Amphibious Landing Craft Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Russia, France, UK - Size and Forecast 2024-2028

Amphibious Landing Craft Market Size 2024-2028

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.

What will be the size of the Amphibious Landing Craft Market During the Forecast Period?

Market Forecast 2024-2028

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Market Segmentation

By Application

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.

By Type

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.

By Region

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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. 

Market Dynamics and Customer Landscape

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.   

Driver- Upgrade of capabilities to counter emerging threats

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.

Trends- Integration of directed-energy weapons (DEWs)

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.

Challenge- High R&D and operational costs resulting in cancellation of ongoing projects

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.

Who are the Major Market Companies?

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.  

Segment Overview

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.

• Application Outlook 
  • Military
  • Commercial

• Type Outlook
  • Amphibious ACVs and APCs
  • Air cushion vehicle
  • LCU and LCM

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

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. 

Governments' investments are driving advancements in military technology, including Remotely Operated Underwater Vehicles (ROVs) and high-tech propulsion systems, enhancing national defense capabilities. From the formidable M-1 Abrams tank to amphibious vehicles and amphibious assault vehicles (AAVs), innovation is reshaping modern warfare. These developments extend to armored combat vehicles and amphibious warfare ships equipped with cutting-edge sensors and power generators. Amidst evolving threats posed by terrorist organizations, the focus remains on affordable yet effective solutions compatible with land and water environments, ensuring the safety and security of government authorities and civilians alike.

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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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