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Last Updated: Apr 25, 2025 | Study Period: 2024-2030
Yachts need lot less power to move on water as compared to cars on land. For comparison, as a rule of thumb, 3hp per tonne of displacement is sufficient to move a yacht whereas a minimum 70hp per tonne is required for an entry-level car.
| SI no | Company | New Developments |
| 1 | MAN Engines | MAN engines will extend their partnership with Princess Yachts till 2025. |
| 2 | Mtu Engines | Mtu engines and Zhenjiang shipyard will join to promote the development of tugboats with mtu engines in China. |
| 3 | MAN Engines | For the first time MAN engines will be supplying engines to French yacht and motorboat manufacturer BENETEAU. |
| 4 | MAN Engines | MAN engine will expand its sales and service for marine and marine engineers in the port of Doha, Qatar. |
| 5 | Invictus Yacht | The Italian boatbuilder Invictus has chosen Yamaha in order to power their models of its boat lines. |
The average power of yacht engines has been steadily increasing in recent years. The yacht manufacturers typically equip their products with higher output engines so that they run at lower revs, being more economical and suited for long distance cruising
All yacht builders rely on a handful of European engine manufacturers for yacht propulsion solution. Sometimes the agreement or partnership can extend for multiple years and platforms. For example, In Oct 2018 Britain based Sunseeker signed a new framework agreement for the supply of MTU Series 2000 and 4000 engines for its 86Y, 95Y, 116Y, 131Y range of yachts.
Dual engine propulsion are very common on yachts over 40ft in length but Azimut raised the bar when Azimut S6 was launched in Dec 2019 with triple propulsion Volvo Penta IPS 700 system. The inherent advantages of triple propulsion units are improved fuel efficiency, reducing noise and vibrations.
Although, much of the market is still captured by Diesel engines, electric propulsion is also catching up thick and fast. For example,
The global yacht engine market is estimated at $XX Million in 2024, growing at xx% CAGR till 2030
Scania launched two all-new marine engines in the US aimed at the Cruising yacht market. The two diesel engines have a power output of 900hp and 1150 hp respectively
Volvo Penta launched D4 and D6 engines, with 3.7L and 5.5L displacement respectively with power output range of 150-480hp
| SI no | Company | Developments |
| 1 | YANMAR | YANMAR Marine Internationals has successfully installed the new high horsepower 6LF diesel engines, with outstanding reports in Europe. |
| 2 | Ferretti | For their 45-foot motor yacht Ferretti has relied on the YANMAR triple-engine propulsion package. |
| 3 | MAN Engines | MAN engines are moving towards zero-emission mobility and creating hybrid engines for more performance, comfortable cruising on Yachts and in ships. |
Maritimo, an Australian yacht builder, has chosen mtu as the official high-horsepower engine choice for its new flagship yachts, with select future models to follow.The deal specifies the mtu brand of engine from Rolls-Royce Power Systems as the exclusive engine choice for Maritimo engines ranging from 1200 to 1625 horsepower. The first mtu-powered watercraft will be on the water, according to Maritimo.
Various mtu engine options, with ZF gears, mtu control systems, mtu joystick, and position hold options will be available in the M75 Flybridge, S75 Sedan, and M600 & S600 Offshore variants, which will be represented locally by Penske Australia & New Zealand. Because both businesses have comparable values in terms of the items they produce, which are of extremely high quality, highly functional, and dependable, and are backed up by exceptional customer care and service.
The mtu engine option from Maritimo provides owners with a purpose-built marine power unit as well as real-time back-to-base monitoring service from anywhere on the planet.The mtu engines are all constantly rated, offering Maritimo owners the opportunity to operate at 100% load at any moment, delivering additional power and torque.It discovered a common ground with the brand and their shared goal of minimising the cost of ownership over time. Over and above the original purchase, mtu delivers considerable benefits in terms of efficiency and maintenance expenses.
The way Maritimo and mtu both aspire to build engineering with built-in simplicity, producing greater ease of use and a more joyful ownership experience, further aligns the two firms' main purpose. Penske Australia & New Zealand, with its network of 16 strategically situated branches and remote field service locations, will deliver the engine packages.
North America
The North American market, particularly the USA, will be one of the prime markets for Yacht Engine due to the nature of industrial automation in the region, high consumer spending compared to other regions, and the growth of various industries, mainly AI, along with constant technological advancements. The GDP of the USA is one of the largest in the world, and it is home to various industries such as Pharmaceuticals, Aerospace, and Technology. The average consumer spending in the region was $72K in 2023, and this is set to increase over the forecast period. Industries are focused on industrial automation and increasing efficiency in the region. This will be facilitated by the growth in IoT and AI across the board. Due to tensions in geopolitics, much manufacturing is set to shift towards the USA and Mexico, away from China. This shift will include industries such as semiconductors and automotive.
