The global outboard engines market size is projected to expand at a compound annual growth rate (CAGR) of approximately 5% between 2023 and 2035. The market is expected to reach a revenue of USD 18 billion by the end of 2035, up from a revenue of around USD 11 billion in 2022. This growth is anticipated to be driven by a surge in tourists. In the first three months of 2023, over 234 million international tourists were projected to have visited, more than twice as many as during the same period in 2022. As a result, maritime tourism is also experiencing a significant increase, further encouraging the market expansion.
Additionally, there has been a growth in the sale of yachts, which typically employ outboard engines. In the first quarter of 2022, about 544 yachts were sold globally. Since the first models were developed, outboard motors have progressed significantly. With the development of technology, every producer has staked out a special place for themselves, driving the sector forward with constant innovation. These include Bluetooth controllers, joystick steering, electronic control modules with sensors and data ports for input and output, and motors that are digitally integrated with a ship's marine electronics.
The need for rescue operations is growing, which is further increasing market demand for rescue boats employed with outboard engines. Around 236,000 individuals drown each year, resulting in a significant global public health issue. Drowning, which makes up 7% of all injury-related deaths, is the third most common cause of unintentional injury mortality.
Outboard Engines Market: Regional Overview
The market is segmented into five major regions: North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa region.
Rising Disposable Income to Influence the Market Expansion in North America
The outboard engines market in North America is predicted to garner the highest revenue by the end of 2035. This growth in the region’s market revenue is set to be influenced by rising disposable income in this region. Between September 2023 and October 2023, the United States' disposable personal income increased dramatically, from over USD 20,387 billion to over USD 20,450 billion.
Rising Population to Encourage Market Growth in Asia Pacific
The outboard engine market in Asia Pacific is set to have notable growth in the market over the forecast period. This growth is poised to be dominated by the growing population in this region. Over 2.2 billion people, or 54% of the world's metropolitan population, reside in Asia. Asia's urban population is predicted to increase by 50% by 2050, adding 1.2 billion new residents. This has further flourished the tourism industry, hence further boosting market growth in this region.
Technological Advancements in Outboard Engines
The development of technology has significantly impacted the outboard engine market. Manufacturers have introduced advanced features such as Bluetooth controllers, joystick steering, electronic control modules with sensors and data ports for input and output, and motors that are digitally integrated with a ship's marine electronics. These innovations have enhanced the performance and efficiency of outboard engines, making them more appealing to consumers.
Global Outboard Engines Market Timeline
2022: Market Baseline
Market Revenue: USD 11 billion
Global Yacht Sales: 544 units in Q1
2023: Tourism & Technology Boost
International Tourists: 234 million in Q1
Technological Innovations: Bluetooth controllers, digital integration
2033: Market Projection
Expected Market Size: USD 18 billion
Projected CAGR: 5% (2023-2035)
Market Segmentation
The outboard engines market is segmented based on various criteria including engine type, ignition type, fuel type, and application.
Engine Type
The market is segmented into 2-stroke and 4-stroke engines. The 4-stroke engines are gaining popularity due to their higher efficiency and lower emissions compared to 2-stroke engines.
Ignition Type
The market is segmented into electric and manual ignition types. Electric ignition systems are becoming increasingly popular due to their ease of use and reduced maintenance requirements.
Fuel Type
The market is segmented into diesel, gasoline, and electric fuel types. Electric outboard engines are gaining traction due to their environmental benefits and reduced noise levels.
Application
The market is segmented into commercial, recreational, and military applications. The recreational segment is the largest, driven by the growing popularity of recreational boating activities such as fishing, water sports, and leisure cruises.
Regional Market Analysis
North America
North America held the largest market share of 54% in 2023. The region is characterized by a high demand for outboard engines due to the popularity of recreational boating activities such as fishing, water skiing, and cruising. The U.S. outboard engines market size was valued at USD 4.28 billion in 2023 and is anticipated to reach around USD 7.34 billion by 2033, poised to grow at a CAGR of 5.60% from 2024 to 2033.
Asia Pacific
Asia Pacific is expected to be the fastest-growing region for the outboard engines market during the forecast period. The region's growth is driven by the growing popularity of recreational boating and water sports in countries like Australia, Japan, China, and South Korea. Urbanization, rising disposable incomes, and an increasing interest in outdoor leisure activities contribute to this growth.
Europe
Europe is another significant market for outboard engines, driven by the growing demand for recreational boating activities and the need for reliable and efficient engines for commercial fishing vessels.
Latin America and the Middle East and Africa
The outboard engines market in Latin America and the Middle East and Africa is expected to grow steadily, driven by the increasing demand for recreational boating and fishing activities.
Market Summary
The global outboard engines market is poised for significant growth over the next decade, driven by a surge in maritime tourism, technological advancements, and rising disposable incomes. The market is expected to reach a revenue of USD 18 billion by the end of 2035, up from a revenue of around USD 11 billion in 2022. The market is segmented into various regions, with North America holding the largest market share. Asia Pacific is expected to be the fastest-growing region, driven by the growing population and increasing demand for recreational boating activities. The market is also characterized by the introduction of advanced features such as Bluetooth controllers, joystick steering, and digitally integrated motors, which are enhancing the performance and efficiency of outboard engines.