Small Marine Engines Market Report 2026

The small marine engines market size has grown strongly in recent years. It will grow from $8.67 billion in 2025 to $9.16 billion in 2026 at a compound annual growth rate (CAGR) of 5.7%. The growth in the historic period can be attributed to increasing adoption of small marine engines for recreational boats and small commercial vessels, growth in demand for reliable 2-stroke and 4-stroke propulsion systems in coastal and inland waterways, advancements in fuel-efficient engine technologies improving vessel operating costs, rising popularity of leisure boating activities driving engine sales, expansion of small-scale fishing operations requiring durable marine engines.

The small marine engines market size is expected to see steady growth in the next few years. It will grow to $11.01 billion in 2030 at a compound annual growth rate (CAGR) of 4.7%. The growth in the forecast period can be attributed to growing demand for low-emission small marine engines to comply with stricter environmental regulations, rising adoption of lightweight and compact engines to improve vessel performance, increasing investment in hybrid and electric-assisted propulsion solutions for small vessels, development of advanced control systems enhancing engine efficiency and maintenance, expanding marine tourism and recreational boating activities boosting future engine procurement. Major trends in the forecast period include rising demand for compact and fuel-efficient marine propulsion systems, increasing adoption of low-emission small marine engines, growth in recreational boating and personal watercraft usage, advancements in lightweight engine materials and design, expansion of hybrid marine engine architectures for small vessels.

The growing fishing activity is expected to boost the small marine engines market in the future. Fishing encompasses any activity related to the capture or processing of fish or shellfish for commercial sale or personal consumption. The rising sales of small and medium-sized boats for fishing and recreational purposes will further drive the use of outboard engines. For instance, the Food and Agriculture Organization, a Canada-based specialized agency of the United Nations, forecasts that annual fisheries and aquaculture production will reach 185 million tonnes in 2023, reflecting a 0.6% increase compared to 2022 levels. Therefore, the increasing fishing activity is a significant factor propelling demand for small marine engines.

Major players in the small marine engines market are strategically focusing on innovative products, particularly auxiliary engines, to drive revenue growth. Auxiliary engines, serving as secondary power sources, are designed to provide additional power for specific functions or services, distinct from the primary propulsion engine of a vehicle or machinery. A notable example is the initiative by Perkins Engines Company Limited, a leading UK-based manufacturer of marine engines. In September 2023, Perkins introduced the Perkins E44 and E70B auxiliary engines. These engines find application in various sectors, including inland waterways, tugs, government, fishing, and ferry services. The Perkins E44, an electronic 4.4-liter 4-cylinder engine, and the upgraded E70B offer boat operators a range of power ratings and factory-configurable power options. Notably, both models, the E44 and the more powerful E70B, feature low maintenance characteristics and a 500-hour interval service, catering to the diverse needs of marine applications.

In August 2024, Yanmar Holdings Co., Ltd., a Japan-based agricultural machinery firm, acquired CLAAS India Private Ltd. for an undisclosed sum. This acquisition aims to enhance Yanmar's technological capabilities, broaden its product portfolio, and strengthen its competitive position in the global market. CLAAS India Private Ltd. specializes in the manufacturing of agricultural machinery products.

Major companies operating in the small marine engines market are Yamaha Motor Co. Ltd., Honda Motor Co. Ltd., Brunswick Corporation, Suzuki Motor Corporation, Tohatsu Corporation, Bombardier Recreational Products Inc., Volvo Group, Bombardier Recreational Products Inc., Nissan Motor Co. Ltd., Marine Power LLC, Kohler Co., Honda Motor Co. Ltd., Cummins Inc., Westerbeke Corporation, Yanmar Co. Ltd., Johnson Outdoors Inc., Seatek S.r.l., Brunswick Corporation, Torqeedo GmbH, Gason Pty Ltd., Bombardier Recreational Products Inc., Selva Marine S.p.A., ZF Friedrichshafen AG, JCB Ltd.

North America was the largest region in the small marine engines market in 2025. Asia-Pacific is expected to be the fastest-growing region in the small marine engines market report during the forecast period. The regions covered in the small marine engines market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are reshaping the small marine engines market by increasing the cost of imported engine components, materials, and electronic control systems, thereby raising overall production expenses and slowing deliveries. These impacts are most evident across gasoline, diesel, and electric engine segments, particularly in regions dependent on cross-border supply chains such as North America, Europe, and Asia-Pacific. Recreational boats, coastal vessels, and fishing boats are experiencing higher equipment prices due to tariff-driven cost escalations. Despite these challenges, the tariffs are also encouraging domestic manufacturing expansion, localized sourcing, and improved value-added production capabilities within key marine industry hubs.

The small marine engines market research report is one of a series of new reports that provides small marine engines market statistics, including small marine engines industry global market size, regional shares, competitors with small marine engines market share, detailed small marine engines market segments, market trends and opportunities, and any further data you may need to thrive in the small marine engines industry. This small marine engines market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Small marine engines encompass nonroad engines intended for use on smaller marine vessels. They are designated as marine engines specifically if they fuel, cool, and have exhaust systems located within the vessel.

These engines mainly come in three models including gasoline, diesel, and electric. Gasoline engines are typically found in smaller inboard or stern-drive powerboats, usually up to 35 feet in length. They come in various displacements such as up to 2 liters, 2-4 liters, and 4-6 liters, and are used across different vessel types including recreational boats, support vessels, coastal boats, fishing boats, and other maritime applications. They can be placed in various locations on the boat, including outboard and inboard placements.

The countries covered in the small marine engines market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The small marine engines market consists of sales of 4-stroke and 2-stroke engines that are installed onboard a ship for propulsion. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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