has an extensive master plan that includes AMAALA Triple Bay Marina with 116 berths designed to accommodate yachts of up to 140 meters and will serve as a future venue for The Ocean Race in 2027.
   
• South Africa is demonstrating a relatively mature market, with a very strong boat manufacturing industry serving both domestic and export markets. The country does face some challenges from economic constraints and security risks, however, it has an extensive coastline, a stable outlook in climate, and a well-established marine industry infrastructure.
   

Inboard Boat Market Share

The top 7 companies in the market are Groupe Beneteau, AzimutBenetti, Ferretti, Brunswick, Malibu Boats, Princess Yachts, and Yamaha. These companies hold around 64% of the market share in 2024.
 

• Brunswick is at the forefront of market with vertically integrated business model in boat manufacturing that consists of Sea Ray, Boston Whaler, Bayliner, Lund, Crestliner, Cypress Cay, Harris, Heyday, Lowe, Princecraft, Quicksilver, Rayglass, Thunder Jet, and Uttern while Mercury Marine division supplies engines.
   
• Ferretti has significant market share as a leading luxury yacht manufacturer with a brand portfolio that consists of Ferretti Yachts, Pershing, Itama, Riva, Mochi Craft, CRN, and Custom Line. Specializing in motor yachts between 30 feet and greater than 300 feet, the Ferretti Group has a concentration between 50 and 100 feet where it is estimated that Ferretti has a 20% to 25% market share globally. The Ferretti has provided revenue forecasts of €1.5 billion for the fiscal year 2024/25 and an order backlog of €2.5 billion through 2029 demonstrating visibility of demand.
   
• Azimut-Benetti is Italy's largest yacht manufacturer with a dual brand platform promoting the Azimut and Benetti brands. The group has indicated a 15% growth year on year for revenue for the last fiscal year, a backlog of orders in USD amounting to 2.8 billion demonstrating strong visibility through 2028-2029. Azimut-Benetti is aggressively pursuing expansion in the Middle East region and into Asia in direct growth markets whereas they secured a dedicated sales and service infrastructure in the UAE, Saudi Arabian market, China, and Southeast Asia.
   
• Groupe Beneteau holds 9.57% market share, positioned as world's largest boat manufacturer by unit volume with diverse brand portfolio spanning sailboats and powerboats. Beneteau operates manufacturing facilities in France, United States, Poland, and Italy, with production capacity exceeding 7,000 boats annually. The company is investing in digital manufacturing technologies and modular design platforms to improve efficiency and reduce time-to-market for new models.
   
• Malibu Boats, a leading company in the wake sports category, has a diverse portfolio of brands which include Malibu, Axis, Cobalt, and Pursuit. The company designs inboard-powered wake boats (18-28 feet) and performance sport boats, with a solid reputation and loyalty among customers in the wake sports core market. Malibu unveiled the 2025 range of models that includes the 22 MXZ, 24 MXZ, 25 LSV, and 26 LSV, with all featuring the Command Center digital interface, the mOS operating system, a G10+ tower and the AIS ballast flush system.
   
• Princess Yachts is the prominent British manufacturer of luxury yachts, producing models that range from 40 feet - 100+ feet. Princess is owned by the French industrial group LVMH (2008), which provides the financial resources and luxury brand experience to support Princess’s development. Princess Yachts introduced the F58 flybridge yacht at a world premiere show in February 2025 with the latest digital systems and announced that it will be offered with a hybrid propulsion option.
   
• Yamaha Motor has a 3.11% market share of the inboard boat market in flat units, however, when considering outboard engines, where Yamaha is a leader on a global basis, the company's marine business is significantly larger. Yamaha's inboard boat business concentrates on the wake sports segment (Yamaha Boats brand) and commercial marine applications. Yamaha recently introduced Helm Master EX Wireless system at a boat show in February 2025 which allows for wireless joystick control on twin engine installation.
   

