Global Market Study on Outboard Engines: Manufacturers Need to Go High on Power


Outboard Engines  Market
  • Report code : PMRREP20314 |
  • Industry : Automotive |
  • Published On : Jun-2019 |
  • Pages : 297 Pages |
  • Format :

The recently published report by Persistence Market Research (PMR) on the outboard engines market provides readers with an overall market outlook with the help of an extensive market analysis. The PMR report on the outboard engines market evaluates the historical and current market scenario and offers a forecast for the period, 2019-2029. The PMR study helps report readers gain a holistic idea of the market and aid in key business decisions with the help of vital findings and exclusive insights into the outboard engines market. The PMR report offers an assessment of the key dynamics of the outboard engines market which include the key market drivers, industry trends, and opportunities held by the market. The PMR report is divided in key sections that allows the report audience to gain a detailed understanding of individual aspects of the report on the outboard engines market.

Global Outboard Engines Market Taxonomy

Power Type

Technology Type

Start Type

Boat Type

Region

Less than 30 HP

Two Stroke Carbureted

Electric

Fishing Vessels

North America

30HP to 100 HP

Two Stroke Electronic Fuel Injection

Manual

Recreational Vessels

Latin America

Above 100 HP

Two Stroke Direct Injection System

Special Purpose Boats

Europe

Four Stroke Carbureted

South Asia

Four Stroke Electronic Fuel Injection

East Asia

Oceania

Middle East & Africa

Caribbean

       

Emerging Countries


Key Questions Answered in the Report on Outboard Engines Market

  1. How is the outboard engines market expected to grow over the forecast period?
  2. What will be the most popular technology type of outboard engines in the next five years?
  3. What are the key factors which would impact the outboard engines market in the future?
  4. What are the key market restraints in the outboard engines market?
  5. Which regions showcase significant opportunities for the outboard engines market?
  6. Which power type is likely to gain pace in the outboard engines market?

PMR’s study on outboard engines market commences with an executive summary that sheds light on the various outboard engines market aspects covered in the report. The chapter discusses the global market outlook, demand and supply side trends, highlights the significance of the taking up the study and offers a product roadmap. This chapter involves the recommendations and analysis of the expert PMR analysts worked on the outboard engines market. The next chapter in the outboard engines market is the market overview that offers a glance into the outboard engines market in terms of the market scope, definition, and limitations. Following this is the market background which includes a detailed understanding of the macro-economic factors impacting the outboard engines market. The chapter studies the significant market dynamics including market drivers, trends, and restraints. This chapter also offers five forces analysis and value chain analysis.

The next section provides an outlook of the global outboard engines market analysis and forecast in terms of both volume and value. The next section evaluates the key segments in the outboard engines market on the basis of power type, technology type, start type, boat type and region. The analysis includes the bifurcation on the basis of application and region. With the evaluation of key segments in the outboard engines market and inclusion of year-on-year growth projection along with the basis point share analysis further helps clients identify promising avenues.

The next section in the PMR study on the outboard engines market offers an evaluation of the regional landscape of the market. The regional evaluation allows industry players to make key strategic decisions in terms of geographical expansion and investments. The segment-wise and country-level evaluation of individual regions helps the readers of the outboard engines study to potential opportunities in key regions pertaining to the market. Backed with year-on-year growth projections, global value and volume share, this section is a significant part of the report on outboard engines market.

The report on outboard engines market by PMR offers a unique competitive assessment of the leading market players. This sections highlights the nature of the outboard engines market with the help of the market share held by top-level, mid-level, and entry-level players. The unique dashboard view of the players in the outboard engines market allows readers to understand the key strategies implemented by individual players and their performance in the market featuring the focus areas of the outboard engines market player. Additionally, the competitive structure of prominent players in outboard engines market are also discussed in the study.

Research Methodology

The PMR analysis on the outboard engines market is based on a detailed assessment of the market with the help of a comprehensive research including both primary and secondary research. The in-depth assessment of the outboard engines market in terms of the competitive landscape is backed with individual level assessment of various aspects pertaining to the market. An analysis of the historical and current market for outboard engines with a focus on key market segments and major regions, along with other qualitative inputs help the PMR analysts derive at a crucial market predictions and a forecast analysis for the outboard engines market. Readers can access the outboard engines market report to gain a forecasted market assessment for the period, 2019 – 2029.

