The outboard engines market is forecast to exceed $17 billion in revenue by 2025 with a projected compound annual growth rate (CAGR) of 7% over 2019-2025, according to a report from Global Market Insights Inc.
Commercial applications will see significant growth in the outboard engines market owing to rising coastal tourism across the globe. Development of high-powered motors will further enhanced usage of these motors in tourist boats. Additionally, rising boat renting activities for family tour will escalate the product demand over the projected timeframe.
Prominent industry participants in the outboard engines market include Yamaha Motor Co. Ltd., Suzuki Marine, Mercury Marine Inc. and Honda Motor Co. Ltd. Product launch along with strengthening distribution network are key strategies adopted by engine manufactures to enhance their market share in the industry.
Increasing demand for small- and medium-powered boats for fishing and recreational activities along with growing watersport boats demand will support the outboard engines market growth over the forecast timeframe. Outboard motors enable boat manufacturers to offer wide interior space on boats for customers along with improved NVH characteristics of motors enhances boating experience of customers.
Industry players are establishing several corporate offices across the globe to enhance their customer reach. For instance, in October 2018, Yamaha inaugurated new corporate office in the U.S. Additionally, industry participants are establishing new component production facilities to cater the increasing demand of outboard and marine engines. For instance, in July 2019, Yamaha Marine Precision Propellers Inc. subsidiary of Yamaha Motor Corp. started construction of a propeller production facility in the U.S. with an investment of around $18.3 million.
The 4-stroke engine holds dominance in the outboard engines market owing to high power output along with lower environment impact of these motors. Stringent emission norms mandated by several countries across the globe and frequent launch of 4-stroke motors will further support the segment growth. For instance, in February 2019, Mercury Marine launched a 400-hp Verado motor for use in large boats including center consoles, bay boats, and larger sport boats.
Gasoline holds dominance in the market owing to the usage of these motors from conventional to new generation boats. Gasoline outboards are widely deployed in high end leisure boats owing to development of high-powered models. Industry players such as Volvo Penta are offering 557-hp and 627-hp gasoline motors for leisure yachts and boats. However, high volatility of gasoline fuel may raise safety issues and thereby expected lose market share over the study timeframe.
Mid-powered engines will showcase considerable growth owing to rising adoption of these motors for fishing boats. Additionally, overhead-camshaft designs and electronic fuel injection technologies offer quick start, high performance, and efficiency to aluminum fishing boats.
Manual ignition motors will showcase steady growth attributed to low ownership cost of these motors. Wide deployment of these motors into low powered boats along with incorporation of advanced devices including automatic decompression systems offer ease in engine starting operation in all weather conditions. Additionally, proliferating fishing activities in Latin America and rising demand of small watercrafts will further escalate the product demand.
Europe will showcase considerable growth in the outboard engines market owing to increasing production of yachts and leisure boats. Rising watersport events along with several government initiatives to promote coastal tourism will further support the market growth. Additionally, use of these motors in search and rescue operations along with coast guards across the region will escalate the product demand.