Global Ground Vehicle Processor Market Research Report: Forecast (2022-27)

Market Definition

Ground Vehicle Processor refers to the single or multicore electronic processors used in the military ground vehicles to support all forms of electronics enabled tasks. A single-core processor has a single-core on its die and as it runs on a single thread, it performs the fetch-decode-execute cycle once per clock cycle. While, a multicore processor has two or more processor cores attached to an integrated circuit for enhanced performance and reduced power consumption. Hence, these provide more efficient processing for multiple tasks like multithreading, parallel processing, etc. The ground vehicle processor demand is surging around the globe on account of the factors such rising manufacturing of multiple ground vehicles such as tanks, AFVs, protected patrol mobile artillery & rocket launcher, unmanned ground vehicles, etc. for military and defense strengthening and preparedness for unwanted geopolitical risks and attacks

Market Insights

The Global Ground Vehicle Processor market is projected to grow at a CAGR of around 6% during the forecast period, 2022-27. Global Ground Vehicle Processor market has witnessed a significant growth rate between 2017 and 2021. Some of the reasons attributed to the growth were the high demand for armored vehicles for troop support in the battle environment as well as providing an enhanced layer of protection to the militaries across the world. Some other key factors were rising geopolitical tensions in the regions such as Asia-pacific, the Middle East, Europe, etc.

In the year 2018, General Dynamics received an order to upgrade 786 Abram Main Battle tanks (MBT) for the US, Saudi Arabia, and Kuwait. The order was placed for a total cost of USD2.6 billion. The upgrade included new engines, enhanced protection, armor protection, new radio & communication devices, etc. The demand for upcoming ground vehicles is expected to rise in the coming period, as many of the countries are in the process of modernization, with a huge requirement for the replacement of their Main Battle Tanks (MBTs) as well as various other light infantry vehicles & armored fighting vehicles, etc. Some other factors that would assist in the growth of ground vehicles are increasing focus on the development & integration of Unmanned Ground Vehicles (UGV). These vehicles provide enhanced mobility to the ground forces without risking the lives of the operators.

Impact of COVID-19 on Global Ground Vehicle Processor Market

With the outbreak of the Coronavirus pandemic, the restrictions on movement and lockdowns implemented to curb the spread of the virus caused severe supply chain disruptions across the globe. These supply chain disruptions further led to the slimming of manufacturing of ground vehicle components where they were not categorized under the necessity. Hence, an alarming rate of shortage of semiconductor chips was observed globally. With the restriction on the availability of semiconductor chips for the manufacturing of military equipment, the market for Ground Vehicle Processors witnessed a global decline. Furthermore, with the decline in the government revenue as well as economic contraction in several economies the investment for the acquisition of ground vehicles saw a sizeable decline leading to an adverse impact on the Global Ground Vehicle Market in the year 2020.

However, with the ease in the travel restriction across the world in the fourth quarter of 2020, the ground vehicle processors have seen a ramp-up in demand with improved availability. Geopolitical tensions arising in the Middle East & European region as well as high threat perception in the Asia-pacific region due to territorial disputes the demand for ground vehicles witnessed a surge. Countries such as China, India, Poland, the UK, and Russia are some of the key countries that have placed the demand for ground vehicles such as tanks, armored vehicles, MRAPs, etc. for ensuring military preparedness.

Market Segmentation

By Vehicle Type

• Tanks
• Armored Fighting Vehicle (AFV)
  • Armored Personnel Carrier (APC)
  • Infantry Fighting Vehicle (IFV)
  • Unmanned Ground Vehicles (UGV)
  • Others (Mobile Artillery & Rocket Launchers, Protected Patrol and Mine-Resistant Ambush Protected Vehicles (MRPV), etc.)

Tanks are heavily armored vehicles used for military purposes to provide an added layer of protection to the mechanized formation as well as to enhance the firepower in a combat environment. They are one of the most expensive military hardware, being operated by the land forces across the world. With the high requirement for modernization of legacy tanks as well as integration of advanced technologies into the existing fleet, the demand for tanks has witnessed a steady increase. For instance:

• In the year 2019, the Indian Military of Defense (MoD) signed an agreement with the Ordinance Factory Board (OFB) to license 464 T-90S tanks Main Battle Tanks (MBT). The deal with a total cost of USD2.8 billion with Russian tank maker Uralvagonzavod is aimed at enhancing the firepower of the Indian Army in the coming years.

With the growing demand for tanks to be acquired by major militaries in the world, the demand for Ground Vehicle Processor Market is expected to show an incline between 2022 and 2027.

By Type of Processor

• Single Core
• Multi Core

Multi-core Processors are expected to gain a sizeable market share for the ground-based vehicles used in the military segment. The integration of sensors such as thermal imaging, navigation, and fire control systems, including multiple types of equipment leading to pinpoint accuracy for the delivery of weapons, has enhanced the need for robust processing systems that can work on multiple applications in real-time. Some other reasons for the high integration of multi-core processors are the data & intelligence sharing as well as advanced video support, which has become an essential deployment for existing military vehicle.

The usage of the multi-core processor has also enhanced the military data sharing from the various land-based platforms to the command & control centers, and other auxiliary platforms such as aerial, other land platforms, etc. These advancements have aided militaries in developing a unified strategy to work towards a common goal.

By End Users

• Military
• Law Enforcement

Military ground vehicles have grabbed the major market share for the processors, due to the high demand for vehicles such as Tanks, IFVs, FCVs, etc., along with the growing budget of capital acquisition for military hardware as well as ground vehicles suited for various terrain & environments.

