Marine Outboard Engine Market

Marine Outboard Engine Market Outlook (2022-2032)

The global marine outboard engine market will reach a valuation of US$ 4,370.5 million in 2022 and is expected to progress at a CAGR of 2.8% to reach US$ 5,735.1 million by the end of 2032.

Adoption of outboard engines in recreational activities account for more than 1/4th market share by the end of 2022.

Report Attributes	Details
Marine Outboard Engine Market Size (2021A)	US$ 4,258.1 million
Estimated Market Value (2022E)	US$ 4,370.5 million
Forecasted Market Value (2032F)	US$ 5,735.1 million
Global Market Growth Rate (2022-2032)	2.8% CAGR
North America Market Share (2021)	~52.1%
North America Market Value (US$ Mn), 2022	US$ 2,277.1 million
Europe Market Share (%), 2022	~22.4%
Europe Market Value (US$ Mn), 2022	US$ 976.9 million
China Market Share (%), 2022	~ 2.5%
China Market Value (US$ Mn)	US $ 107.3 million
Market Share of Top 3 Countries	~55.0%
Key Companies Profiled	Brunswick Corporation DEUTZ AG Honda Motor Co., Ltd Suzuki Motor Corporation BRP Inc Yamaha Motors Co., Ltd., Mahindra and Mahindra, Johnson Outdoors, Inc. Kräutler Elektromaschinen GmbH Parsun Power Machine Co., Ltd. Volvo Penta Tohatsu Corporation.

Sales Analysis of Marine Outboard Engine (2017-2021) Vs. Market Outlook (2022-2032)

A marine outboard engine is a propulsion system for marine vessels (fishing boats, recreational boats, rescue boats, and other special-purpose boats). The outboard engine is itself a self-contained unit consisting of an engine, gearbox, and propeller. An outboard engine is the most commonly used and popular motorized mechanism to power small watercraft.

Along with delivering adequate propulsion, marine outboard engines provide steering control to control the direction of thrust. The marine outboard engine is available in a wide range of power varying from the requirement of small boats to larger boats. The marine outboard engine is available in as low as 2.5 HP power engine to as high as 800 HP.

The category of high-horsepower marine outboard engines is on fire owing to the augmenting demand for heavier and larger boats. Growing sales of boats that require high-power engines are forecasted to drive the market for the marine outboard engine in the future. Therefore, the players are focusing on the introduction of engines with higher power.

• Short Term (2022 Q2 to 2025): Growing shipping and marine industry will positively impact marine outboard engine market growth.
• Medium Term (2025-2028): The countries in North America, East Asia and Europe regions are projected to witness comparatively high marine outboard engine demand due to increased penetration of many countries in shipping, fishing and other marine related activities.
• Long Term (2028-2032): Integrating electric marine outboard engines offering will help the gain larger market share and benefit in the long run.

From 2017 to 2021, the global market for marine outboard engine registered a CAGR of 2.3%. Fact.MR, a market research and competitive intelligence provider, reveals that the market will exhibit growth at 2.8% CAGR between 2022 and 2032.

Market share analysis of marine outboard engine based on engine type and region is provided in the above image. Under the engine type segment, the Four Stroke Electronic Fuel Injection sub-segment dominates with 42.7% market share in 2022.

What’s Driving High Demand for Marine Outboard Engine across Regions?

“Up surging demand for marine transportation to fuel the usage of outboard engines ”

Burgeoning demand for cargo shipping has led to an increase in the demand for ships, boats, barges, industrial workboats, and others to be used as a mode of transportation.

All the different kinds of cargo ships, boats, workboats, bulk carriers, and reefer vessels are effectively used for the transportation of heavy goods such as oil and gas, industrial goods, and others. Growing infrastructure activities in the waterways are increasing the demand for outboard engines.

The increasing cost-effectiveness of various types of boats has driven up the market demand for marine outboard engines. These engines are generally used for propelling different kinds of boats or themselves. All these factors will definitely boost the sales of marine outboard engines.

“Addition of New Technologies Boosting Sales of Outboard Engines”

No industry in the world can grow steadily without the utilization of technology. Shipbuilding is also extensively using current technologies and is progressing at a faster rate. The usage of propulsion systems that have power differences will always be significant, but the improvements in hybrid technology and regulations are driving toward more sustainable alternatives.

For maritime transportation, digitalization and new breakthrough opportunities in the fields of artificial intelligence, IoT, automation, and blockchain, are becoming increasingly important. They help streamline existing processes, creating new business opportunities and transforming supply chains and trade geography.

The production of innovative engines that have high power and are also lightweight are gain hold in the market. Offering the engines in different horsepower’s attract customers from various end-use sectors to use the engines. Effective fuel distribution and offering high speed can be some of the technological advancements that can boost the sales of marine outboard engines.

What Do Marine Outboard Engine Manufacturers Need to Watch Out for?

“The changing fuel requirements may limit the market growth of conventional outboard engines.”

Initially, ethanol was used as the fuel for the outboard engines. The boats that used this type of engine have sometimes proved incompetent due to the corrosive effects of ethanol.

Later on, it was made mandatory to use ethanol only below 10% as a fuel with a mixture of oils and gases. The technological advancements in this sector have now made possible the usage of electric marine outboard engines. Therefore, this has hampered the market for conventional engines. The changing rules and regulations as per the rising concerns for the environment can limit the market growth of conventional engines.

