Hovercraft Market Size - By Size, Propulsion, Application, End-user Analysis, Share, Growth Forecast, 2025 - 2034

Hovercraft Market Size

The global hovercraft market was valued at USD 198.7 million in 2024 and is estimated to grow at a CAGR of 3.6% from 2025 to 2034. Increasing demand for amphibious transport in remote regions is driving growth in the market. Remote areas, including islands, coastal zones, and riverine regions, often lack proper infrastructure, making conventional vehicles unsuitable. Hovercraft operates effectively over water, land, and marshy terrain, providing transportation solutions for both civilian and military applications.
 

For instance, the US Navy awarded Textron Systems a $394.2-million contract for nine Landing Craft Air Cushion 100-class (LCAC 100) vessels. This contract follows an initial order in August 2023 and a subsequent agreement in July 2024 for materials and non-recurring activities to develop up to five LCAC 100s. The construction of the nine-unit hovercraft fleet will take place in New Orleans, Louisiana, and various locations across the country, reflecting the military's growing use of hovercraft for amphibious operations.
 

Military applications of hovercraft in coastal operations drive market growth. Hovercraft operates effectively across water, sand, ice, and marshy surfaces without requiring fixed infrastructure. This capability is essential in coastal and littoral regions where conventional naval vessels have operational constraints. Military forces require rapid deployment capabilities, amphibious operations, and logistical support in coastal areas.
 

Hovercraft facilitates quick transportation of troops, vehicles, and equipment from ship to shore, enabling forces to navigate challenging environments. Their high payload capacity and speed support rescue operations, surveillance missions, and disaster response activities. The increasing focus on coastal defense and rising geopolitical tensions contribute to the growing demand for military hovercraft.
 

Hovercraft Market Trends

The market shows increasing domestic production capabilities for advanced models. Countries are investing in local manufacturing to decrease dependence on foreign suppliers, strengthen national security, and advance military capabilities. In-house production enables nations to adapt designs for specific operational requirements while maintaining control over costs and supply chains. For instance, China's development of Zubr-class assault hovercraft exemplifies this trend.
 

Reports indicate that China has acquired the capability to manufacture Zubr-class hovercraft domestically using obtained design specifications. The country has already acquired two Zubr-class units, which are designed for high-speed operations and can transport tanks and military personnel. These Soviet-designed vessels could provide China with enhanced capabilities for amphibious operations. Though production ceased following the Soviet Union's dissolution, analysts suggest that China's possession of new units indicates access to manufacturing specifications.
 

The hovercraft market is experiencing growth through technological advancements, military modernization programs, and demand for amphibious vehicles. Several countries are developing domestic hovercraft manufacturing capabilities to enhance their defense capabilities and reduce foreign dependencies. Current hovercraft designs incorporate improved materials that increase durability and fuel efficiency while reducing operational costs. The market shows increased demand for multi-role hovercrafts that can perform military operations, disaster relief missions, and commercial tasks, appealing to both defense and civilian users.
 

Military procurement of hovercrafts has increased due to geopolitical tensions and requirements for rapid deployment in coastal areas. Emerging economies are adopting hovercrafts for transportation in remote areas where traditional vehicles are ineffective. The integration of electric propulsion systems and autonomous navigation technologies is influencing market development, providing efficient operational solutions across various industries.
 

Hovercraft Market Analysis

Based on size, the market is segmented into less than 10m, between 10m and 20m, greater than 20m. In 2024, the less than 10m segment accounted for the largest market share with 56.5% share.

Hovercraft under 10 meters are experiencing increased adoption in commercial and recreational sectors. These vessels serve tourism operations by providing personalized experiences in coastal and river areas. Their compact dimensions and maneuverability suit eco-tours, sightseeing, and leisure activities. The lower operational costs, simplified maintenance requirements, and ease of operation make them suitable for private operators and small businesses focusing on adventure tourism and transportation in remote locations.
 

Emergency services and rescue teams increasingly deploy sub-10-meter hovercraft for their capability to navigate challenging environments, including flood zones, ice, and marshlands. Government bodies and local authorities are procuring this smaller hovercraft for emergency response. Their transportability and maneuverability enable access to difficult-to-reach areas, strengthening their effectiveness in search-and-rescue operations and disaster response. 
 

Based on end-user, the market is divided into commercial and military. The commercial segment is the fastest-growing segment with a CAGR of 3.9% during the forecast period.
 

The commercial segment of the hovercraft market is expanding through increased adoption in tourism, transportation, and disaster relief operations. These vessels serve tourism applications through sightseeing and eco-tours in coastal and island regions, accessing shallow waters, sandbanks, and marshlands where conventional boats cannot operate. They also support short-distance passenger transport in remote or flood-prone areas, providing transportation solutions in regions with limited infrastructure.
 

