Outboard engines are marine-propulsion systems for boats consisting of an engine that is mounted outside the transom with a gearbox or driveshaft. These engines are convenient for a number of reasons such as portability, ease of maintenance, and affordability. Outboard engines allow boaters the flexibility to explore a vast number of lakes, rivers, and coastal regions beyond the reaches of bridges and channels that are inaccessible to larger motor yachts.

The global Outboard Engines Market is estimated to be valued at Us$ 5.89 Bn in 2023 and is expected to exhibit a CAGR Of 5.2% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
Access to remote waterways is one of the major opportunities driving the demand for large outboard engines in the market. Outboard engines allow boats to explore waterways that are inaccessible to larger motor yachts due to shallow waters or restricted channels. Large outboard engines provide sufficient power output needed to navigate through shallow coastal regions, lakes, and rivers. They provide boaters the freedom and flexibility to explore new fishing spots, scenic locales, and remote islands. The growing popularity of fishing, water sports, and recreational boating has led to increased demand for larger boats equipped with outboard engines ranging from 150-300 HP. This expanding market for large boats is expected to continue driving the demand for large outboard engines over the forecast period.

Porter's Analysis

Threat of new entrants: The threat of new entrants in the outboard engines market is moderate. High capital requirements and the need for efficient production facilities limit new companies from entering the market easily. However, low brand loyalty allows scope for new players.

Bargaining power of buyers: The bargaining power of buyers in the outboard engines market is high. Buyers can choose from various engine brands and easily switch between suppliers based on cost and performance.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. While engine components are specialized, suppliers still have a degree of bargaining power due to the global presence of few large suppliers.

Threat of new substitutes: The threat of substitutes is low. While outboard engines have some alternatives like stern drive and inboard engines, there are no close substitutes that can perform the functions of an outboard engine for small boats.

Competitive rivalry: The competitive rivalry in the market is high due to the presence of major global players. Companies compete based on product innovation, pricing, and marketing.

SWOT Analysis

Strengths: Outboard engines are powerful, portable, and easy to install on small boats. They also have advanced features like electric start, tilt and trim functions.

Weaknesses: Outboard engines require regular maintenance. Fuel efficiency can also be relatively lower compared to other marine propulsion systems. Storage and transportation of outboard engines when not in use can also be challenging.

Opportunities: Increasing boating activities and water sports in developing nations provide an opportunity to outboard engine manufacturers to expand their regional footprint. Advancing technology is also enabling the development of engines with better fuel efficiency and lower emissions.

Threats: Stricter environmental regulations pose a threat due to emission norms. Rising fuel costs and economic downturns can also reduce discretionary spending on boating.

Key Takeaways

The Global Outboard Engines Market Demand is expected to witness high growth over the forecast period supported by the increasing maritime tourism and recreational boating.

Regional analysis:

The Asia Pacific region is projected to be the fastest growing market for outboard engines during the forecast period. This is attributed to increasing per capita spending power and rising interest in water sports in countries like China, Indonesia, and India. China currently holds the largest boat manufacturing capacity in the region.

Key players:

Key players operating in the outboard engines market are Yamaha Motors, Brunswick Corporation, Suzuki Motor Corporation, Honda Motor Co., Ltd., Tohatsu America Corp., and Mercury Marine. Yamaha Motors holds the largest market share globally and is known for models like F200, F150, and F90.

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