July 14, 2024
Outboard Engines Market

Outboard Engines Market: Growing demand for water sports and recreational activities to drive market growth

The global Outboard Engines Market is estimated to be valued at USD 10.5 billion in 2022 and is expected to exhibit a CAGR of 5% over the forecast period 2023-2032, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Outboard engines are propulsion systems used in boats to generate thrust and facilitate movement. These engines are compact, lightweight, and offer high performance, making them ideal for various water activities such as fishing, watersports, and leisure boating. The key advantages of outboard engines include easy maneuverability, fuel efficiency, and low emissions. The growing popularity of water sports, leisure boating, and fishing activities is driving the demand for outboard engines.

Market key trends:

Adoption of advanced technologies in outboard engines

One key trend in the outboard engines market is the adoption of advanced technologies to enhance engine performance and efficiency. Manufacturers are integrating features such as electronic fuel injection systems, direct fuel injection, and variable valve timing to improve fuel economy and reduce emissions. Additionally, advancements in materials and manufacturing processes are resulting in lighter and more compact engines that offer higher power outputs. These technological advancements are likely to fuel the growth of the outboard engines market in the forecast period.

Porter’s Analysis

Threat of New Entrants:

The threat of new entrants into the outboard engines market is relatively low. The market is dominated by major players who have established strong brand presence and loyal customer base. Additionally, the high capital requirement for setting up manufacturing facilities and the need for extensive research and development capabilities act as barriers to new entrants.

Bargaining Power of Buyers:

The bargaining power of buyers in the outboard engines market is moderate. While buyers have the option to switch between different brands, they are limited by the availability of products in the market. Moreover, the high switching costs associated with changing an outboard engine brand and the importance of reliability and performance make buyers less likely to bargain aggressively.

Bargaining Power of Suppliers:

The bargaining power of suppliers in the outboard engines market is moderate. The market is characterized by a limited number of suppliers for key components such as engines and propellers. However, the major players in the market have established long-term relationships with their suppliers and have the ability to switch suppliers if necessary. This reduces the bargaining power of suppliers.

Threat of New Substitutes:

The threat of new substitutes in the outboard engines market is low. Outboard engines are the primary propulsion systems for small to medium-sized boats, and there are no viable alternatives with similar performance capabilities. Electric motors are emerging as potential substitutes, but they have limited power and range, making them unsuitable for many applications.

Competitive Rivalry:

The competitive rivalry in the outboard engines market is intense. The market is highly consolidated, with a few major players dominating the industry. These players compete on factors such as product performance, reliability, fuel efficiency, and after-sales service. The high level of competition leads to continuous innovation and product development.

Key Takeaways

The global outboard engines market is expected to witness high growth, exhibiting a CAGR of 5% over the forecast period. The increasing popularity of recreational boating and water sports activities, along with the growing demand for small boats for commercial purposes, are driving the market growth. For example, the rising number of boat clubs and rental services is boosting the demand for outboard engines.

From a regional perspective, North America is the fastest-growing and dominating region in the outboard engines market. Factors such as the presence of a large number of recreational boaters, favorable boating regulations, and the availability of advanced boat manufacturing technologies contribute to the region’s market dominance. Additionally, countries in Asia Pacific, such as China and Japan, are witnessing significant growth due to the increasing adoption of boating as a leisure activity.

Key players operating in the outboard engines market include Yamaha Motor Company Ltd., Suzuki Motor Corporation, Honda Motor Co., Ltd., Tohatsu America Corp., Brunswick Corporation, and Evinrude Outboard Motors, among others. These key players have a strong market presence and offer a wide range of outboard engine models with varying power outputs to cater to different customer requirements. They also focus on continuous product innovation and strategic partnerships to maintain their market position.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it