Armored Vehicle Market

The global Armored Vehicle Market was valued at USD 17.2 Billion in 2022 and is projected to reach a value of USD 108.5 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 30.1% between 2023 and 2030.

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Armored Vehicle are military vehicles that protect personnel and equipment from enemy attacks. Bulletproof glass, armor plating, and other protective features are commonly installed in these vehicles to ensure the safety of the occupants. Armored Vehicle are used for various purposes, including military operations, law enforcement, and transporting valuable goods.

Several factors drive the growth of the global Armored Vehicle market, including rising geopolitical tensions, increased military spending, and the need for homeland security. With the rise in terrorist activity worldwide, governments are investing heavily in Armored Vehicle procurement to ensure the safety of their citizens. Moreover, the increase in cross-border conflicts and military modernization programs is expected to drive demand for Armored Vehicles in the coming years. Defense budget increases, especially in the Asia Pacific, are further expected to drive overall Armored Vehicle market growth. Technological advancements like improved fuel efficiency and cutting-edge sensors in Armored Vehicles are anticipated to fuel market growth throughout the forecast period. For instance, in November 2021, the German multinational company HENSOLDT announced the upgrade of its Multifunctional Self-Protection System (MSFS), a sensor-based system to counter threats. HENSOLDT focuses on sensor technologies for protection and surveillance missions in the security, defense, and aerospace sectors.

However, the high cost of producing and maintaining Armored Vehicles significantly impedes market growth. Armored Vehicles are expensive to produce due to the complexity of the design and manufacturing processes and the need for high-quality materials. Besides, the costs of maintenance and repair for these vehicles are high, which may deter some customers from purchasing them. The growing use of advanced technologies such as unmanned systems and artificial intelligence opens up new opportunities in the Armored Vehicle market. Incorporating these technologies into Armored Vehicles will improve their capabilities and combat effectiveness. Furthermore, the increase in demand for Armored Vehicles in emerging economies is opening up new opportunities for market players to expand their operations.

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In recent years, several notable developments in the global Armored Vehicle market have occurred. For example, BAE Systems debuted the CV90 MkIV in 2019, a next-generation Armored Vehicle designed to provide enhanced protection and situational awareness. Similarly, General Dynamics Land Systems introduced the Griffin III, a new Armored Vehicle with advanced technologies like a digital turret and a remote-controlled weapon system. These changes reflect the market's increasing emphasis on innovation and incorporating advanced technologies into Armored Vehicles.

Economic Insights

Various economic factors influence the global Armored Vehicle market's growth and demand. The market is experiencing moderate growth due to rising geopolitical tensions, increased military spending, and the need for homeland security. However, the ongoing COVID-19 pandemic has disrupted global supply chains and slowed economic activity, which may immediately impact market growth. In terms of recession effects, the market may be impacted if military budgets are significantly reduced due to the economic downturn. The decrease in military spending may lead to decreased demand for Armored Vehicles, slowing global market growth. As a result, market players must monitor these economic factors to make informed decisions that will ensure their long-term success.

Top Market Trends

1. Growing Global Adoption of Active Protection System (APS): The APS detects and counters incoming threat projectiles before they reach their target. APS employs launchers, tracking radar, sensors, and countermeasure munitions to protect combat vehicles from grenades and anti-tank-guided missiles. The U.S. Army received Trophy APS units in January 2021 for its Rafael and Leonardo DRS-designed M1 Abrams main battle tanks. The system improves tank survivability against large-caliber projectiles. Raytheon Technologies provided APS, which uses a countermeasure system and an integrated multi-mission fire-control radar to detect, track, and destroy multiple threats.

2. Rising Demands for Mine-Resistant Ambush-Protected (MRAP) Vehicles: With the rise of asymmetric warfare and the proliferation of improvised explosive devices (IEDs), demand has increased for MRAP vehicles designed to withstand explosive blasts. These vehicles are used by military and law enforcement agencies worldwide, and their popularity is expected to drive the Armored Vehicle market's growth in the coming years. Armored Vehicles can be easily upgraded and customized thanks to their modular design, making them suitable for various missions. This adaptability has increased demand for modular Armored Vehicles that can be customized to satisfy the ever-evolving requirements of military and law enforcement agencies.

