Outboard Motor Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, China, Japan, UK, Germany - Size and Forecast 2024-2028

Outboard Motor Market Forecast 2024-2028

• The global outboard motor market size is estimated to grow by USD 1.25 billion between  2023 and 2028
• The market is accelerating at a compound annual growth rate of 4.46%.

The market trends and analysis report offers a thorough analysis of key factors driving market growth. One such factor is the rise in world boat championship programs, which has contributed to increased interest and demand for boats and related equipment. Additionally, there is a noticeable upward trend in increased product launches and collaborations within the outboard motor industry, reflecting efforts to innovate and expand market reach. However, the market faces challenges related to environmental concerns surrounding the disposal of old or obsolete outboard motor units, highlighting the need for sustainable practices in the industry's development.

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Key Major Companies

Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.

AB Volvo - The company offers outboard motors such as 527, 577S and 627SV through its subsidiary Seven Marine.

The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including AB Volvo, Bombardier Recreational Products Inc., Brunswick Corp., Cox Powertrain Ltd., DEUTZ AG, Elco Motor Yachts, Golden Motor Technologies Co. Ltd., Hangzhou Hidea Power Machinery Co. Ltd., Honda Motor Co. Ltd., Johnson Outdoors Inc., Kraeutler Elektromaschinen GmbH, LEHR Holdings LLC, Oxe Marine AB, Power Tec Outboards, Ray Electric Outboards Inc., Selva SpA, Suzhou Parsun Power Machine Co. Ltd., Suzuki Motor Corp., Tohatsu Corp., and Yamaha Motor Co. Ltd.

Qualitative and quantitative analysis of market growth and trends of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified. Furthermore, market growth and forecasting it is also quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Dynamics

The outboard motor market is being driven by the easing of restrictions, fueling increased participation in watersports and boating activities. With rising consumer preferences for leisure and recreational activities, coupled with higher income levels, demand for outboard engines is on the rise. New models offering versatility, convenience, and maneuverability are gaining traction, especially among those seeking shallow water access and reduced maintenance. However, challenges such as environmental concerns and fluctuating fuel prices pose obstacles to market growth, necessitating sustainability. Our researchers analyzed the market research and growth data with 2023  as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage. 

Key Market Drivers

The rise in world boat championship programs is notably driving market growth. The surge in world boat championship programs significantly propels the market as these events draw attention from enthusiasts, professionals, and spectators worldwide, fueling demand for high-performance motors. The groundbreaking E1 Series, inaugurated in January 2024, featured the UIM E1 World Championship's maiden race in Jeddah, Saudi Arabia, attracting enthusiasts from across the globe.

Further, the competition showcased RaceBird boats powered by electric motors from Mercury, a Brunswick Corporation subsidiary, reaching speeds up to 50 knots with Kreisel's modular batteries and Navico's advanced electronics. Manufacturers leverage boat championships to unveil innovations, spurring competition and enhancing recreational boating's allure. This trend underscores a shift towards electrification and sustainability, promising continued market growth and innovation in the market during the forecast period.

Significant Market Trends

An increase in launches and collaboration in the outboard motor industry is an emerging trend shaping market growth. Manufacturers are increasingly focusing on introducing new outboard motor models equipped with advanced features and technologies to cater to evolving customer needs and preferences. Moreover, collaborations between outboard motor manufacturers and boat builders are on the rise, leading to the development of integrated propulsion solutions that optimize performance and compatibility between boats and motors.

Moreover, recent examples include Brunswick Corporation's introduction of a new boat brand and Tohatsu Corporation's launch of a new generation of 4-stroke engines. SpaceX's Starlink service for boats and the hybrid-electric ship launched by Hurtigruten Svalbard, Volvo AB, and Marell Boats also highlight this trend. These initiatives underscore the dynamic nature of the outboard motor market, driven by innovation, technological advancements, and strategic partnerships, further boosting market growth during the forecast period.

Major Market Challenges

Environmental concerns on the disposal of old or obsolete outboard motor units is a significant challenge hindering market growth. The challenge for the global outboard motor market lies in navigating complex regulatory requirements, especially in regions like the United States, with stringent protocols. This involves giving written notice to regulatory bodies such as the US Army Corps of Engineers (USACE), US Coast Guard (USCG), and US Environmental Protection Agency (EPA), necessitating careful coordination and adherence to timelines.

