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Outboard Engine Market Size - By Engine Type (2-stroke, 4-stroke, Electric), By Fuel Type (Diesel, Gasoline, Electric), By Ignition Type (Electric, Manual), By Distribution Channel (Commercial, Recreational, Military), Power & Forecast, 2024 – 2032

  • Report ID: GMI4386
  • Published Date: Feb 2024
  • Report Format: PDF

Outboard Engine Market Size

Outboard Engine Market size was valued at USD 10 billion in 2023 and is anticipated to register a CAGR of over 5.5% between 2024 and 2032. Rising recreational boating activities attributed to the strong economic growth, along with shifting consumer preferences toward boating to spend quality time with family and friends, will support market growth. According to the National Marine Manufacturers Association (NMMA), the gross output of outdoor recreational boating & fishing accounted for USD 32.4 billion in 2022.

Outboard Engine Market

As disposable incomes increase, individuals and families are more likely to invest in recreational activities, including boating. This trend positively impacts the outboard engine market, as boating is often considered a luxury or recreational expenditure. Yachts are a popular choice for recreational boating enthusiasts seeking luxury, comfort, and performance on the water.

As disposable income rises and lifestyles evolve, there is growing demand for yachts as status symbols and lifestyle investments. Outboard engines offer versatility and convenience for yacht owners, allowing for easy maneuverability, shallow water access, and reduced maintenance compared to inboard engines. The popularity of fishing as a recreational activity contributes significantly to the demand for outboard engines. Anglers and fishing enthusiasts often invest in boats equipped with outboard motors to access fishing spots efficiently.

Top of FormThe high prices of modern outboard engines may restrict some consumers, particularly those with limited discretionary income. As a result, potential buyers may be deterred from purchasing new engines or upgrading their existing ones, leading to a slowdown in sales and market growth. High prices can create market segmentation, with premium engines catering to affluent customers willing to pay for advanced features and performance while budget-conscious buyers opt for lower-cost alternatives or used engines. This segmentation may limit the overall market size and hinder manufacturers' ability to reach a broader customer base.

Outboard Engine Market Trends

The outboard engine industry is witnessing a growing interest in electric outboard engines. With advancements in battery technology and a focus on environmental sustainability, electric propulsion systems are gaining traction. Electric outboard engines offer quieter operation, reduced emissions, and lower maintenance requirements. Digital technology is increasingly integrated into outboard engines, offering features such as digital controls, touch-screen displays, and connectivity options. These smart solutions enhance user experience, provide real-time diagnostics, and enable remote monitoring and control.

The adoption of hybrid propulsion systems, combining traditional combustion engines with electric components, is a notable trend. Hybrid outboard engines offer flexibility, allowing boaters to switch between power sources based on their needs, promoting fuel efficiency and reduced environmental impact. There is a growing demand for lightweight and portable outboard engines, particularly for smaller boats, kayaks, and inflatable vessels. Manufacturers are designing compact and easily transportable engines that cater to the needs of recreational boaters and outdoor enthusiasts.

Outboard Engine Market Analysis

Outboard Engine Market Size, By Engine Type, 2021 - 2032 (USD Billion)

By engine type, the 4-stroke engine segment dominated around USD 6 billion revenue in 2023. Fuel efficiency and compliance with environmental regulations are key drivers for the demand for 4-stroke outboard engines. These engines are known for their improved fuel efficiency and lower emissions, aligning with environmental standards and regulations. 4-stroke engines often have longer service intervals compared to 2-stroke engines. This factor contributes to reduced maintenance requirements and downtime, appealing to boaters looking for engines with extended reliability and less frequent service needs.

One of the demand drivers for 2-stroke outboard engines is their simplicity and lightweight design. Boaters often prefer these engines for their straightforward construction, ease of maintenance, and reduced weight, making them suitable for smaller boats and applications where weight is a critical factor. The demand for electric outboard engines is primarily driven by a growing emphasis on environmental sustainability. Boaters seeking eco-friendly alternatives with zero emissions contribute to the demand for electric propulsion systems.

Outboard Engine Market Revenue Share, By Fuel Type, (2023)

Based on fuel type, the gasoline segment held over 81% of the outboard engine market share in 2023. Gasoline outboard engines are versatile and widely available, making them a preferred choice for a broad range of boating applications. The ease of access to gasoline fuel contributes to the popularity of these engines. Gasoline engines are known for their ease of handling and straightforward refueling process. Boaters appreciate the convenience of refueling at standard gas stations, contributing to the demand for gasoline outboard engines.

