North America Military Vehicle Market Analysis and Forecast by Size, Share, Growth, Trends 2031

The North America Military Vehicle Market size is expected to reach US$ 28.4 Billion by 2031 from US$ 13.4 Billion in 2024. The market is estimated to record a CAGR of 11.7% from 2025 to 2031.

Executive Summary and North America Military Vehicle Market Analysis:

Military vehicles play a major role in the defense sector for transportation, logistics, surveillance, and communication. The growing need for advanced technologies to cater to modern battlefield requirements boosts the demand for advanced military vehicles in North America. In 2022, North America spent US$ 886.3 billion on defense activities; in 2023, it reached ~US$ 903.7 billion. The US is leading the market for military vehicles in North America, followed by Canada and Mexico. The US is one of the highest military spending countries. The growing defense expenditure indicates the country's focus and emphasis on advancing the defense sector to meet the growing need for security. The defense expenditure covers sections such as operation and maintenance, procurement, research and development, testing and evaluation, and military personnel. The growing number of military vehicle orders is boosting the market's growth in North America. For instance, in February 2025, The US Army is sealing a contract with BAE Systems to purchase 309 additional AMPVs. The new armored personnel carriers will be ordered for fiscal years 2025, 2026, and 2027, with an increase in production from 81 vehicles in 2025 to 122 in 2026 and 2027. In August 2024, the US Army gave General Dynamics Land Systems another low-rate initial production contract for the M10 Booker Combat Vehicle. The US$ 322.7 million contract modifies an identical contract awarded in June 2024, with estimated completion in October 2026. Thus, the rising demand for advanced military vehicles and growing geopolitical disturbances are boosting the growth of the military vehicle market in North America.

North America Military Vehicle Market: Strategic Insights

North America Military Vehicle Market Segmentation Analysis:

• By Type, the North America Military Vehicle Market is segmented into Tanks, Military Trucks, Amphibious Military Vehicles, Armored Vehicles, Reconnaissance Vehicles, Special Purpose Vehicles, and Others. Armored Vehicles held the largest share of the market in 2024.
• By Application, the North America Military Vehicle Market is segmented into Ground Support Vehicles, Tactical Warfare, ISR, Military Transportation, and Others. Military Transportation held the largest share of the market in 2024.
• By Technology, the North America Military Vehicle Market is segmented into Autonomous Vehicles and Manual Driven Vehicles. Manual Driven Vehicles held the largest share of the market in 2024.

North America Military Vehicle Market Players Density: Understanding Its Impact on Business Dynamics

The North America Military Vehicle Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

North America Military Vehicle Market Outlook

The unstable geopolitical scenario worldwide involving India-Pakistan, China-Taiwan, China-India, Russia-Ukraine war, Russia-US, and the Israel-Palestine war is boosting the demand for advanced military vehicles equipped with high-end surveillance, communication, and navigation systems. The uncertain geopolitical occurrences, such as wars between nations, are jeopardising common life and increasing the national security threat and uncertainties, which is the major reason for the growing focus on strengthening the security forces to combat such unwanted situations. Instances such as Brexit, European elections and the threat of exit from the Eurozone, US Presidential elections, the US and China trade war, Hong Kong protests, and China and Taiwan hostilities are also boosting the demand for strong military and defense sector, thereby driving the requirement for advanced military vehicles.

The US faces significant internal and external pressures, resulting in increased national security threats and uncertainties, which is the major reason for the growing focus on strengthening the security forces to combat such unwanted situations. Instances such as US Presidential elections, the US and China trade war, Border and Immigration Tensions, Gun Violence & Civil Unrest, 2024 Election Fallout, and Political Polarization are also boosting the demand for strong military and defense sector, thereby driving the requirement for advanced military vehicles.