Inboard Boat Market Companies

Major players operating in the inboard boat industry include:

• Azimut-Benetti
• BAVARIA Yachts
• Fairline Yachts
• Ferretti
• Groupe Beneteau
• Malibu Boats
• MasterCraft Boat
• Princess Yachts International
• Sanlorenzo
• Sunseeker International
• Yamaha
   

• The inboard boat market shows moderate concentration, with the top five companies constituting 57% of the total market share in 2024 and 43% share divided among many smaller manufacturers, regional manufacturers, and specialized niche industry players. The structure of the market aligns with the differing nature of products in space which includes mass recreational personal boats, custom luxury yachts, and commercial boats, each with its own competitive landscape and barriers to entry.
   
• Brunswick’s Mercury Marine division offers a complete range of marine engines, including outboards (40-600 horsepower), sterndrives (200-450 HP), and inboard engines specifically designed for wake sports. Ferretti Group is the preeminent manufacturer of luxury yachts, with seven unique brands and yachts in the range of 30-300+ feet long. They employ a workforce of over 1,800 people, carry out manufacturing in Italy, and have global distribution and sales model.
   
• Azimut-Benetti launched two models recently; the first, the Seadeck 9 which is hybrid-electric and has a new battery system comprised of a 140 kilowatt-hour recharges via a generator, and the second, the Oasis 42 which has a modular approach and targets a youthful demographic. The group has been steadily growing in the Middle East and has been developing facilities there and aims for technology leadership in hybrid propulsion and digital integration. The model used by Beneteau is based on emphasizing production efficiency by modular design, a manufacturing footprint globally, and a large dealer network, which makes it easier to reach consumers.
   
• Malibu has unveiled an extensive lineup of 2025 models, all featuring a new Command Center digital interface, the company's new mOS operating system, the new G10+ tower, and an industry-first ballast flush system, dubbed the AIS. Malibu has embraced an asset-light manufacturing model, with a network of suppliers enabling rapid scaling. The brand continues to enjoy strong brand loyalty and name recognition in the wake sports segment, and the average price points for their boats fall in the 100,000 to 200,000 USD range.
   
• The company boasts the latest-generation composite manufacturing facility, with key components vertically integrated into the production process. Yamaha's Marine business generated more than 500 billion yen in revenue during the fiscal year 2024. Yamaha's Boat division focuses on wake sports for 19–28-foot models. The company introduced the Helm Master EX Wireless system in February 2025 and is actively developing the HARMO electric propulsion system for commercial applications.
   

Inboard Boat Industry News

• In February 2025, Yamaha Motor introduced the Helm Master EX Wireless Control System, an innovation enhancing its existing Helm Master EX suite. The system enables wireless digital control of inboard propulsion, improving maneuverability, operational efficiency, and user experience.
   
• In November 2024, Princess Yachts unveiled the F58 flybridge yacht at world premiere event, featuring advanced digital systems, hybrid propulsion option, and redesigned flybridge layout with expanded entertainment areas. The yacht is equipped with new digital systems, a hybrid propulsion option, and a re-arranged flybridge with large entertainment-friendly areas.
   
• In October 2024 Malibu Boats announced the launch of two new inboard models, the Wakesetter 22 MXZ and Wakesetter 24 MXZ. Both models feature torque-optimized inboard engines and proprietary surf/ballast systems, showcasing Malibu’s engineering excellence in the wake-sport segment.
   
• March 2023, Ferretti announces the acquisition of a production site of over 70,000 square metres, including a dry dock, in San Vitale. The acquisition involves an initial investment of about 40 million euros and will be followed by a further 40 million over the coming three-year period to create new production areas and an R&D centre.>
   

The inboard boat market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($Mn) & volume (Units) from 2021 to 2034, for the following segments:

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Market, By Waterways

• Seagoing
• Inland

Market, By Propulsion

• Gasoline
• Diesel
• Electric

Market, By Application

• Leisure
• Transport Of Goods
• Transport Of people
• Fishing
• Government use

Market, By Horsepower

• Below 200 hp
• 201 to 500 hp
• 501 to 1000 hp
• Above 1000 hp

Market, By Boat

• Center console
• Express cruiser
• Pontoon
• Runabout bowrider
• Others

The above information is provided for the following regions and countries:

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Belgium
  • Netherlands
  • Sweden
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Singapore
  • South Korea
  • Vietnam
  • Indonesia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • Saudi Arabia
  • UAE