The armored vehicle market is expected to grow from US$ 22.38 billion in 2022 to US$ 31.80 billion by 2030; it is estimated to grow at a CAGR of 4.5% from 2022 to 2030.
Analyst Perspective:
The armored vehicle market is driven by rising defense and military spending, coupled with several countries’ governments pursuing programs related to expanding their military operations is driving the market growth. The rising popularity of armored vehicle and weapons among the military and defense sectors are the major driving factor for the market growth. The major area of focus for the defense sector is armored personnel carriers that reduce the exposure to the enemy’s gunfire. The rising popularity of remotely operated weapons using armed vehicles is expected to propel the market growth. For armed vehicles, three countries have the largest share: the US, Russia and China. The armored personnel carriers accounted for the largest share of the total fleets used in military operations.
However, the armored vehicle market has shown significant demand for the protection of the country from the terrorist. Several countries' governments have planned to adopt these vehicles owing to their effectiveness in protecting from gunfire. In August 2020, Canada’s government planned to adopt 360 armored combat support vehicles. These vehicles consist of light armored reconnaissance and surveillance system that provides a telescopic system for surveillance. In 2021, the Canadian army launched an LAV 6.0 armed vehicle with an advanced Light armored reconnaissance and surveillance system.
Further, the US government is conducting several programs in support of the army and its development for the nation's protection. In April 2020, the US government launched Next Generation’s Combat Vehicle (NGCV) program, which includes the adoption and launching of several vehicles, including unmanned vehicles, manned fighting vehicles, and main battlefield tanks.
In April 2020, the U.S. Army replaced the Optional Manned Fighting Vehicle (OMFV) program for the replacement of the Infantry Fighting Vehicle.
The U.S. Marine Corporation selected two major companies, General Dynamics Land Systems, Inc. and Textron Systems, to build advanced reconnaissance armed vehicle prototypes in July 2020. The US Marine Corporations also worked with BAE Systems to adapt combat vehicle to an advanced reconnaissance vehicle. General Dynamics Land Systems, Inc., a manufacturer of the Armored Vehicle, submitted a prototype proposal with US marine corporations for the development of advanced versions of the armed vehicles.
Market Overview:
Armored vehicles are also known as military vehicle that is fitted with partial or complete armour plating for protection against bullets, shell fragments, and other projectiles. Armored vehicles for military application move either on wheels or on continuous tracks.
Armored vehicles are intended for the protection of passengers or goods and are coated with armour plating with anti-bullet requirements. The armed forces require these vehicles for logistical and transportation requirements at different terrains and theatres, including counter-insurgency, personnel carriers and border protection. This report further explores this requirement for armed vehicles globally.
Several companies are offering these armored vehicles for the development of the military operations. For instance, INKAS armored vehicle manufacturers offer a wide range of bulletproof cars and armored vehicles such as armored SUVs, cash-in-transit vehicles, armed luxury cars & limousines, tactical vehicles, armored trucks & buses. INKAS also manufactures armored special-purpose vehicles for institutional and commercial clients on a global level.
Strategic Insights
Market Driver:
Increased Government Spending on Security, Military and Defense to Drive Growth of the Armored Vehicle Market
Rising military spending by several countries’ governments with the surge in terrorist attacks is driving the market growth. According to Stockholm’s International Peace and Research Institutes Data (SIPRI), global military spending reached US$ 2.1 trillion, increased by 0.7% in 2021 and crossed 2 trillion. The military spending is highest in these five major countries, including the US, India, China, Russia, and the UK. These five major countries accounted for around 62% of total military expenditure. India’s military operations spending ranked third in the world. The Indian government announced a total Union Budget of around US$ 540 billion in fiscal year 2022-2023 for the development of the military and defense operations. India’s overall defense allocation accounted for 13.3% of the country’s total government expenditure. These budgets are made to support and promote defense modernization and procure advanced armed vehicles for the country's protection.
Further, increasing government spending on the adoption of armored vehicles with substantial investment for the development is driving the market growth. For instance, in 2021, the German government planned to procure armored vehicles under its Tunisia funding that help to combat terrorism. Further, military equipment has shown significant demand in Russia for assisting in preventing cross-border protection from Libya. Further, in Europe, the Belgium government approved the procurement of around 60 JAGUAR armored vehicles, AFVs and GRIFFON 417 light combat armored vehicles. Further, the French government also planned to procure armed vehicles for the development of their military operations.