Diesel outboard engines are known for their fuel efficiency and long-range capability. Boaters undertaking long-distance voyages, commercial applications, and offshore operations often choose diesel engines for their extended range. Electric outboard engines offer quiet operation and low vibration, enhancing the overall boating experience. Boaters valuing a serene and peaceful environment on the water contribute to the demand for electric propulsion.

U.S. Outboard Engine Market Size, 2021 - 2032 (USD Billion)

North America outboard engine market accounted for 55% of the revenue share in 2023. North America has a strong and vibrant recreational boating culture. Enthusiasts engage in various water activities, including fishing, cruising, and water sports. The demand for outboard engines is driven by the region's love for boating and the desire for reliable and efficient propulsion systems. The number of boat sales and registrations directly impacts the demand for outboard engines.

North America experiences consistent boat sales, with a steady influx of new boat owners and boating enthusiasts driving the need for outboard propulsion. Coastal areas, lakes, and rivers in North America attract tourists and residents alike for water-based activities. The demand for outboard engines is influenced by the tourism industry and the popularity of recreational boating destinations.

Outboard Engine Market Share

Global Company Market Share Analysis, 2023

Outboard engine industry seems to be highly fragmented in nature due to presence of numerous local and global players across the globe. In 2023, the above list of dominant companies collectively held around substantial 15%-20% market share. These prominent players are proactively involved in strategic endeavors, such as mergers & acquisitions, facility expansions & collaborations, to expand their product portfolios, extend their reach to a broader customer base, and strengthen their market position.

Outboard Engine Market Companies

Major companies operating in the outboard engine industry include:

  • Camfil
  • Cox Powertrain
  • Elco Motor Yachts
  • Evinrude
  • Honda Motor Co., Ltd
  • Mercury Marine, Inc
  • Mudd Hog Mud Motors, LLC
  • Powertec Group
  • Suzuki Marine
  • Tohatsu Corporation
  • Torqeedo GmbH
  • Volvo Penta
  • Yamaha Motor Co., Ltd
  • YANMAR Co., Ltd

Outboard Engine Industry News

  • In February 2023, Cox Marine announced an expanded contract with Ring Power, a distributor and Cox investor based in the U.S., to cover additional regions as the exclusive distributor as a part of its business strategy. The company is expanding its presence beyond the state of Florida and the Caribbean to include Georgia, North Carolina, and South Carolina, as well as Bermuda, with Ring Power positioned as a Cox distributor powerhouse.
  • In May 2022, Volvo Penta, Marell Boats, and Hurtigruten Svalbard launched a hybrid-electric vessel. The vessel is powered by the helm-to-propeller Volvo Penta twin D4-320 DPI Aquamatic hybrid-electric solution. Through this collaboration, the company contributed to electromobility for marine commercial operations.
  • In February 2022 Volvo Penta signed a partnership agreement with Danfoss’ Editron division to advance electrification in the marine industry.

The outboard engine market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Million) and volume (Thousand Units) from 2018 to 2032, for the following segments:

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Market, By Engine Type

  • 2-stroke
  • 4-stroke
  • Electric

Market, By Fuel Type

  • Diesel
  • Gasoline
  • Electric

Market, By Power

  • Low
  • Mid
  • High

Market, By Ignition Type

  • Electric
  • Manual

Market, By Application

  • Commercial
  • Recreational
  • Military

The above information has been provided for the following regions and countries:

  • North America
  • U.S.
  • Canada
  • Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
  • Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific 
  • Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
  • MEA
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of MEA


Authors: Avinash Singh, Sunita Singh

Frequently Asked Questions (FAQ) :

The market size of outboard engine reached USD 10 billion in 2023 and is set to witness 5.5% CAGR from 2024 to 2032, led by rising recreational boating activities attributed to the strong economic growth.

Gasoline segment held the dominant market share of 81% in 2023, owing to the versatility and wide availability of diesel based outboard engines

North America market held a revenue share of 55% in 2023, driven by the regional consumer’s love for boating and the desire for reliable & efficient propulsion systems.

Camfil, Cox Powertrain, Elco Motor Yachts, Evinrude, Honda Motor Co., Ltd, LEHR LLC, Mercury Marine, Inc, Mudd Hog Mud Motors, LLC, and Powertec Group are some of the major industry contenders.

Outboard Engine Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 15
  • Tables & Figures: 250
  • Countries covered: 22
  • Pages: 387
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