GMI Research analysis indicates that the Armored Vehicles Market size was estimated at USD 20.4 billion in 2021 and is slated to register a single digit CAGR of 4.1% over the forecast period, and is projected to reach USD 28.1 billion in 2029 attributed to growing incidences of cross-border conflicts and militarization of law enforcement agencies.

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Major Armored Vehicles Market Drivers

Primary factors driving armored vehicles market are growing focus on military modernization, improvements in the target acquisition capabilities of defense forces and rising terrorism activities around the world. In recent years, frequency of terrorist attacks has increased rapidly in some region of the globe. According to Global Terrorism Index 2023 report, world witnessed 4% rise in the number of deaths caused by terrorism in 2022 and lethality of these attacks have increased by more than 25% during the same year. Military robots are increasingly used in counter-terrorism operations as it can eliminate any emerging terrorist attacks. These robots are deployed to improve cross border surveillance and provide information about the developments at the border to ground stations. Governments worldwide are investing in autonomous robots like Unmanned Ariel Vehicles and Unmanned Ground Vehicles for performing range of defense applications like combat support, surveillance, reconnaissance, which is creating lucrative growth opportunities for armored vehicles market.

Increasing focus of governments on procurement of next-generation armored vehicles for militaries to replace the aged, armored vehicles fleet, growing number of defense start-ups, and changing geo-political landscape, are some of the factors propelling the armored fighting vehicles market. Furthermore, increasing sales of bullet proof SUVs and Special Purpose Vehicles in the regions with high crime rates and political unrest, is one of the major factors driving the commercial armored vehicles market. Increasing demand for personal safety, rising security requirements of individuals and corporates and advancements in manufacturing procedure, are accelerating the growth of civilian armored vehicle market. However, when travelling in uneven terrain, these vehicles faces mechanical failures in the engines and transmission systems. These vehicles are further likely to suffer from power failures and jamming of parts, which can negatively impact military operations. In some situation military robots can also miscalculate command, which can fail the whole operation. All these factors restricting the growth of armored vehicles market.

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Combat Vehicles segment is forecast to dominate the market.

Rise in government’s expenditure on defense expenditure in Asian countries, emerging need to replace ageing fleet, integration of advanced technologies, increasing geopolitical tensions and growing demand for light-armored vehicles, are driving the global armored combat vehicle market.

Based on Mobility, Wheeled segment is estimated to grow at a higher rate.

Increasing demand from military for 4X4 LAVs for transportation and intelligence, surveillance, reconnaissance (ISR) applications is augmenting the segment’s growth. Tracked segment is majorly driven by procurement of main battle tanks, which are used in rough terrains.

Based on System, Armaments segment is projected to hold the largest armored vehicles market share. 

Surge in the demand for remote weapon stations and anti-tank guided missile launchers to increase military firepower and awareness on the battlefield coupled with changing nature of modern warfare, is accelerating the segment’s growth.

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Based on Region, North American region is expected to lead the market.

North American armored vehicles market is driven by on-going military modernization and development of advanced armored combat vehicles. United States is one of the largest defense spenders in the world, currently the United States Administration is planning to increase spending for the Department of Defense (DoD) to USD 842 billion for FY 2023, which will be USD 100 billion as compared to FY 2022. Some of the major highlights of budget for FY 2023 in United States includes investments in space and science and Artificial Intelligence (AI) worth USD 19.6 billion and USD 271 million for providing army modernized next-generation combat vehicles which comes with high-onboard electrical power.

Asia-Pacific armored vehicles market is propelled by growing incidences of terrorism and cross-border conflicts primarily in South Asia, increase in defense spending of countries and rising focus of governments on strengthening military power.

Top Market Players

Major key players in the armored vehicles market are BAE Systems PLC, Oshkosh Corporation, Otokar Otomotive Ve Savunma Sanayi, Textron Inc., Krauss-Maffei Wegmann, Denel SOC Ltd., FNSS Savunma Sistemleri AS, Hanwha Corporation, General Dynamics Corporation, Rheinmetall AG, Arquus, among others.

Key Development:

• • In April 2022, Rheinmetall AG, a German arms manufacturing company announced that it has received contract from UK Ministry of Defense for manufacturing 4 Rheinmetall Mission Master SP surveillance Autonomous Unmanned Ground Vehicles (A-UGV) and 3 Rheinmetall Mission Master SP cargo vehicles, which makes up total of 7 new A-UGVs.
  • In April 2022, Lithuania’s Defence Ministry announced declared its plans to procure more than 120 boxer infantry fighting vehicles to expand the country’s modern fleet of infantry fighting vehicles.
  • In June 2021, Katmerciler announced that it has received contract to provide 118 Hızır 4×4 tactical wheeled armored vehicles to Kenya. This contract helped Katmerciler to expand its footprint in the African market.
  • In February 2021, Bharat Forge, an engineering and technology company, entered into a strategic partnership with international aerospace and technology conglomerate Paramount Group to manufacture armoured vehicles in India.
  • In March 2020, BAE System was awarded contract worth USD 339 million for manufacturing 48 vehicle sets of M109A7 Self-propelled Howitzer (SPH) and M992A3 Carrier, Ammunition, Tracked (CAT) vehicle, to increase the overall combat capability of Armored Brigade Combat Teams (ABCTs).
  • In Feb 2019, BAE Systems, British Aerospace company announced that it has received contract worth USD 148.3 million from the United States Army to upgrade M88A2 HERCULES armored recovery vehicles. BAE systems to upgrade 43 M88A1 heavy-lift vehicles.
  • In Aug 2018, Rheinmetall signed a contract worth USD 2.7 billion to manufacture 211 Boxer Wheeled armored vehicles to Australian Army.

