Home > Automotive & Transportation > Outboard Engines Market
Industry Statistics
Outboard Engines Market surpassed USD 10.5 billion in 2022 and is expected to grow at 5% CAGR from 2023 to 2032. Snowballing interest in recreational boating, as well as strong economic growth, is set to fuel the industry growth.
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The expansion of the tourism sector, along with the strengthening distribution network is foreseen to stimulate product adoption. According to the World Tourism Organization (UNWTO) in 2021, global tourist arrivals grew by over 4% as compared to 2020. The development of marine infrastructure and the rising demand for recreational boats are thus facilitating outboard engines industry progression further. Meanwhile, in April 2022, OXE Marine, collaborated with Diesel Outboard, a U.S. distributor and manufacturer, to improve its customer outreach.
| Report Coverage | Details |
|---|---|
| Base Year: | 2022 |
| Market Size in 2022: | USD 10.5 Billion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 5.1% |
| 2032 Value Projection: | USD 17 Billion |
| Historical Data for: | 2018 to 2022 |
| No. of Pages: | 350 |
| Tables, Charts & Figures: | 419 |
| Segments covered: | Engine, Fuel, Power, Ignition, Application, and Region |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Price hikes in modern engines may restrain industry development
Prohibitive prices of modern outboard engines are a major factor restraining growth of outboard engines market. The espousal of several technologies in the motor system may hinder product demand. For instance, in April 2018, Yamaha Motor Corporation launched an advanced version of the SR320FB cruiser with the Helm Master outboard control system, which escalated the costs of the cruiser by 6% as compared to the previous versions. Nonetheless, the surging popularity of recreational events and increasing production & sales of yachts are expected to help key players overcome this issue.
Mounting prominence of sustainability to favor the 4-stroke engine segment
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The 4-stroke engine market is anticipated to reach more than USD 9.5 billion by 2032. These engines are effective in adaptability, dependability and flexibility, which encourages the industry participants to manufacture such engines. In April 2022, Honda Power Products India entered the marine outboard business with a four-stroke engine range that aims to offer a fuel-efficient and sustainable solution for splendid speed and thermal performance.
Supportive government policies to amplify Asia Pacific industry revenues
| Countries | Market Share, 2022 (%) |
|---|---|
| China | 21.7% |
| India | 7.4% |
| Japan | 13.3% |
| Australia | 32.3% |
| New Zealand | 3.8% |
| Thailand | 2.5% |
| Indonesia | 14.4% |
| South Korea | 2% |
| RoAPAC | 2.7% |
| Total | 100% |
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The Asia Pacific outboard engines market is estimated to attain 7.5% gains till 2032, attributed to government policies that encourage and improve the boating infrastructure. Domestic government agencies are enforcing laws and standards to guarantee operational safety during leisure boating. In February 2020, the Ministry of Ports, Shipping, and Waterways under the Government of India announced the implementation of Maritime India Vision 2030. This initiative focused on improving the maritime sector while ensuring safety and sustainability.
Higher fuel efficiency to push demand for diesel-fueled engines
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The diesel outboard engines market is foreseen to observe over 5.5% growth rate through 2032. Mounting requirement for high-horsepower outboard motors with great fuel efficiency and high-speed cruising capabilities is driving the need for these types of engines that assist in commercial applications such as cruising, search & rescue, trawling, and fishing. In December 2022, Cox Powertrain announced plans to revolutionize its diesel outboard engines. These engines are found to be 25% more fuel efficient and cleaner than their counterparts.
Mid-powered engines to gain traction in leisure sports
The market for mid-powered outboard engines is speculated to witness nearly 4.5% growth between 2023 and 2032. Mid-range outboard motors have gained traction among leisure activities, including offshore fishing and day sailing due to their flexibility & versatility, wider power range and fuel efficiency. Thus, industry leaders are engaged in introducing mid-range engines to reach high speeds on limited fuel.
Strong inclination toward better battery quality to accelerate electric ignition sector demand
The electric ignition segment is set to garner USD 15.5 billion in revenue by 2032. Consistent improvements in battery quality have contributed to the substantial popularity of electric motors. Boat manufacturers have been able to include an electric start option in small outboard motors as batteries maintain a charge for longer periods, which is likely to aid industry perception.
Surging demand for outboard motors in recreational events
The outboard engines market revenue from the recreational application is predicted to cross USD 12.5 billion by 2032. Sales of recreational boats are rapidly growing, which is impelling the demand for outboard motors. For example, according to the National Marine Manufacturers Association (NMMA), the number of powerboats sold for recreational purposes in the United States increased to 7%, or about 300,000 units, in 2020.
Expansion in production size to strengthen the industry outlook
Some of the leading companies involved in the market are Cox Powertrain, Mudd Hog, Yamaha Motor Co., Ltd., Evinrude, Elco Motor Yachts, Golden Motor Technology Co., Ltd., LEHR LLC., Honda Motor Co., Ltd., Mud Motors, LLC., Suzuki Marine, Powertec Group, Tohatsu Corporation, Volvo Penta, Torqeedo GmbH, Yanmar Co., Ltd., and Mercury Marine, Inc. These companies majorly focus on extending their production capacities to gain a competitive edge. Additionally, in February 2021, electric motor manufacturer Torqeedo opened a new direct delivery company in Norway with the aim to expand its geographical presence and bolster marine electric propulsion systems sales across Europe.
Impact of COVID-19 on the outboard engines market trends
After the COVID-19 outbreak, several firms witnessed a decline in sales and had to halt production. In addition, in June 2020, outboard engine maker Evinrude bolted its Evinrude E-TEC and E-TEC G2 production facilities due to the negative impacts of the pandemic on supply and demand. Additionally, the surge in disposable incomes enhanced consumer interest in boating, impelling product demand in the U.S. Thus, the growing purchasing power of people is also set to stimulate industry statistics.
This market research report on outboard engines 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 2032 for the following segments:
Market, By Engine
- 2-stroke
- 4-stroke
- Electric
Market, By Fuel
- Diesel
- Gasoline
- Electric
Market, By Power
- Low
- Mid
- High
Market, By Ignition
- 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
- 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
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