Market Introduction

The global hovercraft market was valued at USD 160 million in 2023 and grew at a CAGR of 1.40% from 2024 to 2033. The market is expected to reach USD 183.86 million by 2033. The increasing defence expenditure and need for contemporary machinery and technology for military operations will drive the growth of the global hovercraft market.

A hovercraft is an all-terrain vehicle that is designed to move by creating a cushion of air using fans and can be used over water, through murky water, through ice and mud and the like. It works by generating an air gap beneath it and the air gap is generated by high-speed fans or blowers. This lift provides the hovercraft with capability to “sail” above the given surface, thus reducing contact and the possibility of moving through areas difficult for a standard automobile. These vehicles can turn very tightly and so people use them for moving over water, swamp, shallow water or in areas where there are no roads, such as during floods or when they are used by the military. Due to its versatility in operation on any surface, the hovercraft is very useful in several commercial fields. This is mostly applied in search and rescue missions where the normal car cannot access especially in flooded regions. Also, hovercrafts are employed for military uses because they require short duration for crossing over features such as beaches and rivers. In commercial transportation hovercraft has been used in passenger and cargo transport for areas inaccessible to ferries or boats. They have been used where there are small distances to be covered over water, for which ordinary boats may either not be feasible or economical.

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Recent Development

• By creating India's first indigenous hovercraft that can travel on land and in water, a trailblazing woman entrepreneur in Coimbatore says she has reached a major milestone. According to Supritha Chandrasekar, Managing Director of Eurotech Pivot Solutions Private Limited, the hovercraft boat's test run on Coimbatore Sulur Lake went well. This cutting-edge hovercraft is classified as an amphibious vehicle, proving its versatility in operating on a variety of surfaces. Chandrasekar stressed that the hovercraft was created as part of the "Made in India" campaign and offered a more affordable option than foreign substitutes. She emphasized the product's adaptability, saying that the Indian Army, Air Force, Navy, NDRF rescue missions, and other national services may use it.

Market Dynamics

Drivers

The increasing incidence of natural and manmade disasters – In areas that are flooded hovercrafts can easily manoeuvre over water and mud that may not be easily accessible due to flooding. During calamities they can transport personnel, medical products and those affected by disaster within the shortest time. Hovercrafts are in high demand when the operation is focused on disaster relief as in the case of hurricanes, tsunamis and other natural disasters. As climate change continues to intensify the incidence of natural disasters, the potential for using hovercrafts in search and rescue response is set to expand as a result of the need for new, effective and easily deployable equipment. Military organisations often use hover crafts in amphibious operations since they are capable of switching between land and water operational modes. Hovercrafts are advantageous in military operations since they can manoeuvre in terrains that conventional automobiles cannot. They can transport troops, equipment and vehicles over water and put them ashore in the combat area to act as rapid deployment. In addition, hovercrafts are applied to border protection or surveillance when other areas are hard to access by conventional traffic means. Because they are versatile and can travel on sand, mud, water, and marsh, swamps, and water courses they are an invaluable tool in many modern military tactics especially marine and special troop operations. Tourism industry especially regions with special geographical features such as; wetlands, lakes or coastlines have also benefited from hovercrafts. This is because hovercrafts give the tourist a thrilling and unique method of visiting such places through the scenic tours that can only be afforded by the machine.

Restraints

High initial and maintenance costs – the high costs of investments and maintenance is largely due to the hovercraft’s initial installation costs which greatly defy the economies of scale. Hovercrafts are relatively complicated vehicles that need high and improved technology in terms of engineering, thereby making it costly when compared to other conventional vehicles. Some parts that are aimed at achieving higher efficiency Include high powered engines, large fans and sturdy skirts all of which increase the manufacturing cost. Also, the general servicing of hovercrafts may, in most times, be expensive because its parts are unique. They are serviced by qualified, trained and skilled personnel. The third weakness of these transportation systems is that hovercrafts consume fuel more than most other means of transport including boats and other traditional vehicles. This means that for industries that require heavy use, such as in the commercial transport, or military, the consequential fuel costs will increase the operational cost of hovercrafts in the long run. Therefore, the high initial and maintenance costs will hamper the market’s growth.

Opportunities

Technological advancements – Today’s hovercrafts have evolved in terms of the power, type of fuel and systems of movements and therefore many are more economical and eco-friendlier. Material science has enhanced the strength and endurance of lightweight materials like advanced composite and have also managed to reduce the overall mass of equipment by incorporating new composite designs that enhance strength and durability. This betters fuel economy and cost-effectiveness of hovercrafts. Also, new movements like improved skirts give more buoyancy and balance. Such enhancements in technology also stretch to lend automation and even superior navigation capabilities, safety and ease of operation. As these advancements reduce the operational costs and make the equipment more reliable, more economical, thereby contributing to the growth and development of the market during the forecast period.

Segment Analysis

Regional segmentation analysis

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America emerged as the most significant global hovercraft market, with a 40% market revenue share in 2023.

North America has the largest market in the hovercraft market due to the large demand of hovercrafts in the military, defence, transportation and transport industry along with well-developed infrastructural and technological structure. North America’s dominant position in the market is strengthened by the fact that the US military widely uses the hovercrafts for rapid deployments and in coastal and riverine operations. Further, the defence and research establishments of North America are very active in development of new generation hovercraft systems, which make this region a hub for the production of modern hovercraft systems. Due to the large and well-developed waterways, islands and coastal zones in North America, commercial and transport sector requires the use of the hovercrafts for both passengers and cargos. The flexibility of hovercrafts to work in infrastructurally less-developed areas, like island, flood, etc. adds an extra advantage thereby increasing its uses in transportation and logistics.

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Type Segment Analysis

The type segment is divided into amphibious hovercrafts and non-amphibious hovercrafts. The amphibious hovercrafts segment dominated the market, with a market share of around 61% in 2023. Amphibious hovercraft still remains conditionally dominant in the market for hovercrafts because of the possibilities provided by the system of wheels which enables the vehicles to be used in different conditions on land and on water. Unlike other non-amphibious hovercraft that is designed to move on certain grounds such as water bodies, the amphibious hovercrafts provide the flexibility of moving from the land, water and therefore provide a competitive advantage. The versatility of the platform to move on multiple surfaces is especially useful in regions with different ground conditions, for example, coastal areas, wetlands, riversides, or flood plains where access using conventional automobiles would be either challenging or impossible. In military and defence industries, amphibious hovercrafts are applied to amphibious transportations, troop movement as well as logistics and supply, where other transport means cannot easily manoeuvre. They are also used in search and rescue because they can move over water and land; making deployment as well as rescue in flood and disaster affected areas.

• As the Indian Coast Guard has established a specialized and well-equipped facility for the maintenance of such platforms in Okha town, Devbhumi Dwarka district of the state, Gujarat is set to receive its first hovercraft maintenance unit (HMU). Defence Secretary Giridhar Armane is scheduled to dedicate the HMU to the country.

Application Segment Analysis

The application segment is divided into military and defence, search and rescue, transport and logistics, tourism and recreation, environmental and scientific research, oil and gas exploration, and others. The military and defence segment dominated the market, with a market share of around 40% in 2023. This is due to its strategic advantages of fast and efficient transporter of men and material with unique amphibious mobility capabilities. Hovercrafts are now designed more for military application because they are better for operations in coastal, riverine or bush areas where both the land and water movement are essential. They offer the military considerable degrees of mobility, and allow troops, equipment and supplies to be transported rapidly on a variety of terrains such as beaches, swamp land and flood plains where conventional vehicles are simply not practically useable. Hovercrafts are used as scout vehicles, for patrolling and surveillance in conditions that would otherwise be too difficult to overcome, such as marshes, ice or some remote coastal areas.

• Groups of boys and girls watched with interest as robots played football in the Indian Institute of Technology Madras' Open-Air Theatre. Certain robots were basic devices with a platform supported by cables that were controlled by a joystick. Others had strong bodies and were metal assemblages. Boulders were fastened to the robot of one team. Students in the area created hovercrafts for another competition. The craft would have six minutes to pick up a ball and deposit it into a box. For the competition, a temporary water tank had been constructed. According to Anushka Goyal, a second-year student at the Institute studying aerospace engineering, 13 teams were selected from the initial 30 that took part.  

End use industry Segment Analysis

The end use industry segment is divided into transport and logistics, military and defence, tourism and leisure, search and rescue, oil and gas, environmental research and others. The transport and logistics segment dominated the market, with a market share of around 43% in 2023. Hovercrafts are ideal in moving goods and people over areas not reachable by conventional means such as through road networks. Hovercrafts are applied as ferries where waters rise and fall and where conventional water craft cannot navigate and in flood prone areas where hovercrafts can operate where other forms of transport cannot. They greatly decrease the time it takes for people to travel between regions in cases where ferries could be slow or unavailable in some coastal or island places.

• The Indian Coast Guard currently operates a fleet of Griffon Hoverwork 8000TD-class hovercraft, which are designed for amphibious operations and coastal surveillance. The hovercraft, technically known as Air Cushion Vehicles (ACVs), are operated by a crew of seven and can accommodate up to 16 passengers during amphibious operations or search and rescue efforts. This is the first time an Indian shipyard has built hovercraft for the military, and the signing of a contract with Chowgule & Company for six hovercrafts for the Indian Coast Guard is a development that will boost the state's shipbuilding industry.

Technology Segment Analysis

The technology segment is divided into gas-powered hovercrafts, electric hovercrafts and hybrid hovercrafts. The gas-powered hovercrafts segment dominated the market, with a market share of around 65% in 2023. Fuel/gas-based hover crafts are dominating the hover craft market at present as its technology is more developed, reliable and used everywhere. These are hovercrafts which are conventional and are driven by internal combustion engines. they are relatively cheaper as compared to new models like electric or hybrid hovercrafts. The dominance of the gas-powered engine system is justified by its reliable performance in high-stress environment wherein hovercrafts are employed, encompassing military, rescue, transportation and recreational functions. A great advantage of gas-powered hovercrafts is that they are able to remain active for a longer period of time in case of difficulties in remote or difficult areas, where it is impossible to refuel. This makes them particularly suitable for military uses because of flexibility and ease of transport on the battle field. Also, fuel is equally available and the maintenance of the gaseous driven engines also favours these hovercrafts since few special parts and technical knowledge is needed in their maintenance. At the current rate, there is increased popularity of electric and hybrid hovercrafts, but the standard gas-powered hovercrafts remain dominant in the market because of their reliability, reliability and flexibility in meeting diverse operational requirements.

• Griffon Hovercraft, a marine services firm, is seeking aluminum fabricators to complete its recent order for three new hovercraft. These positions provide excellent income, the opportunity to work on cutting-edge marine technology, and the ultimate sense of fulfilment when you see these boats glide across the ocean.

Some of the Key Market Players

• Airlift Hovercraft
• General Hovercraft
• GRP Hovercrafts
• Hov Pod
• Hovercraft International
• Hovertechnics
• Hovertrans
• Hoverwork Ltd
• Lifeguard Hovercraft
• Neoteric Hovercraft
• Scat Hovercraft
• Shipman Hovercraft
• The Hovercraft Company
• Universal Hovercraft
• WhiteDove Hovercrafts

Report Description

• Market Introduction
• Market Dynamics
• Segment Analysis
• Some of the Key Market Players