Inboard Engines Market Size Growth - By Product Type (Diesel, Electric, Gasoline), By Power (Low, Medium, High), By Application (Recreational Boats, Commercial Boats), By Ignition (Electric, Manual), By Engine (IC Engine, Electric Engine), and By Region: Statistics Reports, Supply & Demand Analysis, Global Opportunity 2025-2032

Global Market Synopsis, Forecast, Trend, and Growth Up To 2032

The Inboard Engines Market size was valued at US$ 1.78 Bn in 2025, it is estimated to grow at a CAGR of 6.48% from 2025 to 2032 and reach US$ 2.73 Bn by the end of 2032. The major drivers of the inboard engines are increasing demand due to developments in technology, increasing environmental regulations, economic growth, and growing recreational boating.

The growth in inboard engines is being led by increasing recreational boating activities, ranging from fishing to watersports and cruises, especially in countries with a large number of water bodies and high maritime culture. Moreover, consumer expenditure on leisure activities such as recreational boating is also influenced by economic prosperity and increasing disposable incomes in developing countries.

Installation of inboard engines could be a lengthy and laborious process and would require specialized equipment and trained professionals, and hence it would take longer and is costly. Inboard engines need to be serviced routinely involving oil changes, winterization, and servicing wherein boat owners would be charged additional for the lifetime of the product, thereby hindering demand for inboard engines.

Key Inboard Engines Market Trends

Treading in the Global Inboard Engines Market Emerging Significant Trend Strong preference in developing electric-powered engines the electric inboard boasts low emissions, lower noise levels, and higher fuel efficiency, making them an attractive option to boaters and marine enthusiasts looking for environmentally friendly solutions. Further trends can be incorporated in terms of the advancement of digital technologies along with integration of advanced features in inboard engines. Some of them include electronic control integration, navigation systems, and remote monitoring capabilities. They therefore offer the boaters efficiency in convenience, safety, and even better performance.

Recreational boating activities are becoming highly popular, and along with this, growth in luxury yacht and boat market is likely to drive inboard engines industry in the next few years. Other advancements in the design of the engines are also expected to play a key role in further enhancing the growth prospects of the market and push for more adoption of inboard engines across a wide range of marine applications.

Growth Factors for Inboard Engines Market

• Technological developments within the inboard engine; more efficient, low emissions, better performance. Such technology lets the markets meet the demand of the customers and hence, the growth in the market for inboard engines.
• More developed facilities at sea and a larger commercial market for boating, both pleasure and commercial, make for high demand of inboard engines.
• Higher frequency of activities of the commercially used marine vessels, especially in fishing and cargo transportation.

Overview of the Inboard Engines Market

Inboard engines are inbuilt engines mounted at the center of the boat. Typically, inboard engines are four-stroke engines, just like automobile engines. Inboards are preferred by sailboats, motorboats, commercial boat workboats, and tour boats for marine activities as they typically have more displacement and offer a wider range of power. Inboard engines are highly preferred by most boaters who enjoy waters sports. They would need to be said to produce great wake for water skiing and wakeboarding.

How Is AI Influencing The Inboard Engines Market?

Use of artificial intelligence is, thus, improving inboard engines market profoundly. The ship engine forms an integral and complex part of a ship's engineering system and is integral to various systems and auxiliary subsystems. AI can even predict when ships and equipment will require service, hence saving on time and cost. In this case, sensor data taken from ship engines analyzed by AI thus establish patterns showing when maintenance is necessary, thus proactive repairs can be undertaken before significant, surprise breakdowns arise.

Traditional methods of maintenance include long turnaround times when repairing or replacing specific parts of the engines and restoring normal operations. Therefore, an AI-based condition monitoring system would monitor the health of the engine continuously, allowing for correct estimates regarding the timing of maintenance periods in order to reduce costs through reduced maintenance and enhanced ship safety.

Top Inboard Engines Market Manufactures

Some of the major players functioning in the inboard engines industry include:

• Caterpillar Inc.
• Crusader Engines
• Cummins Inc.
• Ilmor Engineering, Inc.
• Indmar Marine Engines
• MAN Energy Solutions
• Mercury Marine
• MTU Friedrichshafen GmbH
• Nanni Industries
• PCM (Pleasurecraft Marine Engine Co.
• Scania AB
• Suzuki Motor Corporation
• Volvo Penta
• Yamaha Motor Co., Ltd.
• Yanmar Co., Ltd.

Market Dynamics

Driver

Increase in demand for recreational water sports

Increasing demand for recreational water sports activities is likely to increase the scope in the inboard engines market share. Some of the major water recreational activities are Jet skiing, rowing, rafting, kayaking, canoeing, sailing, power boating, yachting, boat racing, and many more. There is a growing infrastructure of recreation boating facilities all over the globe as people pay more attention to the activity of water sports and, increasingly, most of the population uses water sports.

