Outboard Engines Market Report 2026

The outboard engines market size has grown strongly in recent years. It will grow from $10.21 billion in 2025 to $10.86 billion in 2026 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to growth of recreational boating, fuel efficiency regulations, marine engine innovation, fishing fleet expansion, coastal transport demand.

The outboard engines market size is expected to see strong growth in the next few years. It will grow to $14.02 billion in 2030 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to electrification of marine propulsion, emission control mandates, demand for low maintenance engines, smart marine systems adoption, tourism driven boat sales. Major trends in the forecast period include rising demand for electric outboard engines, growing adoption of fuel efficient engines, expansion of mid power outboard applications, improvement in engine noise reduction, integration of smart engine controls.

The growing expansion of the tourism industry is expected to drive the outboard engine market going forward. The tourism industry encompasses economic activities related to the movement of people (tourists) for purposes such as leisure, recreation, business, and other non-residential activities. Outboard engines are widely used in tourism for propelling boats and watercraft, including recreational vessels, sightseeing boats, and eco-tourism excursions, providing reliable and efficient transportation for tourists exploring coastal areas, lakes, and rivers. Their versatility, ease of use, and portability make outboard engines a preferred choice for various tourism-related water activities. For instance, in January 2024, according to the UN World Tourism Organization (UNWTO), a Spain-based specialized agency of the United Nations, global international tourist arrivals reached approximately 1.3 billion overnight visitors in 2023, a sharp increase from 2022, indicating a strong rebound in international travel demand. UNWTO estimated that international tourism receipts in 2023 could reach USD 1.4 trillion. Therefore, the expanding tourism industry is boosting growth in the outboard engine market.

Major companies in the outboard engine market are developing new products, such as electric outboard motors, to gain a competitive edge. Electric outboard motors are propulsion systems that use electric power instead of traditional fuels to drive boats and watercraft. For instance, in November 2023, ePropulsion, a Hong Kong-based outboard motor company, launched the X Series of electric outboard motors, featuring three models: the X12 with 12kW power, the X20 generating 20kW, and the X40 delivering 40kW. These motors offer a total powertrain efficiency of 88.2%, setting a new standard for eco-conscious boating. The X Series incorporates a unique algorithm for propellers, frequency resonance isolation, and vibration dampening technology for a quieter and smoother operation. Weighing up to 36% less than traditional motors, the X Series features a compact, fully integrated design, combining steering, power trim/tilt, and control units for easy installation and optimized onboard space. The ePropulsion Smart System Architecture (eSSA) ensures seamless operation and supports renewable energy integration. With Advanced Driving Assistance Systems, connectivity features, and compliance with the latest IEC standards, the X Series redefines electric propulsion for a cleaner, quieter, and more connected boating experience.

In April 2024, Yamaha Motor Co., Ltd., a Japan-based manufacturing company, acquired Torqeedo GmbH for an undisclosed amount. This acquisition strengthens Yamaha’s marine segment electrification strategy by expanding its product portfolio to include advanced electric and hybrid propulsion solutions. Torqeedo GmbH, based in Germany, specializes in electric and hybrid outboard and inboard motors, pod drives, marine batteries, and related power accessories.

Major companies operating in the outboard engines market report include Honda Motor Co Ltd., Suzuki Motor Corporation, Yamaha Motor Co Ltd., Mercury Marine, Torqeedo GmbH, Lehr LLC, Oxe Marine AB, Cox Powertrain Ltd., Hidea Power Machinery Co Ltd., Golden Motor Technology Co Ltd., Mudd Hog Mud Motors LLC, Parsun Power Machine Co Ltd., Powertec Outboards, Tohatsu Corporation, Evinrude Outboard Motors, Selva Marine S.p.A., Suzhou Sail Motor Co Ltd., SeaProp 60 Outboard Motors, Mikatsu Marine Outboards, Ray Electric Outboards, Zongshen Selva Marine Co Ltd., Aquawatt Electric Outboards, Minn Kota Motors, Seven Marine LLC.

North America was the largest region in the outboard engines market in 2025. The regions covered in the outboard engines market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the outboard engines market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The outboard engine market consists of sales of trolling outboard engines and jet drive outboard engines. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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