Armored Vehicles Market Size, Share, Trends & Growth Analysis

^{_{Updated on : Oct 22, 2024}}

The armored vehicle market is projected to grow from USD 51.6 billion in 2024 to USD 60.7 billion by 2029, growing at a CAGR of 3.3%. The volume of combat vehicles in armored vehicles market is projected to grow from 3,15,266 (units) in 2024 to 3,56,681(units) by 2029. The volume for combat support vehicles in armored vehicles market is projected to grow from  4,61,246  (units) in 2024 to  5,19,252 (units) by 2029. The armored vehicles market, defined by the demand for military vehicles fortified with advanced protective measures, is shaped by several drivers. Geopolitical tensions, including territorial disputes, fuel nations' investments in defense capabilities, driving procurement to fortify borders and prepare for potential conflicts. Urban warfare and counter-terrorism operations further stimulate demand for maneuverable and well-protected armored vehicles, particularly in regions prone to instability. Additionally, peacekeeping and humanitarian missions require specialized vehicles, contributing to sustained market demand. Furthermore, ongoing technological advancements continuously enhance vehicle capabilities, attracting investments and propelling market growth.

Armored Vehicles Market Forecast to 2029

To know about the assumptions considered for the study, Request for Free Sample Report

Armored Vehicles Market Dynamics

Driver: Increasing demand for armored vehicles to tackle cross-border conflicts

In recent years, global conflicts, including intrastate and interstate disputes like those in Iraq, Syria, North Korea, and Afghanistan, have impacted the economy and spurred the mobilization of military and law enforcement agencies worldwide. Despite defense budget cuts in major economies like the US, UK, and France, demand for armored vehicles remains steady, driven by civilian and law enforcement use for protection against ballistic and blast threats. Countries are investing in modernizing their military fleets, leading to a recovery in the US tank and armored vehicle industry. Research and development efforts are underway globally to enhance armored vehicle capabilities. In March 2022, Hungary's military procured 40 tactical wheeled armored vehicles from Turkey, marking a significant collaboration in the European defense industry. Key players are focused on R&D to drive technological advancements in armored vehicles.

Restraints: Occurrence of mechanical and electrical failure in armored vehicles

Armored vehicles face significant mechanical and logistical challenges during operations, including strain from traversing uneven terrain and potential breakdowns of engines and transmission systems due to high-speed movement. Power failures, component breakdowns, and jamming further compound these challenges, often requiring complex rectification procedures by rescue teams. Detecting faulty components can be difficult, exacerbating critical situations during wartime. Manufacturers are actively addressing these issues by developing innovative designs using composites and integrating advanced systems to enhance the reliability and performance of armored vehicles.

Opportunities: Rising technology integration and upgrades in military vehicles

The armored vehicles market is experiencing significant transformation due to the integration and upgrades of advanced technology in military vehicles. Modernization of existing platforms is essential for maintaining competitiveness on the battlefield. Key drivers of demand include the integration of advanced sensors, communication systems, and AI-driven analytics to enhance vehicle performance, efficiency, and survivability. Additionally, integrating unmanned aerial systems (UAS) with ground vehicles improves reconnaissance and surveillance capabilities while reducing risks to human operators. These advancements offer benefits such as improved reliability, reduced repair costs, enhanced safety, increased readiness, and heightened mission effectiveness, shaping the future landscape of armored vehicle operations.

Challenges: Hardware and software malfunctions

Despite being engineered for rugged environments, robots remain susceptible to hardware and software malfunctions. Challenges such as extreme temperatures, component breakdowns, and software jams persist, hindering their reliability. Unmanned Ground Vehicles (UGVs) are typically controlled by human operators either via tethered connections or remote systems. However, instances of operators losing control or robots misinterpreting commands lead to mission failures. Engineers encounter difficulties in developing fully autonomous robots, as this technology is still in its nascent stages of development. Achieving autonomy requires overcoming technical complexities and refining systems to ensure seamless operation in diverse environments.

Armored Vehicles Market Ecosystem

Based on the mobility, wheeled segment is estimated to account for the largest market share during the forecast period.

Based on the mobility, Wheeled armored vehicles are projected to hold the largest market share in the global armored vehicle market. This dominance is fueled by several factors, including their cost-effectiveness in acquisition and operation, strategic deployment capabilities, and versatility in various missions. Additionally, wheeled armored vehicles offer superior mobility on paved roads and hard terrain, making them ideal for urban environments and tactical maneuverability. Their modular design allows for customization based on specific mission requirements, further enhancing their appeal. Overall, the prevalence of wheeled armored vehicles reflects a shift towards more agile and adaptable platforms in response to evolving security threats and operational needs.

Based on the type, the conventional armored vehicle segment is estimated to account for the largest market share during the forecast period.

Based on type, the armored vehicles market is segmented into electric and conventional armored vehicles. Electric and hybrid armored vehicles are still in the development stage, and as of now, no military has an active fleet of electric armored vehicles. Conventional armored vehicles are those that use fossil fuels to run the engine.

Based on the system, the armament segment is estimated to account for the majority share during the forecast period.

Based on system, the armored vehicles market has been segmented into engines, drive systems, turret drives, ammunition handling systems, fire control systems, armaments, ballistic armor, countermeasure systems, Command & Control (C2) systems, power systems, navigation systems, observation & display systems, and hulls/frames.

Armored vehicles use different systems for different applications. These systems are manufactured by different companies and are integrated with armored vehicles by original equipment manufacturers (OEMs). For instance, Protector remote weapon stations manufactured by Kongsberg are deployed on Stryker vehicles manufactured by General Dynamics. Thus, the ecosystem of armored vehicles consists of multiple companies supplying various subsystems and components.

Based on the platform, the combat vehicles segment is anticipated to dominate the market.

Based platform , the combat vehicles segment holds the largest market share. This dominance is driven by their crucial role in modern warfare scenarios, offering superior firepower, protection, and mobility. Combat vehicles encompass a wide range of platforms, including main battle tanks (MBTs), infantry fighting vehicles (IFVs), and armored personnel carriers (APCs), catering to diverse mission requirements across land, air, and sea. Their significance in offensive and defensive operations, coupled with ongoing military modernization programs worldwide, positions combat vehicles as the leading segment in the armored vehicle market, driving substantial growth and investment in the sector.

Asia Pacific, Middle East, and North America account for the top regions with the highest market share.

The Asia Pacific market is projected to account the highest share in the Armored Vehicles market.

In the global armored vehicle market, the Asia Pacific region is poised to claim the highest share. This dominance can be attributed to a multitude of factors, including increasing geopolitical tensions, rising defense budgets, and a focus on modernization initiatives. Additionally, the region's rapid urbanization and evolving warfare tactics necessitate investments in agile and robust armored vehicles. Furthermore, internal security concerns, such as terrorism and organized crime, drive demand for specialized vehicles tailored to law enforcement and border security needs. Overall, the Asia Pacific region stands as a key driver in shaping the trajectory of the armored vehicle market on a global scale.

Armored Vehicles Market by Region

To know about the assumptions considered for the study, download the pdf brochure

The Middle East market is projected to be the second largest share of the armored vehicle market.

The Middle East covers Saudi Arabia, the UAE, and the Rest of the Middle East for market analysis. There has been an increase in the procurement of defense equipment in the Middle East region as countries focus on securing their borders and improving their military capabilities. Rising tensions among countries, sectarian violence, and unrest in the Middle East have significantly affected the defense spending of countries in the region. Increasing revenues from oil exports, rising GDP of countries of the Middle East, increasing tensions between the US and Iran, and the ongoing war in Syria have significantly increased military spending in the Middle East region.

Saudi Arabia and Israel are investing increasingly in the development of armored vehicles to strengthen their military forces. Turkey is also investing in modernizing its defense forces. For instance, Otokar, the largest armored vehicle firm in the country, along with BMC, is delivering the Altay main battle tank to Turkey, with the final tank expected to be delivered by 2030.

The North America market is projected to be the third largest share of the armored vehicle market.

The growth of the market in this region can be attributed to the increased procurement of highly advanced armored vehicles by the defense forces of different countries in the region. The market in the North American region has been studied for the US and Canada. The market in the US is projected to witness significant growth during the forecast period due to the increased procurement of armored vehicles by the US Army. 45 MRAPs were handed over by the US to the Afghanistan National Defense Force in 2016. Moreover, the US also donated 24 used MRAPs to Nigeria. The US Government awarded a contract worth USD 6.70 billion to Oshkosh Corporation for the development of JLTVs to replace its dependable but aging Humvee in 2016. The US is also considering the procurement of 49,099 vehicles for its army and over 6,000 vehicles for its naval force. Moreover, the increased investments in the North American region for the development of advanced armored vehicles are also fueling the growth of the market in the region.

Key Market Players

The Armored Vehicles companies is dominated by a few globally established players such as Rheinmetall AG (Germany), General Dynamics Corporation (US), Oshkosh Corporation (US), BAE Systems (UK), and Hanwha Defense (South Korea)  are some of the leading players operating in the Armored Vehicles market; they are the key manufacturers and solution providers that secured Armored Vehicles contracts in the last few years. Major focus was given to the contracts and new product development due to the changing requirements in defense and commercial industries.

Want to explore hidden markets that can drive new revenue in Armored Vehicles Market?

Unlock Insights

Click on image to enlarge

Scope of the Report

Armored Vehicles Market Highlights

The study categorizes the Armored Vehicles market based on platform, type, mobility, mode of operation, point of sale and Region.

Recent Developments

• In March 2024,  Rheinmetall :- Rheinmetall has secured a contract to supply the German Army with 123 "Heavy Weapon Carriers for the Infantry." The contract, worth around USD 3 billion, includes service and maintenance. Delivery starts in 2025, enhancing the Army's firepower and mobility..
• In November 2023,  Oshkosh Defense:- Oshkosh Defense, LLC received a USD 208 million contract from the U.S. Army for Joint Light Tactical Vehicles (JLTV) and trailers.
• In December 2023, Hanwha Defence Australia :- Hanwha Aerospace's subsidiary, Hanwha Defence Australia (HDA), secured a USD 2.4 billion contract with the Australian government to supply 129 Redback Infantry Fighting Vehicles (IFVs), along with training and support systems..

Frequently Asked Questions (FAQs) Addressed by the Report

To speak to our analyst for a discussion on the above findings, click Speak to Analyst