Armored Vehicle Chassis Market Size, Share, and Industry Analysis By Platform (Combat Vehicles, Combat Support Vehicles, and Unmanned Ground vehicles), By Chassis Type (Wheeled Chassis, Tracked Chassis, and Hybrid Chassis), By Armor Protection level (Level A9, level A10, Level A11, and Level A12), By Vehicle Weight (Lightweight –up to 10 tons, Medium weight- 10 to 30 tons), By Armor composition (Steel Armor, Ceramic armor, and Reactive armor), By Mobility Application (All-Terrain Capability, Amphibious Operations, and Urban Combat Adaptations), and Regional Forecast, 2025-2032

The global armored vehicle chassis market is expected to expand due to advancements in military vehicle technology, weaponry, material science, automotive, and electronics. Armored vehicles are designed for transporting personnel and/or equipment through areas where they may be exposed to live fire, explosions, and others, and are typically equipped with armored walls. These vehicles consist of a chassis containing all the functional elements of the vehicle as well as the driver's compartment. As the chassis is the base part of any vehicle and the whole structure and strength of the vehicle are dependent on it, the armored forces continuously do quality checks of the chassis, and finding major malfunctions results in the replacement of the vehicle, whole chassis, or that particular part.

Due to the ongoing Russia-Ukraine conflict, GAZA conflict, and cross-border terrorism, the demand for armored vehicles has increased. This led to the introduction of new vehicles with active protection systems, reactive armor technology, programmable ammunition, sophisticated autoloaders, and other advanced features.

Armored Vehicle Chassis and Hull Market Drivers:

Advancements in Military Modernization to Drive the Market Growth

Modernizing military plans is an important and significant driver for the armored vehicle chassis market. Modernizing plans include the acquisition and development of advanced armored vehicles, including military equipment, to ensure safety and security.

For instance, in September 2024, at the 2024 exhibition, Milkor introduced Africa Aerospace and Defense (AAD), its latest advancements in armored vehicles. The Milkor’s vehicle includes the debut of the Vanguard MRAP, the 6×6 Frontier armed vehicle built on the reliable Toyota Land Cruiser chassis.

Counterterrorism and Homeland Security Concerns to Fuel the Market Growth

In recent years, terrorists and criminals have increasingly adopted new techniques and advanced tactics in an effort to circumvent homeland security and threaten safety, security, and prosperity. This is a serious factor boosting the demand for the increasing adoption of armored vehicles.

For instance, in March 2024, the Indonesian Ministry of Defense (MoD) handed over 52 armored vehicles manufactured by PT Pindad to the Indonesian National Armed Forces. The MoD also handed over 10 Harimau medium tanks, three Badak 6×6 wheeled armored direct-fire support vehicles, and 10 Pandur II 8×8 fire support vehicles to the TNI.

Armored Vehicle Chassis and Hull Market Restraint:

High Maintenance Costs May Hamper Industry Expansion

Armored vehicles face challenges such as high maintenance costs, drivetrain issues, suspension problems, and electrical system vulnerability.

The complex systems and components in these vehicles lead to high maintenance costs. They require specialized trained personnel and costly parts. In addition, the route mainly for armored vehicles is in rural areas, leading to high frequency of maintenance. Due to this factor, the maintenance cost of armored vehicle chassis is higher.     

Although the wheeled configuration provides greater mobility, it is susceptible to drivetrain problems, particularly in rugged terrain. Most of the time, the environmental conditions and terrains are very complex and dangerous for the armored vehicle chassis, as all of the vehicle weight is concentrated on the chassis, and a little crack or malfunction in such conditions can cause several casualties and danger to the vehicle. 

Given its operational use in diverse terrains, the suspension system can undergo significant stress, requiring frequent inspections and maintenance. Furthermore, advanced electronics and communication systems may prone to failures especially under extreme conditions, necessitating regular technical check-ups.

Key insights:

This report includes the following key insights:

• Key industry developments (Mergers, Acquisitions, Partnerships)
• Latest Technological Advancements
• Porter’s Five Forces Analysis
• Supply Chain Analysis
• Impact of Russia-Ukraine War on Global Armored Vehicle Chassis Market

Segmentation:

Analysis By Chassis Type:

By chassis type, the market is fragmented into wheeled chassis, tracked chassis, and hybrid chassis.

Wheeled chassis has advantages over tracked chassis as it improves on-road performance, better fuel economy, and lower maintenance costs. Tracked chassis is deployed in the operations of armed forces to be able to move, shoot, and communicate in a variety of tough environments, posing major challenges to modern military vehicle systems. The hybrid chassis is responsible for reducing the dependence on fossil fuels, decreasing carbon emission, and enhancing the use of alternate fuel.

Analysis by Platform:

Combat vehicles are ground vehicles designed to enhance the mission readiness of crews operating tanks and armored vehicles. Combat support vehicles provide fire support and operational assistance to combat elements. Unmanned ground vehicles provide a comprehensive operational solution that reduces causalities and facilitates long-term personnel reduction in various scenarios.

Analysis by Armor Protection Level:

By armor protection level, the market is divided into level A9, level A10, level A11, and level A12.

The level 10 segment is the dominant segment and held the largest market share in 2023. The growth is attributed to increased military expenditure, the surge in demand for armored vehicles with higher protection levels, and an emphasis on safeguarding military personnel from various threats, including small arms fire and explosive devices. For instance, in January 2024, BAE Systems announced a contract with the U.S. Army to supply upgraded armored personnel carriers featuring level A10 protection. This contract is part of a broader initiative to modernize the Army's fleet to enhance soldier safety in combat environments.

The level 12 segment is anticipated to be the fastest-growing segment during the forecast period. The increasing sophistication of threats, including anti-tank guided missiles and improvized explosive devices (IEDs), and innovations in materials and design of chassis are the factors driving the segmental growth during the forecast period. For instance, in March 2024, Rheinmetall announced the introduction of a new armored vehicle model equipped with level A12 protection at the Eurosatory defense and security international exhibition. This vehicle is designed for high-risk operations and features advanced armor technology that enhances survivability against modern weaponry.

Analysis by Vehicle Weight:

Armored vehicle operations require a balanced combination of maneuverability, protection, and firepower to ensure mission success. All these phenomenon depends upon the weight of the vehicle such as lightweight vehicles (up to 10 tons), medium-weight vehicle (10 to 30 tons), and heavyweight vehicles (over 30 tons).

Analysis By Mobility Application:

Armored vehicles are used for various purposes such as all-terrain capability, amphibious operations, urban combat adaptations, and others.

The all-terrain capability segment held the largest market share in 2023. The growth is attributed to the high demand for versatility in operations across all terrain and increased demand for mobility. For instance, in February 2024, Oshkosh Defense announced a contract with the U.S. Army to supply its Joint Light Tactical Vehicles (JLTVs), which are designed for all-terrain operations. This contract emphasizes the Army's commitment to enhancing mobility and operational flexibility in diverse environments.

The urban combat adaptations segment is anticipated to be the fastest-growing segment during the forecast period. The growth is changing warfare dynamics and integrated combat operations. For instance, in March 2024, Rheinmetall showcased its new urban combat vehicle at the International Defense Exhibition (IDEX), designed specifically for urban warfare scenarios. This vehicle features advanced armor, improved visibility, and enhanced maneuverability to address the unique challenges posed by urban environments.

Regional Analysis:

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By region, the market is segmented as the U.S. and Canada in North America; France, Germany, U.K., Italy, Spain in Europe; China, India, Japan in Asia Pacific; The Middle East, and Latin America in the rest of the world.

North America is the dominant region by largest market share in the market in 2023. The growth is attributed to high defense spending supporting ongoing procurement and modernization of armored vehicles and heightened the demand for enhanced military readiness in North America, prompting increased investments in armored vehicles. For instance, in January 2024, the U.S. Army awarded a contract to General Dynamics worth approximately USD 1 billion to supply new light armored vehicles as part of its modernization efforts. This initiative aims to enhance operational capabilities and readiness for various combat scenarios.

The Asia Pacific market is anticipated to be the fastest-growing region during the forecast period. The growth is attributed to experiencing significant military buildup due to territorial disputes and a surge in the demand for advanced armored vehicles. For instance, in October 2023, the Indian Ministry of Defence signed a contract with Tata Motors for the supply of 1,000 advanced armored personnel carriers (APCs) valued at approximately USD 300 million. This procurement is part of India's strategy to modernize its armed forces amid rising regional tensions.

Key Players Covered:

• BAE Systems plc. (U.K.)
• General Dynamics Corporation (U.S.)
• Oshkosh Corporation (U.S.)
• Rheinmetall AG (Germany)
• Thales Group (France)
• ST Engineering (Singapore)
• Lockheed Martin Corporation (U.S.)
• Elbit Systems Ltd. (Israel)
• Mahindra Defense System (India)           

Key Industry Developments:

• January 2024: The State Department of Egypt made a determination approving a possible foreign military sale, with an estimated cost of about USD 200 million to the Government of Egypt of light tactical vehicle chassis and fleet build and related equipment.
• January 2024: The U.S. State Department approved the potential USD 200 million sale to Egypt for light tactical vehicle chassis.
• January 2022: Russia plans to develop a wheeled version of the Sprut-SDM1 125mm amphibious light tank. The wheeled version of the Sprut-SDM1 could be based on a wheeled chassis developed in Russia or can be based on the driveline of the Boomerang 8x8 armored vehicle. Russia is able to use different wheeled chassis according to customer requirements.