Hovercraft applications extend to commercial rescue and logistics operations, facilitating the transport of goods, medical supplies, and personnel to areas inaccessible due to natural disasters or challenging terrain. Improvements in lightweight designs, fuel efficiency, and reduced maintenance requirements have made hovercraft a practical choice for businesses operating in harsh environments, supporting their adoption across commercial sectors globally.
 

North America is expected to reach over USD 106 million by 2034.  The North American hovercraft market is expanding due to military investments and demand for amphibious vehicles. The United States military continues to modernize its naval fleet by incorporating Landing Craft Air Cushion (LCAC) vessels for coastal operations, troop transport, and logistics support. Hovercraft applications have extended to disaster relief and search-and-rescue operations. In Canada, these vessels serve Arctic operations and coastal connectivity needs, particularly in addressing transportation and logistics challenges in icy and remote regions.
 

China's hovercraft market is expanding through military applications and domestic production capabilities. The development of Zubr-class hovercraft, supported by acquired blueprints, demonstrates the country's focus on amphibious warfare and troop transport. These vehicles serve operations in coastal zones and disputed territories. China is strengthening indigenous manufacturing to reduce import dependence and adapt designs for specific operational requirements. The government's naval modernization initiatives and growing demand for amphibious transport drive market growth.
 

Germany's hovercraft market focuses on technological advancement in commercial and emergency applications. The vehicles serve flood response, search-and-rescue operations, and tourism in riverine and coastal regions. German manufacturers prioritize efficient propulsion systems and lightweight materials to enhance performance and reduce fuel consumption. Research and development emphasizes sustainable technologies, including electric and hybrid-powered hovercraft. Government support for environmental transportation solutions strengthens both domestic and export market opportunities.
 

Japan's hovercraft market addresses coastal and island transportation needs. The country's extensive coastline and island geography make hovercraft essential for transportation, disaster relief, and emergency response. Japan's maritime technology advances support the development of lightweight and fuel-efficient hovercraft for local requirements. Government emphasis on disaster preparedness has increased amphibious vehicle investments, ensuring reliable operations in flood-prone and remote coastal areas.
 

South Korea's hovercraft market grows through military investments and amphibious capability requirements. The country enhances naval operations using hovercraft for troop transport, surveillance, and coastal defense. South Korea's defense sector works with domestic manufacturers to improve hovercraft technology, including propulsion systems and payload capacity. The vehicles also serve emergency response, disaster relief, and coastal infrastructure projects. Research and innovation investments prepare the market to fulfill domestic and international requirements.
 

Hovercraft Market Share

Textron Inc. manufactures air cushion vehicles primarily for military and defense applications, including the U.S. Navy's LCAC programs. Griffon Hoverwork Ltd (GHL), a UK-based manufacturer, produces commercial and rescue hovercraft for coastal transport, tourism, and emergency operations. Ivanoff Hovercraft AB, based in Sweden, develops hovercraft models for ice, water, and marshy environments, serving rescue, transportation, and industrial applications.
 

Hovercraft Market Companies

Major players operating in the hovercraft industry are:

• Aerohod Ltd.
• Airlift Hovercraft Pty Ltd.
• CHRISTY HOVERCRAFT TM
• Griffon Hoverwork Ltd (GHL)
• Textron Inc.
• MAD Hovercraft
• Hovertechnics
• Ivanoff Hovercraft AB
• Neoteric Hovercraft Inc.
• Bill Baker Vehicles Ltd
• The British Hovercraft Company
• Universal Hovercraft of America Inc.
   

Hovercraft Industry News

• In August 2024, Textron Systems received a USD 241 million contract from the U.S. Department of Defense to procure materials and perform non-recurring activities for manufacturing five Ship to Shore Connector (SSC) LCAC 100-class vessels. The vessels will support U.S. military operations and improve amphibious transport capabilities. Textron Systems, based in New Orleans, Louisiana, maintains its position as a manufacturer of Hovercraft vessels for the Department of Defense's naval modernization initiatives.
   
• In September 2023, the Canadian Government announced plans to modernize the Canadian Coast Guard's air cushion vehicle fleet. An advance contract award notice was issued to Griffon Hoverwork for the upgrade work, aimed at enhancing the capabilities of the Coast Guard's hovercraft.
   

This hovercraft market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD million) from 2021 to 2034, for the following segments:

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Market, By Size

• Less than 10m
• Between 10m and 20m
• Greater than 20m

Market, By Propulsion

• Diesel powered
• Gasoline powered
• Others

Market, By Application

• Passenger Transport and Tourism
• Cargo Transportation
• Defense
• Search and Rescue
• Others

Market, By End-user

• Commercial
• Military

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa