Global 2-Stroke Outboard Engine Market Insights, Size, and Forecast By Power Output (Under 10 HP, 10 HP to 20 HP, 21 HP to 50 HP, Above 50 HP), By Engine Type (Standard 2-Stroke Engines, High-Performance 2-Stroke Engines, Lightweight 2-Stroke Engines, Electric Hybrid 2-Stroke Engines), By Cooling System (Air-Cooled, Water-Cooled, Fan-Cooled), By Application (Recreational Boating, Commercial Fishing, Personal Watercraft, Emergency Rescue, Military Applications), By Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa), Key Companies, Competitive Analysis, Trends, and Projections for 2026-2035
Key Market Insights
Global 2-Stroke Outboard Engine Market is projected to grow from USD 1.98 Billion in 2025 to USD 2.25 Billion by 2035, reflecting a compound annual growth rate of -1.8% from 2026 through 2035. This market encompasses the manufacturing and sale of internal combustion engines that operate on a two-stroke cycle, specifically designed for marine propulsion, attached to the outside of the transom of a boat. Despite the overall negative growth, the market sees continued demand driven by factors such as the affordability and lightweight nature of 2-stroke engines, making them popular for small recreational boats, fishing vessels, and tenders. Their simpler design also translates to easier maintenance and higher power-to-weight ratios compared to their four-stroke counterparts, appealing to budget-conscious consumers and those requiring immediate power delivery for certain applications. Technological advancements in direct fuel injection DFI systems are a key trend, addressing historical environmental concerns by improving fuel efficiency and reducing emissions, thereby mitigating regulatory pressures. However, stringent environmental regulations on exhaust emissions globally, particularly in developed economies, remain a significant restraint, pushing market participants towards cleaner technologies or alternative engine types. Opportunities exist in emerging markets where affordability and traditional usage patterns still favor two-stroke engines, especially in artisanal fishing and local transport.
Global 2-Stroke Outboard Engine Market Value (USD Billion) Analysis, 2025-2035
2025 - 2035
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The Asia Pacific region stands out as the dominant force in the global 2-stroke outboard engine market and is also projected to be the fastest growing. The dominance of Asia Pacific can be attributed to several factors including extensive coastlines, a large fishing industry comprising numerous small-scale operations, and a significant demand for affordable marine propulsion solutions. Countries within this region, particularly those with vast archipelagos and inland waterways, heavily rely on outboard engines for transportation, fishing, and tourism. The rapid growth in this region is fueled by increasing disposable incomes in certain areas, leading to greater participation in recreational boating, alongside sustained demand from commercial sectors. Furthermore, the less stringent environmental regulations in some parts of Asia Pacific compared to Western nations allow for the continued proliferation of 2-stroke technology, albeit with a gradual shift towards cleaner versions.
Key players in this market, including Mercury Marine, Yamaha Motor Co Ltd, Honda Motor Co Ltd, and Suzuki Motor Corporation, are strategically adapting to the evolving landscape. Their strategies often involve developing more efficient and cleaner 2-stroke engines, particularly those incorporating DFI technology, to meet stricter emission standards in various regions. Companies like Scania AB and Daihatsu Diesel Manufacturing Co Ltd, while perhaps more focused on larger marine engines, still influence the overall marine propulsion market dynamics. Meanwhile, Brunswick Corporation and Johnson Outdoors Inc, with their broader marine product portfolios, leverage their distribution networks and brand recognition to maintain market share. Samil Power's involvement suggests a niche focus or a potential diversification into related power systems. The leading segment by cooling system is water-cooled, reflecting its superior efficiency in dissipating heat, crucial for engine longevity and performance, especially in continuous marine operation. The market segmentation by application, engine type, power output, and cooling system allows for a granular understanding of diverse end-user needs and technological preferences across the globe.
Quick Stats
Market Size (2025):
USD 1.98 BillionProjected Market Size (2035):
USD 2.25 BillionLeading Segment:
Water-Cooled (92.8% Share)Dominant Region (2025):
Asia Pacific (48.2% Share)CAGR (2026-2035):
-1.8%
What is 2-Stroke Outboard Engine?
A 2-stroke outboard engine is an internal combustion engine completing a power cycle in two piston strokes and one crankshaft revolution. It combines intake and compression, then power and exhaust, into a single upward and downward piston movement. Fuel oil mixture lubricates moving parts directly. Significant for its high power to weight ratio and simpler design, it's commonly found on smaller boats for propulsion due to its immediate torque and reliability. Its operation involves port timing controlled by the piston itself, making it distinct from four-stroke designs with dedicated valve trains.