Europe
The European market, particularly Western Europe, is another prime market for Yacht Engine due to the strong economic conditions in the region, bolstered by robust systems that support sustained growth. This includes research and development of new technologies, constant innovation, and developments across various industries that promote regional growth. Investments are being made to develop and improve existing infrastructure, enabling various industries to thrive. In Western Europe, the margins for Yacht Engine are higher than in other parts of the world due to regional supply and demand dynamics. Average consumer spending in the region was lower than in the USA in 2023, but it is expected to increase over the forecast period.
Eastern Europe is anticipated to experience a higher growth rate compared to Western Europe, as significant shifts in manufacturing and development are taking place in countries like Poland and Hungary. However, the Russia-Ukraine war is currently disrupting growth in this region, with the lack of an immediate resolution negatively impacting growth and creating instability in neighboring areas. Despite these challenges, technological hubs are emerging in Eastern Europe, driven by lower labor costs and a strong supply of technological capabilities compared to Western Europe.
There is a significant boom in manufacturing within Europe, especially in the semiconductor industry, which is expected to influence other industries. Major improvements in the development of sectors such as renewable energy, industrial automation, automotive manufacturing, battery manufacturing and recycling, and AI are poised to promote the growth of Yacht Engine in the region.
Asia
Asia will continue to be the global manufacturing hub for Yacht Engine Market over the forecast period with China dominating the manufacturing. However, there will be a shift in manufacturing towards other Asian countries such as India and Vietnam. The technological developments will come from China, Japan, South Korea, and India for the region. There is a trend to improve the efficiency as well as the quality of goods and services to keep up with the standards that are present internationally as well as win the fight in terms of pricing in this region. The demand in this region will also be driven by infrastructural developments that will take place over the forecast period to improve the output for various industries in different countries.
There will be higher growth in the Middle East as investments fall into place to improve their standing in various industries away from petroleum. Plans such as Saudi Arabia Vision 2030, Qatar Vision 2030, and Abu Dhabi 2030 will cause developments across multiple industries in the region. There is a focus on improving the manufacturing sector as well as the knowledge-based services to cater to the needs of the region and the rest of the world. Due to the shifting nature of fossil fuels, the region will be ready with multiple other revenue sources by the time comes, though fossil fuels are not going away any time soon.
Africa
Africa is expected to see the largest growth in Yacht Engine Market over the forecast period, as the region prepares to advance across multiple fronts. This growth aligns with the surge of investments targeting key sectors such as agriculture, mining, financial services, manufacturing, logistics, automotive, and healthcare. These investments are poised to stimulate overall regional growth, creating ripple effects across other industries as consumer spending increases, access to products improves, and product offerings expand. This development is supported by both established companies and startups in the region, with assistance from various charitable organizations. Additionally, the presence of a young workforce will address various existing regional challenges. There has been an improvement in political stability, which has attracted and will continue to attract more foreign investments. Initiatives like the African Continental Free Trade Area (AfCFTA) are set to facilitate the easier movement of goods and services within the region, further enhancing the economic landscape.
RoW
Latin America and the Oceania region will showcase growth over the forecast period in Yacht Engine Market. In Latin America, the focus in the forecast period will be to improve their manufacturing capabilities which is supported by foreign investments in the region. This will be across industries mainly automotive and medical devices. There will also be an increase in mining activities over the forecast period in this region. The area is ripe for industrial automation to enable improvements in manufacturing across different industries and efficiency improvements. This will lead to growth of other industries in the region.
| Margin Comparison (Highest to lowest) | Region | Remarks |
| 1 | Europe | The supply chain demands and the purchasing power in the region enable suppliers to extradite a larger margin from this region than other regions. This is for both locally manufactured as well as imported goods and services in the region. |
| 2 | North America | Due to the high spending power in this region, the margins are higher compared to the rest of the world, but they are lower than Europe as there is higher competition in this region. All the suppliers of goods and services target USA as a main market thereby decreasing their margins compared to Europe |
| 3 | Asia | Lower purchasing power, coupled with higher accessibility of services in this regions doesnât enable suppliers to charge a high margin making it lower than Europe and North America. The quality of goods and services are also affected due to this aspect in the region |
| 4 | Africa and ROW | The margins are the lowest in this region, except for Australia and New Zealand as the countries in this region donât have much spending power and a large portion of the products and services from this area is exported to other parts of the world |
USAâ $210 billion is allocated to federal R&D with main focus on health research, clean energy, semiconductor manufacturing, sustainable textiles, clean energy, and advanced manufacturing. Investments by private players are mainly focused on technological development including 5G infrastructure and AI in the region.