Moreover, failure to comply could lead to penalties or delays, impacting business operations. Limited options for ocean disposal, particularly for smaller vessels due to regulations outlined in the Marine Protection, Research, and Sanctuaries Act (MPRSA), present another challenge. The MPRSA primarily caters to large ships, making it less suitable for smaller vessels powered by outboard motors. With the low annual limit of 0 to 10 vessels permitted for ocean disposal, bottlenecks and extended waiting periods may occur. These challenges pose a significant threat to the growth of the market during the forecast period.

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Market Segmentation And Region

By Type Analysis 

The market share growth by the electric segment will be significant during the forecast period. The market has witnessed a significant shift toward electric propulsion systems driven by advancements in technology, environmental concerns, and regulatory mandates. Electric outboard motors, powered by batteries, offer numerous advantages, such as zero emissions, reduced noise levels, and lower maintenance requirements compared with traditional gasoline engines. The electric segment was the largest and was valued at USD 2.69 billion in 2018. Several key players are driving innovation and market expansion in this segment. Mercury Marine, a division of Brunswick Corporation, offers electric outboard motors equipped with cutting-edge features such as integrated battery management systems and efficient power delivery. Therefore, the increase in technological advancements has also played a crucial role in enhancing the performance and efficiency of electric outboard motors. Lithium-ion battery technology has improved energy density and extended range, addressing concerns about the limited range of electric propulsion systems. Thus, due to such advantageous factors of electric outboard motors, the demand for electric outboard motors increases, which will further significantly boost the growth of the market during the forecast period.

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By Application Analysis 

Based on the application, the market has been segmented into commercial, recreational and military. The commercial?segment will account for the largest share of this segment.?  

Regional Analysis

APAC is estimated to contribute 53% during the forecast period.

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Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. North America holds a significant position in the global outboard motor market, characterized by a robust boating culture, extensive waterways, and a thriving recreational marine industry. The region boasts a diverse range of landscapes, from expansive lakes to picturesque coastlines, making boating a popular leisure activity and driving demand for outboard motors. The United States, Canada, and Mexico are key contributors to the market, with the US being the largest market player. Additionally, stringent environmental regulations have prompted manufacturers to develop innovative, fuel-efficient, and eco-friendly outboard motor models to comply with regulations for emissions from vehicles and engines imposed by the US Environmental Protection Agency. Such factors are expected to drive the regional market growth during the forecast period. 

Market Analyst Overview 

The outboard motor market is driven by various factors such as the thriving boat manufacturing industry and increasing recreational boating activities, as highlighted by the National Marine Manufacturers Association (NMMA). Sales statistics indicate a growing demand for new boats, reflecting economic growth and rising disposable income among consumers. Modern outboard engines, including electric variants, are gaining popularity due to their environmental sustainability, quieter operation, and reduced emissions. Digital technology enhancements such as touch-screen displays and connectivity options enhance user experience and offer real-time diagnostics.

Additionally, hybrid propulsion systems combining traditional combustion engines with electric components contribute to fuel efficiency and reduced environmental impact. The market offers a range of engine types, including 4-stroke and 2-stroke variants, catering to different needs and preferences. Whether for water sports, fishing, or recreational activities, outboard engines play a vital role in powering various vessels, from kayaks to larger boats, across different fuel types and engine sizes. Further, the market is driven by diverse factors such as retail unit sales and recreational activities like outdoor boating and fishing.

Also, with lifestyle investments and status symbols becoming increasingly popular, consumers seek premium engines catering to their discretionary income. Affluent customers opt for electric outboard engines equipped with digital controls for smart solutions and remote monitoring. Lightweight and portable designs suit smaller boats and inflatable vessels, while the 4-stroke engine segment dominates for efficiency. Amid fluctuating oil and gas prices, considerations like long-range capability and quiet operation are crucial. From fishing vessels to military applications, the market offers various propulsion systems, including two-stroke and four-stroke engines, meeting different needs with simplicity and reliability.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across APAC, Europe, North America, South America, and Middle East and Africa
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of outboard motor market companies

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