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The global amphibious vehicle market size was USD 2.66 billion in 2019 and is projected to reach USD 4.98 billion by 2027, exhibiting a CAGR of 13.05% during the forecast period.
An amphibious vehicle is a resourceful and multipurpose vehicle that can be used the land as well waterbodies. The companies are investing in designing and developing amphibious excavators to operate efficiently in adverse environmental conditions. The key market growth opportunities are the rise in the use of amphibious landing craft and development of inland waterways. The technological trends in the market are the high-speed amphibian, improvement in the maneuverability of amphibians in water, and automatic mode of operation in the vehicle. Moreover, companies are focusing on the design and development of high-speed engines with lightweight capability.
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Rising Use of Advanced Amphibious Combat Vehicle (ACV) in Marine Applications
There has been an increase in the usage of ACVs due to its characteristics such as survivability, mobility, command and control feature, and situational awareness. These features are interconnected with the central processing unit (CPU) of the combat vehicle. Moreover, advanced remote turrets, fire control systems, active protection systems, and counter survivability are installed in the latest combat vehicles. These vehicles play a crucial role in detecting the marine threat and assists to take the desired counter actions. The conventional amphibious excavators were less compatible and reliable as compared to the latest combat amphibious vehicles, as these provide integrated systems to tackle the threat during its operation.
The governments of various countries are looking forward to strengthening its marine domain with highly advanced and versatile ACVs in the upcoming years. For instance, in 2020, the U.S. Marine Corps (USMC) had a contract with BAE Systems. In this contract, the company would develop and supply a total of 116 advanced ACVs incorporated with ammunitions, command and control systems, medium caliber turret, and recovery versions. BAE Systems designs and develops highly advanced combat vehicles integrated with next-generation squad weapons in the vehicles.
Rising Investment in Defense Systems to Aid AVs Adoption
From the past few years, countries across the globe involved in modernizing defense systems and equipment. The rising border security and terrorism across the globe are the major reason for the modernization of conventional equipment and systems to tackle the enemy. Countries such as the U.S., China, Saudi Arabia, and India are strengthening its defense sector by investing huge amounts in the procurement and development of advanced military systems. Thus, a combat vehicle plays a vital role in accomplishing battles on land as well as on the water. The marine sector is highly dependent on ACVs for water transportation of troops from ships-to-shore.
Moreover, amphibious assault vehicles (AAV) comprises of robust engines with providing high speed and power in all-terrain. Furthermore, these vehicles are more reliable, versatile, equipped with guns and ammunition, and offer high performance during battlefield operations. Thus, countries across the globe are looking forward to procuring these vehicles for their robust defense system. Hence, fueling the demand for amphibious excavators
The Rising Demand for Commercial Applications to Boost Market
The demand for electrically-propelled vehicles is rising due to its benefits, such as high endurance, high durability, advanced electronic systems, and cost-effective vehicles. These vehicles or cars are used for various commercial applications such as sports activities, mountain climbing, exploration activities, and others. The wide applications of vehicles and increasing demand from these domains boost the growth of the market. The company named EIK Engineering SDN has designed and developed excavators for all-terrain. The company has contracts with key players to design and manufacture amphibious excavators with the help of advanced technologies. Thus, these factors will boost the growth of the market.
High Initial Cost of Amphibious Vehicles to Dampen Growth
The adoption of advanced technology-based systems and equipment in the amphibious vehicles increases the initial cost of the vehicle. The design of the vehicle can be customized as per the applications. Thus the systems used in the vehicle must be compatible with both lands as well as water, leading to enormous expenditure. The engine used in these vehicles is different from the engines used in the land operated vehicles. The cost of engines is the major cost in the vehicle.
Moreover, the maintenance cost of these vehicles is also high. The availability and accessibility of spare components of the vehicles is a major issue. In the case of the defense sector, vehicles are used to transport marine troops from ship-to-shore. Several accessories of the vehicles, such as payloads, safety equipment, fire protection system, and others, ensure the additional cost to the vehicle. Thus, these factors hamper the growth of the market.
