The global electric outboard motor market is anticipated to reach $196.62 million by 2029. In 2023, the market was valued at $120 million.
That’s the finding of a report by Research and Markets which says the global electric outboard motors market is fragmented, with intense competition among manufacturers as they compete to gain market share.
“The rapidly changing technological environment could adversely affect vendors as customers expect continuous innovations and upgrades in the manufacturing of electric outboard motors,” states the report which warns that vendors to distinguish their products and service offerings through a ‘clear and unique value proposition’, or they will not survive.
The established markets of Europe and North America are expected to witness continued high demand for electric outboard motors with increased commercial adoption of boats in these regions.
There are also higher numbers of recreational boat users.
The increasing need for extended battery life has driven significant advances in enhancing backup capacity, with electric outboard motors mostly equipped with Li-ion batteries.
And the adoption of battery systems and battery technology will play a pivotal role in influencing purchasing decisions, says the report, with professional users 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.”
High initial costs
The electric outboard motors market does face a challenge in the form of high initial costs, which can act as a restraining factor.
Factors contributing to these high initial costs include 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.
The 5kW to 50kW power segment is expected to be the largest revenue segment of the global market.
The power range is suitable for various vessels, with environmental sustainability a key driver.
As charging infrastructure continues to improve, electric outboard motors within this power range are becoming more practical for a diverse range of boating enthusiasts and commercial operators.
The recreational segment held the most prominent share of the global electric outboard motors market in 2023, providing advantages that appeal to both environmentally conscious individuals and those seeking an enhanced on-water experience.
And as technology advances and the infrastructure supporting electric boating expands, the prevalence of electric outboard motors in the recreational sector is likely to grow.
The less than 30ft boat segment is expected to be the largest revenue segment of the global market.
The demand for electric outboard motors in this segment is driven by several factors, including supportive government policies, environmental awareness, cost considerations, and technological advancements.
