Hovercraft Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The hovercraft market size is expected to grow from USD 239.03 million in 2023 to USD 264.36 million by 2028, at a CAGR of 2.04% during the forecast period.

The heavy load-carrying capacity of the large hovercraft enables the armed forces to transport troops, military supplies, and equipment to carry out humanitarian assistance, rescue, and disaster relief missions. The increasing applications of hovercraft in the commercial sector and growing adoption for recreational purposes are accelerating the growth of the market during the forecast period.

Key Highlights

• The advantage of hovercraft for traveling over shallow waters and terrains, irrespective of the water's current direction, and the minimum cost requirement for infrastructure are major factors generating the demand for hovercraft during the forecast period.
• The companies are also focusing on developing technologically advanced and lightweight hovercrafts capable of attaining high speeds in harsh industrial environments with better maneuverability characteristics to attract new customers for exploring waterways. The development of new models for a diversified consumer base is expected to propel the growth of the market in the coming years.

Hovercraft Market Trends

The Military Segment Holds Highest Shares in the Market

• The military segment is expected to continue its dominance over the market during the forecast period, as the navies and other marine authorities are utilizing large hovercrafts to transport troops, military supplies, or even tanks. Due to their ease of operation over land and sea mines, sand, mud, ice, snow, rocks, weeds, logs, debris, and rapids, they can be used for offensive operations, humanitarian aid, logistics, and security roles.
• Over the years, there has been a significant rise in the budget allocated for the US Navy by the DoD. US naval forces have shown interest in newer generation hovercraft in the past few years and have placed an order with Textron. US naval forces have shown interest in newer generation hovercraft in the past few years and have placed an order with Textron.
• In August 2023, Textron Systems secured a substantial contract valued at USD 241 million from the United States Department of Defense (DoD). The contract, announced by the United States DoD, is directed towards the procurement of LCAC 100 Class material and non-recurring activities, with the goal of facilitating the construction of five Ship to Shore Connector (SSC) Landing Craft Air Cushion (LCAC) 100 Class vessels.
• Also, US Navy's Naval Surface Warfare Center Panama City Division (NSWC PCD) is supporting the Republic of Korea (ROK) Navy as they develop the LSF-II Air Cushion Vehicle (ACV). LSF-II crafts 633 and 634 will join two earlier LSFs already in service with the ROK Navy. LSF-II crafts 633 and 634 are serving as prototypes of the redesigned LSF concept. A total fleet of 18 LSF-IIs is planned for induction in ROK Navy. Each of the LSF-II-class hovercraft has a crew of five and is armed with a 12.7 mm machine gun. The class has a full-load displacement of 157 metric tons and can carry either 150 troops or one main battle tank and 24 soldiers.
• Armed forces in countries like China, the United States, Russia, India, and Iran have plans to induct newer-generation military hovercraft over the next decade. New procurement plans and the development of new hovercrafts that will replace the older models will drive the growth of this segment during the forecast period.

Europe is Expected to Experience the Highest Growth During the Forecast Period

• Europe region is expected to witness the highest growth during the forecast period due to the increased adoption of hovercraft from both commercial and military end-users due to opportunities arising from an improved standard of living and the effects of climate change. The law enforcement authorities and border forces in the region are utilizing the transportation of goods, surveillance and rescue, and support counter-narcotic activities. The UK government started a scheme called the Standard Buyer Loan Guarantee (SBLG) in 2021 in order to support hovercraft buyers.
• Furthermore, the Russian Ministry lists high-priority transport goals in the Arctic region that include the all-season delivery of supplies to ice-resistant platforms on the continental shelf, primarily gas-drilling rigs in the Gulf of Ob, freight deliveries via various size rivers and in coastal sea regions, and unloading freight from supply ships anchored at roadsteads. In addition to this, the demand for hovercraft in the region is expected to witness growth due to several enthusiast events like Hovercraft European Formula 1 event. Such events are anticipated to accelerate the growth of the market in the region.

Hovercraft Industry Overview

The hovercraft market is highly fragmented, with the presence of many regional players in the market that caters to hovercraft requirements for leisure, commercial, and military applications. Companies such as Textron Inc., Griffon Hoverwork Ltd, Neoteric Hovercraft, Inc., Ivanoff Hovercraft AB, and Airlift Hovercraft Pty Ltd. are prominent players in the hovercraft market. Due to higher fragmentation in the market, the companies are developing new strategies such as mergers and acquisitions and expansion of existing portfolios to proliferate new orders from commercial and military customers.

The companies are robustly investing in the development of new hovercraft models and variants of existing models with enhanced performance capabilities. On this note, British Hovercraft Company Ltd announced that the company invested more than 30% of its turnover over three years into the R&D of new design hovercraft that may provide superior performance in a wide range of commercial applications. Similar adoption of expansion strategies by various companies is anticipated to help the companies to tap into new customer bases and expand their geographical presence in coming years.

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