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Outboard Motor Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The Outboard Motor market was valued at USD 5. 45 billion in 2021 and is expected to reach USD 6. 84 Billion by 2027, registering a CAGR of about 3. 79% during the forecast period (2022 – 2027).
New York, Sept. 05, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Outboard Motor Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06317788/?utm_source=GNW
In 2020, the COVID-19 outbreak significantly impacted the boat manufacturing industry and caused a decline in recreational activities around the world, which led to a negative effect on outboard motor sales. However, in 2021, the market gained momentum owing to the lifting of restrictions hence, in 2022 the market is expected to register healthy growth in the coming years.
Rising watersports and boating activities worldwide are likely to increase the demand for outboard motors. According to the National Marine Manufacturers Association U.S. boat sales statistics, retail unit sales of new boats reached nearly 320,000 in 2020, which is likely to increase the sale of outboard engines and motors. For instance, global sales of outboard engines increased with a growth rate of around 2% during the last five years.
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. An increase in income levels of people around the world, which enables them to spend more on leisure and recreational activities, will be a growth driver for the outboard motors market.
Key Market Trends
Recreation Boating is Expected to Drive Growth During the Forecast Period
The rise in disposable income resulted in an increasing demand for small and medium-powered boats, which contributed significantly to the rapid growth in the watercraft industry.
Rising participation in water recreational activities and preference for more powerful outboard engines also drive the growth of the market in the region. The recreational industry is expected to grow as per capita and disposable income levels rise worldwide.
The recreational boating industry continues to attract participants, competing strongly with rival luxury leisure pursuits. There are around 140 million active boaters and watersports participants worldwide, including almost 100 million across the United States and Canada, 36 million across Europe, and more than 5 million in Australia.
Factors, such as the expanding tourism industry and rising disposable income, will also drive the market forward. In addition, developments in autonomous marine technology will increase the demand for less skilled recreational boaters. The presence of many manufacturers in this well-integrated and fragmented industry ensures a consistent supply for the worldwide demand for recreational boats.
Outdoor sports and adventure become increasingly popular in Europe and North America, particularly beach tourism, as well as the development of artificial and man-made beaches in landlocked cities (water and theme parks) and urban areas. Cruising also becomes valuable, as interest in luxury marine tourism grew in the recent years.
For instance, in a survey, there has been an constant increase in the number of people participating in water sports from 2020 to 2021 in United States. Additionally, the number is expected to grow further in 2022 and the following years. This is expected to aid recreational boat segment of the Outboard motor market grow in the forecast period.
North America is Expected to be the Market Leader
North America is dominating the outboard motor market in terms of revenue in 2021, owing to high economic growth and a rise in disposable income. People’s increasing income levels and inclination toward recreational and leisure activities are more than in any other part of the world. North America holds around 40% outboard engine market share. The USA is the largest single market for outboard engines, with sales of higher-powered outboards (200hp+) growing annually for the last seven years.
According to NMMA (National Marine Manufacturers Association) in their annual Outboard Engine Sales Trends report, US outboard engine sales reached a 20-year high in 2020, which records a sale of 310,000 new powerboats in 2020.
Also, the total spending on new boats accounted for USD 20.8 billion of the total marine expenditure, registering an increase of 3.8% compared to 2020.
In 2021, the total sales of recreational boats in North America are estimated to be about 305,734 units witnessing a slight decrease of 4.1% when compared to the record-breaking numbers in 2020. Although, in 2021, the sales numbers are the second highest since 2008.
About 35% of the total population of the United States takes part in recreational boat activities. Due to the growing stress management program and health awareness among individuals, more and more people are participating in water sports activities for relaxation. The coastline is also very big, which transpires to a number of beaches, consequently creating more opportunities for the sale of outboard motors.
In addition, companies are entering the boat market with innovative products to cater to the increased demand and safety for boat users.
For instance, in July 2022, SpaceX launched Starlink, the satellite-internet service for boats in the United States. The feature gives the boat users internet access when on water. The services cost USD 5,000 per month with a one-time fee of USD 10,000 that covers two high-performance satellite dishes.
Owing to the rising demand, investments in the boat market are expected to increase, the North America segment of the market is expected to be the market leader in the outboard motor market in the following years.
Competitive Landscape
The Outboard Motors market is consolidated, with several players accounting for significant amounts of shares in the market. Some of the prominent companies in the Outboard Motors market are Yamaha Motor Co, Honda Motors Co. Ltd., Suzuki Motor Corporation, Brunswick Corporation, Tohatsu Corporation, and others.
Stringent emission norms and updated technologies are pushing industry players to invest in R&D projects. For instance,
In December 2021, Torqeedo announced the upgrade of its market-leading motors product line. In addition, this new lineup shall consist of 3 kW, 6 kW, and 12 kW outboard and pod motors powered by lithium-ion batteries.
In December 2021, Honda Marine announced its partnership with Spear Life, the TV spear fishing adventure series; fans of the popular series will see Honda Marine outboards powering the action during season 3. Honda Marine, a division of American Honda Motor Co. Inc., markets a complete range of four-stroke marine outboard motors ranging from 2.3-250 horsepower (hp).
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06317788/?utm_source=GNW
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