In light of the profound transition expected in the maritime industry, emergence of fishing and shipping activities are likely to reshape and diversify associated businesses. Increasing marine activities are fueling the demand for highly efficient boats, motors, engines, and other essential marine equipment that help match the pace with the rapid marine industry expansion. The blend of technology in marine systems has further enhanced the capabilities boats and other marine vessels. Outboard engines market builders are incorporating innovative technologies such as contra-rotating props, electric steering, and performance customization, which are finely tuned by robust, repetitive computer simulations.

Persistence Market Research (PMR) conducted a detailed assessment of the outboard engines market entailing a global market perspective on the popularity of outboard engines owing to the high horsepower, small size, and their efficacy in achieving top-speed. Additionally, the report also discusses the factors that support demand growth including the popularity of specialized boats needed for fishing tournaments that require multiple motors.

global outboard engines market success strategies of competitors

Evolution of Outboard Engines

From the introduction of outboard engines with 10 HP to the ones with over 100 HP, the outboard engines industry has marked the significant evolution of the product. Another aspect that showcased a rapid transformation throughout the period of evolution was the growth of electric power. Green machines began to gain momentum in the early ’90s, though they were slow and heavy. While their heavy four-stroke valve train was environmentally cleaner, boats failed to carry it with poise on their transom, kicking in evolution. Recognizing their benefits, boat owners began to build boats with deeper and wider transoms to carry them. By the time four-stroke upended two-stroke engines, motor-makers had trimmed their weight back to the slim numbers that were previously achievable only by two-stroke variants, resulting most boats today to have improved sea-keeping abilities.

The global volume sales of outboard engines stood at around ~745 thousand units in 2014, and reached ~803 thousand units in 2018. Modern outboards, both two- and four-stroke, have evolved considerably in the last decade, as a result of both advances in technology and stringent emission standards. Newer models that use lesser fuel, are substantially more reliable, are relatively quieter, and those that are more environment-friendly than older generations continue to enter the market. In 2019, the outboard engines market is anticipated to be valued at ~ US$ 4 Bn. The shift towards outboard engines is linked to the kind of boats preferred by buyers. Outboard-powered deck boats are accountable for the demand growth for outboard engines.

Impact of Undercurrents on Outboard Engines Market

Recreation Boating Trend to Spur Demand

Recreational boating continues to entice large volumes of participants, particularly in the US. According to a leading trade association the recreational boating industry enjoyed its seventh successive growth year in 2018, with yearly US sales of marine products and services, and boats recording a 5% growth over 2017. Growth in recreational boating over the past has been achieved in large portion owing to the corresponding advances in outboard power. The growing requirement of outboard engines in recreational boating activities offer profitable avenues for manufacturers.

Electric Propulsion to Gain Traction  

Electric-drive boats have been presaged as the future of marine boats. A large number of boat owners favor electric propulsion to power fishing boats, recreational boats, cruisers, and pontoons, and tender boats. The growing preference for electric propulsion outboard is attributed to the ease of operations, absence of gas fumes, engine noise, and vibrations. With significantly lesser moving parts, there is minimal wear out or break down, making electric outboard engines a viable alternative for small boats.

Demand for Larger Boats Continues to Rise

The growing utilization of high-performance and high-speed boats in contemporary boating and fishing activities is becoming mainstream. There is a marked emergence of multi-engine pontoons from several different manufacturers. During the last decade, a number of anglers have moved into faster, larger, more agile outboard-powered center console fishing vessels, further driving the need for advanced outboard engines powering these revolutionary large boats.

global outboard engines market pr image

Success Strategies of Competitors

Leverage Opportunities in the US and Europe

Manufacturers of outboard engines are cited to the potential growth avenues held by the market in North America and Europe in wake of the growing boats sales to support the expanding recreation boating activities in these regions. US is considered to be the largest market for outboard engines in the world. As investment in production of boats has risen substantially in both the US and Europe, opportunities for expansion of outboard engines market continues to grow. Apart from this, the growing water sports activities is an essential factor garnering the attention of outboard engines market players.

Expand Portfolio to Include Alternative-fuel Engines

The need for speed has been at the core of professional boat operations ever since the introduction of powerboats. However, the outboard engine manufacturers need to recognize that the achieving high-performance needs to be balanced with the stringent fuel efficiency mandates and environmental compliance. As outboard engines designed for commercial operations have to stay in compliance with emission guidelines stated by regulatory bodies, it could impact the overall growth of the market negatively. Having said that, outboard engine providers can offset the challenge by expanding portfolio to include alternative-fuel engines. An LPG outboard engine is one such innovation that quieter, quicker to start, and has minimal maintenance for fuel-related accessories. With relatively lesser CO2 emissions, the LPG gas is emerging as the choice of fuel for next-gen outboard engines.