What are the Trends in Global 2-Stroke Outboard Engine Market
Electric Outboard Transition
Eco Friendly Hybrid Systems
Advanced Fuel Injection Adoption
Emerging Market Resurgence
Electric Outboard Transition
Increasing environmental concerns and the pursuit of quieter, more efficient power are driving a significant shift. Traditional 2 stroke outboards are being phased out as electric alternatives offer instant torque, zero emissions, and reduced maintenance. This transition, fueled by battery advancements and consumer demand for sustainable boating, reflects a growing preference for cleaner, quieter propulsion systems in smaller marine applications globally.
Eco Friendly Hybrid Systems
Manufacturers are developing eco friendly hybrid systems to meet stringent emission regulations and reduce fuel consumption. These innovations combine traditional two stroke power with electric motors, offering improved efficiency and lower environmental impact. This trend addresses growing consumer demand for greener boating solutions and anticipates future regulatory landscapes, ensuring the longevity and competitiveness of two stroke outboards in a conscious market.
Advanced Fuel Injection Adoption
Two stroke outboard engines are increasingly adopting advanced fuel injection for improved efficiency and emissions. This trend replaces less precise carburetion. Modern systems offer better fuel atomization, reducing fuel consumption and pollution. Manufacturers are driven by tightening environmental regulations and consumer demand for more reliable, cleaner running outboards. This shift reflects a broader industry movement towards sophisticated engine management.
Emerging Market Resurgence
Developing nations are driving a strong rebound in two stroke outboard engine sales. Increased disposable incomes and expanding recreational fishing industries in these markets are fueling demand. Affordability and reliability, coupled with local maintenance capabilities, make these engines attractive. This resurgence is a key growth area as established markets plateau.
What are the Key Drivers Shaping the Global 2-Stroke Outboard Engine Market
Stringent Emissions Regulations
Advancements in 2-Stroke Technology
Growth in Recreational Boating and Fishing
Competitive Pressure from 4-Stroke Engines
Stringent Emissions Regulations
Stringent emissions regulations are a significant driver in the global 2 stroke outboard engine market. Governments worldwide are implementing stricter environmental standards, particularly regarding exhaust pollutants. This forces manufacturers to develop more compliant and less polluting engines or face market restrictions. The pressure to meet these evolving regulations directly impacts engine design, production, and consumer choice, driving innovation toward cleaner technologies even within a declining market.
Advancements in 2-Stroke Technology
Innovations in two stroke design, like direct injection and improved combustion, are making these engines more fuel efficient and environmentally friendly. Reduced emissions and better performance enhance their appeal for marine applications. These advancements address past limitations, making two stroke outboards a more competitive and attractive option for consumers seeking power and reliability in the global market.
Growth in Recreational Boating and Fishing
Growing interest in outdoor leisure activities, particularly boating and fishing, is increasing demand for two stroke outboard engines. More people are purchasing small to medium sized recreational boats and personal watercraft for weekend getaways and holidays. This expanding participation in water sports and leisure fishing directly fuels the need for reliable, compact, and powerful two stroke engines to power these vessels, driving market expansion.
Competitive Pressure from 4-Stroke Engines
Four stroke outboards offer better fuel efficiency and lower emissions, directly challenging the traditional two stroke advantages. This forces two stroke engine manufacturers to innovate and improve their technology to remain relevant. Consumers increasingly favor the cleaner, quieter operation of four stroke engines, creating strong competitive pressure. This rivalry drives advancements in both engine types.
Global 2-Stroke Outboard Engine Market Restraints
Stringent Emissions Regulations
Strict emissions regulations severely limit the two stroke outboard engine market. These rules mandate lower pollutant outputs challenging traditional two stroke designs known for higher emissions. Manufacturers face substantial costs redesigning engines or developing new technologies to comply. This regulatory pressure makes it difficult for two stroke engines to compete against cleaner four stroke alternatives, hindering market expansion and driving a decline in demand globally. Governments prioritizing environmental protection will continue tightening these regulations.
Growing Electrification Trend
The growing electrification trend poses a significant restraint as consumers increasingly favor electric propulsion for environmental reasons and ease of use. This shift directly diminishes demand for traditional two stroke outboard engines, impacting market growth. Stricter emission regulations worldwide also accelerate this transition, further limiting the adoption and sale of gasoline powered alternatives. Consequently, manufacturers face pressure to innovate or risk losing market share to electric competitors. This trend fundamentally alters the landscape for internal combustion engines.