As one of the leading countries in defense forces, the US has steadily highlighted transforming its military vehicle fleet. The US Army's investments include the Stryker Infantry Carrier Vehicle enhancements, Abrams Main Battle Tank upgrades, and the development of the Next-Generation Combat Vehicle (NGCV) program. One noticeable instance is the US Army's XM-30 Mechanized Infantry Combat Vehicle, formerly acknowledged as the Optionally Manned Fighting Vehicle (OMFV) program, which aimed at replacing the Bradley Infantry Fighting Vehicle with a more flexible and lethal platform. The XM-30 Combat Vehicle (previously OMFV), as part of an Armored Brigade Combat Team (ABCT), is anticipated to replace the Bradley Infantry Fighting Vehicle to deliver the capabilities essential to defeat advanced attacks. Thus, the growing instances of geopolitical disturbances and war-prone situations are fueling the demand for advanced defense equipment and military vehicles, which is having a positive impact on the military vehicle market.

North America Military Vehicle Market Country Insights

By country, the North America Military Vehicle Market is segmented into the United States, Canada, and Mexico. The United States held the largest share in 2024.

The US is leading the military vehicles market across North America. The government's focus on strengthening the country's defense sector in terms of advanced military vehicles for transportation, logistics, and combat vehicles is driving the US military vehicle market growth. In 2022, the military expenditure of the US was US$ 860.6 billion on defense activities, and in 2021 it was ~US$ 870.7 billion. In 2023, the US invested US$ 916 billion in military domain. The increasing budget for defense expenditure indicates the country's focus and emphasis on advancing the defense sector to meet the growing need for security. The Lockheed Martin Corporation, General Dynamics Corporation, and BAE Systems Plc are among the key companies operating in the US. Technological advancements in the field of transportation, logistics, and combat platforms in the defense sector are boosting the demand for multi-role military vehicles in the US. For instance, in 2023, BAE Systems was awarded a US$ 211 million firm-fixed-price modification to a previously awarded contract by the U.S. Marine Corps for more amphibious combat vehicles (ACVs) under the Marine Corps' fourth order for full-rate production (FRP). In addition to vehicle production, the award covers the procurement of 40 FRP ACV Personnel (ACV-P) variants, fielding and support expenditures, and test equipment. Furthermore, in 2024, BAE Systems was awarded US$ 25 million to deliver the US Marine Corps more ACV-P units under its fourth order for full-rate production. In 2022, the US Army awarded a US$ 732.7 million contract to AM General LLC for HMMWV ECV lightweight battlefield vehicles and vetronics for surveillance, reconnaissance, medical, and similar applications. Thus, the rise in technological advancements and the need for modern multi-purpose vehicles to manage the surveillance and security of the country are boosting the demand for military vehicles in the US.

North America Military Vehicle Market Company Profiles

Some of the key players operating in the market include BAE Systems Plc, General Dynamics Corp, Thales SA, Lockheed Martin Corp, Rheinmetall AG, Tata Motors Ltd, Ashok Leyland Ltd, Oshkosh Corp, KMW+NEXTER Defense Systems NV, NORINCOGROUP.com Inc., Patria Group, and Soframe.

These players are adopting various strategies such as expansion, product innovation, and mergers and acquisitions to provide innovative products to their consumers and increase their market share.

North America Military Vehicle Market Research Methodology

The following methodology has been followed for the collection and analysis of data presented in this report:

Secondary Research

The research process begins with comprehensive secondary research, utilizing internal and external sources to gather qualitative and quantitative data for each market. Commonly referenced secondary research sources include, but are not limited to:

• Company websites, annual reports, financial statements, broker analyses, and investor presentations
• Industry trade journals and other relevant publications
• Government documents, statistical databases, and market reports
• News articles, press releases, and webcasts specific to companies operating in the market

Note:

Primary Research

The Insight Partners conducts a significant number of primary interviews each year with industry stakeholders and experts to validate its data analysis and gain valuable insights. These research interviews are designed to:

• Validate and refine findings from secondary research
• Enhance the expertise and market understanding of the analysis team
• Gain insights into market size, trends, growth patterns, competitive dynamics, and future prospects

Primary research is conducted via email interactions and telephone interviews, encompassing various markets, categories, segments, and sub-segments across different regions. Participants typically include:

• Industry stakeholders: Vice Presidents, Business Development Managers, Market Intelligence Managers, and National Sales Managers
• External experts: Valuation specialists, research analysts, and key opinion leaders with industry-specific expertise