Europeâ EIC is investing â¬1 billion to innovative companies in sectors like AI, biotechnology, and semiconductors. There is also a focus on developing the ecosystem in the continent as well as improving the infrastructure for developing industries such as electric vehicles and sustainable materials. Private players are targeting data centers, AI, battery plants, and high end technological R&D investments.
Asiaâ There are investments to tackle a range of scientific and technological advancements in this region mainly coming in from China, India, South Korea, and Japan. This will include artificial intelligence, 5G, cloud computing, pharmaceutical, local manufacturing, and financial technologies. Many countries are aiming to be digital hubs including Saudi Arabia.
Africaâ Investments in the region are focused on improving the technological capabilities in the region along with socio-economic development and growth. Private participants of investments in this region is venture capital dominated who are targeting the various growth elements of the region as social stability improves. The major industries are fintech, easier lending, and manufacturing.
Latin Americaâ The focus in the region is for fintech, e-commerce, and mobility sectors. There are also investments in improving manufacturing in the region. Local investments is focused on improving the healthcare, and transportation infrastructure in the region. The region is attracting foreign investments to improve their ability to utilize the natural resources present in the region.
Rest of the Worldâ The investments in this region are focused on clean energy, green metals, and sustainable materials. Funds in Australia are focused on solar energy and battery technologies, along with high end futuristic areas such as quantum computing. The main countries of private investment in ROW will be Australia, Canada, and New Zealand.
| SI no | Company | Sales |
| 1 | Caterpillar | The third quarter sales was about $12.4 billion with a 25% increase Y-o-Y |
| 2 | Cummins Inc | At the end of the third quarter, the revenue of Cummins was $6 billion. |
Volvo Penta is among the global market leaders in yacht engine market. Till date it has sold more than 105,000 units worldwide. Volvo Penta is also among the biggest innovators with latest generation engines featuring Diamond Like Carbon (DLC) coating on the piston pin to reduce friction and increase durability. The common rail fuel injection system has higher pressure â 2,000 bar at par with automotive engines.
In July 2020, Invictus yacht launched a new TT460 model powered by Volvo Penta`s D6 IPS package.
In Jan 2020, Italian Yacht builder Cranchi unveiled its biggest 78 foot yacht powered by Volvo Penta D13-IPS1350 and North American builder Palm Beach Motor yachts showcased GT60 with the twin Volvo Penta IPS 1350s.
Rolls Royce owned MTU is also one of the leading yacht engine manufacturer. It is now offering integrated bridge systems â MTU Smart Bridge â for both series production yachts and mega yachts. It has developed integrated solution for IMO 3 consisting of propulsion system and SCR exhaust gas aftertreatment system which are optimally matched, designed for flexible installation and low on maintenance.
In Sep 2019, MTU said it will gradually introduce a range of completely integrated and modular MTU hybrid marine propulsion systems for production yachts with a power range extending from approximately 1000 kW to 4000 kW per powertrain.
YANMAR MARINE INTERNATIONAL is introduced its new 6LF and 6LT series of marine diesel engines in Jan 2020. Yanmar now offers a complete propulsion package including engine, ZF transmission, and VC20 vessel control system.
| Sl no | Topic |
| 1 | Market Segmentation |
| 2 | Scope of the report |
| 3 | Abbreviations |
| 4 | Research Methodology |
| 5 | Executive Summary |
| 6 | Introduction |
| 7 | Insights from Industry stakeholders |
| 8 | Cost breakdown of Product by sub-components and average profit margin |
| 9 | Disruptive innovation in the Industry |
| 10 | Technology trends in the Industry |
| 11 | Consumer trends in the industry |
| 12 | Recent Production Milestones |
| 13 | Component Manufacturing in US, EU and China |
| 14 | COVID-19 impact on overall market |
| 15 | COVID-19 impact on Production of components |
| 16 | COVID-19 impact on Point of sale |
| 17 | Market Segmentation, Dynamics and Forecast by Geography, 2024-2030 |
| 18 | Market Segmentation, Dynamics and Forecast by Product Type, 2024-2030 |
| 19 | Market Segmentation, Dynamics and Forecast by Application, 2024-2030 |
| 20 | Market Segmentation, Dynamics and Forecast by End use, 2024-2030 |
| 21 | Product installation rate by OEM, 2023 |
| 22 | Incline/Decline in Average B-2-B selling price in past 5 years |
| 23 | Competition from substitute products |
| 24 | Gross margin and average profitability of suppliers |
| 25 | New product development in past 12 months |
| 26 | M&A in past 12 months |
| 27 | Growth strategy of leading players |
| 28 | Market share of vendors, 2023 |
| 29 | Company Profiles |
| 30 | Unmet needs and opportunity for new suppliers |
| 31 | Conclusion |
| 32 | Appendix |
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