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The amphibious landing craft market size is estimated to increase by USD 589.97 million, growing at a CAGR of 2.78% between 2023 and 2028. Enhancing capabilities to mitigate emerging threats, alongside the rising commercial utilization of amphibious landing craft, drives market growth. The increasing frequency of joint operations fuels procurement efforts, while global macroeconomic conditions significantly impact procurement strategies. However, limitations in technological advancements hinder effectiveness, and high research and development costs, coupled with operational expenses, often lead to the cancellation of ongoing projects, posing challenges to market expansion. To navigate these obstacles, stakeholders must prioritize innovation to address emerging threats effectively. Moreover, streamlining procurement processes and optimizing resource allocation can enhance operational efficiency and mitigate the impact of economic fluctuations. Strategic investments in research and development are crucial to overcoming technological constraints and sustaining long-term growth in the market.
Market Forecast 2024-2028
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The market share growth by the military segment will be significant during the forecast period. The military segment dominated the global market. Owing to the rising defense expenditure by governments globally, including the US, China, Japan, Australia, and others. The military segment of the global market includes military-related amphibious vehicles.
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The military segment was the largest and was valued at USD 2.80 billion in 2018. The use of amphibious vehicles for defense purposes is frequently referred to as amphibious combat vehicles (ACVs) or amphibious military vehicles. ACVs exhibit the ideal balance between land and marine mobility, survivability, and the possibility for future growth. The challenging task of moving marines from ship to land served as the motivation for the development of a multipurpose amphibious platform known as the ACVs. Globally, major countries such as the US, India, China, and the UK are investing in the defense sector, which has led to several investments in upgrading defense equipment and vehicles, including amphibious vehicles. For instance, in February 2021, BAE Systems announced the Marine Corps awarded it USD 184 million for 36 additional ACVs as a part of a full-rate production contract signed in December 2020. Thus, the military segment is expected to drive the growth of the global market during the forecast period.
Based on type, the market has been segmented into amphibious ACVs and APCs, air cushion vehicles, and LCU and LCM. The amphibious ACVs segment will account for the largest share of this segment.?Various peacekeeping missions undertaken by global forces have significantly increased the need for developing advanced amphibious armored combat vehicles and personnel carriers. Armored combat vehicles (ACVs) are deployed to transport troops to critical locations on the battlefield while delivering offensive capabilities against enemy troops, both armored and unarmored. The market is expected to be further propelled by orders that would be placed by other countries to increase their naval dominance. Also, as such procurement programs are materialized over a period of time and carried out in phases, the scheduled deliveries of existing contracts, coupled with fresh orders for procuring amphibious APCs and ACVs, are expected to drive the global market during the forecast period. Therefore, the amphibious ACVs and APCs segment in the global market during the forecast period.
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North America is estimated to contribute 29% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. North America is estimated to account for the largest share of the global market during the forecast period. The US is the leading user of amphibious vessels and has several active programs such as LCACs and SSCs. The defense expenditure disclosures of the US Department of Defense (DoD) clearly indicate the focus of the administration on upgrading its existing amphibious vessel fleets and their corresponding capabilities.
Moreover, the country is a key exporter and consumer of such equipment globally. The need to ensure national security and achieve naval dominance has propelled the need for such vessels, which is driving the growth of the market in the region during the forecast period.
In response to escalating terrorism threats and rising conflicts between countries, governments are bolstering their defense capabilities and driving investments in advanced technologies. The amphibious landing craft market is witnessing substantial growth, with a focus on countering security challenges. Key innovations include remotely operated underwater vehicles (ROVs), enhancing surveillance and reconnaissance capabilities in maritime environments. These craft play a crucial role in supply and replenishment, enabling efficient logistics operations in remote areas and facilitating evacuations from distant islands during crises. Moreover, they support the growing demands of seaborne trading, ensuring uninterrupted commerce. Investments by governments are fueling the development of versatile amphibious vehicles equipped with features like waterproof screens and telescopic snorkels, along with wheeled and tracked vehicles for ground forces. Additionally, hovercraft and amphibious assault vehicles (AAVs) are becoming integral components of amphibious warfare ships, enhancing maneuverability and combat readiness in diverse environments.
The market is witnessing unprecedented growth amidst escalating terrorism threats and maritime boundary conflicts. With nations bolstering their naval capabilities, particularly the Indian Navy, demand for versatile landing crafts is soaring. These crafts facilitate seaborne trading, disaster relief operations, and evacuations from distant islands. Moreover, they play a pivotal role in multi-role activities, including search and rescue and supply replenishment. Enhanced surveillance capabilities and investments by governments are driving advancements in technologies like Remotely Operated Underwater Vehicles (ROVs) and landing craft air cushions, enabling swift beaching operations and efficient deployment of amphibious assault ships. As conflicts intensify across the world's coastlines, the market anticipates a surge in demand for amphibious vehicles equipped with air cushion technology and modern ships capable of accommodating large tanks and AAVs. Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Military transport systems are susceptible targets of terrorist organizations. Over the last decade, the frequency of terrorist attacks on surface transportation targets, such as military convoys, has increased and resulted in numerous casualties worldwide. This has compelled governments to procure advanced alternate transport systems for protecting soldiers, such as assault amphibious vehicles (AAVs).
Moreover, most prominent nations have already launched modernization initiatives for their landing craft fleet to deliver an augmented level of safety and mission readiness due to the extreme viability of these systems in modern conflict scenarios near coastal regions. Therefore, such factors will significantly contribute to the growth of the global market during the forecast period.
The emergence of advanced weaponry in nations such as the US and the Russian Federation has intensified the race for military dominance. The prevalence of technologies such as hypersonic missiles, hypersonic rail guns, and DEW has ushered in a new era of technological advances, which are to be consolidated into the landing craft. Protection against DEWs requires the integration of heavy plate armor into the body of the landing craft, which, in turn, makes them bulky. Hence, the technological shortcoming has paced up the R&D efforts to use high-endurance, low-weight materials for the construction of such craft.
However, such efforts toward the development of advanced amphibious landing craft are envisioned to result in highly sophisticated craft during the forecast period. Therefore, owing to such factors, the global market is expected to witness significant growth during the forecast period.
Development cost has been a major challenging factor for system manufacturers. The development of a new design for an amphibious landing craft may incur billions of dollars. Hence, the high R&D costs favor the adoption of existing defense technologies in a budget-constrained, suboptimal manner by compromising both performance and reliability. The amphibious landing craft manufacturing industry is capital-intensive as the military versions of the craft are required to be manufactured as per custom specifications. For instance, the lack of armor and defensive equipment and weaponry in a civilian landing craft prevents it from being used for military purposes.
Moreover, due to an excessive cost increase for R&D in hydrodynamics augmentation and poor technical reliability of the system during operational testing. Such incidents critically impact the revenue stream and outreach of global manufacturers, and the resultant cost impact can be experienced for years, hampering the overall market growth. Thus, the cancellation of ongoing projects and underlying orders is most likely to constrict the growth of the global market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Almaz Shipbuilding Co - The company offers amphibious landing craft such as project 12322 landing air cushion vessel and project 12061e landing air cushion craft.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Abu Dhabi Ship Building PJSC, Almaz Shipbuilding Co., BAE Systems Plc, Bland Group, CNH Industrial NV, CNIM SA, Damen Shipyards Group, Fincantieri Spa, Goa Shipyard Ltd., Huntington Ingalls Industries Inc., L3Harris Technologies Inc., Marine Alutech Oy Ab, Marine Inland Fabricators, Navantia SA, Rostec, Singapore Technologies Engineering Ltd., Strategic Marine S Pte Ltd., Textron Inc., Wetland Equipment Co., and Wilco Manufacturing LLC
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
The market is experiencing a significant surge in demand driven by the imperative of countering terrorism threats and addressing rising threats across diverse environments. Governments are increasingly investing in advanced technologies such as remotely operated underwater vehicles (ROVs) and surveillance payloads to enhance security measures. These craft play a pivotal role in facilitating evacuation from distant islands during emergencies and meeting the burgeoning seaborne trading demands. Moreover, investments by governments are driving the development of versatile amphibious vehicles and amphibious assault vehicles (AAVs), equipped with sophisticated electronic systems and cutting-edge weapons. These craft also find commercial applications beyond defense, including medical evacuation variations and alternative transportation methods, leveraging their endurance and durability. With advancements in electrically-powered vehicles and hybrid-based engines, the market is poised for growth across various sectors, including professional purposes, sports, and exploration.
Government investments continue to fuel innovations in military technology, shaping the future of national defense capabilities. From the iconic M-1 Abrams tank to advanced amphibious vehicles and amphibious assault vehicles (AAVs), the landscape of modern warfare is being redefined. These advancements extend to armored combat vehicles and amphibious warfare ships, outfitted with state-of-the-art sensors and power generators.
Amidst the ever-evolving threat landscape posed by terrorist organizations, affordability and effectiveness remain key priorities. Innovations such as All-Weather Landing Systems are crucial in ensuring the safety and security of government authorities and civilians alike. AWS enables amphibious assault vehicles to land and deploy troops in various weather conditions, enhancing operational flexibility and readiness. Moreover, ROVs, equipped with advanced sonar systems and high-tech propulsion, are revolutionizing underwater reconnaissance and mine countermeasures. Meanwhile, high-performance engines and hybrid propulsion systems are driving advancements in land and water transportation, increasing mobility and reducing environmental impact.
Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.78% |
Market Growth 2024-2028 |
USD 589.97 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.52 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 29% |
Key countries |
US, China, Russia, France, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Abu Dhabi Ship Building PJSC, Almaz Shipbuilding Co., BAE Systems Plc, Bland Group, CNH Industrial NV, CNIM SA, Damen Shipyards Group, Fincantieri Spa, Goa Shipyard Ltd., Huntington Ingalls Industries Inc., L3Harris Technologies Inc., Marine Alutech Oy Ab, Marine Inland Fabricators, Navantia SA, Rostec, Singapore Technologies Engineering Ltd., Strategic Marine S Pte Ltd., Textron Inc., Wetland Equipment Co., and Wilco Manufacturing LLC |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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