The inboard engines market has been witnessing popularity owing to its compact design and enhanced fuel efficiency. Inboard engines, also known as stern drive or inboard/outboard engines, are marine propulsion systems that are installed inside the hull of a boat and provide power through a drive shaft. Typically used in luxury yachts, passenger boats, and cruise liners, inboard engines offer advantages such as greater space in the boat due to less exposed moving parts.
The Global Inboard Engines Market is estimated to be valued at USD 1.62 Bn in 2024 and is expected to reach USD 3.01 Bn by 2031, growing at a compound annual growth rate (CAGR) of 6.4% from 2024 to 2031.
Key Takeaways
Key players: Mercury Marine, Volvo Penta, and Yanmar Co. Ltd. are the prominent players in the inboard engines market. Mercury Marine offers premium sterndrive and inboard engines under the Mercury brand. Volvo Penta's product portfolio includes diesel and gasoline engines for yachts, passenger boats, and other commercial vessels. Yanmar Co. Ltd. provides fuel-efficient, compact diesel engines for small boats and yachts.
Growing demand: The Inboard Engines Market Demand for inboard engines is growing owing to the burgeoning luxury cruise industry globally. Leading cruise liners are opting for advanced inboard engines to provide superior fuel efficiency and reduced noise and vibration levels for enhanced passenger experience.
Technological advancement: Manufacturers are focusing on developing electric and hybrid inboard engine systems. Cummins Inc. offers diesel-electric propulsion packages with electronic controls for fuel efficiency and low emissions. Honda is working on developing innovative hybrid-electric sterndrive and inboard engine systems.
Market Trends
1. Increased focus on electric and hybrid technologies: Major engine manufacturers are shifting focus towards developing electric and hybrid marine propulsion solutions to lower emissions and improve fuel efficiency.
2. adoption of smart engine monitoring systems: Players are increasingly integrating the engines with advanced electronics and sensor technology to enable remote engine monitoring on mobile apps.
Market Opportunities
1. Growing demand for luxury yachts and boats in Asia Pacific: Countries like China, Japan, and South Korea are witnessing increased spending on luxury boats and yachts, which is expected to drive the demand for technologically advanced inboard engines.
2. Growth in inland waterways transportation: Many countries are investing in expanding inland waterways to boost freight transportation. This is expected to open new growth opportunities for fuel-efficient inboard commercial vessel engines.
Impact of COVID-19 on Inboard Engines Market Growth
The outbreak of COVID-19 pandemic has significantly impacted the global inboard engines market. In the initial phases of the pandemic, production and manufacturing facilities were shut down completely to curb the spread of the virus. This led to disruptions in the supply chain and shortage of components. The declining disposable income and economic slowdown restricted people's spending on luxury and recreational activities that involve inboard engines such as boating, yachting, and cruising.
With lockdowns and travel restrictions imposed worldwide, marinas, boat rentals and marine dealers faced closures. The demand from recreational and commercial sectors plummeted drastically. However, as restrictions are being gradually lifted, the market is witnessing signs of revival. Manufactures are resuming operations with proper safety measures and sanitization protocols in place. The pent-up demand is driving sales in the post-lockdown period. Nevertheless, full-fledged recovery is expected to be gradual with continued uncertainty around the pandemic.
Geographical Regions of Inboard Engines Market Concentration
In terms of value, the North America region holds the major share of the global inboard engines market currently. The large recreational boating industry in the United States and Canada has fueled consistent demand over the years. Europe is the second largest regional market driven by countries like Italy, Germany and the UK with high boat ownership. Asia Pacific is projected to be the fastest growing destination for inboard engines with rapid economic development and increasing spending power in countries like China, India and Vietnam. Rising interest in boating and yachting as luxurious leisure activities bodes well for future prospects.
Fastest Growing Region for Inboard Engines Market
The Asia Pacific region has emerging as the fastest growing regional market for inboard engines globally. Factors such as expanding middle-class population, improving lifestyle and surge in disposable income have contributed to the growth of recreational boating industry in Asia Pacific countries. China, with its growing economy and tourism sector, presents immense opportunities. Indian market is also gaining momentum with government initiatives to develop marine infrastructure and promote water sports. Other Southeast Asian nations including Thailand, Malaysia and Indonesia are increasingly engaging in international cruises and boat chartering. These favorable demographic and economic trends will continue driving the demand for inboard engines across Asia Pacific.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc.
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