Marine Outboard Engines Market Analysis | 2020-2025

Market Insights

The marine outboard engines market was estimated at USD 5.11 billion in 2019 and is likely to grow at a CAGR of 5.8% during 2020-2025 to reach USD 5.58 billion in 2025.

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Market Dynamics

Introduction

Marine outboard engines, commonly referred to as outboard motors or simply outboards, are propulsion systems designed specifically for boats. They are self-contained units consisting of an engine, gearbox, and propeller, mounted on the stern (back) of the boat. Outboard engines are typically used on smaller watercraft, such as fishing boats, pleasure boats, and small recreational vessels.

Marine outboard engines are the brightest stars of the marine industry as they represent the lion’s share of the marine engines market for the global recreational boating industry. In the USA itself, which is the biggest market for recreational boats, outboard engines account for more than 85% share of the total marine engines sold in the country.

The history of marine outboard engines can be seen back in the early ’90s and has come along a long path of more than 100 years. The power of outboard engines gradually increased with the first 100 HP V-6 outboard engine introduced in 1975. This gave rise to 175- and 200-horsepower outboards on the market. In the past few years, the major push has been toward producing larger and more powerful outboard engines.

The Great Recession (2008-2009) greatly plunged the sales of marine outboard engines, throwing the sales even below their previous decade level. (The USA: 275.5 thousand units in 2007 and 180.7 thousand units in 2009; EMEA (including Russia): 332.4 thousand units in 2007 and 204.7 thousand units in 2009. It took almost a decade for the USA to hit back its pre-recession sales level in 2018 (278.5 thousand units in 2018), whereas, till 2019, Europe even could not close to its pre-recession level.

COVID-19 Impact

The outbreak of COVID-19 destructively pressed the break-in engine sales, making the sales almost standstill in leading economies. It is estimated that global marine outboard engine sales will experience a colossal decline in 2020, taking engine sales to touch below the Great Recession Level in the year 2020.

It is anticipated that there will be a gradual recovery in the sales of outboard engines post-pandemic. From 2022 onwards, the market is likely to mark a speedy recovery in the sales of outboard engines across regions, assisting the outboard engine sales to mark long-term growth.

The pandemic will imprint both short as well as long-term repercussions in the marine outboard engines market; however, the market will find some solace in the long-term scenario with some driving factors including expected growth in HNWI population, increasing boating participants, growing interest towards outboard boats from sterndrive or inboard boats, and increasing demand for high-power outboard engines.

Healthy recovery in outboard engine sales from 2022 assist the industry stakeholders to push global sales to marginally above 750 thousand units by 2025; however, it will be significantly lower than the 2019 sales figure.

Market Drivers

The marine outboard engines market is driven by a host of factors, some of which are noted below:

• The population of High-Net-Worth Individuals (HNWI), i.e., individuals with great financial means, is growing rapidly. This population has a proclivity for luxury items such as recreational boats and accompanying equipment such as outboard engines. According to studies, the number of HNWIs in the world is expected to grow by 8.5% in 2023, reaching a total of 22.5 million.
• Boating accounts for ~37% share of the outdoor participants in the USA. The outdoor recreation participant base grew 2.3% in 2022 to a record 168.1 million participants or 55% of the U.S. population.  Increasing outdoor recreation participants including boating participants is driving the demand for new boats as well as outboard engines.
• There is a huge shift in demand from 2-stroke to 4-stroke engines, which compelled major players to develop 4-stroke outboards that weigh and perform comparably better than the 2-stroke outboards. The increasing share of 4-stroke outboard engines is driving the overall marine outboard engines market in terms of value.
• There has been an increase in the average power of outboard engines in the past few years. This trend in demand for more powerful engines can be linked to a variety of things, including water sports and leisure activities, higher speeds, and enhanced performance.
• Growth in global marine freight transport directly affects marine outboard engines. More than 80% of global transport is done via oceans with the help of marine craft that require marine outboard engines. The marine transport industry is expected to experience substantial growth in the coming years, and so is the marine outboard engine market.

Key Players

The supply chain of this market comprises material suppliers, parts manufacturers, outboard engine manufacturers, boat manufacturers, and dealers/distributors. The following are the key players in the marine outboard engines market:

• AB Volvo
• Bombardier Recreational Products Inc.
• Brunswick Corporation (Mercury Marine)
• Hidea Power Machinery Co., Ltd.
• Honda Motor Co. Inc.
• Suzuki Motor Corporation
• Suzhou Parsun Power Machine Co., Ltd.
• Tohatsu Corporation
• Yamaha Motor Co. Ltd.

