Outboard Engines Market Trends

Growth Drivers

• Considerable Increase in Recreational Boating Activities – The rising living standards of the people and the growth of the population who could afford to participate in watersports or other recreational activities on the water have led to an increase in the production and purchase of recreational boats. For instance, about 12 million boats were registered for recreational purposes in the United States (U.S.) in 2021. Of these, a vast majority were mechanically propelled vessels. These vessels usually had a size between 15 and 27 feet, and the number of only such vessels which were registered in the U.S. in 2021 amounted to 7 million.

• Immense Growth of the Tourism Sector All Over the World – There has been an increase in the number of people traveling internationally and nationally, boosting the tourism sector with each passing year. These travels usually happen as ways of recreation during leisure time. However, people also travel for business needs and to attend formal meetings. As per the World Bank, the number of inbound tourists worldwide increased from 2.07 billion in 2015 to 2.4 billion in 2019. Further, the tourism sector overcame the hurdles posed by COVID-19 to exhibit a growth of over 170% in the arrival count of international tourists between January and July of 2022 compared to the exact time frame in 2021.

• Rapid Development of Infrastructure Worldwide – Infrastructure development is an inevitable step towards the economic growth of a nation. Robust marine infrastructure is crucial to the success of offshore activities related to different industries, including energy and telecommunications. Hence, efforts are made in different parts of the world to improve this infrastructure. For instance, as of the financial year 2021, there were about 225 ports across India.
• Rapid Growth in Disposable Personal Income – The term disposable income refers to the amount of money one has to save or spend. Therefore, rapid growth in disposable personal income is anticipated to boost the segment’s growth.  As of 2022, India held a disposable personal income amounting to USD 3325246 million.
• Economic Significance of the Shipping Industry – It is estimated that more than 89% of transportation in world trade is carried out by the international shipping industry. However, these trade-related vessels can cause serious marine pollution. Such issues call for the use of engines that can use fuel efficiently without wasting it.

Challenges

• A temporary decline in the demand for boats following COVID-19 - The massive job losses and economic crisis during the pandemic affected the boat manufacturing industry, similar to many other industries, adversely. A considerable decline in the disposable income of people led to a reduced demand for boats for recreation and other activities. For instance, it was projected that the unit sales of new boats in the U.S would fall up to 25% during 2020.

• The economic slowdown experienced in different parts of the world

• High pricing of modern engines with several advanced technologies