Global 2-Stroke Outboard Engine Market Opportunities
Capitalizing on Demand for Cost-Effective, High Power-to-Weight 2-Stroke Outboards in Developing Regions and Specific Utility Applications
Exploiting the strong demand for affordable, high power-to-weight 2-stroke outboards in developing regions presents a significant opportunity. These engines are crucial for fishing, local transport, and various utility applications where their low purchase price and simple maintenance are paramount. Focusing on markets like Asia Pacific allows companies to provide essential, rugged propulsion solutions. This caters to users prioritizing cost-effectiveness and reliable performance over advanced features, ensuring accessibility and operational efficiency for diverse communities and specialized tasks.
Driving Adoption of Advanced Direct Injection (DFI) 2-Stroke Outboards for Performance-Oriented and Emission-Compliant Marine Segments
The opportunity involves driving widespread adoption of advanced Direct Injection DFI 2-stroke outboards. These engines deliver superior power and responsiveness, perfectly suiting performance-oriented marine segments demanding speed and acceleration. Simultaneously, their significantly reduced emissions address critical environmental compliance needs. This dual benefit positions DFI 2-strokes as an optimal solution, allowing companies to penetrate diverse marine segments globally. It satisfies both high-performance desires and increasingly stringent ecological requirements, unlocking substantial growth by appealing to a broader customer base seeking advanced marine propulsion technology.
Global 2-Stroke Outboard Engine Market Segmentation Analysis
Key Market Segments
By Application
- •Recreational Boating
- •Commercial Fishing
- •Personal Watercraft
- •Emergency Rescue
- •Military Applications
By Engine Type
- •Standard 2-Stroke Engines
- •High-Performance 2-Stroke Engines
- •Lightweight 2-Stroke Engines
- •Electric Hybrid 2-Stroke Engines
By Power Output
- •Under 10 HP
- •10 HP to 20 HP
- •21 HP to 50 HP
- •Above 50 HP
By Cooling System
- •Air-Cooled
- •Water-Cooled
- •Fan-Cooled
Segment Share By Application
Share, By Application, 2025 (%)
- Recreational Boating
- Commercial Fishing
- Personal Watercraft
- Emergency Rescue
- Military Applications
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Why is Water-Cooled dominating the Global 2-Stroke Outboard Engine Market?
Water cooled systems are overwhelmingly preferred due to their superior heat dissipation efficiency and consistent performance, particularly in marine environments. This method effectively prevents engine overheating, crucial for sustained operation and engine longevity in harsh conditions, making it the industry standard for most outboard applications. Its prevalence underscores its reliability and suitability across various power outputs and uses.
What drives demand for 2-Stroke Outboard Engines in Recreational Boating?
Recreational boating represents a significant application segment, fueled by the engine’s advantageous power to weight ratio, simplicity, and robust performance. These engines are often chosen for their quick acceleration and ease of maintenance, appealing to casual users and enthusiasts for activities like fishing, water sports, and leisure cruising on smaller vessels, where portability and immediate power delivery are highly valued.
How does power output differentiate adoption within the 2-Stroke Outboard Engine Market?
Power output segmentation highlights diverse market needs, with engines above 50 HP often catering to more demanding applications such as larger recreational boats, commercial fishing vessels, or military uses requiring significant thrust and speed. Conversely, lower power engines, particularly under 10 HP, are favored for their light weight and portability, ideal for tenders, small fishing boats, or auxiliary power on sailboats, reflecting a broad spectrum of utility.
What Regulatory and Policy Factors Shape the Global 2-Stroke Outboard Engine Market
Global 2-stroke outboard engine market navigates a complex, highly regulated landscape. Emissions standards are the primary policy drivers globally. North America and Europe have largely banned conventional carbureted 2-strokes, favoring cleaner direct injection technologies or 4-stroke engines to reduce hydrocarbon and particulate emissions. Strict regulations from agencies like the EPA and European Parliament enforce these limits. Noise pollution standards also influence design. While some developing regions still permit older technologies, the global trend is towards tighter environmental controls. Policies compel manufacturers to innovate, focusing on cleaner burning designs or transitioning product lines. Regulatory fragmentation exists, with varying implementation and enforcement levels across continents, creating challenges for market access and product compliance.
What New Technologies are Shaping Global 2-Stroke Outboard Engine Market?
The 2 stroke outboard engine market sees innovation focused on sustainability and efficiency. Advanced direct fuel injection DFI technologies are crucial for reducing emissions and improving fuel economy, enhancing environmental compliance. Hybrid electric propulsion systems are emerging, integrating electric motors to offer cleaner low speed operation and enhanced power delivery. Lightweight composite materials are being adopted to improve power to weight ratios and durability. Internet of Things IoT connectivity enables remote diagnostics and predictive maintenance, enhancing user convenience. These advancements seek to carve out specialized niches, leveraging the 2 stroke's inherent simplicity and power density for specific marine applications, despite overall market contraction.
