by An outboard engine is a marine propulsion system for boats installed externally on the transom. Outboard engines are commonly used to propel small watercraft such as motorboats and inflatable boats. Two prominent fuel types used in outboard marine engines are petrol and diesel. Outboard engines for recreational purposes are mainly petrol-powered, while commercial outboard engines may use diesel fuel for its higher power output. The global outboard engines market is witnessing significant growth owing to rising recreational boating activities around the world. With technological advancements, manufacturers are introducing innovative electric and hybrid engines to attract environmental-conscious consumers.
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 5.2% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing recreational boating activities: Rising disposable incomes and improving standard of living in developing economies have led to increased consumer spending on recreational activities such as boating and fishing. Outboard engines are an integral part of recreational boats to power and propel the boats. According to the National Marine Manufacturers Association, approx. 290 Million Americans participated in recreational boating activities in 2020. Thus, the growing participation in recreational boating is expected to drive the demand for outboard engines over the forecast period.
Expected flourishment through electric and hybrid engine innovation: Environment regulations to curb vehicular emissions are prompting outboard engine manufacturers to develop electric and hybrid technologies. Companies are investing heavily in R&D to introduce eco-friendly electric and hybrid outboard engines. For instance, Yamaha Motor Co. launched its first 100% electric outboard engine, PW-X in 2020. Thus, the availability of emission-free electric outboard boats is estimated to boost the overall market growth during the forecast period.
Segment Analysis
The outboard engines market is segmented by power range into low power engines (Less than 30 Hp), medium power engines (30-100 Hp) and high power engines (Above 100 Hp). The medium power engines segment dominates the market with around 50% share as these engines deliver enough power for various recreational and commercial activities like boating, small fishing vessels, etc. and are fuel-efficient compared to high power engines.
PEST Analysis
Political: Stringent emission norms by regulatory bodies impact engine design and fuel efficiency.
Economic: Growth in tourism and water sports boosts demand. Rising disposable incomes increase sales of mid-range engines.
Social: Boating and fishing as hobbies gain popularity.
Technological: Developments in direct fuel injection, advanced propulsion and battery technologies improve performance.
Key Takeaways
The Global Outboard Engines Market Demand is expected to witness high growth over the forecast period.
Regional analysis:
The Asia Pacific region dominates the market with over 35% share led by countries like Japan, China and Australia. High participation in boating and increasing fishing industry in Southeast Asia support growth.
Key players operating in the outboard engines market are Yamaha Motors, Brunswick Corporation, Suzuki Motor Corporation, Tohatsu, Honda Motor Co and others. Key players continue to invest in new engine designs, electronic features and electric outboard engines to expand their product portfolio.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