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High Demand for Eco-Friendly And Hybrid Engine to Promote the Commercial Segment
Based on the platform, the amphibious vehicles market is bifurcated into defense and commercial. The commercial segment is expected to grow at a higher CAGR than during the forecast period, owing to a rise in the demand for sports activities, excavation, and transportation. Moreover, the demand for eco-friendly and hybrid engine based vehicles are expected to boost the growth of the market during the forecast period.
The defense segment is expected to hold the largest amphibious Vehicle market share in 2019 due to the wide usage of these vehicles in marine-based applications for transporting troops and for surveillance rescue missions.
Track-based Segment is Anticipated to be the Fastest-Growing Segment of the Market
Based on the mode of propulsion, the amphibious vehicle market is divided into screw propellers, water jet, track-based propulsion, and others. The screw propeller segment is anticipated to hold the largest market share in 2019. It is owing to the major use of defense applications. The track-based propulsion segment is expected to be the fastest-growing segment during the forecast period; it comprises of advanced technology-based systems to perform the various activities for various commercial and defense applications.
Surveillance and Rescue Segment Anticipated to be the Fastest-Growing Segment of the Market
Based on the application, the market is bifurcated into surveillance and rescue, combat, transportation, sports, excavation, and others. In 2019, the transportation segment was estimated to be the largest segment in the market. The surveillance and rescue segment is projected to be the fastest-growing segment during the forecast period owing to the wide applications for marine-based applications.
North America Amphibious Vehicle Market Size, 2016-2027 (USD Billion)
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As per our research, North America is estimated to hold the largest share of USD 1.02 billion in 2019 and is also expected to be the fastest-growing region during the forecast period. The U.S. has significantly increased spending on modernizing its marine fleets in recent years. In addition, the presence of key manufacturers such as Kawasaki Robotics and Electro impact Inc. is driving the market growth in the U.S. Moreover, the government authorities are focusing on investing in advanced technology propulsion systems in the upcoming years.
Europe is predicted to play a vital role in the growth of the market owing to the wide level of adoption of hybrid-based engines.
Europe held the second-largest market share in 2019 owing to the high investment in the upgrading of conventional vehicles with highly advanced technology-based vehicles. This will boost the growth of the market in Europe.
Asia Pacific is estimated to hold the third-largest share in 2019 and is also expected to be the fastest-growing region during the forecast period. The region is expected to witness strong growth in the market during the forecast period owing to the significant rise in the demand for advanced ACVs from countries such as China, Japan, and India. The region is anticipated to witness long-term growth in this market.
Furthermore, the market in the rest of the world, the Middle East, and Africa are anticipated to increase at a significant CAGR, owing to the significant number of suppliers and distributors of vehicle systems in this region.
Advancement in the Use of Advanced Technologies by Key Players Drive the Growth of the Amphibious Vehicle Market
Key companies are focusing on increasing focus on the development of robust and multitasking vehicles in the next few years. Key players are adopted key growth strategies such as merger & acquisitions, agreements, contracts, and partnerships for business expansions. The increasing number of research and development capabilities is a major factor for the growth of the market across the globe.
An Infographic Representation of Amphibious Vehicle Market
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The amphibious vehicle market report provides an analysis of the market and focuses on key aspects such as leading companies, vehicle portfolio, and leading applications of the vehicles. Besides this, the report offers insights into market trends. Moreover, to the factors mentioned above, the report comprises of several factors that have contributed to the growth of the market over recent years.
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Value (USD billion)
By Mode of Propulsion
Fortune Business Insights says that the global market size was USD 2.66 billion in 2019 and is projected to reach USD 4.98 billion by 2027.
In 2019, the market value stood at USD 2.66 billion.
The market is estimated to grow at a significant growth rate of 13.05% throughout the forecast period.
The track-based propulsion segment is expected to be the leading segment in this market during the forecast period.
North America dominated the market share in 2019.
According to the study, Asia Pacific is expected to be the fastest-growing region during the forecast period.
According to the study, Japan and China are expected to be the fastest-growing countries during the forecast period.
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