Segments Covered in the Report

Global armored vehicle market has been segmented based on the Platform, Mobility, System and region. Based on Platform, the market is segmented into Combat Vehicles, Combat Support Vehicles, and Unmanned Armored Ground Vehicles. Combat vehicles is further segmented into Main Battle Tanks (MBTs), Infantry Fighting Vehicles (IFVs), Armored Personnel Carriers (APCs), Armored Amphibious Vehicles (AAVs), Mine-Resistant Ambush Protected (MRAP), Light Armored Vehicles (LAVs), Self-Propelled Howitzers (SPHS), Air Defense Vehicles, and Armored Mortar Carriers. Combat Support Vehicles is further segmented into Armored Supply Trucks, Armored Command and Control Vehicles, Repair and Recovery Vehicles, and Others. Armored Supply Trucks is further segmented into Armored Fuel Trucks, Armored Ammunition Replenishment Vehicles, and Armored Ambulances. Based on Mobility, the market is segmented into Wheeled, and Tracked. Wheeled is further is segmented into 4×4, 6×6, 8×8, and Others. Based on System, the market is segmented into Engines, Drive Systems, Ballistic Armor, Turret Drives, Ammunition Handling Systems, Fire Control Systems (FCS), Armaments, Countermeasure Systems, Command & Control (C2) Systems, Power Systems, Navigation Systems, Observation & Display Systems, and Hulls/Frames. Engines is further segmented into Diesel Engines, and Turbine Engines. Drive Systems is further segmented into Power Transmission Drives, Suspension & Braking Systems, and Tracks and Wheels. Ballistic Armor is further segmented into Composite Armor, Explosive Reactive Armor (ERA), Electric Armor, Homogenous Armor, Depleted Uranium Armor, Add-On Armor, and Others.

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Market Segmentation:

Global Armored Vehicles Market by Platform    

• • Combat Vehicles
    • Main Battle Tanks (MBTs)
    • Infantry Fighting Vehicles (IFVs)
    • Armored Personnel Carriers (APCs)
    • Armored Amphibious Vehicles (AAVs)
    • Mine-Resistant Ambush Protected (MRAP)
    • Light Armored Vehicles (LAVs)
    • Self-Propelled Howitzers (SPHS)
    • Air Defense Vehicles
    • Armored Mortar Carriers
  • Combat Support Vehicles
    • Armored Supply Trucks
      • Armored Fuel Trucks
      • Armored Ammunition Replenishment Vehicles
      • Armored Ambulances
    • Armored Command and Control Vehicles
    • Repair and Recovery Vehicles
    • Others
  • Unmanned Armored Ground Vehicles

Global Armored Vehicles Market by Mobility     

• • Wheeled
    • 4×4
    • 6×6
    • 8×8
    • Others
  • Tracked

Global Armored Vehicles Market by System         

• • Engines
    • Diesel Engines
    • Turbine Engines
  • Drive Systems
    • Power Transmission Drives
    • Suspension & Braking Systems
    • Tracks and Wheels
  • Ballistic Armor
    • Composite Armor
    • Explosive Reactive Armor (ERA)
    • Electric Armor
    • Homogenous Armor
    • Depleted Uranium Armor
    • Add-On Armor
    • Others
  • Turret Drives
  • Ammunition Handling Systems
  • Fire Control Systems (FCS)
  • Armaments
  • Countermeasure Systems
  • Command & Control (C2) Systems
  • Power Systems
  • Navigation Systems
  • Observation & Display Systems
  • Hulls/Frames

Global Armored Vehicles Market by Region

• • North America Armored Vehicles Market (Option 1: As a part of the free 25% customization)
    • By Platform
    • By Mobility
    • By System
    • United States of America (US) Market All-Up
    • Canada Market All-Up
  • Europe Armored Vehicles Market (Option 2: As a part of the free 25% customization)
    • By Platform
    • By Mobility
    • By System
    • United Kingdom (UK) Market All-Up
    • Germany All-Up Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up
  • Asia-Pacific Armored Vehicles Market (Option 3: As a part of the free 25% customization)
    • By Platform
    • By Mobility
    • By System
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up
  • RoW Armored Vehicles Market (Option 4: As a part of the free 25% customization)
    • By Platform
    • By Mobility
    • By System
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating the Armored Vehicles (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • BAE Systems PLC
  • Oshkosh Corporation
  • Otokar Otomotive Ve Savunma Sanayi
  • Textron Inc.
  • Krauss-Maffei Wegmann
  • Denel SOC Ltd.
  • FNSS Savunma Sistemleri AS
  • Hanwha Corporation
  • General Dynamics Corporation
  • Rheinmetall AG
  • Arquus