Restraint

Environmental issues & growing legal requirements

More and more people use their time and energy for the research of the problem of environmental pollution, but the burden on the ecological environment continues to rise. This affects the inboard engines market dynamic. The demands for controlling the harmful gas emission of engines increasingly become lifted, while each country has its own rule concerning the control of emissions of the transportation tools, and the stand of the emissions continues to raise.

The emissions of exhaust power on ships have proved to be very detrimental to the quality of the atmosphere for long in respect to the advancement of the shipping business. A medium-speed, high-power diesel engine runs 4000 hours yearly and emits about 1500 tonnes of NOx. Most government bodies around the globe have seriously considered the dangers of marine diesel engine exhaust emissions to the atmosphere owing to much attention paid to the emission of marine engine exhaust gas.

International Maritime Organisation (IMO) is one of the affiliated firms of the United Nations which has been established to enhance maritime safety.

Opportunity

Marine tourism

The government support to the tourism industry is likely to drive the marine tourism market forward. More travelers and tourists, favorable legislations performing a push factor for leisure travels, and increased investments in tourism coupled with growth in infrastructure development may promote the inboard engines market report. Knowledge and understanding of the culture of the other destinations continue to play a significant role while selecting the destination. With the expansion of the market and increased penetrations, Gen-Z and millennials are supplementing their leisure travel appeals with social media.

Market Scope

Inboard Engines Market Segmentation

By Power Category Insights

The medium segment is expected to expand to a large extent in the inboard engines market during the course of the forecast period. Medium-speed engines run on speeds ranging from 320 to 945 rpm. It is most common in small boats and power stations driving electrical generators. Medium-speed engines are the most widely used type of engine. Medium revolutions, such as buses, yachts, and other heavy modes of transport need such high revolutions.

By Product Type Insights

Diesel segment dominated the inboard engines market with the largest share in 2024. This is because diesel engines produce better power, torque, acceleration, and towing or hauling capacity than gas engines. Air in a diesel engine is compressed at a much faster rate to deliver more power for the jobs it is to accomplish. They also likely have greater durability and may last longer than those of gas. In addition, the diesel fuel can conveniently be acquired in most marinas and ports, so it is available for boat owners and operators. They are more reliable and durable as compared to others, and which makes them long-lasting and hence do not require as many replacements within their lifespan.

Gasoline is that segment which will see huge growth in the inboard engines market in the forecast period. Gasomatic engines are relatively less expensive as compared to diesel and emit much less. These are also more flexible, efficient in terms of refuelling, and less noisy and vibrative than diesel power. The use of gasoline engines easily starts in cold weather because these fuels are more volatile as compared to diesel.

By Ignition Category Insights

The electric segment has the highest share of the inboard engines market in 2024. The electric inboard boat motors are very suitable for new boats and e.g., retrofitting of existing boats. The electric sailboat motors are at the top of the agenda and most popular products in the seaborne market. These motors run very quietly, which is a luxury that enhances the sailing experience.

By Engine Category Insights

In the global inboard engines market, the IC engine segment was on top in 2024. An I.C. engine, also known as a combustion engine, is defined as an internal combustion heat engine that makes use of energy in the fuels, like gasoline, through the process of combustion to generate mechanical energy.

It is widely employed in automobiles, power generators, and numerous other similar industrial uses. Differences: Different types of IC engines exist, and they vary from one another by its nature - either gasoline or diesel-type, which arises owing to different combustion techniques used within them.

Regional Insights

Asia Pacific dominated the global inboard engines market in the year 2024. The revolution of various countries such as China, India, and Japan, with fast and growing industrialization and economic growth, increased the demand for inboard engines. Further, the commercial and recreational boating industry in the region is experiencing growth, and massive investment in the maritime industry is increasing the demand for energy-effective and highly-performing inboard propulsion.

Inboard engines market will experience growth significantly in North America during the forecast period. North America has very well-developed maritime structures and strong markets for commercial boating that ranges from fishing to cargo transport and commercial leisure boating, influencing the demand for inboard engines.

Relatively higher technological development and engine performance/efficiency requirements are the characteristics of the inboard engines market growth in North America. Favourable regulations, high demand in the region, and technological development have led to the inboard engine industry having one of the largest markets in North America.

Inboard Engines Market Update

• Accelerates development of energy-efficient solutions through the acquisition of Meritor in August 2022. This also expands the synergies within our core businesses, increasing our product offerings, sales and service networks, and customer relationships.
• In November 2022, Correct Craft of the U.S. sold an undisclosed amount to purchase an Indmar Marine engine.
• Volvo Penta powered Southport Boats of Maine's launch in the new version of the Southport 30 FE for February 2023. This is an automatic drivetrain from Volvo Penta. It focuses on versatility to meet the needs of the flow of everyone on board.

Segments Covered in the Report:

By Product Type

• Diesel
• Electric
• Gasoline
• Others

By Power

• Low
• Medium
• High

By Ignition

• Electric
• Manual

By Engine

• IC engine
• Electric engine

By Application

• Recreational boats
• Commercial boats