Collective data & intelligence sharing for synchronized efforts by multiple platforms in a military conflict have been the center of demand for ensuring survivability. Technological up-gradation & the integration of various sensors have stressed the need for next-generation tanks. Moreover, China has constantly developed & adopted equipment and vehicles that suit varied terrain & environment, which has boosted the demand for ground vehicles. For instance, In the year 2020, the People's Liberation Army of China inducted ZBD-03 airborne infantry vehicle intending to be transported by airlifting in different terrains

Regional Landscape

• North America
• South America
• Europe
• Middle East & Africa
• Asia Pacific

North America has been one of the leading markets for the demand for Ground Vehicle Processors due to vast manufacturing units of ground vehicles. The region has witnessed year-on-year growth during the historical period, i.e., 2017-2021, due to the rising military budget for defense equipment purchase by countries such as the US, Canada, etc. The US Army, with its aim to replace the aging fleet of Infantry fighting vehicles & older generation Abram tanks, has focused on the development of next-generation platforms to replace the existing fleet. In this pursuit, the US Army has announced to award USD299.4 million to five vendors for designing infantry fighting vehicles design. Moreover, with the fast-track design & development of new ground vehicles, the demand for Ground Vehicle Processors would come into the picture in the forthcoming period.

Key Trends in the Market

• Growing Integration of Advance Sensors to Boost the Ground Vehicle Processors Market

The combat vehicles such as tanks have relied on manual inputs from highly trained operators. Tanks operators have been using the manual process to detect, identify & engage targets, taking up excessive time in critical situations. Thus, the gradual integration of advanced sensors such as AI sensors, LiDAR sensors, and fusion sensors would assist the combat vehicles in situational awareness, 3D mapping, detection, and scanning the hidden enemies & finally reducing soldiers' time for taking action. Additionally, the integration of these sensors in the next-generation combat vehicles would increase the vehicles combating capabilities.

In addition, the integration of these sensors would collectively require high computing power. Hence, it is expected to enhance the growth of the Global Vehicle Processor market during the forecast period.

Market Dynamics

Key Drivers

• Growing Demand for Main Battle Tanks

Main Battle Tanks are one of the most powerful land-based artillery, used for several purposes such as surveillance, fighting, etc. These tanks support a broad range of ammunition types & have high-range target engagement with high accuracy levels, thus signifying a key requirement for state-of-the-art processors for main battle tanks.

Countries have been increasingly deploying newer generations of advanced tanks amidst the rising geopolitical tensions. Some countries such as the US, the UK, Russia, and India have awarded contracts for the deployment & up-gradation of main battle tanks. This increase in demand for main battle tanks has also soared the Ground Vehicle Processor market since the historical period. Moreover, the demand from original equipment manufacturers for the production of new tanks has helped in the market growth during the historical period, and their up-gradation is estimated to fuel the growth of the ground vehicle processor market in the forthcoming years. Some of the notable contacts are:

• In 2020, the U.S Army awarded a USD4.6 billion contract to General Dynamics to manufacture M1A2 SEPv3 Abrams main battle tanks. The contract is estimated to be completed by the middle of 2028.

Possible Restraint

•  Geopolitical Tensions & Imposed Sanctions

The political rivalry & tensions between the countries across the globe caused great disruptions in the inter-country trade of ground vehicles. Some of the nations with indigenous manufacturing units, mainly face challenges, in completing the orders when the bans or sanctions are imposed. This sometimes leads to difficulty in procuring raw material, which, in turn, delays the production process and further causes loss to the manufacturing companies, hence delaying the growth of the Global Ground Vehicle Processor market. Such as in 2019, EU countries refused to provide the main battle tank’s powerful engine to Turkey due to this Turkey’s domestic manufacturing program got delayed.

Moreover, Russia is one of the major exporters of military arms & vehicles. However, the imposed sanctions on Russia by various western countries such as the US, the UK, Italy, etc., due to Russia's invasion & military operation in Ukraine, have banned the export of various commodities, including ground vehicles, to other countries like India. According to the International Institute of Finance, Russia's GDP could shrink by 15% by the end of 2022. Also, if the GDP level drops to this level the country could face the greatest recession since 1992, as per the World Bank data. Hence, these factors would also impact the production of military vehicles & their exports to other countries, thus, reducing the demand for the ground vehicle processor during the forecast period.

Recent Developments

• In 2021, the government of Poland declared to buy 250 General Dynamics Land Systems-manufactured M1A2SEPv3 Abrams tanks, with a total cost of USD6 billion. The deal would be a major boost to the ground forces of Poland to conduct various defensive & counter-offensive strikes.
• To secure the combat personnel, the Government of India announced, to purchase of Light Infantry Vehicles to modernize the vintage carrier vehicles in the land-based forces. In 2021, the Indian Army issued a Request for Information (RFI) to finalize the specifications for 1750 infantry fighting vehicles (IFVs) from an Indian vendor.

Key Questions Answered in the Market Research Report:

1. What are the overall statistics or estimates (Overview, Market Size- By Value & Volume, Forecast Numbers, Market Segmentation, Market Shares) of the Global Ground Vehicle Processor Market?
2. What are the country-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the Global Ground Vehicle Processor Market?
4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Global Ground Vehicle Processor Market based on the competitive benchmarking matrix?
5. What are the key results derived from the surveys conducted during the Global Ground Vehicle Processor Market study?