“Uncertainties in the Global Economies Hampering Growth Trend of Marine Outboard Engines.”

The sudden outbreak of diseases or other pandemic situations affects the entire world and all sectors. This might lead to a pause in all the production activities concerned with the marine industry as well. For instance, eminent U.S. boat manufacturers Regal Boats, Viking Yachts, Yamaha Outboard, and Brunswick Corporation, completely halted production within the country in March 2020. The manufacturers of marine outboard engines may have similar threats and hence they have be prepared for the same.

Country-wise Insights

How Increasing Shipping Industry in Japan Drives Marine Outboard Engine Demand?

The Japan market for marine outboard engine will expand at a strong rate of 2.5% CAGR over the forecast period and reach a valuation of US$ 64.1 million in 2032. Japan is among the top countries in the shipping and maritime industries. The country has a production of about 20-25% of the total global trading vessels. Its total dead-weight tonnage is approximately 233 million while its global carrying capacity is almost 12%.

Shipbuilding companies in Japan have also received many export orders for a newer range of ships due to the rising demand for oil tankers and cargo ships. Japan's largest carrier is the Ocean Network Express which is owned 3 prominent shipping companies i.e. Ocean Network Express, Nippon Yusen Kaisha, and K-Line.

Nippon Yusen Kabushiki Kaisha is the leading company in Japan which has assets worth US$ 9.6 billion approximately in March 2021. Owing to all the lucrative opportunities offered by the shipping industry in the country the market for marine outboard engines will have exponential growth.

Why is the Greece Marine Outboard Engine Market Expected to Be Highly Lucrative?

Greece leads the shipping industry world for a long. It is the oldest occupation of the Greeks from ancient times and also a key industry for revenue generation. The Greek ship-owners have around 5,414 ships by the end of 2021 which contributes nearly 21% of the global capacity.

59% of the Europe-controlled fleet is managed by the Greek-owned merchant fleet and is used for the transport of cargo in different countries. As this country retains the crown of the world’s leading maritime force, the market for outboard engines will surely rise high and provide high revenue generation for the manufacturers.

Category-wise Insights

Why Is Fishing Vessels Boat type a Main Segment in Marine Outboard Engine Market?

A fishing vessel is a ship/boat used to catch fish inside the lake or river and also sea. Various kinds of vessels are used in commercial, recreational, and artisanal fishing. A larger fishing vessel is known as a fishing trawler and it conducts the activities of pulling or dragging the trawls in the sea.

China is the largest producer of fish. It has the highest position in the net live fish market trade at a net export value of US$ 406 million in 2020. In 2021, the country has a fish production of 58.8 million metric tons approximately which is around one-third of the global fish production.

Similarly, many other developing countries such as India, Indonesia, Peru, and others that are in the fishing industry have higher utilization of fishing vessels. Majority of the fishing vessels require efficient marine outboard engines for the smooth functioning of the vessels. The market is poised to grow at a constant CAGR and achieve a valuation of US $ 1,924.8 million in 2022.

Why Is There Is Big Opportunity Four Strokes Engines in Marine Outboard Engine Market?

The conventional two-stroke engines were carbureted. These engines lacked emissions standards and fuel economy standards. Later on, the direct injection system two-stroke engines gained momentum. This segment will capture a market share of 13.7% in 2022.

One of the main reasons two-stroke engines are highly used is that they can burn low-grade fuels also. This reduces the overall cost of running the ships as better-grade fuels have higher costs. These engines have a high power-to-weight ratio and hence can carry more amount of cargo on the ships.

The sales of the new four-stroke engines are now rising. These engines are mostly used for the large merchant vessels that are used for traveling on the ocean. The four stroke engine market will have significant growth in the long run and capture a market share of 71.4% by the end of 2022.

Competitive Landscape

Prominent marine outboard engine manufacturers are Brunswick Corporation, DEUTZ AG, Honda Motor Co., Ltd., Suzuki Motor Corporation, BRP Inc., Yamaha Motors Co., Ltd., Mahindra and Mahindra, Johnson Outdoors, Inc., Kräutler Elektromaschinen GmbH, Parsun Power Machine Co., Ltd., Volvo Penta, and Tohatsu Corporation.

Focus on the expansion of its business through increasing its sales offices & distribution centers to enhance its presence across the globe. Key manufacturers are found to be involved in material optimization, technological advancement, and productivity to cater to a wide customer base worldwide.

• Marine motors a subsidiary of Brunswick Corporation declared its partnership with Frydenbø in 2020. It will be an engine partner to the Nordkap and Sting boat brands.
• Yamaha Motor Co., Ltd. made an investment in a U.S startup called Siren Marine, in March 2021. Siren Marine Company utilizes IoT technology and provides smart boat solutions for innovatively connecting the marine industry.

Fact.MR has provided detailed information about the price points of key manufacturers of marine outboard engine positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Marine Outboard Engine Industry Research

• By Power :

  • Less than 30 HP
  • 30HP to 100 HP
  • Above 100 HP

• By Ignition Type :

  • Electric
  • Manual

• By Engine Type :

  • Two Stroke Carbureted
  • Two Stroke Electronic Fuel Injection
  • Two Stroke Direct Injection System
  • Four Stroke Carbureted
  • Four Stroke Electronic Fuel Injection

• By Boat Type :

  • Fishing Vessel
  • Recreational Vessel
  • Special Purpose Boats

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East and Africa (MEA)