Outboard Engines Market size was over USD 11.56 Billion in 2023 and is poised to cross USD 22.07 Billion by 2036, growing at more than 5.1% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of outboard engines is estimated at USD 12.12 Billion..The growing market trend for outboard engines can be attributed primarily to the rise in the occurrences of recreational boating activities worldwide. Several factors, such as the improving living standards of people and the increase in disposable income, contribute to the high demand for recreational boats and the market’s growth. Further other factors, including the growth of the tourism sector and the generous funding for infrastructure development in different places in the world, are expected to lead to high demand for efficient boat equipment such as the outboard engine. For instance, the worldwide sales volume for outboard engines in 2018 was estimated to be up to 804 thousand units.
In addition to these, the outboard engines market is also expected to grow as a result of the surge in water transportation for trade-related activities. Further, the increase in the number of people participating in watersports and the rise of water clubs are also expected to result in a spike in global outboard sales. For instance, it is estimated that about 7% of people in the United Kingdom (U.K.) engaged in various boating activities for recreation in 2018. Other factors that should result in high demand for outboard engines are the use of multi engines for large boats and the increase in the production and sales of yachts.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
5.1% |
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Base Year Market Size (2023) |
USD 11.56 Billion |
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Forecast Year Market Size (2036) |
USD 22.07 Billion |
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Regional Scope |
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Ignition Type (Electric, Manual)
The global outboard engines market is segmented and analyzed for demand and supply by ignition type into electric and manual. Between these two types, electric segment is estimated to gain the largest market share by 2036. The growth of this ignition type can be attributed to the improvements made to the batteries used in electric motors. For instance, as of 2021, lithium batteries have largely replaced the traditional lead-acid batteries in electric motors worldwide. The efficiency of the lead-acid batteries was only up to 81%, whereas, that of the lithium batteries has been observed to be 99%. Lithium batteries have also been observed to be more eco-friendly than lead-acid ones. They are also more compact and lighter compared to traditional batteries. However, they boast a battery life of about 5 times longer than the traditional ones. Electric motors are easier to operate when compared to manually ignited motors. Moreover, they also ensure a better sailing experience without noise, vibrations, and gas fumes, and it is projected to surge the growth of the segment in the market.
Application (Commercial, Recreational, Military)
The global outboard engines market is also segmented and analyzed for demand and supply by application into commercial, recreational, and military. Of these three applications, the recreational application segment is expected to garner a significant share. The increase in personal disposable income is a major factor driving the contribution of recreational boating in the market growth. With the rising disposable income, a significant number of the worldwide population is choosing watersports for recreation. For instance, it is estimated that over 139 million people participate in watersports annually all over the world. The U.S. and Canada alone have more than 99 million of these people. Further, Europe and Australia too have a sizable population that contributes to the growth of watersports tourism and, thus, to the market for outboard engines. The other factors that lead to high demand for outboard engines are the implementation of autonomous technology in marine vessels and the wide presence of a well-developed boat manufacturing industry worldwide.
Our in-depth analysis of the global market includes the following segments:
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By Engine Type |
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By Fuel |
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By Ignition Type |
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By Power |
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By Application |
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North American Market Forecast
The North American outboard engines market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2036. The good economic circumstances of the region are one of the major factors favoring its growth in the global market. With more disposable income, boating activities for recreation are affordable to many people in the North American region, and this is expected to lead to high demand for outboard engines. Additionally, the U.S is expected to lead the way for regional growth in North America. In 2020, the U.S. held the highest total in the sales volume of outboard engines, which added up to 329,501 units. This figure was projected as the highest since 2000. Further, the population in the U.S. is also more inclined to take part in watersports activities owing to their progress in the awareness of their benefits for physical and mental health. It is estimated that annually more than 99 million Americans participate in boating. The share of U.S. households that own a boat for recreation is calculated to be 12%.
Europe Market Forecast
Europe is another region that should show remarkable growth in the outboard engines market during the forecast period. Several factors, including the high sale volume for mechanically propelled boats and the geographical peculiarities of the region, contribute to the favorable situation in the European market for outboard engines. Europe has witnessed a high demand for diesel-propelled boats in recent times. For instance, over 249999-unit shipments of diesel boats were recorded in Europe in 2020. Further, Europe boasts a coastline stretching over 69999 km and inland waterways of over 36999 km. These peculiarities, with the presence of 37 million boaters among its population, make Europe a booming market for outboard engines. Equally important to the growth of the regional outboard engines market is the flourishing marine trade in Europe. It is estimated that only in the second quarter of 2022, the ports in the European Union handled more than 870 million tons of goods.
Cox Powertrain Limited announced that its diesel outboard engine, CXO300 achieved the world and national record for speed at the 2022 Coniston Powerboat Records Week. The Cox Marine team, which developed CXO300 and their vessel, Pegasus, achieved a speed average of 62.27mph to surpass three of their previous records in speed.
Brunswick Corporation released about 20 next generation models of V-6 and V-8 outboard engines developed by its largest division Mercury Marine. The release of the new models implies the company's leadership in marine propulsion that is strengthened by sustained investments in products, upgrades, research & development, and more.
Author Credits: Richa Gupta
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