Inboard Engines Market is Growing Rapidly Due to Rising Demand for Personal Watercrafts

An inboard engine is a marine propulsion system that is housed inside the hull of a boat or ship. It typically consists of an internal combustion engine that is attached to a marine transmission or gearbox with a driveshaft driving a propeller. Inboard engines offer advantages like compact design that occupies less space in the vessel compared to an outboard motor. They also offer smooth and quiet operation. Growing participation in recreational boating activities and rising disposable incomes have fueled the demand for personal watercrafts like yachts and motorboats in recent years. This, in turn, is driving the growth of the global inboard engines market.

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 operating in the Inboard Engines market are Mercury Marine, Volvo Penta, Cummins, Caterpillar, and Yanmar. Mercury Marine and Volvo Penta collectively account for over 50% of the global market share.

Growing participation in recreational activities like yachting, fishing and watersports has increased the demand for personal watercrafts over the recent past. Advancements in engine technology are further driving the sales of luxury motorboats and yachts equipped with fuel-efficient and high-power inboard engines.

Major inboard engine manufacturers are focusing on expanding their global footprint by strengthening their distribution networks across developing markets in Asia Pacific and Latin America. Ongoing development of inland waterways and boating infrastructure in countries like China, India and Brazil is expected to drive the global demand for Inboard Engines Market Forecast during the period.

Market Key Trends
E-fuel technology is one of the major trends gaining traction in the inboard engines market. Major engine brands are investing heavily in developing electric and hybrid inboard engine systems to reduce dependence on fossil fuels and cater to sustainability goals. For instance, Volvo Penta launched its first electric inboard drive system - the Electric Drive, which has a peak output of 300kW and can power yachts and ferries at speeds of up to 16 knots. Growing environmental regulations are expected to further fuel the adoption of e-fuel technology in inboard marine engines over the coming years.

Porter’s Analysis
Threat of new entrants: Low capital requirements and established brands create barriers to entry. However, fragmentation allows room for smaller regional players.

Bargaining power of buyers: Buyers have moderate power due to the availability of substitutes and undifferentiated products. However, switching costs and branding loyalty provide some buyer lock-in.

Bargaining power of suppliers: Suppliers of raw materials and components have moderate power due to the global supply chain and consolidation in industries such as electronics. However, buyers have relationships with multiple suppliers.

Threat of new substitutes: Substitutes such as outboard engines are a significant threat due to flexibility for different vessel types. Electric motors are an emerging substitute.

Competitive rivalry: The market is mature and segmented by application and brand loyalty. Companies compete on product features, price, service, and distribution.

Geographically, North America currently accounts for the largest share of the inboard engines market, valued at XX million in 2021. Established markets in the US and Canada support demand. The Asia Pacific region is forecast to be the fastest growing at a CAGR of XX%, led by increasing domestic boat sales and tourism in countries such as Australia, China, and Southeast Asian nations. Growth in personal income and discretionary spending will drive the market.

Get This Report in Japanese Language: 船内エンジン市場

Get This Report in Korean Language: 인보드 엔진 시장

About Author:

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.

(https://www.linkedin.com/in/ravina-pandya-1a3984191)