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The Global Marine Outboard Engines market size is forecast to increase by USD 3.29 billion at a CAGR of 5.54% between 2023 and 2028. The market's vitality hinges largely on the demand for powerboats such as pontoon boats, personal watercraft, ski boats, and wakeboards. Nevertheless, a major hurdle for the industry is the absence of consistent standards and regulations, which differ from one region to another. Moreover, alterations in environmental regulations exert a detrimental effect on the sales of marine outboard engines.
The market share of the low-power segment will be significant during the forecast period. Marine outboard engines used by previous generations that have been reduced in size fall under the low-power marine outboard engines market. The size of these marine engines is reduced by employing technologies like forced induction (turbocharger) and direct injection technology. The power and performance of these engines are similar to that of the marine engines of the previous generations. The emission of greenhouse gases by the marine industry is continuously increasing. For instance, about 2.5% of the total global greenhouse gases in Europe are emitted by the marine industry, and it is expected to increase to 5% by 2050.
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The low-power segment was valued at USD 4.23 billion in 2018 and continued to grow until 2022. Governments and regulatory bodies have enforced stringent rules and regulations to reduce carbon emissions. As a result, marine outboard engines are reduced in size without comprising on power, efficiency, and performance of engines. Such factors will drive the demand for low-power marine outboard engines during the forecast period.In addition, due to the growing stringent regulations on carbon emissions, marine outboard manufacturers are focusing on technological innovations.
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North America is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. A major factor contributing to the growth of the market is that many North Americans are participating in water-related recreational activities. The US and Canada are the two major markets for marine outboard engines in North America. The US, by far, is the single largest market for these products. Boating is one of the major recreational activities of people in the US.
The economic growth of the country in the last decade, increasing consumer confidence, and technological innovations by boat manufacturers are driving the growth of the market in the US. In North America, OEMs are focusing on manufacturing versatile and affordable products to appeal to the youth. In addition, intuitive marine technology makes it easy to operate these products. The growing boat rental market and shared boat ownership applications in North America will drive the demand during the forecast period.
The market is deeply intertwined with the boat manufacturing industry and the realm of recreational activities. The demand for new boats and outboard engines is heavily influenced by factors such as fuel efficiency and income levels. As market trends continue to evolve, manufacturers strive to meet the demands of recreational boating enthusiasts. With disposable income playing a vital role, the watercraft industry keeps a close watch on per capita income and active boaters. Additionally, the tourism industry contributes significantly to the market's growth, as recreational boating remains a popular activity for tourists and locals alike. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The surging popularity of environmentally-friendly outboard engines is notably propelling the market forward, catering to the preferences of eco-conscious consumers. The global market is heavily reliant on the demand for powerboats such as pontoon boats, personal watercraft, ski boats, and wakeboards. Economic factors, robust consumer confidence, high employment rates, and increasing disposable income are pivotal drivers behind the demand for these boats. The proliferation of boat shows in the US is a primary catalyst for heightened sales. Moreover, the boating industry in the US benefits from economic recovery, a robust job market, and declining fuel prices.
Original Equipment Manufacturers (OEMs) are crafting boats that are both versatile and affordable to attract new and young boaters. Additionally, boats are becoming increasingly adaptable as OEMs engineer products capable of delivering an enhanced experience, appealing to a broader audience. These factors underscore the robust and steady growth in sales of these products, which will ultimately propel the market forward during the forecast period.
Increased usage of turbochargers is the key trend in the market. Turbochargers increase the volume of air to the combustion process without any additional requirement for large displacement cylinders. A turbocharger is a component that aids engines in producing additional power and improves the overall performance of engines. It helps boost the power of engines by increasing the intake of air in combustion chambers.
For instance, a four-cylinder engine fitted with a turbocharger can produce the same power as a six-cylinder engine. The use of turbochargers is to reduce the size of engines without compromising on power and the benefits of fuel economy. All major leading economies of the world have shifted their focus on reducing greenhouse gases and increasing energy efficiency. The stringency of regulations is increasing to reduce carbon emissions. Such factors are driving the use of turbochargers in marine outboard engines. The usage of turbochargers in these products will further grow during the forecast period.
Economic factors affecting the sales of these products are major challenges affecting the market growth. The performance of the global economy is a critical factor affecting the boating industry as the demand for marine outboard engines is usually cyclic with fluctuations in the economy. The decrease in demand for these products is expected to be followed by an increase in the sales momentum in consecutive years. The sales of these products were at their peak before the recession due to the high disposable income and the interest of consumers in buying these products. However, during the recession, the sales of boats were adversely impacted due to the sharp decline in the disposable incomes of consumers.
As the global economy started reviving, the sales of these products also increased. Hence, it can be inferred that the demand for these products is fluctuating and largely depends on economic factors, which can become a major challenge for the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Parsun - The company offers marine outboard engines that allow for long-range operations due to fuel consumption. They offer products such as 2-stroke, 4-stroke, diesel engines, electric motor boards, and other spare parts.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The Market anticipates steady growth in the coming years, driven by the rising popularity of watersports and recreational boating activities. With reliable and quieter engines, new models cater to both younger and older generations, enhancing leisure experiences. The market sees growth drivers in expanding tourism and the demand for powerful outboard engines for small and medium-powered boats. Innovations like autonomous marine technology attract less skilled recreational boaters, while investments in emission norms and lithium-ion batteries promote sustainability. Additionally, partnerships with companies like SpaceX for satellite-internet services ensure connectivity even in remote coastal areas, further boosting the market.
Additionally, the market experiences growth buoyed by the demand from recreational boating and watersports participants. With expanding tourism, particularly in coastal areas and beach destinations, there's a surge in sales, as reported by the National Marine Manufacturers Association (NMMA). The market landscape depends on Lithium ion batteries, 2 stroke outboard engines, 4 stroke outboard engines, Diesel outboard engines, Commercial fishing vessels, Water taxis, Ferries, Aquaculture, Maritime surveying, Barges, Industrial workboats, Reefer vessels, Electric engines, Environmental rules, Hybrid outboard engines The market also sees traction in landlocked cities, where outdoor sports and artificial beaches drive participation in water recreational activities. Advanced technologies like Starlink internet services ensure connectivity even in remote areas, while higher-powered outboards cater to the need for speed and performance in leisure activities. Additionally, safety and innovation remain key focal points in the development of marine outboard engines.
Furthermore, the market thrives amidst rising demand for recreational boating and watersports activities, supported by expanding tourism. US boat sales statistics and global sales data reveal a robust market, with the National Marine Manufacturers Association (NMMA) providing insights through its annual Outboard Engine Sales Trends report. Urban areas, artificial beaches, and water parks drive sales, while innovations in outboard motor technology cater to the evolving needs of the recreational industry. Spear Life's TV spear fishing adventure series adds to the allure of marine adventures, further fueling interest in outboard motors.
The marine outboard engine market is driven by a diverse range of vessels, including fishing boats, recreational boats, rescue boats, and special purpose boats. These engines power marine vessels of various sizes, from small boats to larger vessels like cargo ships and bulk carriers. With a focus on high horsepower engines, advancements in propulsion systems and power delivery are incorporating smart technologies, such as electronic fuel injection systems and engine control units, to enhance performance and efficiency. Additionally, materials innovation ensures durability, corrosion resistance, and weight optimization. While electrification addresses environmental concerns and regulatory push for reducing carbon footprints, challenges like noise pollution and high initial costs persist. Hybrid and electric outboard engines, powered by lithium-ion batteries, offer alternative fuel options, catering to the evolving demands of maritime tourism, water skiing, and cruising. Government organizations, marine service providers, and scientific research entities drive environmental monitoring initiatives, shaping the future of marine propulsion technology.
Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.54% |
Market growth 2024-2028 |
USD 3.29 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.17 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 41% |
Key countries |
US, Australia, France, Italy, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB Volvo, Bombardier Recreational Products Inc., Brunswick Corp., Cox Powertrain Ltd., DEUTZ AG, Elco Motor Yachts, Greaves Cotton Ltd., Hangzhou Hidea Power Machinery Co. Ltd., Honda Motor Co. Ltd., Kraeutler Elektromaschinen GmbH, LEHR Holdings LLC, Mahindra and Mahindra Ltd., Oxe Marine AB, Parsun, Suzuki Motor Corp., TAIZHOU GONGDA MOTORS PARTS CO. LTD., Tohatsu Corp., West Marine, Yamaha Motor Co. Ltd., and Yongkang Longxiao Industry and Trade Co. Ltd. |
Market dynamics |
Parent market analysis, Market forecasting, market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Power Rating
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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