Global Outboard Motors Market Growth 2025-2031

The global Outboard Motors market size is predicted to grow from US$ 5065 million in 2025 to US$ 6098 million in 2031; it is expected to grow at a CAGR of 3.1% from 2025 to 2031.

The impact of the latest U.S. tariff measures and the corresponding policy responses from countries worldwide on market competitiveness, regional economic performance, and supply chain configurations will be comprehensively evaluated in this report.

An outboard motor is a propulsion system for boats, consisting of a self-contained unit that includes engine, gearbox and propeller or jet drive, designed to be affixed to the outside of the transom. They are the most common motorised method of propelling small watercraft. As well as providing propulsion, outboards provide steering control, as they are designed to pivot over their mountings and thus control the direction of thrust. The skeg also acts as a rudder when the engine is not running. Unlike inboard motors, outboard motors can be easily removed for storage or repairs.

Internal combustion outboard engines dominate the global market, accounting for approximately 96% of the market share. These engines are prevalent in various applications, including recreational boats, commercial vessels, and fishing boats. Electric outboard engines, while emerging, are gaining traction due to advancements in battery technology and increasing environmental awareness.

Recreational Boats accounting for approximately 45% of the global market share. This segment includes fishing boats, yachts, and personal watercraft.

Regional Market

North America: The largest consumer market, accounting for about 40% of global revenue. The U.S. leads in both production and consumption, driven by a strong recreational boating culture and commercial maritime activities.

Asia-Pacific: A rapidly growing market, especially in countries like China, Japan, and India, due to expanding coastal tourism and fishing industries.

Europe: Notable for its emphasis on environmental sustainability, with increasing adoption of electric outboard engines in countries like Norway and the Netherlands.

Market Drivers

Growth in Recreational Boating

The rise in leisure activities such as fishing, water sports, and cruising has significantly increased the demand for outboard motors. The National Marine Manufacturers Association (NMMA) reported that U.S. recreational boating sales reached approximately $59.3 billion in 2022, with over 85 million Americans participating in boating activities annually.

Environmental Regulations

Stricter emission standards and environmental regulations are pushing the industry towards cleaner propulsion technologies. Electric outboard engines, which produce zero emissions, are becoming more appealing to environmentally conscious consumers and regulatory agencies.

Technological Advancements

Advancements in battery technology, particularly lithium-ion batteries, have improved the performance and affordability of electric outboard engines. These innovations are making electric propulsion systems more practical for various uses, including commercial and recreational boating.

Government Incentives

Several governments are offering subsidies, tax breaks, and rebates to encourage the adoption of electric outboard motors. These financial incentives are playing a significant role in accelerating the transition to cleaner marine propulsion systems.

Market Restraints

High Initial Costs

Electric outboard motors generally have higher upfront costs compared to their internal combustion counterparts. The expense of advanced battery systems and electric propulsion technology can be a barrier for price-sensitive consumers.

Limited Range and Power

While electric outboard engines are suitable for short-distance travel, their range and power output are currently limited compared to internal combustion engines. This limitation restricts their use in long-distance and high-power applications.

Charging Infrastructure

The availability of charging stations for electric outboard motors is still limited, especially in remote or rural areas. The lack of widespread charging infrastructure can hinder the adoption of electric propulsion systems.

Consumer Awareness

There is a need for increased consumer education regarding the benefits and capabilities of electric outboard engines. Misconceptions about performance and reliability can deter potential buyers.

Conclusion

The outboard motor market is experiencing significant growth, driven by advancements in technology, environmental regulations, and changing consumer preferences. While internal combustion engines currently dominate the market, electric and hybrid propulsion systems are gaining traction and are expected to play a larger role in the future. Manufacturers need to focus on innovation, sustainability, and consumer education to capitalize on these emerging trends and meet the evolving demands of the market.

LP Information, Inc. (LPI) ' newest research report, the “Outboard Motors Industry Forecast” looks at past sales and reviews total world Outboard Motors sales in 2024, providing a comprehensive analysis by region and market sector of projected Outboard Motors sales for 2025 through 2031. With Outboard Motors sales broken down by region, market sector and sub-sector, this report provides a detailed analysis in US$ millions of the world Outboard Motors industry.

This Insight Report provides a comprehensive analysis of the global Outboard Motors landscape and highlights key trends related to product segmentation, company formation, revenue, and market share, latest development, and M&A activity. This report also analyzes the strategies of leading global companies with a focus on Outboard Motors portfolios and capabilities, market entry strategies, market positions, and geographic footprints, to better understand these firms’ unique position in an accelerating global Outboard Motors market.

This Insight Report evaluates the key market trends, drivers, and affecting factors shaping the global outlook for Outboard Motors and breaks down the forecast by Type, by Application, geography, and market size to highlight emerging pockets of opportunity. With a transparent methodology based on hundreds of bottom-up qualitative and quantitative market inputs, this study forecast offers a highly nuanced view of the current state and future trajectory in the global Outboard Motors.

This report presents a comprehensive overview, market shares, and growth opportunities of Outboard Motors market by product type, application, key manufacturers and key regions and countries.

Segmentation by Type:
Internal Combustion Outboard Engines
Electric Outboard Engines

Segmentation by Application:
Recreation Boat
Commercial Boat
Others

This report also splits the market by region:
Americas
United States
Canada
Mexico
Brazil
APAC
China
Japan
Korea
Southeast Asia
India
Australia
Europe
Germany
France
UK
Italy
Russia
Middle East & Africa
Egypt
South Africa
Israel
Turkey
GCC Countries

The below companies that are profiled have been selected based on inputs gathered from primary experts and analysing the company's coverage, product portfolio, its market penetration.
Mercury Marine
Yamaha
Suzuki
Honda
Evinrude Outboard Motors
Tohatsu
Torqeedo
ePropulsion Technology
Minn Kota
ACEL Power Inc

Key Questions Addressed in this Report

What is the 10-year outlook for the global Outboard Motors market?

What factors are driving Outboard Motors market growth, globally and by region?

Which technologies are poised for the fastest growth by market and region?

How do Outboard Motors market opportunities vary by end market size?

How does Outboard Motors break out by Type, by Application?

Please note: The report will take approximately 2 business days to prepare and deliver.