Constant upgradation to sync with the market circumstances makes the above-mentioned companies stand out. These companies are taking a step ahead to be in the stiff competition, few of them are: 

On April 2023, Yamaha Marine updated their popular XTO Offshore V-8 outboard, increasing power from 425 to 450 horsepower, allowing boaters to experience the comfort and ease of operation associated with the XTO range. Enhancing this propulsion package with modern technologies, more conveniences with more torque and power, and gentler shifting and operating sound levels. 

On January 2023, Mercury Marine (Brunswick Corporation) extended the warranty program for new outboard engines from 2.5 to 400 hp. With the purchase of new outboards within the predetermined power range, the firm will provide its usual three-year limited warranty in addition to an extra two years of factory-backed Mercury Product Protection Gold coverage. 

On August 2022, Bombardier Recreational Products Inc. introduced the new Rotax Outboard Engine, an all-new low-profile outboard propulsion unit with a horizontal powerhead and propeller drive. The low-profile design is intended to eliminate clutter on the transom and will be exclusive to BRP boat brands Alumacraft, Manitou, and, in Australia, Quintrex. 

Note: The above list does not necessarily include all the top players in the market.

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Segment Analysis

Engine Power Trends

 "<75kW engine power segment held a significant market share in 2019". 

Stratview has firstly segmented the market based on the engine power type as < 75 kW, 75-110 kW, 110-150 kW, and >150 kW. <75kW engine power segment held a significant market share in 2019 & is likely to remain dominant in terms of unit shipments by 2025. However, the segment is likely to lose away its share to the mid-range and high-power segments, majorly in the USA and some key Western European countries.

Japan, China, Russia, and Germany are some key countries with the highest penetration of low-power engines. The majority of outboard engine demand in these countries is less than <30 kW. The <150 kW engine power segment has been gaining a significant share in the market, especially in the USA.

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Boat Trends

"Fishing segment dominated the market with a significant share in 2019".

Our analysis based on the market segment of the boat type suggests that the fishing segment dominated the market with a significant share in 2019 & is expected to remain the dominant boat type among fishing, leisure, sailing/transport, and others.

Pontoon, center console, and multi-species boats have been gaining traction in the segment. Both saltwater and freshwater fishing are generally performed on an outboard-powered boat, which creates a huge demand for outboard engines.

Regional Analysis

"North America region is projected to remain the largest market for marine outboard engines during the forecast period". 

The North American market is also estimated to register huge losses due to the pandemic. Despite the severely hit region, the region is projected to remain the largest market for marine outboard engines during the forecast period. 

The USA is the world’s largest market for both outboard engines as well as recreational boats, with Florida being the largest single market. All the major players have a strong presence in the region to tap the huge market.

Asia-Pacific is currently a small market but is likely to be the fastest-healing region in the market in a post-pandemic scenario. China, Australia, and Japan are key countries in the market generating considerable market demand.

The market is registering significant changes in regional dynamics in pre-COVID and post-COVID scenarios. All regions mark a huge decline in outboard engine sales in 2020; however, EMEA is estimated to be the worst-hit region due to the pandemic.

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Recent Developments

On 23 March 2023, Sharrow Marine releases the all-new, groundbreaking Sharrow XO™ Series Sharrow Propellers. These propellers were specially designed to utilize the power of the modern high-performance large-diameter hub V8, V10, and V12 outboard motor platforms to their maximum potential. The combination of Sharrow XO™ Series and True Advance™ Technology delivers the optimum results.

On November 25, 2022, Mercury Marine added the new V10 outboard motors to its range, marking the industry's first in the boating world. The brand-new Verado outboard motors have 5.7 liters, two trim levels, and 350 and 400 horsepower respectively. The engines were designed to provide significant amounts of power with less harshness, vibration, and noise than the competitors.

Research Methodology

• This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s marine outboard engines market realities and future market possibilities for the forecast period.
• The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market covering 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The marine outboard engines market is segmented into the following categories:

By Engine-Power Type

• <75 kW
• 75-110 kW
• 110-150 kW
• >150 kW

By Boat Type

• Fishing 
• Leisure
• Sailing/Transport
• Others

By Region

• North America Analysis
• EMEA
• Asia-Pacific
• South America

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Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Competitive Assessment

• Competitive Benchmarking of key players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Market Segmentation

• Current market size (2019) of marine outboard engines in any one country by engine power type

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