The global electric outboard motors market was valued at USD 120.00 million in 2023 and is expected to reach USD 196.62 million by 2029, growing at a CAGR of 8.58% during the forecast period. There is an increasing adoption of electric outboard motors in the boating industry due to several factors, including advances in battery technology, motor efficiency, and a growing demand for eco-friendly boating options. Recent improvements in battery technology, particularly the advent of lithium-ion batteries, have extended the range and power of electric outboard motors. Such factors have enhanced reliability and cost-effectiveness, contributing to widespread adoption. Global efforts to reduce emissions and promote eco-friendly technologies further support the growth of the electric outboard motors market. Moreover, ongoing advancements in battery technology and motor efficiency position the electric outboard motors as appealing options for eco-conscious boaters seeking a tranquil and low-impact boating experience. While challenges exist, the numerous benefits ensure that electric outboard motors will continue making waves in the boating industry for years to come.
MARKET TRENDS & DRIVERS
Developing Lithium-ion Batteries
The increasing need for extended battery life has driven significant advances in enhancing backup capacity. Li-ion batteries have less harmful environmental effects. As most vendors try to achieve sustainability, most of the electric outboard motors have Li-ion batteries that are better for the environment. The adoption of battery systems and battery technology will play a pivotal role in influencing purchasing decisions. Professional users are increasingly encouraged to adopt a unified battery system for electric outboard motors. This trend is expected to propel the reliance on Li-ion batteries further, driving market growth. The longevity and performance of Li-ion batteries have prompted vendors in the global electric outboard motors market to expand their product offerings with Li-ion battery options. Electric outboard motors are mostly equipped with Li-ion batteries, giving tough competition to lead acid batteries.
Rising Participation in Leisure Boating Activities in Europe
The European boating industry is one of the world’s most dynamic and competitive industries that significantly contributes to the growth of the European economy. The leisure boating market in Europe has witnessed impressive growth over the past five years. Countries such as Belgium, Croatia, and many others have witnessed significant growth in the recreational boat market. For instance, Belgium has several water sports centers that support almost any type of water-related recreation. It is home to over 20 marinas. Inland lakes and waterways are used intensively for various water sports, such as cable waterskiing, wakeboarding, dinghy sailing, windsurfing, jet-skiing, rowing, and kayaking.
High Initial Costs
The electric outboard motors market faces a significant challenge in the form of high initial costs, which can act as a restraining factor for its widespread adoption and market growth. The upfront expenses associated with electric outboard motors, including the motor itself and the required battery systems, often surpass the costs of traditional gasoline-powered alternatives. Several factors contribute to these high initial costs, including advanced technology embedded in electric outboard motors and the cost of high-quality, high-capacity batteries, which represent a significant portion of the overall expense.
INSIGHTS BY POWER
The global electric outboard motors market by power: 5 KW – 50 KW, Up to 5 KW, and above 50 KW. The 5 KW – 50 KW power segment is expected to be the largest revenue segment of the global market. This power range is suitable for various vessels, including mid-sized boats, pontoons, and specific types of commercial watercraft. Environmental sustainability is the key driver for adopting electric outboard motors in the 5 kW to 50 kW range. With zero emissions during operation, these motors play a crucial role in promoting cleaner air and water environments, addressing concerns about pollution in marine ecosystems. This aligns with the growing demand for sustainable boating practices, appealing to boat owners and operators prioritizing environmental protection. As charging infrastructure continues to improve, electric outboard motors within the 5 KW to 50 KW range become increasingly practical for a diverse range of boating enthusiasts and commercial operators.
INSIGHTS BY APPLICATION
The recreational application segment holds the most prominent share of the global electric outboard motors market in 2023. Electric outboard motors have transformed the landscape of recreational boating, providing numerous advantages that appeal to both environmentally conscious individuals and those seeking an enhanced on-water experience. In the realm of smaller vessels like kayaks, canoes, and dinghies, electric outboard motors offer a quiet and efficient mode of propulsion. Furthermore, electric outboard motors have gained popularity for day cruisers and weekend boaters due to their user-friendly nature, low maintenance requirements, and eco-friendly operation. The instant torque delivery of electric motors improves maneuverability, simplifying tasks such as docking and navigating in tight spaces. These aspects collectively contribute to a more relaxed and enjoyable boating experience for recreational users. As technology advances and the infrastructure supporting electric boating expands, the prevalence of electric outboard motors in the recreational sector is likely to grow.