Segmental Analysis:
Based on the platform, the market is divided into combat vehicles, combat support vehicles, and unmanned armored ground vehicles. The combat vehicle segment held the largest share of the market in 2022. In contrast, the combat support vehicle segment is anticipated to register the highest CAGR in the market during the forecast period. This is primarily owing to the rising development and adoption of advanced combat support vehicles by several countries’ government authorities.
In July 2022, Tata Group’s Aerospace and Defense business, with its subsidiary Tata Advanced Systems Limited (TASL), delivered Quick Reaction Army Fighting Vehicles for the Indian army.
As per the company, these armed vehicles are totally made in India, enhance the operational capabilities of the Indian Army and will help in war scenarios. Tata Advanced Systems Limited (TASL) is India’s first private company to build and deliver these wheeled armored combat- vehicles to the Indian army.
Regional Analysis:
The North American armored vehicle market is expected to dominate the global market owing to the rising development of advanced armed vehicles and the surge in the US government spending for military operations. The US Army planned to launch light robotic combat vehicles and announced billions of dollars of funding for the next five years. The US government planned to invest around US$ 698.2 million for the next five years up to 2027 to support and develop an integral path to manufacture advanced robotic technology-based combat vehicles.
The US Army continued to launch this surrogate prototype program by partnering with QinetiQ for manufacturing the Robotic Combat Vehicle-Light (RCV-L) in North America. The US President submitted a Budget of US$ 773 billion to modernize the army and military operations. Among these are US$ 56.5 billion for the development of air power platforms, more than US$ 40.8 billion for the development of sea power, and nearly US$ 12.6 billion for modernizing the army and fighting combat vehicles to protect the country.
Europe is projected to increase at a rapid pace owing to increasing investment by the EU countries for military operations. Germany’s Bundeswehr armed forces planned to upgrade the inventory of its 334 Puma armed combat vehicles.
The German Armed Forces developed an advanced version of Puma Infantry Fighting Vehicles (IFVs) with a new S1 standard for high-intensity conflicts.
In June 2021, the Rheinmetall German company signed a contract worth US$ 1.11 billion to launch the armored vehicle. The contract was made to launch 154 combat-armed vehicles.
Key Player Analysis:
The armored vehicle market analysis consists of players such as General Dynamics Corporation, Oshkosh Corporation, BAE Systems plc, Rheinmetall AG, Lockheed Martin Corporation, Nexter Group, INKAS Armored Vehicle Manufacturing, International Armored Group
Krauss-Maffei Wegmann GmbH & Co. and Lenco Armored Vehicles are the top players owing to the diversified product portfolio offered.
Recent Developments:
The companies are adopting several strategies, such as mergers and companies in the armored vehicle market highly adopt acquisitions. A few recent key market developments are listed below:
- In September 2023, BAE Systems collaborated with Larsen & Toubro to launch BvS10 all-terrain vehicles to India under the Make in India program. BAE Systems and Larsen & Toubro Limited (L&T) partnered to launch the all-terrain vehicle, the BvS10, for the Indian market. The two companies signed a licensing and manufacturing agreement to launch BvS10 for the Indian Army.
- In November 2022, General Dynamics Corp. armored combat vehicles manufacturer planned to launch advanced Stryker wheeled armed vehicles for the U.S. Army. The company signed a contract worth US$ $146.7 million to build flat-bottom Stryker combat vehicles. Stryker is an armored combat vehicle that is maneuverable with heavy-weight main battle tanks. General Dynamics launched a Stryker vehicle variant that has the capability of firing laser weapons, attack capability with drones, and conducting electronic warfare operations.
- In May 2020, Oshkosh Defense, a US-based armed vehicle manufacturer and Tadrea, Saudi Arabia’s Al Manufacturing firm, made a joint venture for the manufacturing of armed vehicles in the Kingdom of Saudi Arabia. The two companies made a joint venture named Oshkosh Al-Tadrea Manufacturing for building armed vehicles for the Kingdom of Saudi Arabia.
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Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Platform, Propulsion, Application, Vehicle Type
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
The List of Companies
1. BAE Systems PLC
2. CNH Industrial N.V.
3. General Dynamics Corporation
4. IMI Systems Ltd.
5. Krauss-Maffei Wegmann GmbH and Co. KG
6. Mitsubishi Heavy Industries, Ltd.
7. Oshkosh Corporation
8. Otokar Otomotiv ve Savunma Sanayi A.S.
9. Singapore Technologies Engineering Ltd
10. Textron Systems Corporation
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
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- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
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- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
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Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
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