Outboard Engines Market Analysis & Opportunity Outlook 2023-2035

Global Outboard Engines Market Size, Forecast, and Trend Highlights Over 2023 - 2035

The global outboard engines market is estimated to garner a revenue of ~ USD 18 billion by the end of 2035 by growing at a CAGR of ~ 5% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~ USD 11 billion in the year 2022. The growing market trend for outboard engines can be attributed primarily to the rise in the occurrences of recreational boating activities worldwide. Several factors, such as the improving living standards of people and the increase in disposable income, contribute to the high demand for recreational boats and the market’s growth. Further other factors, including the growth of the tourism sector and the generous funding for infrastructure development in different places in the world, are expected to lead to high demand for efficient boat equipment such as the outboard engine. For instance, the worldwide sales volume for outboard engines in 2018 was estimated to be up to 804 thousand units.

In addition to these, the market for outboard engines is also expected to grow as a result of the surge in water transportation for trade-related activities. Further, the increase in the number of people participating in watersports and the rise of water clubs are also expected to result in a spike in global outboard sales. For instance, it is estimated that about 7% of people in the United Kingdom (U.K.) engaged in various boating activities for recreation in 2018. Other factors that should result in high demand for outboard engines are the use of multi engines for large boats and the increase in the production and sales of yachts.

Global Outboard Engines Market: Growth Drivers and Challenges

Growth Drivers

Considerable Increase in Recreational Boating Activities – The rising living standards of the people and the growth of the population who could afford to participate in watersports or other recreational activities on the water have led to an increase in the production and purchase of recreational boats. For instance, about 12 million boats were registered for recreational purposes in the United States (U.S.) in 2021. Of these, a vast majority were mechanically propelled vessels. These vessels usually had a size between 15 and 27 feet, and the number of only such vessels which were registered in the U.S. in 2021 amounted to ~7 million.
Immense Growth of the Tourism Sector All Over the World – There has been an increase in the number of people traveling internationally and nationally, boosting the tourism sector with each passing year. These travels usually happen as ways of recreation during leisure time. However, people also travel for business needs and to attend formal meetings. As per the World Bank, the number of inbound tourists worldwide increased from 2.07 billion in 2015 to 2.4 billion in 2019. Further, the tourism sector overcame the hurdles posed by COVID-19 to exhibit a growth of over 170% in the arrival count of international tourists between January and July of 2022 compared to the exact time frame in 2021.
Rapid Development of Infrastructure Worldwide – Infrastructure development is an inevitable step towards the economic growth of a nation. Robust marine infrastructure is crucial to the success of offshore activities related to different industries, including energy and telecommunications. Hence, efforts are made in different parts of the world to improve this infrastructure. For instance, as of the financial year 2021, there were about 225 ports across India.
Rapid Growth in Disposable Personal Income – The term disposable income refers to the amount of money one has to save or spend. Therefore, rapid growth in disposable personal income is anticipated to boost the segment’s growth. As of 2022, India held a disposable personal income amounting to ~ USD 3325246 million.
Economic Significance of the Shipping Industry – It is estimated that more than 89% of transportation in world trade is carried out by the international shipping industry. However, these trade-related vessels can cause serious marine pollution. Such issues call for the use of engines that can use fuel efficiently without wasting it.

Challenges

A temporary decline in the demand for boats following COVID-19 - The massive job losses and economic crisis during the pandemic affected the boat manufacturing industry, similar to many other industries, adversely. A considerable decline in the disposable income of people led to a reduced demand for boats for recreation and other activities. For instance, it was projected that the unit sales of new boats in the U.S would fall up to 25% during 2020.

The economic slowdown experienced in different parts of the world
High pricing of modern engines with several advanced technologies

Global Outboard Engines Market Segmentation

The global outboard engine market is segmented and analyzed for demand and supply by ignition type into electric and manual. Between these two types, electric segment is estimated to gain the largest market share by 2035. The growth of this ignition type can be attributed to the improvements made to the batteries used in electric motors. For instance, as of 2021, lithium batteries have largely replaced the traditional lead-acid batteries in electric motors worldwide. The efficiency of the lead-acid batteries was only up to 81%, whereas, that of the lithium batteries has been observed to be ~99%. Lithium batteries have also been observed to be more eco-friendly than lead-acid ones. They are also more compact and lighter compared to traditional batteries. However, they boast a battery life of about 5 times longer than the traditional ones. Electric motors are easier to operate when compared to manually ignited motors. Moreover, they also ensure a better sailing experience without noise, vibrations, and gas fumes, and it is projected to surge the growth of the segment in the market.

