Inboard Engines Market Report 2026

The inboard engines market size has grown strongly in recent years. It will grow from $1.5 billion in 2025 to $1.61 billion in 2026 at a compound annual growth rate (CAGR) of 7%. The growth in the historic period can be attributed to increase in boating activities, popularity of watersports, availability of gasoline inboard engines, marine tourism growth, recreational vessel ownership.

The inboard engines market size is expected to see strong growth in the next few years. It will grow to $2.17 billion in 2030 at a compound annual growth rate (CAGR) of 7.8%. The growth in the forecast period can be attributed to electrification of marine propulsion, emission regulations in waterways, hybrid marine engine adoption, rising disposable income, demand for premium boating experiences. Major trends in the forecast period include growth of recreational water sports demand, preference for high torque marine engines, integration of noise and vibration reduction, shift toward fuel efficient designs, expansion of luxury and sports boats.

The expanding tourism sector is expected to drive the growth of the inboard engine market in the coming years. The tourism sector includes all activities and services related to travel, accommodations, attractions, and visitor experiences for leisure, business, or other purposes, significantly contributing to regional economies and cultural exchange. Inboard engines are used to power boats and vessels for scenic tours and transportation, offering reliability and safety in water-based activities due to their efficiency and consistent performance. For example, in February 2025, according to the United States Bureau of Economic Analysis, a US federal statistical agency, the travel and tourism industry’s real output, representing goods and services sold directly to visitors, grew by 7% in 2023, following a 20.8% increase in 2022. In comparison, the overall U.S. economy, measured by real GDP, expanded by 2.9% in 2023 after a 2.5% rise in 2022. As a result, the growing tourism sector is supporting the growth of the inboard engine market.

Key players in the inboard engines market are focusing on advanced solutions, such as marine engines, to enhance vessel performance, reduce environmental impact, and comply with stringent regulatory standards. A marine engine is specifically designed for boats and ships, engineered to operate efficiently and reliably in marine environments that present challenges such as varying loads, saltwater exposure, and durability requirements. For instance, in September 2024, Scania AB, a Sweden-based manufacturer, launched its new DI13 13-liter marine engine at the SMM maritime trade fair in Hamburg, marking a significant technological advancement. This engine, suitable for both propulsion and auxiliary applications, offers a power range of 257 to 772 kW (approximately 350 to 1050 HP) and delivers an 8% improvement in fuel efficiency compared to previous models. It meets IMO Tier III emissions standards and is compatible with biodiesel and HVO fuels, demonstrating Scania’s commitment to sustainability.

In March 2023, Central Carolina Inboards (CCI), a US-based marine retailer, acquired Discount Inboard Marine LLC (DIM) for an undisclosed sum. Through this acquisition, Central Carolina Inboards aims to expand its parts-and-accessories business by integrating DIM’s inventory of over 1,200 SKUs and established online sales platform, strengthening its supply chain, broadening product offerings, and enhancing customer reach in the inboard marine market. Discount Inboard Marine LLC is a US-based e-commerce company specializing in discounted inboard engine ski-boat parts, drivetrain components, underwater hardware, and related recreational boating accessories.

Major companies operating in the inboard engines market are Honda Motor Co Ltd., Caterpillar Inc., John Deere Power Systems,Mitsubishi Heavy Industries Ltd., Suzuki Motor Corporation, Cummins Inc., Rolls-Royce plc,Yamaha Motor Corporation, Yanmar Holdings Co Ltd., Hyundai Heavy Industries Co Ltd., Wartsila Corp, Deutz AG, Mercury Marine, Motoren Werke Mannheim, FPT Industrial,Volvo Penta LLC, Perkins Engines Company Limited,Kohler Power Systems, Torqeedo Gmbh, Tohatsu Corporation, Nanni Industries SAS, Ilmor Engineering Inc., Steyr Motors Betriebs GmbH, PCM Engines, Westerbeke Corporation, Crusader Engines, MAN Engines, Vetus,Lombardini Marine, Craftsman Marine B.V.

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

The inboard engines market consists of sales of voltage regulators, oil and lube system components, belts and tensioners, bell housing components, and intake manifold gaskets. 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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