Market Definition
Armored Vehicles are armed military, commercial, or passenger vehicles, shielded with complete or partial armor plating for protection against bullets, fragments, missiles, projectiles, shells, shrapnel, and weapon systems. Mostly called armed combat vehicles, they come in combination with innovative weaponry, technology, electronics, etc., and can move on continuous tracks or wheels. They play a vital role in reconnaissance, combat, battlefield, etc., with modern versions integrated with advanced technology such as programmable ammunition, autoloaders, and active protection systems.
Market Insights
The Global Armored Vehicles Market is projected to grow at a CAGR of around 4.1% during the forecast period, i.e., 2023-28. The market growth is majorly carried by the rising defense expenditure of several countries as a response to the rising geopolitical tension and cross-border disputes in numerous regions, leading to increased necessity for military vehicles with bulletproof and other features. In addition, technological advancement in combat vehicles, with added features providing more safety, the scope of modification, and advanced functionality, is adding to the market’s expansion.
Moreover, military forces around the globe are integrating modernization programs into their vehicles to replace their legacy armored vehicles to facilitate new equipment, and new force structure is further raising the adoption of military and combat vehicles. Additionally, integrating Programmable Ammunition and adopting Active Protective Systems (APS) into vehicles further accelerates the industry.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 4.1% |
| Regions Covered | North America: US, Canada, Mexico |
| Europe: Germany, The UK, France, Spain, Italy, Rest of Europe | |
| Asia-Pacific: China, India, Japan, South Korea, Australia, Rest of Asia-Pacific | |
| South America: Brazil, Argentina, Rest of South America | |
| Middle East & Africa: The UAE, Saudi Arabia, Turkey, Israel , South Africa, Rest of Middle East & Africa | |
| Key Companies Profiled | L3Harris Technologies, Inc., Hanwha Group, General Dynamics Corporation, Lockheed Martin Corporation, Northrop Grumman, Oshkosh Defense, LLC, BAE Systems, Thales Group, ST Engineering, Mitsubishi Heavy Industries, Textron Systems, Denel Soc Ltd, FNSS, Arquus, Iveco Defence Vehicles, Others |
| Unit Denominations | USD Million/Billion |
However, the safety risk of personnel and endangering vehicles with the high possibility of mechanical, electrical, or software failures in combat vehicles due to working in a threatening environment, etc., is bound to hinder the market projection. On the contrary, the high inclination of defense authorities toward Unmanned Combat Ground Vehicles for their added safety and advanced features to perform operations on command without endangering an operator or operator’s safety is raising their adoption, facilitating positive market fluctuation.
Market Dynamics
Key Driver: Rising Defense Budget and Cross-Border Disputes in Numerous Countries
Increasing defense expenditure and budget in several countries with rising cross-border disputes has primarily driven the market. The prevalence of conflicts, terrorist activities, and wars worldwide requires numerous countries to strengthen their military equipment and vehicles, fueling market expansion. Likewise, growing emphasis on the sustainability of military vehicles and personnel safety through added advanced safety features with increasing humanitarian missions also adds to the market acceleration. For instance,
Possible Restraint: High Possibility of Mechanical, Electrical, or Software Failures in Combat Vehicles
Armored combat vehicles, though built to withstand harsh situations on the battlefield, are still prone to numerous mechanical, electrical, or software malfunctions, such as component breakdowns, software jams, etc. In addition, they are bound to face logistic strain by continuous cross-country operations, mechanical failures due to high-speed traversing, and more. Since these failures and malfunctions are hard to rectify by rescue and recovery teams, leading to the vehicle and personnel endangerment, such losses could hamper the market expansion. Moreover, failure detection is also not always possible due to the vehicle's difficult interior build-up and functioning, leading to more restraint on industrial growth.
Growth Opportunity: Rising Inclination Towards Unmanned Combat Ground Vehicles Raising their Adoption
The unmanned combat ground vehicles on the battlefield reduce casualties, as they can perform critical and hazardous tasks currently carried out by personnel, endangering their safety. The adoption and inclination of various militaries towards such vehicles are creating lucrative opportunities for the industry. The increased requirement and demand for unmanned vehicles for intelligence, surveillance, and Reconnaissance (ISR) and combat operations are opening new avenues for industrial flow. Additionally, the growing military budget of several countries is increasing their affordability, supporting market expansion.