Meet High-power Engine Requirements in Mega Industries

High power outboard engines are becoming a popular choice among end users as the boat makers are increasing the lengths of modern boats. As growing marine and boating activities generate the need for cutting-edge boats and vessels, high power engines to support their capability continues to gain traction. Companies contributing to the outboard engines market are emphasizing to meet the high-power engine requirements with future innovations centering this demand. Next revolution for center consoles could be a lightweight diesel outboard engine offering significant power.

Outboard Engines Market: Competitive Landscape

The outboard engines market is witnesses a high consolidation of leading players that for more than 80% of the total market share, where Yamaha Motor Co., Ltd.—one of the key players holds ~40% of the total market share. The most significant tactic that supports this market share is their continued emphasis on product diversification and portfolio expansion to support the market transformations which include the use of multiple engines, the production of larger boats, and the quest for environment-friendly fuels. Companies dominating the outboard engines market are involved more in overseas sales in Europe, North America, followed by Asia Pacific.

In 2018, Suzuki Motor Corporation unveiled all-new large outboard motors DF150A and DF175A at the Genoa Boat Show held in Genoa, Italy. DF175A and DF150A have improved driving performance and fuel efficiency on account of the incorporation of advanced technologies including lean burn, high compression ratio, and semi-direct air intake.

Honda Marine recently debuted improved, redesigned BF225, BF200, and BF250 v6 outboard motors at the 2018 Miami International Boat Show. The flagship products were enhanced with a new design, ease of maintenance and manifold rigging options for more worry-free time on the water for boaters.

Brunswick Corporation recently completed the acquisition of Freedom Boat Club (FBC). The addition of FBC would allow Brunswick to leverage capabilities and resources to create additional value and growth and help the company provide exceptional on-water experience for members.

global outboard engines market segmentation

Analyst Viewpoint of the Market

The PMR analysts have a positive outlook of the outboard engines market. As North America and Europe hold lucrative opportunities, analyst recommend vital business expansions in these geographies. With both new and pre-owned boat sales rising across the country, it is a good time for boat dealers to be target American consumers. Moreover, widespread adoption of large outboards is majorly witnessed in the North America, in wake of the growth in maritime tourism and fishing and recreational activities. New distribution centers and sales offices are being established in an attempt to expand their geographic presence and gain more number of customers. Companies are entering the European market on account of the growing interest of European boat builders in outboards. This could create future business expansion opportunities for outboard engine providers.

New entrants have to face significant challenges in order to have a customer base to compete in the market dominance of global leading players. Although the cost of above 100 HP outboard engines is relatively higher, the demand for high power variants continues to grow. Providing low-cost products without compromising on efficiency and quality of engines may help the market participants in gaining significant customer attraction. Demand for outboard engines over inboard engines is attributed to the emphasis on reducing the weight of center console of vessels, which will offer promising avenues for providers. In order to gain customer traction, the market participants may focus on new product launches and development activities.

Read More

An outboard engine is a propulsion system for marine vessels (fishing boats, recreational boats, rescue boats, and other special purpose boats). It is itself a self-contained unit consisting of an engine, gearbox, and propeller. An outboard engine is the most commonly used and popular motorized mechanism to power small watercraft. Besides, delivering adequate propulsion, outboard engines provide steering control to regulate the direction of thrust. Outboard engines are available in a wide range of power as per the requirement from small boats to larger boats. Outboard engines are available in as low as 2.5 HP power engine to as high as 800 HP power engine.

The global outboard engines market was valued at around US$ 4,000 Mn in 2018, and is estimated to grow over 2% CAGR during the forecast period of 2019–2029.

Caribbean and South Asia Markets are Expected to Register Relatively High Market Value and Volume Growth

Several countries in these regions have tourism dependent economies. As the tourism industry directly and indirectly impacts the economy of the nation, these economies have projected relatively significant growth in the recent past. The Caribbean region is located in the center of the Americas, this provides an easy access to North America, Central America, and South America markets. For decades, the Caribbean region attracted tourists from around the world, leveraging its warm and sunny weather. The top three countries for long-stay tourism are Jamaica, the Bahamas, and Barbados.

Global Outboard Engines Market Analysis, by Power

Above 100 HP type of engine powers are growing traction towards high powered outboard engines, which is expected to be an ongoing trend gaining momentum in the global outboard engines market. Large power outboard engines continue to lead the segment in terms of year-on-year growth in unit sales as well as in market size. This, in turn, is responsible for the upward shift in the industry’s average horsepower consumption. The reason behind this, is the increasing demand for large boats that requires large engines.