3. Increasing Integration of Advanced Technologies: Adopting advanced technologies such as sensors, artificial intelligence, and materials propels the Armored Vehicle market forward. These technologies enhance the capabilities of Armored Vehicles, improve situational awareness, and provide superior personnel protection. As countries seek to improve their defense capabilities, integrating these technologies will continue in the coming years. The need for greater mobility and agility on the battlefield drives demand for lightweight Armored Vehicles. Lightweight materials such as composites and aluminum are being used to reduce the weight of Armored Vehicles while still providing adequate protection.

4. Increased Cross-Border Conflicts Will Drive Demand for Next-Generation Military Vehicles: In recent years, there has been an increase in disputes, terrorist activities, and wars around the world. The rising level of violence, as well as cross-border activities between Asian countries and other regions, has prompted several countries to modernize their existing defense systems. Governments all over the world are focusing on securing and strengthening military forces through the deployment of advanced main battle tanks (MBTs), light protecting vehicles (LPVs), infantry fighting vehicles (IFVs), and other weapons. Rising geopolitical tensions, military spending, and the need for homeland security drive demand for Armored Vehicles in emerging markets. As a result, this factor may propel the Armored Vehicle market over the forecast period.

Market Segmentation

The global Armored Vehicle market can be categorized on the following: Platform, Mobility, System, and Region. Based on the Platform, the market can be categorized into Combat Vehicles, Combat Support Vehicles, and Unmanned Armored Ground Vehicles. Moreover, based on Mobility, the market can be split into Wheeled and Tracked. Furthermore, based on System, the market can be divided into the Engine, Drive System, Ballistic Armor, Turret Drives, Ammunition Handling System, Fire Control Systems (FCS), Armaments, Countermeasure System, Command & Control (C2) System, Power System, Navigation System, Observation & Display System, and Hulls/Frames. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Platform

Combat Vehicles to Lead with the Largest Market Share Attributed to Rising Defense Spending

Over the forecast period, the combat vehicles platform segment will dominate the Armored Vehicle market. Global demand for armored personnel carriers (APCs) and light Armored Vehicles (LAVs) is propelling the market growth. Combat vehicles have operational mobility and defense capabilities to support combat operations. Battle tanks, armored personnel carriers, armored amphibious vehicles, lightly protected vehicles, and self-propelled howitzers are all subcategories of combat vehicles. The most profitable segment is armored personnel carriers. General Dynamics Corporation, Oshkosh Defense LLC, Lenco Industries Inc, and International Armored Group, among others, have shifted their focus to developing armored personal carriers. Due to rising air threats and increased demand from the defense sector for fuel-efficient vehicles, armored personnel carriers are expected to advance significantly in the coming years. Besides, the unmanned armored ground vehicles segment will have the highest market CAGR during the projected period. Unmanned Armored Vehicles are expected to grow due to technological advancements in the global market. Unmanned Armored Vehicles can operate in dangerous situations without the presence of a human on board. Unmanned Armored Vehicles will undoubtedly play an important role in the defense sector in the future. China, for example, has already established a research center for advanced unmanned Armored Vehicles open to all manufacturers. These unmanned vehicles can operate in high-risk environments and conduct defense operations. As a result, rising demand for developing and deploying these unmanned military vehicles will propel the market forward.

Based on the Mobility

Wheeled to Account for the Largest Market Share owing to the Adoption of Next-Generation Vehicles for Defense Operations

The wheeled segment will dominate the global Armored Vehicle market during the forecast period, owing to the military's growing demand for 4X4 LAVs for intelligence, surveillance, reconnaissance (ISR), and transportation applications. Wheeled Armored Vehicles provide better road performance while using less fuel. Wheeled vehicles are classified as 4x4, 8x8, 10x10, and 12x12. The defense industry's increasing demand for armored personnel carriers is expected to drive demand for 8x8 wheeled vehicles. For example, airdrop-capable armored led Armored Vehicles developed by China North Industries Group Corporation (NORINCO) entered the Chinese Air Force service in May 2020. The tracked mobility segment will grow with the fastest-growing market CAGR during the forecast period due to the rising procurement of main battle tanks and vehicles used on rough terrain. Tracked Armored Vehicles have better traction and are thus considered ideal for military operations.

Based on System

Armaments Segment to Account for the Largest Market Share Owing to the Military Modernization Programs for Strengthening Defense Forces

The armaments segment will dominate the global Armored Vehicle market throughout the forecast period. Due to the rising demand for anti-tank guided missile (AGTM) launchers, remote weapon stations, and other armaments globally, the armaments segment is anticipated to experience the highest growth during the forecast period. The engine market is predicted to expand due to the rising demand for powerful, durable diesel engines. Furthermore, demand for turbine engines is increasing due to main battle tank modernization programs. The demand for unmanned ground Armored Vehicles will drive significant growth in command-and-control systems.

Based on Region

Asia Pacific to Lead Global Market Revenue Due to Rising Government Initiatives to Strengthen the Military Power for Countering Terrorism

The global Armored Vehicle market is expected to be dominated by the Asia Pacific region in terms of growth and revenue. The region's market growth can be attributed to increased government initiatives to strengthen military power to combat terrorism. Various government agencies are working to develop the defense sector, positively impacting the regional Armored Vehicle market. For instance, Otokar, a Turkish bus and military vehicle manufacturer, increased its market reach in the Asia Pacific in March 2022. At the Defense Services Asia expo in Kuala Lumpur, Malaysia, the company displayed its COBRA II tactical and ARMA 66-wheeled Armored Vehicles. Countries like India, South Korea, and China are investing in acquiring and developing advanced Armored Vehicles. Asia Pacific manufacturers invest heavily in R&D to develop advanced, hybrid Armored Vehicles for enhanced maritime and border patrolling. Moreover, rising military expenditures and demand for medium-sized, light-Armored Vehicles for patrolling operations are expected to drive market growth in the region over the forecast period.

North America is the world's second-largest market for Armored Vehicles. The presence of major manufacturers in the region and substantial military budgets in the United States have aided market growth in North America. Besides, the United States Defense Department is focused on deploying armored electric vehicles for efficient operational capabilities; this factor is expected to boost market growth during the forecast period. The region's dominance is attributed to the United States government's highest defense spending on military vehicle procurement and modernization. Key players such as Textron Systems, General Dynamics Corporation, Oshkosh Defense, and others, for example, drive Armored Vehicle market growth in North America.

Competitive Landscape

The key players in the global Armored Vehicle market include - BAE Systems (UK), Denel SOC Ltd (South Africa), General Dynamics Corporation (U.S.), IVECO DEFENCE VEHICLES (Italy), Krauss-Maffei Wegmann GmbH & Co. KG (Germany), NORINCOGROUP.com Inc. (China), Oshkosh Defense - LLC An Oshkosh Corporation Company (U.S.), Otokar - A KOC Group Company (Turkey), Rheinmetall AG (Germany), Textron Systems (U.S.) among others.

Recent Market Developments

• In January 2023, U.S. officials revealed that a US-made Abrams tank would be sent to Ukraine. The United States will send 31 Abrams tanks and more Armored Vehicles. Also, according to U.S. officials, the nation is also developing a plan to send Ukraine the fuel and tools necessary for maintaining these vehicles.
• In January 2023, the Finnish Ministry of Défense announced a $20.32 million (19.1 million Euro) investment in Armored Vehicles. A local defense company, Oy Sisi Auto, will sell 25 G.T.P. 4x4 armored cars to the ministry. These armored trucks will assist in patrolling and troop mobility.
• April 2021: Israel Aerospace Industries (IAI) has signed a contract with Israel's Ministry of Defense (MOD) to manufacture and deliver nine Z-MAG all-terrain vehicles to the Israel Defense Forces (IDF), with an option to order an additional 21 units.
• April 2021: L3Harris Technologies and American Rheinmetall Vehicles, a subsidiary of Rheinmetall AG, have agreed to collaborate to develop the United States Army's new Optionally Manned Fighting Vehicle (OMFV), which will replace the Bradley Infantry Fighting Vehicle.
• February 2021: Bharat Forge, an engineering and technology company, collaborated with the international aerospace and technology conglomerate Paramount Group to combine skills, technologies, and expertise to develop Armored Vehicle in India.

Segmentation of the Global Armored Vehicle Market