Electric Outboard Engines Market Size - By Power, By Speed, By Application, By Distribution channel, Forecast, 2024 – 2032

Electric Outboard Engines Market Size

The global electric outboard engines market size was valued at USD 854.1 million in 2023 and is anticipated to register a CAGR of 6.2% between 2024 and 2032. Electric outboard engines are systems which are installed in boats which utilize electric motors. Electric outboard engines offer lower emissions as compared to gasoline and diesel engines. The growing marine tourism industry is driving the demand for market. As individuals are seeking unique travel experiences through cruising boats and yachts. The marine tourism industry has experienced significant growth.
 

Electric outboard engines are preferred due to their environmental benefits. Electric engines produce lower emissions, and they operate more quietly than diesel engines. These environmental factors and the convivence of electric engines are driving their installations across the marine industry. Additionally, there has been a rise in recreational boating activities where individuals are seeking various water sports adventures. This heated demand is boosting the installation of electric engines. Overall, the positive environmental impact and changing industry preferences is driving the growth of market.
 

Electric outboard engines require high initial costs of investments. As electric engines have expensive battery technology and higher price as compared to diesel and gasoline engines. Electric engines are known for their expectational features and long-term investment but the initial cost of buying and installation may hamper the electric outboard engines market growth. Additionally, manufacturers must have to invest in continuous innovations and research and upgrade the battery and charging technologies used in these engines to remain competitive in the market.
 

Electric Outboard Engines Market Trends

The electric outboard engines industry is experiencing a trend towards hybrid propulsion systems driven by environmentally sustainable factors and operational efficiency. The hybrid propulsion systems integrate the engines with electric motors with traditional engines with alternative sources such as gasoline and diesel engines. The hybrid propulsion system not only enhances energy and fuel efficiency but also lowers the overall operating costs. This trend is strongly driven by the evolving changing environmental regulations where hybrid propulsion has emerged as a solution to these regulatory challenges.
 

Manufactures are heavily investing in research and development to enhance boats with hybrid propulsion systems to reduce the environmental impact. For instance, In March 2024, Baglietto has announced its new hybrid propulsion system for yacht. Baglietto have partnered with siemens engines to get certified from Lloyd’s register. This new system is fit for mounting on vessels built with bzero hydrogen-based technology.
 

Electric Outboard Engines Market Analysis

Based on power, the market is segmented into below 25 Kw, 25-50KW, 50-150 kw. In 2023, the below 25kw segment accounted for revenue of around USD 700 million and is expected to reach USD 1.3 billion by 2032. Below 25KW are preferred due to environmental consideration. The electric outboard engines are more environmentally friendly and produce less emissions as compared to other engines. Additionally lower powered electric engines are more affordable making them ideal for budget conscious individuals further increasing the demand of below 25 KW in the market.
 

Based on application, the electric outboard engines market is segmented as commercial, recreational and military. The recreational segment accounted for a market share of 76.58% in the year 2023 and is anticipated to grow at a CAGR of 6.1% during the forecast timeframe, due to the increased environmental concerns in many regions. There is a growing awareness and concern about the environmental impact thus leading to recreational boating where engines contribute.
 

Electric engines are ideal alternatives to deal with environmental pollutants. These engines are preferred due to the lesser noise during operations and there have been a technological advancement allowing electric engines to be more durable and give better performance.
 

North America electric outboard engines market size dominated around USD 499 million in the year 2023 and expected to reach USD 800 million by 2032. Country such as U.S and Canada has a recreation boating sector. North America embraces new technologies as per the changing environmental regulations further increasing the demand for market in the north America region. Additionally north America region has leading manufacturers like Yamaha and Torqeedo who are heavily investing in research and development to come up with advanced technological solutions to cater the growing demand of electric engines market.
 

North America: In terms of country, the U.S. is dominating with the overall market share of 78.7% in the north America market. One of the most significant drivers of the U.S. market growth is recreational boating activities happening in the region creating a demand for electric outboard engines. Additionally, the region has growing awareness about environmental regulations encouraging industries to adopt ecofriendly options.
 

