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The armored vehicles market size is estimated to grow at a CAGR of 6.32% between 2023 and 2028. The market size is forecast to increase by USD 7.22 billion. The growth of the market depends on several factors, such as rising incidences of asymmetric warfare globally, the upgrade of defense capabilities to counter emerging security threats, and the advent of hybrid drivetrains in MRAPs. Our report examines historic data from 2018 - 2022, besides analyzing the current market scenario.
This report extensively covers market segmentation by mobility type (wheeled and tracked), type (conventional and electric), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
Armored Vehicles Market Forecast 2024-2028
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Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
A hybrid drivetrain offers the performance characteristics of both conventional engines and electric motors. The combustion engine generally replenishes the charge of the batteries, and the electric motor is used for steep climbs that require extra power for maintaining appropriate maneuverability. Hybrid designs eliminate various automotive components that enable the implementation of several critical design changes for blast mitigation, such as a clean underbody crushable floating floor system that can decouple the crew's feet and legs from the steel hull and absorb the impact of the blast. Such technologies also include adjustable stroking seats, five-point restraint systems, and spatial accommodations to mitigate the impact of the blast and prevent head and flail injuries to the personnel in the vehicle.
Moreover, technologically advanced military powers such as the US are currently engrossed with development projects for hybrid MRAPs. Besides, the reduced dependency on traditional automotive components also lowers the overall weight of the MRAP vehicles and allows the mounting of high-strength steels and advanced composite materials, which offer lightweight ballistic protection from several threats. Thus, the advent of hybrid drivetrains in MRAPs will strengthen the growth of the global armored vehicles market during the forecast period.
Due to the expanding usage of unmanned systems by military forces from many nations for intelligence, surveillance, and reconnaissance (ISR) and combat operations, the need for unmanned systems has grown significantly worldwide in recent years. Additionally, as defense budgets in advanced economies such as the UK, Italy, Spain, Germany, and France have shrunk, there has been an increase in the purchase of unmanned systems to take the place of their defensive personnel. These systems require a significant amount of supplies and logistical support.
As a result, the adoption of unmanned combat ground vehicles by defense forces of different countries has significantly increased, contributing to market growth during the forecast period. Therefore, such factors will drive the growth of the global armored vehicles market during the forecast period.
Most countries are still recovering from the global depression of 2008, as the crisis affected several sectors and exposed them to critical damage, which required massive government interventions to ensure the integrity of the administrative system. Thus, the massive spending and simultaneous loss of revenue resulted in trade deficits, prompting subsequent global defense budget cuts. The budget constraints have resulted in the armed forces prioritizing near-term readiness over modernization. The investments were made in short-term enhancements of the existing armored vehicle capabilities rather than investing in the procurement of next-generation combat vehicles and other associative platforms.
Furthermore, European countries such as the UK, France, Germany, and Spain have postponed defense modernization to contain their fiscal expenditure and are exploring options for joint procurement and equipment development. Such developments are anticipated to drive down the procurement capabilities of nations and thus restrict the growth of the global armored vehicles market during the forecast period.
The wheeled segment is estimated to witness significant growth during the forecast period. Wheeled armored vehicles have a lot of advantages over tracked vehicles in improved on-road performance, better fuel economy, and lower maintenance costs. Wheeled armored vehicles provide greater mobility than tracked vehicles, particularly on roads and highways, which makes them ideal for rapid deployment in various environments, including urban areas.
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The wheeled segment was the largest and was valued at USD 12.03 billion in 2018. Some examples of armed vehicles include ASLAV (Australian LAV-25 series), boxer AFV, armored personnel carriers M113, bushmaster IMV, and others. Factors such as low weight, better mobility, and improved combat capabilities will drive the demand for wheeled armored vehicles during the forecast period. Additionally, the increasing incidence of terrorist and hostile attacks in urban areas will further strengthen the demand for wheeled armored vehicles during the forecast period.
Based on the type, the market has been segmented into conventional and electric. The conventional segment holds a dominant share of the armored vehicles market. The increase in military and security spending globally, in turn, results in a significant increase in investments in conventional armored vehicles. Countries such as Saudi Arabia, the UAE, and Qatar are some of the countries that are facing security challenges or engaging in military conflicts, and immense military spending in such countries will surge the demand for conventional vehicles. Therefore, owing to such factors, the conventional segment is expected to grow in the global armored vehicles market during the forecast period.
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North America is estimated to contribute 41% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The US is the leading user of armored vehicles in North America and is currently focusing on upgrading its existing vehicle fleet and its corresponding capabilities. Moreover, the country is a key exporter and consumer of such equipment globally. The need to ensure national security and achieve military dominance has propelled the need for such vehicles, thereby driving the growth of the military armored vehicles market in the region. North American countries, particularly the US, invest in the modernization of their defense forces, including the replacement or upgrade of aging armored vehicles with advanced and technologically sophisticated systems.
In addition, the ongoing geopolitical tensions, territorial disputes, and uncertainties have led to a focus on defense preparedness and the need to enhance armored vehicle capabilities to protect national interests. North American nations actively participate in international peacekeeping missions, necessitating the deployment of armored vehicles to protect troops and support peacekeeping efforts in conflict zones. Ongoing geopolitical tensions, territorial disputes, and uncertainties have led to a focus on defense preparedness and the need to enhance armored vehicle capabilities to protect national interests.
The armored vehicles market in North America witnessed certain challenges due to the COVID-19 pandemic in 2020. However, vendors have started to receive new contracts to develop armored vehicles after the lifting of lockdowns in 2021, which were imposed due to the outbreak of COVID-19. Moreover, concerns about border security, illegal immigration, and drug trafficking have driven investments in armored vehicles to enhance border surveillance and protection. Such factors are expected to support the growth of the armored vehicles market in the region during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BAE Systems Plc - The company offers armored vehicles such as AMPV 2018 ND44174, AMPV 2018 GP04 PRE 0824, and Armored Multi-Purpose vehicle medic.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
AB Volvo, Alpine Armoring Inc., Armormax, BAE Systems Plc, Denel SOC Ltd., General Dynamics Corp., International Armored Group, Iveco Group N.V, KNDS N.V., Lockheed Martin Corp., Mahindra and Mahindra Ltd., Milkor Pty Ltd., Oshkosh Corp., Otokar Otomotiv ve Savunma Sanayi AS, Rheinmetall AG, Rostec, STREIT Group, SVI ENGINEERING, Textron Inc., and Traton SE
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The armored vehicles market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Armored Vehicles Market Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.32% |
Market Growth 2024-2028 |
USD 7.22 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.2 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 41% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB Volvo, Alpine Armoring Inc., Armormax, BAE Systems Plc, Denel SOC Ltd., General Dynamics Corp., International Armored Group, Iveco Group N.V, KNDS N.V., Lockheed Martin Corp., Mahindra and Mahindra Ltd., Milkor Pty Ltd., Oshkosh Corp., Otokar Otomotiv ve Savunma Sanayi AS, Rheinmetall AG, Rostec, STREIT Group, SVI ENGINEERING, Textron Inc., and Traton SE |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
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