Outboard Motors Market was valued at USD 5.45 Billion in 2021 and is projected to reach USD 6.84 Billion by 2027, registering a CAGR of roughly 3.79% during the forecast period (2022 – 2027).
New York, Sept. 05, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the publication of the report “Outboard Motor Market – Growth, Trends, Impact of COVID-19 and Forecast (2022 – 2027)” – https://www.reportlinker.com/p06317788/?utm_source=GNW
In 2020, the COVID-19 outbreak had a significant impact on the boat manufacturing industry and caused a decline in leisure activities globally, which had a negative effect on outboard motor sales. -edge. However, in 2021, the market has gained momentum due to the lifting of restrictions. Therefore, in 2022, the market is expected to register healthy growth in the coming years.
The rise of water sports and water activities in the world is expected to increase the demand for outboard motors. According to boat sales statistics from the US National Marine Manufacturers Association, retail unit sales of new boats reached nearly 320,000 in 2020, which is expected to increase the sale of engines and outboard motors. For example, global sales of outboard motors have increased with a growth rate of around 2% over the past five years.
Newer models that consume less fuel, are significantly more reliable, are relatively quieter, and those that are more environmentally friendly than older generations continue to enter the market. An increase in the income levels of people globally, which enables them to spend more on leisure and recreational activities, will be a growth driver for the outboard motor market.
Main market trends
Recreational boating is expected to drive growth over the forecast period
The increase in disposable income has led to an increasing demand for small and medium horsepower boats, which has contributed significantly to the rapid growth of the watercraft industry.
Growing participation in water recreation activities and preference for more powerful outboard motors are also driving the market growth in the region. The recreational industry is expected to grow as per capita and disposable income levels increase worldwide.
The recreational boating industry continues to attract entrants, providing strong competition to rival luxury leisure. There are approximately 140 million active boaters and water sports enthusiasts worldwide, including nearly 100 million in the United States and Canada, 36 million in Europe and more than 5 million in Australia.
Factors, such as expanding tourism industry and rising disposable income will also drive the market forward. Additionally, developments in autonomous marine technology will increase the demand for less skilled boaters. The presence of numerous manufacturers in this well-integrated and fragmented industry ensures a constant supply for the global demand for pleasure craft.
Outdoor sports and adventure are becoming increasingly popular in Europe and North America, especially beach tourism, as well as the development of artificial and man-made beaches in landlocked cities (water and theme parks) and urban areas. Cruising is also becoming valuable, as interest in luxury maritime tourism has increased in recent years.
For example, in one survey, there has been a steady increase in the number of people participating in water sports from 2020 to 2021 in the United States. Moreover, the number is expected to increase further in 2022 and beyond. This is expected to help the recreational boat segment of the outboard motor market to grow over the forecast period.
North America is expected to be the market leader
North America leads the outboard motor market in terms of revenue in 2021, owing to strong economic growth and increasing disposable income. People’s growing income levels and their penchant for recreation and leisure activities are higher than in any other part of the world. North America holds approximately 40% of the outboard engine market. The United States is the largest single market for outboard motors, with sales of higher horsepower (200hp+) outboard motors growing year-on-year over the past seven years.
According to the NMMA (National Marine Manufacturers Association) in its annual outboard motor sales trend report, outboard motor sales in the United States reached a 20-year high in 2020, which records a sale of 310,000 new motorboats in 2020.
Additionally, total new boat spending accounted for $20.8 billion of total marine spending, registering a 3.8% increase from 2020.
In 2021, total North American pleasure boat sales are estimated to be approximately 305,734 units, a slight decrease of 4.1% from the record figures of 2020. Although in 2021 sales figures are the second highest since 2008.
Approximately 35% of the total US population participates in recreational water activities. Due to the growing program of stress management and health awareness among individuals, more and more people are taking part in water sports activities for relaxation. The coastline is also very large, which results in a number of beaches, thus creating more opportunities for the sale of outboard motors.
Additionally, companies are entering the boat market with innovative products to meet the growing demand and safety of boat users.
For example, in July 2022, SpaceX launched Starlink, the satellite internet service for boats in the United States. The feature gives boat users Internet access while on the water. The services cost $5,000 per month with a one-time fee of $10,000 that covers two high-performance satellite dishes.
Due to the growing demand, investment in the boat market is expected to increase, the North American segment of the market is expected to lead the outboard motor market in the coming years.
The outboard engine market is consolidated, with several players accounting for significant market shares. Some of the major companies in the outboard motor market are Yamaha Motor Co, Honda Motors Co. Ltd., Suzuki Motor Corporation, Brunswick Corporation, Tohatsu Corporation, etc.
Strict emission standards and updated technologies are driving industry players to invest in R&D projects. For instance,
In December 2021, Torqeedo announced an upgrade to its market-leading motor product line. Additionally, this new range will include 3kW, 6kW and 12kW outboard and pod motors powered by lithium-ion batteries.
In December 2021, Honda Marine announced its partnership with Spear Life, the spearfishing adventure television series; fans of the popular series will see Honda Marine outboard motors power the action in Season 3. Honda Marine, a division of American Honda Motor Co. Inc., markets a full line of marine outboard motors four-strokes ranging from 2.3 to 250 horsepower (hp).
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