On the other hand, Canada electric outboard engines market expressing notable growth rate of around 21.3% in 2023. North America had stringent environmental regulators encouraging manufactures to come up with environmentally friendly outboard engines which emit lower emissions and are more fuel efficient.

Europe: The Europe electric outboard engines industry was valued at around USD 168.21 million in 2023 and is anticipated to register a CAGR of 5.9% between 2024 to 2032. Europe has wide waterways and coastlines increasing the demand for water sports activities. To cater for the demand of water activities in the region electric engines are being preferred due to their noise reduction and lower environmental impact. In terms of country, Germany is dominating the Europe market in terms of market value of around USD31.96 million during the 2023.
 

Asia Pacific: The Asia Pacific electric outboard engines market was valued at around USD 117.32 million in 2023 and is anticipated to register a CAGR of 8.2% between 2024 to 2032. The growth can be attributed to several factors, including growing rapid economy leading to a higher disposable income of individuals driving towards recreational boating and water activities. Moreover, the government is promoting environmental regulations and electric engines and vehicles further increasing the adoption of electric engines in the region.
 

In terms of country China is dominating the Asia Pacific electric outboard engines industry in terms of market value around USD 37.73 million in the year 2023 and expected to reach around USD 78.48 million by 2032. China is known as a global manufacturing home. Manufacturers are levering in experimenting with battery technology and electric systems to deliver high performance engines.
 

On the other hand, India is emerging as a fastest growing country for the electric outboard engines market in terms of CAGR of 8.8% between 2024 to 2032. Rising air pollution and increasing air borne infection in the country is the major factor boosting the cleaner technologies. India is focusing on renewable energy to meet its climate goals. As a result, various sectors in India are shifting towards ecofriendly solutions to overall contribute to the initiatives by the country.
 

Electric Outboard Engines Market Share

Key players involved in the electric outboard engines industry are Schindler, TK elevator, Mitsubishi electric corporation, Kone and Hitachi, Ltd accounting market share of 30% in 2023. Manufacturers are constantly investing in R&D to build advanced electric outboard engines with technological advances such as hybrid propulsion systems. For instance, Mitsubishi launched a powerpack plus range in partnership with Linz electric. Power pack plus products involve supply of Mitsubishi diesel engine, radiator and Linz electric alternator.
 

Electric Outboard Engines Market Companies

Major companies operating in the electric outboard engines industry include:

• Aqua watt
• Combi Outboards
• Elco Motor Yachts
• EPROPULSION
• E-TECH
• Evoy
• Golden Motors
• Hitachi, Ltd.
• KONE
• MINN KOTA
• Mitsubishi Electric Corporation
• Parsun Power
• Pure Watercraft
• Schindler
• Torqeedo GmbH
   

Electric Outboard Engines Industry News

• In January 2024, Hitachi energy acquired COET. This strategic acquisition will help Hitachi in power electronics technology and improve the production capacity as well.
   
• In June 2024, mercury marine launched new avator 75e and 110 e outboards. Expanding its electric propulsion series.
   
• In January 2024, Yamaha motors acquired electric marine propulsion manufacturer Torqeedo. Yamaha motors are looking forward to specializing electrification of pleasure boating
   
• In November 2023, Evoy motors launched two new electric motors the inboard storm 300+ hp and inboard breeze 120+hp specially for boats from smaller planning hull boats to larger displacements boats.
   

The electric outboard engines market research report includes in-depth coverage of the industry, with estimates & forecasts in terms of revenue (USD Million) from 2021 to 2032, for the following segments:

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Market, By Power

• Below 25 kW
• 25 – 50 kW
• 50 – 150 kW

Market, By Speed (mph)

• Below 5 mph
• 5-10 mph
• 10-15 mph
• Above 15 mph

Market, By Application

• Commercial
• Recreational
• Military

Market, By Distribution channel

• Direct Sales
• Indirect Sales

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific

• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

• MEA
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of MEA