Outboard Engines Market Report 2025

The outboard engines market size has grown strongly in recent years. It will grow from $9.84 billion in 2024 to $10.35 billion in 2025 at a compound annual growth rate (CAGR) of 5.2%. The growth in the historic period can be attributed to boating and recreational activities, fishing industry growth, expansion of marine tourism, boat manufacturing industry, economic factors and disposable income.

The outboard engines market size is expected to see strong growth in the next few years. It will grow to $13.5 billion in 2029 at a compound annual growth rate (CAGR) of 6.9%. The growth in the forecast period can be attributed to electrification of marine propulsion, stringent emission regulations, growing interest in water sports, rising demand for small boats, global expansion of boating culture. Major trends in the forecast period include smart and connected technologies, advancements in technology, integration of advanced technologies, rise in demand for environmentally friendly engines, shift towards electric and hybrid propulsion.

The increasing production and sales of yachts are anticipated to drive the growth of the outboard engine market in the future. Yachts are defined as large sailboats or motorboats utilized for racing or leisure cruises. Outboard engines are widely employed for propelling yachts due to their ease of installation and simplicity. For example, in May 2023, the National Marine Manufacturers Association, a US-based organization, reported that in 2022, the U.S. recreational boating industry sold over 260,000 new boats and more than one million pre-owned boats. Approximately 95% of the 12 million registered boats in the U.S. are under 26 feet in length. Consequently, the rising production and sales of yachts are expected to boost the outboard engine market.

The anticipated expansion of the tourism industry is expected to be a significant driver for the growth of the outboard engine market. The tourism industry involves economic activities associated with the movement of people, or tourists, for various purposes such as leisure, recreation, business, and non-residential activities. Outboard engines play a crucial role in the tourism sector by powering boats and watercraft used for recreational purposes, sightseeing, and eco-tourism excursions. These engines offer reliable and efficient means of transportation, allowing tourists to explore coastal areas, lakes, and rivers. The versatility, ease of use, and portability of outboard engines make them a popular choice for various water activities related to tourism. For example, data from January 2023 provided by the United Nations World Tourism Organization (UNWTO), a specialized agency based in Spain, indicated that over 900 million tourists traveled internationally in 2022, representing twice the number recorded in 2021. The Middle East experienced remarkable relative growth in tourist arrivals, reaching 83% of pre-pandemic levels. Consequently, the expanding tourism industry is driving the growth of the outboard engine market.

Leading companies in the outboard engine market are concentrating on developing innovative products, such as outboard engines, to improve performance and enhance user experience. They are also committed to sustainability by utilizing recyclable materials and adopting eco-friendly manufacturing methods. An outboard engine is a propulsion system that is externally mounted on the rear of a boat, integrating the engine and gearbox into a single unit. This design provides ease of maintenance and versatility for various types of vessels. For example, in October 2023, Honda Marine, a manufacturing company based in Georgia, introduced the BF350 outboard engine. This engine delivers 350 horsepower and incorporates advanced technologies like VTEC and BLAST™, ensuring strong performance and fuel efficiency for larger boats. Built for reliability and user-friendliness, it is suitable for both recreational and commercial use.

Prominent players in the outboard engine market are spearheading the introduction of innovative products, such as electric outboard motors, aiming to establish a competitive advantage. Electric outboard motors represent a propulsion shift in boats and watercraft, utilizing electric power instead of conventional fuel sources. A prime example emerged in November 2023 when ePropulsion, a Hong Kong-based outboard motor company, unveiled its groundbreaking X Series of electric outboard motors. This series encompasses three distinct models including the X12 delivering 12kW power, the X20 generating 20kW, and the high-powered X40 boasting an impressive 40kW output. These motors collectively achieve an exceptional total powertrain efficiency of 88.2%, setting a new benchmark for environmentally conscious cruising. The X Series stands out for its commitment to innovation, incorporating a proprietary algorithm for propellers, frequency resonance isolation, and vibration dampening technology, promising a quieter and smoother experience. Weighing up to 36% less than traditional counterparts, the X Series boasts a compact, fully integrated design, consolidating steering, power trim/tilt, and control units to facilitate easy installation and optimize onboard space. Leveraging ePropulsion's Smart System Architecture (eSSA), the motors ensure a seamless experience, enabling integration with renewable energy sources. Additionally, the X Series includes Advanced Driving Assistance Systems, connectivity features, and compliance with the latest IEC standards, marking a significant redefinition of electric propulsion for a cleaner, quieter, and more interconnected boating experience.

In November 2022, Correct Craft, a U.S.-based manufacturer specializing in powerboats primarily used for waterskiing, wakeboarding, and wake surfing, completed the acquisition of Indmar Marine Engines for an undisclosed amount. This strategic move is set to broaden Correct Craft's portfolio by incorporating outboard engine manufacturing into its offerings. Indmar Marine Engines, the acquired company, is a U.S.-based manufacturer known for its production of marine engines.

Major companies operating in the outboard engines market include Honda Motor Co Ltd., Volvo Penta, Suzuki Motor Corporation, Yamaha Motor Co Ltd., Brunswick Corporation, 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, Pioneer Engines, Minn Kota Motors, Seven Marine LLC.

North America was the largest region in the outboard engines market in 2024. The regions covered in the outboard engines market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the outboard engines market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Outboard engines serve as self-contained, portable propulsion systems utilized to power boats. Positioned outside the hull on the boat's transom, these engines provide both propulsion and steering for the vessel.

Outboard engines primarily fall into two categories such as fuel-oil outboards and electric outboards. Fuel-oil outboards utilize fuel-oil as energy to power the boat and come in various engine types such as 2-stroke, 4-stroke, and electric variations. These engines serve a multitude of applications including personal boats, commercial vessels, government enforcement boats, and various other uses.

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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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