April 20, 2024
Global Outboard Engines Market

The Outboard Engines Market Growth is Propelled by Increased Participation in Recreational Activities

The outboard engines market has witnessed significant growth in recent times due to the advantages offered by these engines such as ease of operation, maneuverability and flexibility. Outboard engines are small portable engines that are attached to the stern or the rear end of the boats which provide propulsion. They are preferred for motorboats, fishing boats and other small to medium watercraft activities. Outboard engines come in a range of power ratings from small outboard motors of 5 horsepower for tenders to large outboard engines of 300 horsepower or more for cruise and velocity boats.

The Global Outboard Engines Market is estimated to be valued at US$ 6.79 Mn in 2024 and is expected to exhibit a CAGR of 5.2% over the forecast period from 2024 to 2030.

Increased participation in recreational activities such as fishing and boating has been a major driver for the outboard engines market. With growing leisure time and rising disposable incomes, more people are engaging in recreational nautical activities and are investing in motorboats and yachts which require outboard engines for propulsion. This has led to strong demand for these engines, especially 2-stroke outboard motors.

Key players operating in the Outboard Engines market are Tessenderlo Group, K+S KALI GmbH, Compass Minerals International Inc., SQM SA, Sesoda Corporation, Migao Corporation, The Mosaic Company, Yara International ASA, SOPerior Fertilizer Corp., and Interpid Potash, Inc.

The growing demand for personal watercrafts for leisure and recreational activities has boosted the sales of outboard engines. Easy boat maintenance along with advantages like portability and maneuverability have increased preferences for outboard boat motors.
Major outboard engine manufacturers are focusing on expanding into developing markets in Asia Pacific and Latin America due to untapped growth opportunities. Increased boating infrastructure projects and rural electrification are expected to drive the outboard engines demand.

Market Key Trends
One of the key trends seen in the Global outboard engines market Size is increasing preference for electric outboard engines. Major manufacturers like Yamaha Motor Co., Ltd. are heavily investing in developing zero emission electric outboard engines. Growing environmental concerns and stringent emission norms are accelerating the demand shift towards electric variants. However, high upfront costs and range limitations continue to hinder widespread adoption of electric outboard motors currently. Yamaha aims to develop inexpensive high performance electric models to effectively tap the market potential.

Porter’s Analysis

Threat of new entrants: New companies can enter the outboard engines market easily as the initial investment required to manufacture outboard engines is moderate. However, established players have significant brand value and supply chain leverage making it difficult for new entrants to gain market share.

Bargaining power of buyers: Buyers have moderate bargaining power in the outboard engines market. While there are many established brands, buyers cannot negotiate prices greatly due to strong brand loyalty for premium offerings.

Bargaining power of suppliers: Component manufacturers have low bargaining power since materials used in outboard engine manufacturing such as aluminum alloys and plastics have many supplier options.

Threat of new substitutes: There exists potential threat from electric boats and fuel cell technology. However, limited battery capacities and high costs restrict significant substitution in the near future.

Competitive rivalry: The market has the presence of many luxury brands with specialized model lineups. Players compete based on product innovations, quality, and brand image.

Geographical Regions

North America currently holds the largest share of the global outboard engines market in terms of value due to high demand from recreational activities. The United States is a major market for outboard engines owing to the presence of coastal regions and inland water bodies supporting boating.

Asia Pacific is expected to record the fastest growth during the forecast period led by countries such as China, Japan and Australia. Rising disposable incomes, economic development and growth in recreational boating are driving the demand for outboard engines across coastal regions.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it