Outboard boats market to hit US$9bn by 2028
The global outboard boats market, currently valued at US$5 billion, is expected to surpass US$9 billion by 2028, a new research report has concluded. This represents a projected growth rate of over 6 per cent CAGR between 2022 and 2028.
The study by market research firm Global Market Insights, looked at consumer trends, the impact of covid and the current industry landscape in the North America, Europe, Asia Pacific, the Middle East and Latin America markets.
The report finds the outboard market is expected to experience significant expansion worldwide, as a result of increasing numbers of watersports events and the growing marine tourism industry.
This expansion is also being driven by a proliferation of boat dealers, distributors and rental companies, which are creating opportunities that are favourable for market growth, the report finds.
Over 25 per cent of the outboard boats market share was held by utility boats in 2021. Utility boats generally consist of fishing boats, small transport boats, bass boats and sport boats. Their low market prices will significantly contribute to the global industry proliferation, the report finds.
Image courtesy of Saltwater Solutions
The outboard boats market was negatively impacted in 2020 and 2021 by Covid-19 and ensuing lockdowns, which saw boat production facilities, R&D centres and distributor offices shut down worldwide.
Additionally, the demand for outboard boats declined drastically due to restrictions on water sports activities during the pandemic. The report expects that the market will witness steady growth post-pandemic due to supportive government initiatives to promote marine tourism and new boat launches by market players.
For example, in the Asia Pacific, market demand for recreational boats is increasing. This is due in part to supportive government initiatives to develop the marine industry, an uptick in using digital media to promote recreational business in the region, and increasing disposable incomes of consumers.
Market growth in North America is being driven by a combination of boat innovations and growing water sports activities, the report finds. Industry players are focusing on marketing and government support initiatives for watersports, which will further drive growth in the outboards market. Similarly, in Europe, a proliferation of boat clubs and associations and frequent water sports events scheduled by clubs will contribute to market growth.
In November 2021, the US government announced a deal with the EU to remove retaliatory tariffs on American boats sold in Europe. This deal will result in a 25 per cent discount in custom duties on American-made boat engines and boats sold in Europe.
The Europe outboard boats market alone is predicted to reach around US$2 billion by 2028.
And, the report finds, shifting consumer focus toward advanced recreational boats and the proliferation of boat rental companies in Latin America are also accelerating boat sales. Government initiatives to promote tourism in Brazil and Mexico will further propel market growth in the region.
