Outboard Motors Market Forecasts to 2028 - Global Analysis By Engine Type (2-Stroke and 4-Stroke), Ignition Type (Electric and Manual), Thrust (Portable, Mid-range and High Power), Power (Low, Mid and High), Application (Military, Commercial, Recreational

Outboard Motors Market Forecasts to 2028 - Global Analysis By Engine Type (2-Stroke and 4-Stroke), Ignition Type (Electric and Manual), Thrust (Portable, Mid-range and High Power), Power (Low, Mid and High), Application (Military, Commercial, Recreational Boats, Diving, Fishing and Special Operations) and Geography

According to Stratistics MRC, the Outboard Motors Market is accounted for $5.77 billion in 2022 and is expected to reach $8.08 billion by 2028 growing at a CAGR of 5.79% during the forecast period. An outboard motor is a system used in boats. It is made up of independent parts like the jet drive and gearbox. These outboard motors are required for small watercraft powered propulsion. It independently regulates the boat's steering, which in turn controls the direction of driving.

According to NMMA (National Marine Manufacturers Association) in their annual Outboard Engine Sales Trends report, US outboard engine sales reached a 20-year high in 2020, which records a sale of 310,000 new powerboats in 2020. Also, the total spending on new boats accounted for USD 20.8 billion of the total marine expenditure, registering an increase of 3.8% compared to 2020.

Market Dynamics:

Driver:

Demand for Larger Boats Continues to Rise

Modern boating and fishing activities are increasingly using high-performance and faster boats, and this trend is spreading. Multi-engine pontoons from a variety of manufacturers are becoming more common. A number of anglers have upgraded to centre console fishing boats powered by outboard motors over the past ten years, which has increased the need for cutting-edge outboard engines to power these ground-breaking, huge boats.
Restraint:

Expand Portfolio to Include Alternative-fuel Engines

Manufacturers of outboard engines should recognize that achieving great performance requires striking a balance with strict fuel efficiency regulations and environmental compliance. Outboard engines made for commercial use must adhere to pollution standards set by regulatory agencies, which may have a negative effect on the market's overall growth.

Opportunity:

Electric Propulsion to Gain Traction

The future of marine boats has been predicted to be electric-drive boats. Electric propulsion is preferred by many boat owners for fishing boats, recreational boats, cruisers, pontoons, and tender boats. Electric propulsion outboards are becoming more and more popular, which is attributed to their simplicity of use, lack of gas fumes, engine noise, and vibrations. Electric outboard engines are a good substitute for traditional outboard motors for small boats since they have a lot of moving parts and are less likely to wear out or break down.

Threat:

High Prices of Outboard Engines

Sales of new boats are being hampered by the high price of new boats, consumer preference for used boats due to the boats' longer lifespans, and the requirement to modify engines to meet pollution standards. Another factor that is anticipated to limit market growth for outboard engines is a decline in participation among the younger generation.

Covid-19 Impact

The COVID-19 outbreak had a significant negative impact on the boat manufacturing industry in 2020 and reduced recreational activities globally, which had a negligible effect on outboard motor sales. However, the industry gained momentum in 2021 as a result of the removal of restrictions, and in 2022, the market is anticipated to grow rapidly in the years to come.

The recreational boats segment is expected to be the largest during the forecast period

The demand for small and medium-powered boats increased as disposable income rose, which notably aided in the watercraft industry's rapid expansion. The market is expanding due to rising interest in water recreation activities and the preference for outboard motors with greater authority. As per capita and disposable income levels increase globally, the recreational industry is anticipated to expand.

The commercial segment is expected to have the highest CAGR during the forecast period

Outboard motors are widely used in commercial applications due to the rising power output and efficiency of high-powered outboard engines. Companies all over the world are considering the benefits of high-powered outboards for cost-effective and reliable operations as commercial watercraft. Diesel outboard technology developments are another significant factor in the use of these engines, which offer stability and fuel efficiency in addition to new potential applications in the commercial business segment.

Region with largest share:

Due to a robust economy and an increase in disposable income, North America generally dominates the majority of the outboard motor market in terms of revenue. In comparison to other regions of the world, people in this region have higher income levels and a higher tendency for leisure activities.

Region with highest CAGR:

Due to the popularity of low-powered engines, the outboard motor market in North America held the highest CAGR. Low-powered boats are most appropriate for the fishing industry because they are less expensive and use less fuel. Additionally, marine engine manufacturers constantly develop new products and provide strong solutions to attract clients, which drives up market demand.

Key players in the market

Some of the key players in Outboard Motors market include Tohatsu Corporation, Honda Motor Co., Ltd, Yamaha Motor Co., Ltd, Suzuki Motor Corporation, Parsun Power Machine Co., Ltd., DEUTZ Aktiengesellschaft, Selva S.p.A., Hidea Power Machinery Co., Ltd, Mercury Marine, LEHR, LLC and Brunswick Corporation

Key Developments:

In February 2022, Tohatsu Corporation announced it would soon add the next generation of 25/30 horsepower 4-stroke engines to its model line-up. In addition, the new MFS25/30D model, which may be added soon to the company’s outboard product line, is the lightest 3-cylinder in its class and is engineered to fit a variety of boating applications.

In December 2021, Yamaha Motor Acquires United States Smart boat tech Company, Siren Marine. This acquisition aims to further promote technological development for IoT and Connected Boat support in Yamaha’s outboard-powered boat, personal watercraft, or sports boat.

In December 2021, Honda Marine announced its partnership with Spear Life, the TV spear fishing adventure series; fans of the popular series will see Honda Marine outboards powering the action during season 3. Honda Marine, a division of American Honda Motor Co. Inc., markets a complete range of four-stroke marine outboard motors ranging from 2.3-250 horsepower (hp).

Engine Types Covered:
• 2-Stroke
• 4-Stroke

Ignition Types Covered:
• Electric
• Manual

Thrusts Covered:
• Portable
• Mid-range
• High Power

Powers Covered:
• Low
• Mid
• High

Applications Covered:
• Military
• Commercial
• Recreational Boats
• Diving
• Fishing
• Special Operations

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements