Global Armoured Vehicle Sustainment Business Booms Amid Rising Defense Demands

November 30, 2023
The armoured vehicle sustainment business is witnessing significant growth, fueled by escalating global defense demands and technological advancements. Key players like Rheinmetall AG, BAE Systems, General Dynamics, Elbit Systems, and Oshkosh Defense are at the forefront of this surge, securing substantial contracts and expanding their global footprint.

Rheinmetall AG's sales are expected to double by 2026, driven by heightened demands in regions like Ukraine, Gaza, and the Asia-Pacific. This growth is mirrored in their joint defense venture with Ukraine, enhancing the country's defense capabilities amidst Russian aggression. Additionally, Rheinmetall's support with ammunition and field hospitals to Ukraine underlines its commitment to global defense needs.

BAE Systems continues to strengthen its position with recent contracts from the UK Ministry of Defence, totaling over £430 million for munitions and small arms. This is further bolstered by Fitch Ratings affirming its 'BBB+' rating, reflecting a stable and strong presence in the global defense sector. BAE's contract with the Royal Australian Navy for Mk 45 Gun systems exemplifies its technological prowess and international reach.

General Dynamics, another major player, has secured contracts worth millions for guided missile destroyers and naval maintenance services, showcasing its naval defense expertise. Similarly, Elbit Systems' USD 135 million contract for an artillery ammunition factory highlights its comprehensive solutions in ammunition production.

Oshkosh Defense's recent orders, including a USD 160 million contract for Joint Light Tactical Vehicles, emphasize its role in supporting U.S. and allied military forces, enhancing global defense collaboration.

These developments, coupled with factors like NATO's increasing defense spending and the European Defense Fund's initiatives, indicate a robust and growing market for armoured vehicle sustainment. The focus on advanced military technologies and the strategic importance of the Asia-Pacific region are reshaping the global defense landscape, with these companies playing pivotal roles.

 

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Armoured Vehicle Sustainment Market

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2023
$23.5 BN
2028

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BAE's contract with the Royal Australian Navy for Mk 45 Gun systems exemplifies its technological prowess and international reach.

Rheinmetall's support with ammunition and field hospitals to Ukraine underlines its commitment to global defense needs.

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