The global Outboard Engines Market is estimated to be valued at US$ 5.89 Bn in 2023 and is expected to exhibit a CAGR of 3.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
An outboard engine is a propulsion system for boats, comprising of engine, gearbox and propeller assembly that is mounted outside the edge of the hull of the boat. Outboard engines provide advantages such as ease of operation, maneuverability and are lightweight in nature. They come in variants powered by gasoline, diesel or electric and are suitable for small, medium and large boats depending on engine power rating. Outboard engines find applications in recreational activities such as fishing, swimming and adventure sports. They have become very popular in developing regions due to growth in boating and water sports.
Market key trends:
One of the key trends in the outboard engines market size is development of fuel efficient and environmentally friendly engines. Manufacturers are focusing on transitioning to four-stroke technology from conventional two-stroke engines which provide better fuel efficiency and comply with stringent emission norms. Introduction of electric outboard engines is another trend, driven by need for noise and emission free boating. Yamaha, Brunswick and Mercury brands have launched electric outboard engine models. Growth in electric boating is expected to drive the electric outboard engines segment during the forecast period. Adoption of advanced remote monitoring technologies is another trend, wherein engines can be controlled and monitored using smartphones. This enhances convenience and safety. Growing interest of younger population in water adventure sports will further support market growth over the coming years.
Threat of new entrants: The barriers to entry are moderate as setting up a new outboard engine manufacturing plant require high capital investments. However, the growing market provides opportunities for new companies.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of many established manufacturers providing a variety of options. Buyers can easily switch to substitute products if prices are high.
Bargaining power of suppliers: A few large suppliers exist for components like engine blocks. This gives them moderate bargaining power over manufacturers.
Threat of new substitutes: Gasoline-powered outboard engines face threat from new electric outboard engine technology. However, the adoption is slow due to high costs and short battery life of electric engines currently.
Competitive rivalry: The market is highly competitive with the top players competing on technology, product offerings, pricing and branding.
The global outboard engines market is expected to witness high growth, exhibiting CAGR of 3.7% over the forecast period 2023 to 2030, due to increasing maritime tourism and recreational boating activities. The market size for 2023 is estimated to be US$ 5.89 Bn.
Regional analysis: North America dominated the global market in 2022, accounting for nearly 30% share. However, Asia Pacific is expected to witness the fastest growth during the forecast period with countries like China, Japan, and Indonesia witnessing a surge in recreational boating.
Key players operating in the outboard engines market are Yamaha Motor Co. Ltd,, Honda Marine, Suzuki Motor Corporation, Tohatsu Corporation,, Brunswick Corporation. Key players are focused on developing advanced four-stroke outboard engines with reduced emissions and improved fuel efficiency to attract environment conscious consumers. Innovation and technology leadership allows them to command pricing premiums.
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it