Global Armored Vehicles Market 2024 – 2033

Reports Description

The armored vehicles market is expected to grow at a compound annual growth rate of 6.36% during the forecast period. The market is expected to reach USD 27.83 billion by the year 2030 from USD 18.9 billion in the year 2021. These vehicles are combat vehicles that are armed and provide protection due to their shield against shrapnel, weapons, missiles, projectiles, and bullets. Constant research and development have been instrumental in coming up with innovations and developments in the technologies used for military vehicles.

Innovations of different types in automotive, material science, and weaponry will drive market growth during the forecast period. The introduction of the vehicles of the next generation which are integrated with the systems that provide active protection will drive the market growth in the coming years. Armor technology of the reactive type will also be instrumental in the growth of the market. The availability of programmable ammunition will play an important role in the growth of the market during the forecast period. These are some of the trends that will drive market growth in the coming year. During the outbreak of the COVID-19 pandemic, this industry faced a lot of challenges.

The market growth had slowed down during the outbreak of the COVID-19 pandemic. The budget for the defense had also been reduced in various regions. Many delays were caused in the manufacturing of the vehicles during the pandemic. Especially for the countries like South Korea Thailand and China.

Due to the use of these vehicles or the movement of these vehicles on uneven land for defense purposes, there is a mechanical strain on these vehicles. It leads to increased cases of failure of the transmission system. The chances of the failure of the engine also increase as these vehicles make use of high-speed engines for their operation. The original equipment manufacturers are constantly increasing their focus on providing innovative and new designs in the market in order to overcome the failures of the existing vehicles. The production of these vehicles is extremely low in the developing regions. Many countries across the globe depend on other countries to acquire armored vehicles.

The procurement method is expensive and this will hamper the growth of the market during the forecast period. The designing of the tanks and the development of these tanks is an expensive affair. There is a lot of capital investment in this procedure and there is also a need for technical expertise. The use of propulsion systems in these tanks will also increase the cost of these vehicles. These tanks are highly lethal due to which the making of these tanks is a costly affair. The use of advanced techniques in the development of the tank is expensive and is a major challenge in the growth of the market, especially for developing nations across the globe. On the basis of the specifications of the advanced nature that are incorporated in these vehicles the cost of these vehicles increases.

Growth Factors

With the constant instability in world politics and the economy, there will be increased cases of asymmetric warfare. The governments of various nations engaging in coming up with combat vehicles for the protection of the nation. These nations are engaging in adopting these vehicles in order to protect themselves from insurgent attacks. Our motor vehicles will be in great demand during the forecast. As the help in protecting against the blast attacks. The availability and the presence of the turret gun which are accommodated on these vehicles will drive the market growth in the coming years.

The eastern region of India is a Naxalite area and in order to perform various operations in this region, armored vehicles are used by the Indian government on a large scale. As there has been an increase in the chances of asymmetric warfare the demand for armored vehicles will grow across the globe. Many nations will procure armored vehicles on a larger scale due to which the market is expected to grow in the coming years.

There’s a growing demand for vehicles and systems that are unmanned. In recent decades there has been an increase in the demand for systems that are unmanned in order to reduce the risk of loss of soldiers. These systems will help in performing the functions like surveillance and intelligence.

As the budgets of various nations across the globe are declining these nations are expected to pose a greater demand for these systems in the coming years period countries like Italy, Germany, and France will have a greater demand for these systems in the coming years. There has been an increased demand for the use of the active protection system in these vehicles. The system is instrumental in detecting the threats before these attacks reach the target. The active protection system makes use of sensors, countermeasure munitions, launchers as well as tracking radars.

The use of this system in armored vehicles will help in protecting from missiles and grenades. Increased activities of the terrorists and an increase in disputes across the globe in recent years will drive the market growth for armored vehicles in the coming years. Increased cases of violence and activities of cross-border in the Asian region will also be instrumental in the growth of the market in the coming year period in order to strengthen the defense forces and safeguard the defense forces nations across the globe are investing in acquiring tanks, protecting vehicles, as well as the vehicles for infantry fighting.

Segmental Insights

Armored vehicles market segment on the basis of the product

On the basis of the type of product, the main battle tank segment is expected to have a dominant position in the market. This segment had a share of about 28% in the past and is expected to grow well in the coming years period initiatives taken by the government of various nations across the globe for improving and strengthening the defense forces will drive the market growth in the coming years.

