Military Truck Market Outlook Report | 2023-2028

Military Truck Market Forecast to 2028 - Global Analysis By Application (Cargo/Logistics Carrier and Troop Carrier), Truck Type (Light Truck, Medium Truck, and Heavy Truck), Propulsion Type (Electric/Hybrid and Diesel), and Transmission Type (Automatic Transmission and Manual Transmission)

Publication Month : May 2023

  • Report Code : TIPRE00007100
  • Category : Automotive and Transportation
  • Status : Published
  • No. of Pages : 156
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[Research Report] The Military Truck market is projected to grow from US$ 19,052.77 million in 2023 to US$ 22,537.79 million by 2028; it is estimated to register a CAGR of 3.4% from 2023 to 2028.

Governments of various countries continuously focus on strengthening their military capabilities by spending more on the modernization of their operations. According to Global Firepower, the US, China, Russia, India, and Germany are the top 5 nations with the largest defense budget in 2023. In March 2023, the US Department of Defense (DoD) proposed a request to provide US$ 842 billion to the DoD in the defense budget for the fiscal year 2024, which is higher by US$ 26 billion from FY 2023 and US$ 100 billion from FY 2022. Out of this, the US government has allotted US$ 13.9 billion for the modernization of combat equipment used by the US Army and Marine Corps, which include armored multipurpose vehicles, amphibious combat vehicles, and optionally manned fighting vehicles. In addition, US$ 271 million is allotted for the US Army to modernize next-generation combat vehicles with silent watch and mobility features, increased operational duration, and more onboard electrical power.

In February 2023, the Government of India announced the allocation of a total budget of US$ 72.64 billion (INR 593,537.64 crore) to the Ministry of Defense, with an increase of 13.0% compared to the amount allocated in 2022. Out of this, capital allocations of US$ 19.9 billion (Rs 162,600 crore) are for the modernization and infrastructure development of defense services, which indicates a rise of 6.7% compared to 2022. Out of this total budget allotted to MoD, ~57% will be for the Indian Army. Furthermore, in 2023, the Indian Army received 23% of the total modernization funds among the defense services. Moreover, in March 2023, the government of China announced its official defense budget of ~US$ 224.8 billion for FY 2023, marking a 7.2% increase compared to 2022. According to the defense ministry of the country, the increased defense expenditure helps provide Chinese forces with better training and more advanced equipment. Thus, the growing defense expenditure by governments of different countries would create significant opportunities for the growth of the military truck market during the forecast period.

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Military Truck Market: Strategic Insights

Market Size Value inUS$ 19,052.77 million in 2023
Market Size Value byUS$ 22,537.79 million by 2028
Growth rateCAGR of 3.4% from 2023 to 2028
Forecast Period2023-2028
Base Year2023
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Impact of COVID-19 Pandemic on Europe Military Truck Market Growth

Germany, Italy, the UK, Russia, France, and Spain were the most-affected countries by the onset of the COVID-19 pandemic. Governments of various countries in Europe imposed various regulations to curb the spread of SARS-CoV-2. Several countries in the region witnessed an economic hit and a decline in industrial activities in Q2 of 2020. Many European countries particularly closed their borders and implemented drastic measures on the transport of goods. All the above restrictions by governments of European countries have drastically affected the military truck market growth in the region. However, in Q1 of 2021, after the government restrictions were lifted, the market players restarted their manufacturing activities, and governments of the abovementioned European countries purchased military vehicles. For instance, in August 2022, Tatra Trucks announced that they had received an order to deliver 209 trucks of the T-815-7 6x6 model to the Czech army. For this order, the government of the Czech Republic claimed to invest ~US$ 125.70 million. Thus, the increasing investments by the government to purchase advanced military vehicles to strengthen their armed forces are expected to fuel the market growth during the forecast period.

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Market Insights – Military Truck Market

Electrification of Military Vehicles to Drive Military Truck Market Growth in Coming Years

Using the fueled military vehicle can be expensive for the armed forces. The US military has been one of the largest consumers of petroleum, using ~4.2 billion gallons of fuel each year. The Defense Logistics Agencies had to spend over US$ 9 billion on fuel in 2019. Thus, to lessen the spending on fuel, the US Army is investing in pilot programs for electric and hybrid vehicles

Truck Type-Based Military Truck Market Insights

Based on truck type, the military truck market is segmented into light truck, medium truck, and heavy truck. The heavy truck segment accounted for the largest share of the market in 2022. The increasing investment in military expenditure by the countries for cargo and troop transportation activity in remote locations is augmenting the segment growth. Furthermore, the enhanced efficiency and comfort in heavy truck driving experience accelerate the segment growth.

Players operating in the military truck market mainly adopt inorganic growth strategies to stay competitive in the market ecosystem.

  • In June 2022, General Dynamics European Land Systems (GDELS) announced the launch of its first all-electric all-terrain vehicle, the DURO-e 4x4. Developed in cooperation with MAGNA-Engineering Center Steyr and Phi-Power, the DURO-e is based on the DURO, a highly mobile all-terrain tactical vehicle used by the Swiss Army. The new electric vehicle includes advanced technologies such as hybridization, electrification, onboard power generation, and drive technologies needed for manned-unmanned teaming (MUM-T) capabilities with automated/autonomous operation features. 
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Application, Truck Type, Propulsion Type, and Transmission Type

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States

Frequently Asked Questions

What is the incremental growth of the military truck market during the forecast period?

The military truck market is expected to register an incremental growth value of US$ 4,028.27 million during the forecast period.

Which is the leading application segment in the military truck market?

Troop carrier segment is expected to hold a major market share of military truck market in 2023.

What will be the global market size of military truck market by 2028?

The global market size of military truck market by 2028 will be around US$ 22,537.79 million

Which countries are registering a high growth rate during the forecast period?

France, India, and Russia are expected to register high growth rate during the forecast period.

Which country is holding the major market share of military truck market?

The US is expected to hold a major market share of military truck market in 2023.

Which is the fastest growing regional market?

Asia Pacific is expected to register highest CAGR in the military truck market during the forecast period (2023-2028)

Which are the key players holding the major market share of military truck market?

Volvo Defense AB; Tata Motors Ltd; Rheinmetall AG; Oshkosh Corporation; General Dynamics European Land Systems SLU are the key market players expected to hold a major market share of military truck market in 2023.

What are the driving factors impacting the military truck market?

1. Initiatives by Governments to Expand Their Military Troops
2. Efforts by Companies to Provide High-Mobility and Multipurpose Solutions for Transportation

What is the estimated global market size for the military truck market in 2023?

The estimated global market size for the military truck market in 2023 is expected to be around US$ 19,052.77 million

The List of Companies – Military Truck Market 

  1. Arquus SAS            
  2. Oshkosh Corp       
  3. Rheinmetall AG    
  4. TATRA TRUCKS AS               
  5. General Dynamics European Land Systems SLU      
  6. Hyundai Rotem Co              
  7. AB Volvo                 
  8. Tata Motors Ltd    
  9. Iveco Group NV    
  10. Navistar Defense LLC

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. 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.

  1. 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.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • 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

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

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.

  1. 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.

  1. 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.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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