INSIGHTS BY BOAT LENGTH
The global electric outboard motors market by boat length is segmented as less than 30 ft, 30 ft – 50 ft, and more than 50 ft. The less than 30 ft boat segment is expected to be the largest revenue segment of the global market. The rising popularity of electric outboard motors for boats measuring less than 30 feet is driven by several benefits catering to both recreational and practical needs. A significant advantage is the quiet operation of these electric motors, enhancing the overall boating experience. The demand for electric outboard motors in the less than 30 ft boat segment is driven by several factors, including supportive government policies, environmental awareness, cost considerations, and technological advancements. Due to the rising adoption of sustainable practices in the marine industry, the electric outboard motors market in smaller boats is estimated to witness sustained growth.
The global electric outboard motors market is well-developed in North America and Europe. The established markets of Europe and North America are expected to witness high demand for electric outboard motors during the forecast period since the commercial adoption of boats has increased in these regions. Such factors offer vendors many opportunities during the forecast period. In addition, the demand for marine infrastructure arises due to changing market dynamics, such as a higher number of recreational boat users. The global electric outboard motors market is undergoing several transformations regarding research on innovative products. The demand and adoption of boating activities are high for numerous reasons, such as increased urbanization and a rise in living standards. The U.S. is one of the biggest manufacturing hubs in North America. Over the past few years, it has attracted huge investments for expanding existing facilities or new facility setups. The presence of manufacturing facilities for Pure Watercraft and Vision Marine Technologies, among others, is a major driver for the growth of this region's electric outboard motors market.
The global electric outboard motors market is fragmented, with the presence of many local and international players. The competition among these players is intense. The rapidly changing technological environment could adversely affect vendors as customers expect continuous innovations and upgrades in the manufacturing of electric outboard motors. The key players in the global electric outboard motors market include Torqeedo, ePropulsion, Evoy, Pure Watercraft, Yamaha Motor, and Brunswick Corporation. There is intense competition in the market as all the players compete to gain more market share. The market will witness consolidation due to the intensely competitive environment. These factors make it imperative for vendors to distinguish their products and service offerings through a clear and unique value proposition, or they will not survive the highly competitive environment.
The electric outboard motors market concentration in developed countries, such as the U.S. and other Western European countries, is high, while the market is in a growing stage in developing economies, such as China and India, because of the entry of several international brands into these countries. The competition among vendors is based on product offerings and pricing. Vendors are using new business models and focusing on developing the portfolios of their established products to drive growth. The market competition is expected to intensify further with increased product/service extensions, technological innovations, and mergers and acquisitions. Arizton believes that international players will grow inorganically by acquiring regional or local players in the future. The adoption rate of electric outboard motors among end-users globally has been impressive.
Recent Developments in the Global Electric Outboard Motors Market
- During the CES 2023 event held in Las Vegas, Mercury introduced its latest innovation, the Avator 7.5e electric outboard. By Mercury, it’s the first electric outboard model and the first in a series to be unveiled officially in 2023.
- In 2021, Yamaha showcased its innovative engineering and design approach, known as CommandBlue, with the introduction of Yamaha Marine's HARMO electric outboard design in the US. This innovative design combines a 48-volt power supply with a high-efficiency, low-drag 3.7-kilowatt motor. HARMO's rim drive and a specially encased impeller deliver an impressive 225 pounds of static thrust, equivalent to that of a traditional 9.9-horsepower gas-powered motor.
- In June 2022, Limestone Boat Company declared the successful completion of sea trials for its Aquasports 2100CC, featuring Vision Marine's electric outboard propulsion. Following closely in July, Groupe Beneteau revealed a collaboration with Vision Marine, outlining plans to incorporate these high-power electric outboards into various models within its extensive portfolio.
- Suzuki, the Japanese engine manufacturer, has announced the release of its first electric marine engine in 2024. By 2030, it plans to launch five models.
ABOUT THE REPORT
The global electric outboard motors market is provided for the forecast years 2024 to 2029 and the base year 2023. The market is segmented by power, application, boat length, and geography. The report provides a holistic approach to the global electric outboard motors market, enabling customers to analyze the market thoroughly.