Forecast for outboard motor market: growth
Developing economies – like Zimbabwe – utilise outboards for marine tourism. Image courtesy of ZBC
As the cornerstone of contemporary maritime transportation, outboards are beloved for their functionality and ease of use. Ease of installation and replacement over inboard engines often make them a preferred option for boat owners.
And now Research and Markets has released its latest report looking at the outboard market. While access to the full stats comes in with a hefty price tag, summary data indicates that the global outboard marker is expected to grow ‘immensely’ from $5.75 billion in 2024 to $5.98 billion by 2033. Growth will be spurred by rising recreational boating activities, increasing demand for effective marine transportation, and advances in motor technology. On a regional basis, increased tourism, popularity of water sports, and the demand for lightweight, fuel-efficient outboard motors will underpin sales.
The report suggests that electric outboard motors are gaining traction, particularly where environmental regulations are tight.
Those regulations (centred around fuel emissions) are pushing manufacturers to develop quickly. Conforming to international standards (EPA and EU directives) necessitates expensive research and development. This could mean higher product prices for consumers. Complying with regulations without compromising on competitive pricing is an ongoing challenge for manufacturers.
Even so, more fuel-efficient, light-weight, and environmentally friendly outboard motors continue to be produced. Manufacturers are working towards producing electric and hybrid versions to comply with global emissions and demand for sustainable products with features such as intelligent controls, fuel-effective engines, and sound-reducing technologies.
Research and Markets says one of the drivers for growth is an increased demand for recreational boating. Growing disposable incomes, particularly in Europe and North America, have enabled higher numbers of consumers to spend on personal watercraft while tourism hubs, investing in boating facilities, further drive market growth.
Developing economies use small boats for commercial fishing, ferrying and tourism, where robust and efficient outboard motors are critical. Government policies favouring fisheries and maritime safety schemes also increase demand. Also, as aquaculture and maritime trade thrive, demand for durable outboard motors in commercial ventures is likely to increase. Growth is being driven by the increase in small-scale fisheries and government incentives for marine trade in coastal economies. Durability, fuel economy, and low operating costs continue to drive purchase in this market.
One of the significant challenges to the outboard motor industry is high upfront price and maintenance costs. Sophisticated motors with green and high-performance technologies tend to be pricey, and budget buyers are put off by high prices says the data. Servicing, replacement of spare parts, and technical problems that may arise contribute to cost of ownership, which affects total market penetration, particularly in emerging economies where there is high price sensitivity.
Outboards for leisure use will continue to be the largest market in terms of volume sales for the decade ahead. Portable motors – being compact, light build, and user-friendly – are a fast developing segment for global entry-level boat owners and holidaymakers as the ease of buying, maintenance, and operation are a massive draw.
What’s happening with the outboard market globally?
According to the data, Research and Markets posits:
United States
The United States dominates the global outboard motor market due to its long coastline, large freshwater lakes, and thriving recreational boating culture. High technological adoption, robust boating infrastructure, and increasing disposable incomes are driving market growth. The US also has strict environmental regulations, driving innovation towards more sustainable and electric outboard motors. Recreational and commercial usages are on the rise all over the nation.
That said, in November last year, Yamaha Motors’ Katsuaki Watanabe told MIN that in terms of outboards, the United States (the company’s main market) saw decreased demand. Watanabe put that down to high level of interest rates in general, as well as ongoing price raises. At the time, he said high interest rates made customers hesitate to purchase personal watercraft, and thus demand decreased.
France
France’s outboard motor market is supported by a thriving boating culture, boasting thousands of kilometres of coastline and river routes. Demand is strong from recreational boating, together with competitive sailing events. France’s dedication to environmental protection is leading the way in the use of electric and hybrid outboard motors. As well, commercial fishing operations on the Atlantic coast and Mediterranean Sea are boosting market development, making France a prime European market for the industry. Read more about France’s marine sector.
India
India’s expanding coastal economy and booming fishing industry are increasing demand for outboard motors. Those engaged in fishing, particularly in coastal states, are switching to motor boats for efficiency (from traditionally-powered craft). Government initiatives for promoting marine trade, fishing, and water tourism are also boosting market growth. Although price sensitivity continues to be a consideration, growing middle-class consumption and higher interest in recreational boating are also generating opportunities for portable and mid-range outboard motors.
Mexico
Mexico’s extensive coastlines along the Pacific Ocean and Gulf of Mexico provide huge opportunities for the outboard motor industry. Recreational boating, tourism, and fishing are the main drivers for expansion. Efforts by the government to update the fishing fleet and encourage maritime tourism are driving the use of sophisticated outboard motors. More international boat shows and tourism investments are also broadening Mexico’s global market presence.
Saudi Arabia
Saudi Arabia is developing its tourism and maritime industries under its Vision 2030 agenda. New coastal resorts, marinas, and marine tourism ventures have been increasing demand for outboard motors. Its historic fishing industry is also going digital, opening up new avenues for growth. Demand for high-performance and long-lasting outboard motors that can withstand harsh marine environments is shown, increasing demand for commercial and recreational engines. Catch-up with all the marine sector developments coming from the Middle East.
Read all the latest news about manufacturer developments with outboards
