by Hovercrafts, also known as air-cushion vehicles (ACV), utilize a plush effect cushion that lifts the hull and allows the craft to glide swiftly above water or land. Hovercrafts have amphibious qualities, enabling them to move efficiently over surfaces like water, marshes, and land, requiring little to no existing infrastructure. They can reach remote areas that are inaccessible by conventional water or land vehicles. Hovercrafts are used for transportation purposes in civilian as well as defense applications across amphibious operations, border security, cargo transportation, and emergency medical services. Their ability to operate in shallow waters makes them highly suitable for cargo transport in regions having extensive coastal and inland waterways
The global hovercraft market is estimated to be valued at US$ 382.9 Mn in 2024 and is expected to exhibit a CAGR of 5.2% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the global hovercraft market are Textron Inc., Universal Hovercraft Of America Inc., Vanair Hovercraft, Griffon Hoverwork Ltd, Garden Reach Shipbuilders And Engineers, Aerohod Ltd., Airlift Hovercraft Pty Ltd, The British Hovercraft Company Limited, Hovertechnics, Neoteric Hovercraft, Inc., Zodiac Milpro , PARMA Hovercraft, Amphibious Marine, Navtek India, Hoverstream, LLC. Textron Inc. and Vanair Hovercraft are among the leading manufacturers of passenger and cargo hovercrafts globally.
The Global Hovercraft Market Trends for cost-effective logistical solutions for transporting goods via waterways is expected to drive the hovercraft market. Hovercrafts can cover longer distances faster than traditional water vessels and require lesser infrastructure for operations. They offer a viable alternative to bridges and ferries for transporting cargo in areas lacking proper road connectivity.
The market is anticipated to witness increased investment from leading manufacturers to expand their presence across emerging economies. Regions with extensive coastlines and water networks, such as Asia Pacific and Latin America, present lucrative opportunities for hovercraft operators. Various countries have commenced trials for utilizing hovercrafts for transporting passengers and freight.
Market Key Trends
One of the key trends witnessed in the global hovercraft market is the increasing application of hovercrafts for cargo transportation. Manufacturers have been developing specialized medium and heavy-lift cargo hovercraft designs with higher payload capacities ranging from 5-15 tons. Their capability to navigate through shallow waters and marshes makes them suitable for shipping goods in areas with limited port infrastructure. There has also been a rise in contracts for hovercrafts to transport construction materials, agricultural produce, and mining equipment within countries and across borders. This has presented lucrative growth opportunities for market players. Further technological advancements are expected to enhance cargo capacity and efficiency of hovercrafts.
Porter’s Analysis
Threat of new entrants: Low capital requirements but manufacturing hovercraft is complex and requires technical expertise. Bargaining power of buyers: There are many buyers in commercial and military applications. Bargaining power of suppliers: Specialized components are required from few component suppliers which gives them some power. Threat of new substitutes: Other short distance amphibious vehicles pose some threat as substitute. Competitive rivalry: Intense competition between existing players to gain market share in existing as well as new application areas.
Geographical regions of concentration:
North America holds the largest market share currently due to high demand from commercial and military applications in the US. Asia Pacific region is expected to grow at the highest CAGR during the forecast period due to increasing defense budgets and demand for passenger hovercrafts for short sea routes.
The fastest growing region for the global hovercraft market is Asia Pacific due to rising defense budgets of countries like India and China. These countries are procuring hovercrafts to strengthen their naval forces. Also, countries like Japan, Philippines and Indonesia have short sea routes where hovercrafts can be deployed for transportation of passengers and cargo, thereby driving the demand.
