3 key factors driving outboard engine market forecast over 2019-2025
Publisher : Fractovia | Published Date : 2019-12-20Request Sample
Globally, outboard engine market is depicting immense traction majorly due to the rise in disposable income among people which has led to increase in recreational and leisure boating activities. Surging demand for boating activities has steered innovations in the industry thereby leading to the usage of these motors in new leisure boats and watercrafts due to their compact design and ease in handling.
Moreover, the deployment of outboard engine allows the boat manufacturers to provide wide interior space to the customers and enhanced engine acceleration characteristics. Global outboard engine market size is estimated to exceed USD 17 billion by the end of 2025. Listed below are some of the important factors anticipated to influence outboard engine market trends over the next few years:
1. Government regulations for emission control
Growing carbon emission levels coupled with stringent regulations set by the government and other regulatory authorities to control environmental degradation has led to the adoption of electric fuel type engines over the years. According to reports, electric fuel type engines segment is estimated to witness significant growth rate of approximately 8.5% over the projected period owing to the innovations and technological advancements in electric motors.
Increased rate of efficiency, reduced maintenance requirements, eco-friendly and different charging options are some of the vital benefits offered through the adoption of electric motors. Additionally, low powered electric motors are emerging as strong alternatives to small gasoline motors, ensuring fuel-efficiency and reduced operational cost.
Outboard engine market applications are classified into recreational, military and commercial. With the rise in cross border tensions and political instabilities in many countries, there is a need for a robust military industry across the globe. The market is witnessing increasing adoption of these motors in inflatable boats. Moreover, the requirement for boats for the U.S. coast guards is influencing the market dynamics.
2. Deployment of high-powered engine technology
With respect to the types of power, high-powered engine technology has gained popularity over the years. In fact, high powered engines are likely to contribute more than USD 9.5 billion towards outboard engine industry size by 2025.
Increasing demand for high-performance boats and large yachts has splurged the adoption of the technology across the globe. With the rise in rate of affordability among people worldwide, there has been an increase in spending on tourism, leading to the use of large yachts for travel or other leisure activities.
With the constantly changing consumer demand worldwide and the requirement of high-powered motors in Europe and North America, industry participants are rearranging their motor production techniques and are frequently launching upgraded products in the market. Additionally, key industry participants are heavily investing in new machinery.
3. Booming North America tourism sector
In terms of geographical expansion, North America could emerge as a promising revenue ground for outboard engine market share in the coming years. High purchasing power in the region along with rising spending on boating and recreational activities will complement product penetration.
Stable economic development coupled with growing support from government to improve the boating infrastructure and maintain marine life will boost business growth. Moreover, there is growing prevalence of various boat manufacturers and motor distributors across the region aiming towards strengthening the industry landscape and coping with the gradually increasing consumer demand.
