Market Trends of Hovercraft Industry
This section covers the major market trends shaping the Hovercraft Market according to our research experts:
The Military Segment Accounted for the Largest Share by Revenue in 2020
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. US naval forces have shown interest in newer generation hovercraft in the past few years and have placed an order with Textron. Textron was awarded a contract worth USD 386 million to build an additional 15 hovercrafts for the US Navy. The contract was approved as part of the Ship-to-Shore Connector (SSC) Program, also known as the LCAC 100 class, which is replacing the existing fleet of Landing Craft Air Cushions (LCAC) vehicles that nearing the end of their 30-year service life. Work is being performed in New Orleans, Louisiana, and is expected to be completed by January 2025. Similarly, in early 2019, Griffon Hoverwork delivered 2000TD hovercraft to the Colombian Navy. The model has been refined in design and engineering to meet the demands of the natural features and low infrastructure of winding rivers and creeks to help the Colombian Navy combat its war on drugs. Armed forces in countries like China, Russia, India, and Iran, among others are expected to induct newer-generation military hovercraft over the next decade, which is anticpated to drive the growth of the 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 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 this regard, the Russian navy awarded a contract to Central Design Bureau Neptune for two Project 23321 Manul lightweight combat hovercraft in December 2017. The hovercraft is envisioned to be principally used by the Russian military to transport personnel across shallow water at high speed. 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.