Global 2-Stroke Outboard Engine Market Regional Analysis
Global 2-Stroke Outboard Engine Market
Trends, by Region
Asia-Pacific Market
Revenue Share, 2025
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North America is a significant market for 2-stroke outboard engines, driven by recreational boating and fishing. The US, particularly states like Florida, California, and the Great Lakes region, shows robust demand. Canada also contributes, with strong sales in coastal and lake regions. While environmental regulations favor 4-stroke engines, the cost-effectiveness, lighter weight, and simpler maintenance of 2-strokes maintain a dedicated user base, particularly in smaller boat segments and for specific commercial applications. Aftermarket parts and service for existing 2-stroke fleets remain a substantial component of the regional market.
Europe's 2-stroke outboard engine market presents a complex regional landscape. While some countries show declining demand due to stringent environmental regulations and the shift towards cleaner 4-stroke alternatives, others maintain a niche market, particularly in Eastern Europe and for specific commercial applications. The recreational segment in Western Europe is rapidly transitioning, driven by sustainability concerns and noise regulations. However, the affordability and simplicity of 2-stroke engines continue to attract specific user groups. Regulatory pressure, especially EU directives on emissions, significantly shapes the market, pushing innovation in direct injection 2-stroke technology to meet evolving standards.
Asia Pacific dominates the global 2-stroke outboard engine market with a substantial 48.2% share, driven by strong demand across its coastal nations. This region also exhibits the fastest growth, projected at a robust 6.8% CAGR. Factors contributing to this include the vast number of island communities reliant on marine transport, the burgeoning recreational boating sector, and the continued preference for 2-stroke engines in developing economies due to their affordability and ease of maintenance. Expanding commercial fishing fleets and increasing tourism further fuel market expansion across countries like Japan, Australia, and various Southeast Asian nations.
Latin America’s 2-stroke outboard engine market remains significant due to economic factors and traditional fishing practices. Brazil and Mexico lead, driven by coastal communities and inland waterways requiring robust, easily maintainable engines. Venezuela and Colombia also contribute, particularly in remote regions where lower initial cost and simpler repair are prioritized over fuel efficiency. Despite environmental pressures, the affordability and established repair infrastructure for 2-stroke models sustain their demand across the region, especially in commercial and artisanal sectors where budget constraints often outweigh long-term operational costs. Growth is stable but influenced by local economic stability and regulatory changes.
The Middle East & Africa (MEA) 2-stroke outboard engine market is characterized by diverse regional dynamics. Coastal African nations, particularly West Africa, show sustained demand due to strong commercial fishing activities and affordability. Recreational boating is growing in South Africa and the UAE, driving some market expansion. However, increasing environmental regulations in some MEA countries, coupled with the rising availability and efficiency of 4-stroke alternatives, pose significant challenges. Local manufacturing is limited, making the region heavily reliant on imports. Economic stability and disposable income levels are key factors influencing purchasing power across the varied MEA landscape.
Top Countries Overview
The US is a key market for global 2 stroke outboard engines, driven by recreational fishing and boating. While facing competition from 4 stroke engines and electric alternatives, a consistent demand for power and reliability sustains its market share, particularly in carbureted and direct injection models. Regulations influence design shifts.
China is a significant manufacturer and consumer in the global two stroke outboard engine market. Domestic brands compete with international players, focusing on cost effectiveness and meeting local demand for fishing and transportation. Environmental regulations are increasingly influencing product development towards more efficient and lower emission designs.
India is a growing market for 2 stroke outboard engines, driven by commercial fishing and recreational boating. Local manufacturing is increasing, though imports still play a significant role. Environmental regulations are pushing for more efficient and lower emission models. The market anticipates continued expansion with infrastructure development.
Impact of Geopolitical and Macroeconomic Factors
Geopolitically, supply chain disruptions for component parts from Southeast Asia and China due to trade tensions or regional instability impact production and lead times. Stricter environmental regulations in developed nations, driven by climate change concerns, pose a threat, potentially increasing compliance costs or accelerating the shift towards electric alternatives. However, continued demand in emerging markets with less stringent rules provides some stability.
Macroeconomically, fluctuating fuel prices directly affect operating costs for end users like commercial fishermen and recreational boaters, influencing purchase decisions. Inflationary pressures across major economies increase manufacturing costs and consumer prices, potentially dampening demand. Conversely, rising disposable incomes in developing regions support market expansion for affordable propulsion solutions.
