Inboard Engines Market Size - By Product Type (Diesel, Electric, Gasoline), By Power (Low, Medium, High), By Application (Recreational Boats, Commercial Boats), By Ignition (Electric, Manual), By Engine (IC Engine, Electric Engine) & Forecast, 2024 - 2032

Inboard Engines Market Size - By Product Type (Diesel, Electric, Gasoline), By Power (Low, Medium, High), By Application (Recreational Boats, Commercial Boats), By Ignition (Electric, Manual), By Engine (IC Engine, Electric Engine) & Forecast, 2024 - 2032

Inboard Engines Market size is projected to depict 6.4% CAGR from 2024 to 2032, led by the increasing demand for recreational boating and water sports. Rapid advancements in engine technology for improved efficiency and performance, and the rising disposable incomes are fueling luxury boat purchases. The growing tourism sector and the expansion of marine infrastructure is also spurring the product demand.

The influx of environmental regulations is pushing for cleaner, more efficient engines, driving innovations and adoption of advanced inboard engines. For instance, in December 2023, MAN Engines expanded its workboat engine portfolio with the MAN D3872 series. This newly developed V12 engine, featuring a 30 L displacement—a first for the company—is designed for medium- and heavy-duty applications. Several government initiatives are also promoting marine tourism and water transport. The rising demand for high-performance and durable engines in commercial and military applications is also positively influencing the industry development.

The overall market is segregated into product type, power, ignition, engine, application, and region.

Based on product type, the inboard engines industry from the electric segment is estimated to expand at notable rate from 2024 to 2032, due to the rising demand for eco-friendly and sustainable marine propulsion solutions, along with advancements in battery technology. The growing awareness of reducing carbon footprints and government incentives for electric boats are spurring the product demand. Technological innovations are also enhancing the performance and efficiency of these electrically operated engines.

With respect to application, the inboard engines market from the commercial boats segment will gain traction between 2024 and 2032. This is led by the increasing demand for reliable and high-performance engines for transportation, fishing, and cargo operations. Significant advancements in engine technology are increasing fuel efficiency and durability. The expanding maritime trade, government investments in marine infrastructure, and the growing need for robust engines to support heavy-duty commercial activities are boosting the segment expansion.

Regionally, the Europe inboard engines market is anticipated to grow at robust CAGR between 2024 and 2032, on account of the increasing demand for recreational boating and water sports. The stringent environmental regulations are promoting the adoption of cleaner engine technologies in the region. The rising disposable incomes, expanding marine tourism, and government initiatives are supporting maritime activities. The development of hybrid and electric inboard engines for catering to the escalating requirements will also drive the regional product demand.