GLOBAL ARMORED VEHICLE MARKET

Armored Vehicles Market registered a revenue of USD 23.0 billion in 2023 and is projected to reach USD 31.7 billion in 2031, growing at a CAGR of 4.1% during the forecast period from 2024-2031.

Major Armored Vehicles Market Drivers

The armored vehicles market is influenced by factors such as increase in budgets of national defense, modernization in plans of military globally, and growing geopolitical tensions across the regions. The rising demand for enhanced monitoring of naval and land borders holds critical importance for defense forces, particularly considering the growing incidents of terror attacks, especially around borders. In certain cases, military forces face challenges in efficiently addressing situations due to the continued reaction time between threat detection and interception. In such cases, robots emerge as a viable alternative to humans, offering enhanced cross-border surveillance and intelligence-gathering capabilities with faster reaction times and increased accuracy. Robots effectively monitor country borders, delivering ongoing real-time data relays to ground stations. The global demand for autonomous robots is on the rise, driven by their diverse applications, including target acquisition and surveillance operations conducted by defense forces globally. Prominent companies such as Textron Inc., IAI., Northrup Grumman Corporation, and the Boeing Company are actively developing military robots equipped with intelligence, surveillance, reconnaissance, and target acquisition potentials. 

The global armored vehicle market is observing growth, driven by the increase in asymmetric warfare. In addition, the militarization of law enforcement agencies and a rise in cross-border disputes are key drivers of increased demand for armored vehicles in the forecast period. Furthermore, the necessity to reduce the size and develop the effectiveness of vehicles in the defense sector, coupled with the growing demand for robust, highly efficient, and combat US armored vehicles, will continue the growth of the global market.  The escalation of asymmetric warfare globally is attributed to factors such as economic conditions, political instability, and religious, and socio-cultural concerns. The rise in asymmetric warfare has turned into an increase in government agencies’ demand to implement Bradley armored vehicles as they offer advanced prevention against ballistic attacks and blasts.

The growing adoption of unmanned systems in military operations by defense forces around the globe is predicted to result in market opportunities for the expansion of the global armored vehicle market. Innovations in the transmission medium, navigation, surveillance, protection, adaptability, and increased situational awareness are predicted to further improve growth opportunities for armored vehicles. The growing demand for unmanned systems is extensively used by military forces in different nations for combat functions and intelligence. Surveillance and Reconnaissance is projected to propel the global armored vehicles market growth.

The growing awareness of commercial security is anticipated to propel the demand for armored personnel vehicles in the forecast period. Notably, in 2022, Oshkosh Defense, LLC, a popular military vehicle, and technology solutions designer, announced the introduction of a hybrid electric joint light tactical vehicle focused on protecting soldiers and delivering protection against different threats. The electric JLT vehicles improved fuel effectiveness and offer a substantial battery capacity of 30kWh. In addition, collaborative efforts among nations, including partnerships like the North Atlantic Treaty Organization and the African Union focused on countering terrorism and maintaining peace, are anticipated to positively influence the market growth. Furthermore, the market growth is propelled by the rise in the implementation of machinery by governments to address urgencies resulted due to militant attacks, insurgencies, and many more. Also, growing crimes and community disturbances within different regions, such as the Asia Pacific and MEA, are anticipated to propel the armored vehicles demand.

For instance, in 2021, INKAS Armored Vehicle Manufacturing announced an ordering of its vehicles for the U.S. government. Company has increased its capacity and enhanced proficiency to offer high-performance armored vehicles and fleets, accessible through the United States General Services Administration’s GSA Advantage program. The growth of the market will be driven by the rising defense budget, particularly in the APAC region. The reputation of industry players is predicted to be an important factor in securing contract allocations.

Moreover, it is estimated that the market growth in the forecast period is projected to be driven by advancement, including enhanced fuel efficiency and the incorporation of high-tech sensors. For instance, in 2021, HENSOLDT, an MNC based in Germany specializing in sensor technologies for security, aerospace, and defense sectors, announced the enhancement of its multifunctional self-protection system. The Multifunctional Self-Protection System 2.0 focuses on optimizing the weight, size, and quantity of assemblies. The introduction of the new laser rider improves directional solutions and enhances threat detection capabilities.

The increased computing of central power unit is instrumental in detecting projectile threats and missiles. The increase in cross-border illegal activities and terrorism has sparked asymmetric warfare between nations across the globe, contributing to an anticipated further rise in market demand. The ongoing development of lightweight, robust, compact armored vehicles, and highly efficient armored vehicles personalized for defense functions is predicted to rise the market growth size. For instance, 2021, IDEX 2021, presented the industry’s commitment to enhancing technological capabilities.