Key Trend: Integration of Programmable Ammunition and Adoption of Active Protective System (APS)
The twin-ammo-feed or multiple-ammo-feed designs enabling change in the ammunition type made possible through Programmable Ammunition have reduced the complexity of various ammo types. Programmable Ammunition's advantages and easy operation has raised its adoption, pushing the market forward, with its flexibility to weapon platforms for firing and interchanging different types of ammunition.
Additionally, the trending adoption of Active Protection Systems (APS) for their detection and counteracting features has further accelerated the industrial arc. Added features of launchers, tracking radar, sensors, and countermeasure munitions, protecting combating vehicles from grenades and anti-tank guided missiles, also add to the industrial acceleration.
Market Segmentation
Based on Platform,
Here, Combat Vehicles are expected to garner the highest market share in the forthcoming years following their high revenue contribution in the historical period. It is attributed to the rising demand for numerous combat vehicles, such as Armored Personnel Carriers and Light Armored Vehicles (LAVs). Additionally, the concerns and insurance to secure military personnel’s safety are increasing the requirement for Mine-Resistant Ambush Protected Vehicles as they ensure the safe deployment of infantry in battlefields and high-threat areas, extending the industrial expansion. For instance,
The rising concerns of countries about safety and defense result in governments raising defense expenditure which further upscales the market. Moreover, initiatives to strengthen the armed forces increase the demand for Main Battle Tanks (MBTs), further extending the market acceleration.
Based on System,
Among others, Armaments acquired a significant market share in the historical period and are anticipated to follow the same flow in the forecast period, owing to the rising requirement for remote weapon stations, anti-tank guided missile (AGTM) launchers, and other armaments worldwide. Additionally, Engines are also expected to register a significant hike in the market share as a result of the high requirement for durable and robust diesel engines. Moreover, due to the modernization programs of main battle tanks, there is increasing demand for turbine engines, extending the market acceleration further.
Regional Projection
Geographically, the Global Armored Vehicles Market expands across:
Globally, North America dominated the market with the largest market share in the historical period owing to the highest military budget of the US government with ongoing modernization research programs, combined with the presence of significant defense and military equipment manufacturer companies. With US Army being the largest consumer of combat or military vehicles, it is expected to raise the demand for advanced vehicles. Additionally, with US Army continuing to invest in autonomous vehicle technology and other advancements to develop next-generation armed vehicles is likely to bode well for the industry.
On the other hand, Asia Pacific is expected to register the highest market growth in the coming years due to the increasing military budget to strengthen defense and military power in several countries. Besides, with countries like India, South Korea, and China investing heavily in procuring and developing advanced military vehicles, spending in research and development activities to enhance numerous sectors of their defense and improve border patrolling, especially against terrorism raising demand for medium-sized LPVs for patrolling operations are expected to strengthen the market reach. For instance,
Recent Developments in the Global Armored Vehicles Market
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Frequently Asked Questions
A. The Armored Vehicles Market is projected to grow at a CAGR of around 4.1% during 2023-28.
A. Rising defense budgets and cross-border disputes in numerous countries are expected to drive the Armored Vehicles Market during 2023-28.
A. L3Harris Technologies, Inc., Hanwha Group, General Dynamics Corporation, Lockheed Martin Corporation, Northrop Grumman, Oshkosh Defense, LLC, BAE Systems, Thales Group, ST Engineering, Mitsubishi Heavy Industries, Textron Systems, Denel Soc Ltd, FNSS, Arquus, Iveco Defence Vehicles, and Others are the top players in the Armored Vehicles Market.
A. Combat Vehicles are anticipated to emerge as an area of remunerative opportunities for the leading players in the Armored Vehicles Market during the forecast period.
A. Globally, North America would provide lucrative prospects for the Armored Vehicles Market in the years ahead.
A. Integration of Programmable Ammunition and Adoption of Active Protective Systems (APS) are the key trends shaping the growth of the Armored Vehicles Market during 2023-28.
A. Rising inclination towards unmanned combat ground vehicles raising their adoption is the growth opportunities driving the Armored Vehicles Market through 2028.
A. The high possibility of mechanical, electrical, or software failures in combat vehicles is a possible restraint affecting the growth of the Armored Vehicles Market.