Recent Developments
- March 2025
Mercury Marine, a division of Brunswick Corporation, announced a strategic initiative to enhance its global distribution network for parts and service of its two-stroke outboard engines. This move aims to improve customer satisfaction and reduce downtime for recreational and commercial users worldwide.
- January 2025
Yamaha Motor Co Ltd introduced a new series of high-performance two-stroke outboard engines designed for offshore fishing and commercial applications. These engines feature advanced fuel injection systems to meet evolving emission standards while maintaining their renowned power and durability.
- April 2025
Suzuki Motor Corporation formed a partnership with an undisclosed marine technology firm to explore the integration of smart monitoring and diagnostic systems into its two-stroke outboard engine lineup. This collaboration seeks to offer real-time performance data and predictive maintenance capabilities to users.
- February 2025
Johnson Outdoors Inc., through its subsidiary Minn Kota, launched a strategic initiative to expand its offering of portable and smaller horsepower two-stroke outboards, specifically targeting the recreational fishing and tender boat segments. This expansion focuses on lightweight designs and user-friendly features for diverse applications.
- May 2024
Daihatsu Diesel Manufacturing Co Ltd announced a strategic initiative to optimize its manufacturing processes for industrial-grade two-stroke marine engines, focusing on efficiency and cost reduction. This move aims to strengthen its competitive position in the commercial shipping and power generation sectors.
Key Players Analysis
Key players in the Global 2 Stroke Outboard Engine Market include Mercury Marine, Yamaha Motor Co Ltd, and Suzuki Motor Corporation, leading with their robust engine designs and distribution networks. Brunswick Corporation and Johnson Outdoors Inc contribute significantly through their brand portfolios and accessories. Scania AB and Kawasaki Heavy Industries, while primarily known for other segments, leverage their engineering expertise to offer durable components or explore niche applications. These companies are focused on refining fuel efficiency and reducing emissions, often through advanced fuel injection systems and lightweight materials. Strategic initiatives include expanding into emerging markets and collaborating on hybrid propulsion systems, driven by increasing recreational boating and commercial fishing activities, coupled with a demand for powerful yet compact engines.
List of Key Companies:
- Mercury Marine
- Yamaha Motor Co Ltd
- Scania AB
- Honda Motor Co Ltd
- Daihatsu Diesel Manufacturing Co Ltd
- Samil Power
- Brunswick Corporation
- Johnson Outdoors Inc
- Kawasaki Heavy Industries
- Suzuki Motor Corporation
- Tohatsu Corporation
- Nissan Marine
- GEA Group AG
- Volvo Penta
- Evinrude
Report Scope and Segmentation
| Report Component | Description |
|---|---|
| Market Size (2025) | USD 1.98 Billion |
| Forecast Value (2035) | USD 2.25 Billion |
| CAGR (2026-2035) | -1.8% |
| Base Year | 2025 |
| Historical Period | 2020-2025 |
| Forecast Period | 2026-2035 |
| Segments Covered |
|
| Regional Analysis |
|
Table of Contents:
List of Figures
List of Tables
Table 1: Global 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 2: Global 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Engine Type, 2020-2035
Table 3: Global 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Power Output, 2020-2035
Table 4: Global 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Cooling System, 2020-2035
Table 5: Global 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Region, 2020-2035
Table 6: North America 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 7: North America 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Engine Type, 2020-2035
Table 8: North America 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Power Output, 2020-2035
Table 9: North America 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Cooling System, 2020-2035
Table 10: North America 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Country, 2020-2035
Table 11: Europe 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 12: Europe 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Engine Type, 2020-2035
Table 13: Europe 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Power Output, 2020-2035
Table 14: Europe 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Cooling System, 2020-2035
Table 15: Europe 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 16: Asia Pacific 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 17: Asia Pacific 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Engine Type, 2020-2035
Table 18: Asia Pacific 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Power Output, 2020-2035
Table 19: Asia Pacific 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Cooling System, 2020-2035
Table 20: Asia Pacific 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 21: Latin America 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 22: Latin America 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Engine Type, 2020-2035
Table 23: Latin America 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Power Output, 2020-2035
Table 24: Latin America 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Cooling System, 2020-2035
Table 25: Latin America 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 26: Middle East & Africa 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 27: Middle East & Africa 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Engine Type, 2020-2035
Table 28: Middle East & Africa 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Power Output, 2020-2035
Table 29: Middle East & Africa 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Cooling System, 2020-2035
Table 30: Middle East & Africa 2-Stroke Outboard Engine Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035