Meanwhile, the movement of armored vehicles across uneven terrains and their engagement in cross-country functions subject them to mechanical strain and logistical stress. Consistent high-speed traversal in such scenarios regularly leads to mechanical failures in their engines and transmission systems. Additionally, armored vehicles encounter problems such as component breakdowns, power failures, and part jamming, among other challenges. These failures can be challenging for rescue and recovery teams to rectify, potentially leading to situations throughout wartime. Furthermore, the identification of faculty components of parts causing malfunctions in armored vehicles can be a complex task. Therefore, producers of armored vehicles are consistently struggling to address failures by inventing new and innovative solutions using composites and fixing progressed systems in these vehicles.

Whereas, the demand for fuel-efficient armored vehicles, driven by fluctuating fuel prices, presents different growth opportunities for companies in the global armored vehicle market. Producers are making efforts towards developing hybrid or electric armored vehicles to decrease fuel consumption and develop overall performance. The increasing shift towards clean energy is expected to foster the demand for electric or hybrid-engine armored vehicles among both defense and commercial end-users in the forecast period. In addition, rising government engagement and investment in improved electric vehicles will facilitate the development of fuel-efficient armored vehicles, delivering growth opportunities for industry players. For instance, in 2022, the U.S. Army announced the analysis and testing of electric armored vehicles using General Motor’s Ultium Platform

Combat Vehicles Segment Registered the Largest Revenue Share in the Global Armored Vehicles Market

The combat vehicles segment is anticipated to be the leading segment in the global armored vehicles market due to ongoing and projected need for infantry mechanization and infantry innovation programs in both emerging and developed regions across the globe. For instance, in 2022, the Permanent Structured Cooperation Office of the European Union announced a project introduced by EU member states including Finland, Slovakia, and Italy. This project focuses on conducting Research Development, testing, and Evaluation for a shared prototype, aiming at the development of infantry fighting automotives, amphibious assault heavy vehicles, and light armored vehicles. The shared prototypes platform is designed to facilitate quicker combat deployment maneuvers, Intelligence, Surveillance, and Reconnaissance functions, logistics assistance, combat and command functions, and medical assistance. In addition, it focuses on developing interoperability among the armed forces of EU member states.

By Region, Asia Pacific is Estimated to Dominate the Largest Market Share in the Global Market

The Asia-Pacific region is projected to observe the highest growth due to an increase in military investments among countries across APAC. The rise in geopolitical tensions, countries including India, Singapore, South Korea, China, and Japan are making investments in acquiring new armored vehicles to change the aging fleets that have been in action for over 30 years. In 2021, the Acquisition, Technology, & Logistics Agency of Japan announced plans to replace its light armored vehicles owing to concerns connected to insufficient cabin space and high releases from engines.

Top Market Players

Major key players in the armored vehicles market are BAE Systems PLC, Oshkosh Corporation, Otokar Otomotive Ve Savunma Sanayi, Textron Inc., Krauss-Maffei Wegmann, Denel SOC Ltd., FNSS Savunma Sistemleri AS, Hanwha Corporation, General Dynamics Corporation, Rheinmetall AG, Arquus, among others.

Key Development:

• • In 2023, The U.S. Army Contracting Command Detroit Arsenal announced a content with A.M. General to produce nearly 10,000 trailers coupled with 20,000 Joint Tactical vehicles for the armed forces of the U.S.
  • In 2023, The Italian Navy awarded a signed agreement to IVECO Defense Vehicles to offer Amphibious Armored Vehicles Personnel Carriers which further strengthen the force and navy of the San Marco Marina Brigade.
  • In April 2022, Rheinmetall AG, a German arms manufacturing company announced that it has received contract from UK Ministry of Defense for manufacturing 4 Rheinmetall Mission Master SP surveillance Autonomous Unmanned Ground Vehicles (A-UGV) and 3 Rheinmetall Mission Master SP cargo vehicles, which makes up total of 7 new A-UGVs.
  • In April 2022, Lithuania’s Defence Ministry announced declared its plans to procure more than 120 boxer infantry fighting vehicles to expand the country’s modern fleet of infantry fighting vehicles.
  • In June 2021, Katmerciler announced that it has received contract to provide 118 Hızır 4×4 tactical wheeled armored vehicles to Kenya. This contract helped Katmerciler to expand its footprint in the African market.
  • In February 2021, Bharat Forge, an engineering and technology company, entered into a strategic partnership with international aerospace and technology conglomerate Paramount Group to manufacture armoured vehicles in India.
  • In March 2020, BAE System was awarded contract worth USD 339 million for manufacturing 48 vehicle sets of M109A7 Self-propelled Howitzer (SPH) and M992A3 Carrier, Ammunition, Tracked (CAT) vehicle, to increase the overall combat capability of Armored Brigade Combat Teams (ABCTs).
  • In Feb 2019, BAE Systems, British Aerospace company announced that it has received contract worth USD 148.3 million from the United States Army to upgrade M88A2 HERCULES armored recovery vehicles. BAE systems to upgrade 43 M88A1 heavy-lift vehicles.
  • In Aug 2018, Rheinmetall signed a contract worth USD 2.7 billion to manufacture 211 Boxer Wheeled armored vehicles to Australian Army.

