The global amphibious vehicle market is poised for significant growth, projected to reach a valuation of USD 10.50 billion by 2031, according to a new report by Coherent Market Insights. This represents a remarkable compound annual growth rate (CAGR) of 19.5% from its 2024 value of USD 5.08 billion.
Amphibious vehicles are renowned for their unmatched mobility in diverse military operations, including rescue missions, patrols, surveillance, and counterinsurgency efforts requiring access to both land and water. Beyond defense applications, the increasing demand for amphibious vehicles in civil engineering projects, such as wetland restorations and coastal protection works, is further fueling market expansion.
Market Dynamics: A Closer Look
The global amphibious vehicle market is experiencing robust growth driven by a combination of factors. Notably, the rising defense budgets of various nations and the worldwide increase in military modernization programs are key drivers. According to the Stockholm International Peace Research Institute (SIPRI), global military expenditure surged by 6.8% in 2021, reaching a staggering US$ 2.1 trillion. This surge in government and defense spending on new amphibious vehicles for marine operations is a critical factor propelling market growth.
Additionally, the ongoing upgradation of existing amphibious vehicle fleets to enhance capabilities is contributing to the market demand. This includes modernizing existing vehicles to improve performance and add new technologies, further fueling the market’s expansion.
Market Trends: Innovation and Adaptation
To effectively counter evolving threats on borders, there is a growing focus on developing light amphibious vehicles. These vehicles possess high tactical and strategic value due to their lightweight amphibious capabilities. For instance, in June 2022, BAE Systems secured a contract from the U.S. Army to deliver Light Amphibious Warships (LAWs). These 85-foot aluminum vessels are capable of transporting Marines and their equipment from sea to shore.
The procurement and modernization of amphibious assault vehicles by military forces worldwide are witnessing significant growth. Amphibious assault vehicles play a crucial role in launching shore assaults from the sea. In recent years, various countries have invested in acquiring advanced amphibious assault vehicles to strengthen their amphibious warfare capabilities. For example, in May 2022, the U.S. Marine Corps awarded contracts worth US$ 1 billion to BAE Systems and SAIC for the supply of 200 Amphibious Combat Vehicles (ACV).
Market Segmentation: Unveiling the Specifics
The global amphibious vehicle market is segmented based on mode of propulsion, application, end-user, and region.
By Mode of Propulsion:
* Water-jet
* Track-based
* Screw propellers
By Application:
* Surveillance & Rescue
* Water Sports
* Water Transportation
* Excavation
By End User:
* Defense
* Commercial
By Region:
* North America (U.S., Canada)
* Latin America (Brazil, Argentina, Mexico, Rest of Latin America)
* Europe (Germany, U.K., Spain, France, Italy, Russia, Rest of Europe)
* Asia Pacific (China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific)
* Middle East (GCC Countries, Israel, Rest of Middle East)
* Africa (South Africa, North Africa, Central Africa)
Key Market Takeaways
* The global amphibious vehicle market is projected to experience a CAGR of 10.9% during the forecast period 2024-2031, driven by rising defense budgets and increasing utilization of amphibious vehicles in military, patrol, and rescue operations.
* Within the market segmentation by type, the X-ray segment is expected to dominate, owing to its extensive application in military and defense organizations.
* In terms of application, the ancestry testing segment is anticipated to hold the largest market share due to the growing popularity of ancestry tracing services.
* Based on end-user, the hospitals segment is poised to dominate the market during the forecast period, fueled by the increasing use of amphibious vehicles in emergency services.
* Regionally, North America is projected to hold a dominant position, driven by substantial defense spending and technological advancements in the region.
Key Players: Shaping the Market Landscape
Key players operating in the global amphibious vehicle market include:
* Hitachi Construction Machinery Co. Ltd.
* BAE Systems
* Science Applications International Corporation
* Wetland Equipment Company
* General Dynamics Corporation
* Lockheed Martin Corporation
* Wilco Manufacturing, L.L.C
* EIK Engineering Sdn Bhd
* Marsh Buggies Incorporated
* Rheinmetall AG
* EIK Engineering Sdn. Bhd.
Strategic partnerships and collaborations among these players are expected to significantly contribute to market growth.
Recent Developments: Demonstrating Market Momentum
* In March 2023, BAE Systems received a contract from the U.S. Marine Corps to produce amphibious combat vehicles for personnel and command purposes.
* In January 2023, IDV secured a deal with the Italian Navy to supply 36 Amphibious Armored Vehicels VBA personnel carriers.
Looking Ahead: A Promising Future
The global amphibious vehicle market is poised for continued growth, driven by rising defense budgets, technological advancements, and the increasing use of amphibious vehicles in diverse sectors. The ongoing focus on developing innovative and versatile amphibious vehicles will further contribute to the market’s expansion in the coming years.
