The amphibious aircraft market is estimated to register a CAGR of over 4.5% during the forecast period, 2020 - 2025.
- Growing demand for amphibious aircraft worldwide, coupled with the increasing usage of amphibious aircraft for carrying out search and rescue missions, may lead to the growth of the amphibious aircraft market in the near future.
- On the other hand, the increasing number of accident rates of amphibious aircraft worldwide may hamper the market in the long term.
- The amphibious aircraft is witnessing steady growth since the last couple of years, with tourism being the most crucial factor, which is propelling the growth of the market. Countries are now looking at amphibious aircraft as being a lucrative option. Moreover, the growing usage of composites while designing the base of the aircraft may lead to companies being able to make use of amphibious aircraft for a longer periods of time. Composites offer protection from corrosion, and reduce weight of the aircraft.
- Currently, the market is witnessing various innovations, which are being carried out in order to increase the speed of the amphibious aircraft. The concept of usage of sea foils for amphibious aircraft is the current innovation being done by companies (like LISA Airplanes done on their Akoya Amphibious Aircraft model). The sea foils are fitted to the fuselage of the aircraft and are used to lift the fuselage of the aircraft at high speeds, while taking off from the water. This innovation has eliminated the need for designing of amphibious aircraft with a traditional hull shape.
Key Market Trends
The Military Segment is Anticipated to Achieve the Highest CAGR During the Forecast Period
Currently, the military segment has the highest share out of all the segments. Globally, there has been an increasing demand for amphibious aircraft from the naval forces worldwide. Naval forces are placing orders for amphibious aircraft to conduct various operations, such as search and rescue, and surveillance and reconnaissance missions. For example, Indian Naval Forces are in plans to acquire the ShinMaywa US-2 amphibious aircraft from Japan for a deal worth USD 1.30 billion. India is in plans to procure 12 of the amphibious aircraft for conducting search-and-rescue (SAR) maritime surveillance. Additionally, the Indian Navy plans to deploy the aircraft strategically at the Andaman and Nicobar Islands with the objective of carrying out patrols in the larger Indian Ocean Region (IOR). China has also announced that they may make use of the AG600 amphibious aircraft to ferry their troops, as well as equipment, to the South China Sea. The aircraft, which has been developed for firefighting and water rescue, is also used for military uses, owing to the fact that the aircraft can seat up to 50 passengers and this has led to the aircraft being considered as the appropriate choice for troop transportation by the Chinese government. Globally, various naval forces, such as the United States and Japan, are placing orders for amphibious aircraft to carry out various strategic missions. Thus, various upcoming developments, in terms of amphibious aircraft for the military, are expected to increase the focus on this segment, and this may be the reason for its expected high CAGR.
The Asia-Pacific Region is Expected to have the Highest Growth
In the amphibious aircraft market, Asia-Pacific is generating the highest revenue at present. The Asia-Pacific region is currently witnessing various developments, in terms of amphibious aircraft. The amphibious aircraft market in China has been witnessing significant growth, owing to the introduction of new technology, which has proved to be a success in the country. China has progressed rapidly with the development of its newest AG600 amphibious aircraft. The AG600 has been developed by China as a part of a drive, in order to modernize the military capabilities of the region amidst the territorial disputes taking place in the South China Sea, which has led to rising tensions in the regions of Asia-Pacific and North America. The aircraft is of the same size as a Boeing 737 and has been designed to carry out marine rescues and battle forest fires. Additionally, the aircraft can also be customized to carry out various other missions, such as protection and observation of the marine environment, resource exploration, as well as providing security against maritime smuggling. Earlier in 2017, Indian carrier SpiceJet showcased interest to acquire 100 amphibious aircraft from Setouchi Holdings Company, Japan. The deal may help SpiceJet to connect passengers in remote areas, which do not have access to airport infrastructure. Thus, the large-scale ongoing developments, in terms of amphibious aircraft, and the growing demand for amphibious aircraft in the Asia-Pacific region may lead to the growth of the amphibious aircraft market in the Asia-Pacific region.
Aviation Industry Corporation of China (AVIC), ShinMaywa Industries, Ltd., United Aircraft Corporation, ICON Aircraft, Inc., and Viking Air Ltd. are the prominent companies, which are occupying significant market share during the forecast period in the amphibious aircraft market. Various initiatives, as well as product innovations, which have been done by companies, have led them to strengthen their presence in the market. As of 2018, ShinMaywa Industries, Ltd. reported that they have signed a memorandum of understanding with Mahindra Defense for the manufacturing of US-2 amphibious aircraft. India's Mahindra Defense and Japanese ShinMaywa Industries, Ltd. are now under discussion for the manufacturing of amphibian aircraft for the Indian Navy. Both countries are working toward introducing the aircraft in India. Mahindra Aerospace Private Limited, in 2018, reported that it has signed a memorandum of understanding with Canadian-based Viking Air Ltd. This alliance has been made so that the companies are able to provide turboprops as well as amphibious aircraft to various other players which are looking to enter the Indian general aviation market.
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