Global Outboard Engines Market Analysis, by Technology

Based on the technology, the global outboard engines market is segmented into two stroke carbureted, two stroke direct injection systems, two stroke electronic fuel injections, four stroke carbureted, and four stroke electronic fuel injections. Most of the outboard engine manufacturers are focusing on manufacturing four strokes outboard engines due to its high efficiency and advanced features.

Global Outboard Engines Market Analysis, by Start Type

On the basis of start type, the electric segment is estimated to dominate the market in terms of market value and volume. Owing to the increasing preference towards the electric segment, the manual segment is estimated to witness below average growth throughout the forecast period.

Global Outboard Engines Market Analysis, by Boat Type

The growing marine tourism is expected to be the key growth driver for the increasing demand for special purpose boats and recreational vessels. Rising demand for recreational vessels is expected to directly impact the demand for outboard engines worldwide.

Global Outboard Engines Market Analysis, by Region

In the global outboard engines market, North America and Europe markets are projected to hold a significant share in the global market owing to the relatively high demand for recreational and fishing boats. In terms of the growth prospective, India, South Africa, China, Caribbean, and the ASEAN region are picking up the outboard engines market due to the robust outlook of the marine tourism and fishing industry.

Key Driving Factors of the Outboard Engines Market

  • Several advantages of outboard engines boost their popularity in the industry:
    • Outboard engines already account for the prominent share of the sales and their market share seems to be increasing the Y-o-Y growth. The rise of outboard engines is related to a corresponding decline in stern-drive boats as the recession of 2008 dramatically impacted the demand for cast-iron stern-drives. Companies began to build outboard engine powered runabouts and deck boats that are able to compete head-to-head with pontoons. Customers have expressed a preference for a sportier ride associated with a high power-to-weight ratio that naturally favors outboard engines.
  • Additional benefits of outboard engines includes a quieter operation, greater cockpit space, and easier maintenance. The shift towards outboard engines is connected to the kind of boats that buyers wish to purchase. Outboard-powered deck boats are responsible for the high outboard engine demand two decade back.
  • Increase in the global maritime tourism due to the rising disposable income of the middle class population.
    • The tourism industry witnessed substantial growth over the recent past due to the rising disposable income of the middle-class population. Increased traction of people towards recreational water sports and maritime tourism have been witnessed, increase in marine tourism activities such as yachting, water skiing, kite surfing, SCUBA diving, etc., is expected to upsurge the marine tourism. Growth in the maritime tourism increases the demand for new ships, which is expected to boost the outboard engines market in the near future.

Outboard Engines Market: Structure Analysis

  • The global outboard engines market signifies a consolidated competition landscape, where, organized players and tier 1 companies hold over 80% of the revenue share. This can be mainly attributed to the limited number of players involved in the manufacturing of outboard engines across the globe, predominantly catering to their respective global and regional markets.
  • Some examples of the key players in the market are
    • Brunswick Corporation,
    • Suzuki Motor Corporation,
    • Honda Motor Co., Ltd,
    • BRP Inc.,
    • Tohatsu Corporation,
    • Parsun Power Machine Co., Ltd,
    • Yamaha Motors Co., Ltd., and
    • LEHR LLC,
    • among others.
  • These players are trying to expand and grow in the outboard engines market through strategic steps of development. This report on the outboard engines market is designed to provide relevant information regarding these players, and also about the key strategies that they have adopted.

Key Questions Answered in the Outboard Engines Market Report

  • How is the outboard engines market expected to grow over the projected period?
  • What direction is the outboard engines market expected to take in terms of market volume and value during the forecast period?
  • What are the impacts of macroeconomic factors on the outboard engines market in the future?
  • What are the key market drivers in the outboard engines market?
  • What are significant opportunities and improvement areas for outboard engines manufacturers?
  • What are the key developments and trends taking over the outboard engines market?
  • Which are the emerging countries that are expected to create significant growth opportunities in the outboard engines market?

Company Profiles

  • DEUTZ Aktiengesellschaft
  • Honda Motor Co., Ltd.
  • Brunswick Corporation
  • Suzuki Motor Corporation
  • BRP Inc.
  • Tohatsu Corporation
  • Yamaha Motor Co., Ltd.
  • LEHR, LLC
  • Kräutler Elektromaschinen Gmbh
  • Volvo Penta
  • Yongkang Longxiao Industry
  • Parsun Power Machine Co., Ltd
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