Segments Covered in the Report

The Global Armored Vehicles Market has been segmented on the basis of Platform, System, Type, Mode of Operation, Mobility and Point of Sale. Based on the Platform, the market is segmented into Combat Support Vehicles, Combat Vehicles and Unmanned Armored Vehicles. Based on the System, the market is segmented into Engines, Drive Systems, Turret Drives, Ammunition Handling Systems, Fire Control Systems (FCS), Armaments, Navigation Systems, Command & Control (C2) Systems, Ballistic Armor, Power Systems, Countermeasure Systems, Hulls/Frames, Observation & Display Systems. Based on the Type, the market is segmented into Electric, Conventional. Based on the Mode of Operation, the market is segmented into Unmanned and Manned. Based on the Mobility, the market is segmented into Wheeled, 4×4, 6×6, 8×8, 10×10, 12×12, Tracked. Based on the Point of Sale, the market is segmented into OEM, Retrofit.

Market Segmentation:

Global Armored Vehicles Market by Platform

• • Combat Vehicles
    •  Main Battle Tanks (MBTs)
    •  Infantry Fighting Vehicles (IFVs)
    •  Armored Personnel Carriers (APCs)
    •  Armored Amphibious Vehicles (AAVs)
    •  Mine-resistant Ambush Protected (MRAP)
    •  Light Protected Vehicles (LPVs)
    •  Self-propelled Howitzers (SPHs)
    •  Air Defense Vehicles
  • Combat Support Vehicles
    •  Armored Supply Trucks
    •  Armored Command & Control Vehicles
    •  Repair and Recovery Vehicles
    • Bridge-laying Tanks
    • Mine Clearance Vehicles
  • Unmanned Armored Vehicles

Global Armored Vehicles Market by System

• • Engines
  • Drive Systems
  • Turret Drives
  • Ammunition Handling Systems
  • Fire Control Systems (FCS)
  • Armaments
  • Ballistic Armor
  • Countermeasure Systems
  • Command & Control (C2) Systems
  • Power Systems
  • Navigation Systems
  • Observation & Display Systems
  • Hulls/Frames

Global Armored Vehicles Market by Type

• • Electric
  • Conventional

Global Armored Vehicles Market by Mode of Operation

• • Manned
  • Unmanned

Global Armored Vehicles Market by Mobility 

• • Wheeled
    • 4×4
    • 6×6
    • 8×8
    • 10×10
    • 12×12
  • Tracked

Global Armored Vehicles Market by Point of Sale

• • OEM
  • Retrofit

Global Armored Vehicles Market by Region

• • North America Armored Vehicles Market (Option 1: As a part of the free 25% customization)

    • By Platform
    • By System
    • By Type
    • By Mode of Operation
    • By Mobility
    • By Point of Sale
    • United States of America (US) Market All-Up
    • Canada Market All-Up

  • Europe Armored Vehicles Market (Option 2: As a part of the free 25% customization)

    • By Platform
    • By System
    • By Type
    • By Mode of Operation
    • By Mobility
    • By Point of Sale
    • United Kingdom (UK) Market All-Up
    • Germany All-Up Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific Armored Vehicles Market (Option 3: As a part of the free 25% customization)

    • By Platform
    • By System
    • By Type
    • By Mode of Operation
    • By Mobility
    • By Point of Sale
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

  • RoW Armored Vehicles Market (Option 4: As a part of the free 25% customization)

    • By Platform
    • By System
    • By Type
    • By Mode of Operation
    • By Mobility
    • By Point of Sale
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating the Armored Vehicles (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • BAE Systems PLC
  • Oshkosh Corporation
  • Otokar Otomotive Ve Savunma Sanayi
  • Textron Inc.
  • Krauss-Maffei Wegmann
  • Denel SOC Ltd.
  • FNSS Savunma Sistemleri AS
  • Hanwha Corporation
  • General Dynamics Corporation
  • Rheinmetall AG
  • Arquus