An agreement was signed by the Ministry of the Indian defense in the year 2021 with Mahindra Emirates which was worth INR 1056 crore, this organization is expected to provide armored solutions for the paramilitary and military forces. There’s a growing demand for armored vehicles across the globe as governments seek protection for their military personnel. There’s a growing demand for ambush-protected and mine-resistant vehicles. In order to deploy the infantry in a safer way, tactical military carriers are used on a large scale.

There shall be increased use of unmanned vehicles during the forecast period. These vehicles are operational even when the situations are extremely risky. Unmanned vehicles will play an extremely important role in having the potential to perform defense operations in crucial times. There is a growth in the demand for developing and offering these vehicles due to which the market is expected to grow in the coming years. There has been a great demand for personal carriers in recent years. Original equipment manufacturers having priest we are focused on providing innovative armored vehicles and they are constantly engaged in enhancing the designs of these vehicles.

Armored vehicles market segment on the basis of the mobility

On the basis of mobility, the wheel segment is expected to have a larger market share in the coming years period this segment has dominated the market in the past and is expected to grow at a higher compound annual growth rate during the forecast period. The wheel segment is expected to grow due to its increased use in surveillance and intelligence functions. It is also used for transportation.

Apart from the use of the wheeled armored vehicle through tracked segment will also see a good amount of growth in the coming years period there is a growing demand for the main battle tanks which are extremely useful for the rough terrain.

Report Scope

Regional Insights

The North American region is expected to have a dominant market share in the coming years. This region has dominated the armored vehicles market in the past and it will continue to grow well in the coming years. As a large amount of money is spent by the government of various nations in the North American region for acquiring enhanced armored vehicles this region is expected to see a good amount of growth in the coming years.

The government of the United States is engaging in procuring modern military vehicles. The Asia Pacific region has had the largest market share in the past. This region dominated the market in the past with a share of about 31%. There were a large number of initiatives taken by the government to strengthen the military power of the nations. In order to counter the terrorist attacks, the government of various nations spent a lot of money on acquiring armored vehicles.

These nations are also focusing on improving and developing their defense sector. Countries like China South Korea and India are investing a lot of money in procuring advanced types of armored vehicles. Constant research and development activities in the field have led to the launch of hybrid and advanced vehicles which will help in the Border patrolling function. In order to procure light and medium-sized vehicles which are used for the operations of patrolling there shall be an increased amount of expenditures made by the governments in the Asia Pacific region.

Key market developments in the armored vehicles market

• A contract of 376.0 million USD was received by BAE Systems from the Government of the United States. In order to enhance the Engineering of the vehicles and to Develop armored vehicles. It will also provide EDM and MPF vehicles.
• A contract of USD 1.69 billion was acquired by Oshkosh Corporation from the Army of the United States. This contract will fulfil the need for 6000 vehicles for the region in the coming years.
• In recent years German government allotted a contract to KMW which was worth 832.0 million USD. According to this contract, the organization is expected to fulfil the demand for the upgrade of the 104 Leopard 2 Tanks.

Segments covered in the Armoured vehicles market

• By Product Outlook 
  • Combat Vehicles
    • Armored Personnel Carrier (APC)
    • Infantry Fighting Vehicles (IFV)
    • Light Protected Vehicles (LPV)
    • Main Battle Tanks (MBT)
    • Mine-resistant Ambush Protected (MRAP)
    • Tactical Vehicles
    • Others
  • Combat Support Vehicles
    • Armored Supply Trucks
    • Armored Command & Control Vehicles
    • Repair & Recovery Vehicles
    • Unmanned Armored Ground Vehicles
• By Type 
  • Electric Armored Vehicles
  • Conventional Armored Vehicles
• By Mobility 
  • Wheeled
  • Tracked
• By Mode of Operation
  • Manned Armored Vehicles
  • Unmanned Armored Vehicles
• By Point of Sale 
  • OEM
  • Retrofit
• By System 
  • Engines
  • Drive Systems
  • Ballistic Armor
  • Fire Control Systems (FCS)
  • Navigation Systems

On the basis of Geography

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America