The global outboard engines market is also segmented and analyzed for demand and supply by application into commercial, recreational, and military. Of these three applications, the recreational application segment is expected to garner a significant share. The increase in personal disposable income is a major factor driving the contribution of recreational boating in the market growth. With the rising disposable income, a significant number of the worldwide population is choosing watersports for recreation. For instance, it is estimated that over 139 million people participate in watersports annually all over the world. The U.S. and Canada alone have more than 99 million of these people. Further, Europe and Australia too have a sizable population that contributes to the growth of watersports tourism and, thus, to the market for outboard engines. The other factors that lead to high demand for outboard engines are the implementation of autonomous technology in marine vessels and the wide presence of a well-developed boat manufacturing industry worldwide.

Our in-depth analysis of the global outboard engines market includes the following segments:

By Engine Type	2-stroke 4-stroke
By Fuel	Diesel Gasoline Electric
By Ignition Type	Electric Manual
By Power	Low Mid High
By Application	Commercial Recreational Military

Global Outboard Engines Market Regional Synopsis

The North American outboard engines market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The good economic circumstances of the region are one of the major factors favoring its growth in the global market. With more disposable income, boating activities for recreation are affordable to many people in the North American region, and this is expected to lead to high demand for outboard engines. Additionally, the U.S is expected to lead the way for regional growth in North America. In 2020, the U.S. held the highest total in the sales volume of outboard engines, which added up to ~329,501 units. This figure was projected as the highest since 2000. Further, the population in the U.S. is also more inclined to take part in watersports activities owing to their progress in the awareness of their benefits for physical and mental health. It is estimated that annually more than 99 million Americans participate in boating. The share of U.S. households that own a boat for recreation is calculated to be ~12%.

Europe is another region that should show remarkable growth in the market for outboard engines during the forecast period. Several factors, including the high sale volume for mechanically propelled boats and the geographical peculiarities of the region, contribute to the favorable situation in the European market for outboard engines. Europe has witnessed a high demand for diesel-propelled boats in recent times. For instance, over 249999-unit shipments of diesel boats were recorded in Europe in 2020. Further, Europe boasts a coastline stretching over 69999 km and inland waterways of over 36999 km. These peculiarities, with the presence of ~37 million boaters among its population, make Europe a booming market for outboard engines. Equally important to the growth of the regional market is the flourishing marine trade in Europe. It is estimated that only in the second quarter of 2022, the ports in the European Union handled more than 870 million tons of goods.

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Top Featured Companies Dominating the Global Outboard Engines Market

Cox Powertrain Limited
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
Yamaha Motor Co., Ltd.
Brunswick Corporation
Suzuki Marine USA LLC
Honda Motor Co., Ltd.
Bombardier Recreational Products Inc.
Tohatsu America Corp.
AB Volvo Penta.
Hidea Power Machinery Co., Ltd.
Selva S.p.A

In The News

Cox Powertrain Limited announced that its diesel outboard engine, CXO300 achieved the world and national record for speed at the 2022 Coniston Powerboat Records Week. The Cox Marine team, which developed CXO300 and their vessel, Pegasus, achieved a speed average of 62.27mph to surpass three of their previous records in speed.
Brunswick Corporation released about 20 next generation models of V-6 and V-8 outboard engines developed by its largest division Mercury Marine. The release of the new models implies the company's leadership in marine propulsion that is strengthened by sustained investments in products, upgrades, research & development, and more.

Global Economic Impact

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Despite Inflation & Fearing Recession, Businesses Across the Globe Expected to Do Better in 2023:

In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.

Key Questions Answered in the Report

1) What are the major factors driving the growth of the global outboard engines market?

Ans: The increase in recreational boating, infrastructural development and the growth of tourism industry are the major factors driving the market growth.

2) What would be the CAGR of global outboard engines market over the forecast period?

Ans: The market is anticipated to attain a CAGR of ~5% over the forecast period, i.e., 2023 – 2035.

3) What are the challenges affecting the global outboard engines market growth?

Ans: The decline in the demand for boats following COVID-19, the economic slowdown in some countries, and the expensive modern engines are estimated to be the growth hindering factors for the market expansion.

4) Which region will provide more business opportunities for growth of global outboard engines market in future?

Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

5) Who are the major players dominating the global outboard engines market?

Ans: The major players in the market are Cox Powertrain Limited, Yamaha Motor Co., Ltd., Brunswick Corporation, Suzuki Marine USA LLC, Honda Motor Co., Ltd. and others.

6) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

7) What are the segments in the outboard engines market?

Ans: The market is segmented by engine type, fuel, ignition type, power, application, and by region

8) Which segment captures the largest market size in the ignition type segment in the outboard engines market?

Ans: The electric segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

Base Year	2022
Forecast Year	2023-2035
CAGR	~ 5%
Base Year Market Size (2022)	~ USD 11 billion
Forecast Year Market Size (2035)	~ USD 18 billion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)