Top 10 Military Vehicle Electrification Companies Powering Modern Defense Innovation

The military vehicle electrification consists of military vehicles powered by electric propulsion systems, which are hybrid and fully electric with advanced battery technologies and onboard electrical generation capabilities.

Military vehicles include combat vehicles, logistics and support vehicles, light tactical wheeled vehicles, and unmanned aerial and ground vehicles, which are popular. With the modernization of their military programs, governments worldwide have dramatically increased their funding of defense systems and in many cases are investing in the electrification of their military vehicles.

Driven by these progressions, Fortune Business Insights projected the market for military vehicle electrification at USD 6.48 billion in 2025. It is estimated to hit USD 17.90 billion by 2034, with a CAGR of 12.40% over the forecast period.

Fortune Business Insights Lists Top 10 Military Vehicle Electrification Companies Worldwide

1. BAE Systems

Headquartered in the U.K., BAE Systems is a multi-national producing, engineering, and technology company, which specializes in designing and production of high-tech products utilized by defense, aerospace, and public safety customers around the world. It operates across multiple defense domains, including land, maritime, air, cyber, and space.

In November 2024, BAE Systems secured a modified contract exceeding USD 390 million to manufacture an additional number of Bradley A4 Infantry Fighting Vehicle (IFVs) for the U.S. army, allowing for the modernization of existing Bradley A3 IFV vehicles, expected to start in October 2026. These vehicles will contain upgraded components, including a new engine and electrical system, and will allow soldiers to benefit from increased situational awareness through enhanced electronics.

2. Oshkosh Defense

Oshkosh Defense, headquartered in the U.S., is one of the global leaders in defense technologies and design, which provides innovative industrial contracts including specialty trucks, military vehicles, truck bodies, airport fire apparatus, and access equipment.

In January 2022, Oshkosh Defense developed and unveiled a hybrid-electric version of the Joint Light Tactical Vehicle (eJLTV) that integrates electric drive capabilities with a traditional diesel engine. This vehicle adds silent drive, extended silent watch, improved fuel economy, and exportable power, making it suitable for tactical missions where stealth and power export are critical. The lithium-ion battery charges while the engine runs, solving battlefield charging challenges.

3. General Dynamics

General Dynamics Land Systems (GDLS), headquartered in the U.S., is a business unit of General Dynamics, and builds hybrid-electric robotic combat vehicle prototypes for the U.S. Army’s Robotic Combat Vehicle (RCV) program. These vehicles include significant power generation capability and offer hybrid-electric propulsion, supporting the Army’s electrification strategy by providing exportable power and operational flexibility.

4. Leonardo S.p.A.

Leonardo S.p.A is an Italian company that focuses on providing different products and services related to sectors such as defense, aerospace, and security. It is headquartered in Italy. The company is a manufacturer and designer of aircraft for both military and commercial purposes as well as producing certain aero-structures.

Leonardo’s U.S. subsidiary, Leonardo DRS, was awarded a contract by the U.S. Army to develop prototype Vehicle Integrated Power Kits (VIPKs), on-board power systems capable of generating up to 120 kW of electrical power from the vehicle drivetrain. These systems (sometimes called OBVP/TITAN) are designed to supply scalable electrical power straight from tactical vehicles for mission-critical systems such as communications, electronic warfare equipment, and micro grids without external power sources.

5. Krauss-Maffei Wegmann

Kraus-Maffei Wegmann is headquartered in Germany and designs, develops, manufactures, and supports wheeled and tracked vehicles for armed & military forces.

In December 2014, KMW acquired Diehl Defence Land Systems GmbH, based in Renscheid, Germany. Diehl Defence Land Systems GmbH produces tank suspension systems and tracks. The track side of the company has now been renamed as Defence Service Tracks GmbH as it manufactures and designs both steel tracks and endless or segmented rubber tracks. The purchase agreement also includes KMW acquiring Defence Service Logistics GmbH, a company engaged in the maintenance, repair, and overhaul (MRO) business.

6. Textron

Textron Inc., headquartered in the U.S., is a multi-industry corporation. The company’s automotive segment is a supplier of plastic products, including instrument panels, fuel tanks, and interior & exterior for cars and light tracks.

In October 2025, Textron teamed up with AM General, to create an autonomous solution for the U.S. Army’s Medium Modular Equipment Transport Trailer (M-MET) program. An Unmanned Ground Vehicle (UGV) will be developed to support the U.S. Army’s key modernization initiatives. The new UGV solution will be built using industrial strength from the AM General, autonomous capability from Carnegie Robotics, along with proven historical experience with vehicle controls and payload integration from Textron System. This strategic alliance will help create a revolutionary capability for the U.S. Army.

7. QinetiQ Group

Headquartered in the U.K., QinetiQ Group is a British defense technology company that specializes in providing solutions in both military and non-military (civilian) as well as testing and evaluating capabilities for various types of systems, including air, land, sea, and target systems.

In November 2021, QinetiQ formed a strategic alliance with Automotive manufacturer AM General to expedite the progress of electric technologies designed for military vehicles. The first phase of the collaboration includes designing and building a hybrid electric version of ‘HUMVEE’, a globally recognized multi-purposed vehicle. ‘HUMVEE’ was designed and manufactured to show that electric propulsion can be used to enhance the performance of military wheeled land vehicles while also decarbonizing military operations.

8. Nexter Group

Headquartered in France, Nexter Group is a part of the KNDS Group, which is known as the leading provider of ground defense in Europe. The company is established to find solutions for the land, air, and security needs of customers around the world by designing, developing, and manufacturing.

Nexter and Safran Electronics & Defense have been notified by the French MOD’s procurement and technology agency (DGA) of a contract for the modernization of the sights of the renovated Leclerc tank (Leclerc XLR). These sights are the two main observation and engagement systems of the Leclerc tank, allowing the crew to detect, identify, and target an object several kilometers away before engaging it.

9. General Motors Defense

Headquartered in the U.S., General Motors Defense is a subsidiary of General Motors Company that specializes in meeting the Military’s requirements for advanced mobility solutions including hydrogen fuel cells. GM has provided a wide variety of goods & services to multiple governmental agencies.

GM Defense’s Electric Military Concept Vehicle (eMCV) is based on the GMC HUMMER EV Pickup and features General Motors’ EV propulsion architecture, the Ultium Platform, which delivers power, range, and scale beyond any previous GM hybrid or extended range EV technology. The Ultium Platform is flexible and adaptable with the capability to use various form factors and chemistries to meet changing needs. The vehicle demonstrates GM Defense’s ability to leverage advanced commercial technologies to help global defense and government customers transition to a more electric, autonomous and connected future. This technology and concept development vehicle directly informs the ongoing Series Hybrid Light Tactical Wheeled Vehicle development.

Rheinmetall AG is headquartered in Germany, founded in 1889. It focuses on supplying armed forces with advanced component parts, including ammunition/armored vehicles and automotive components.

In January 2026, Rheinmetall finalized the development of a highly efficient electrode system for alkaline electrolysis as lead within the E²ngel project. The new electrode technology doubles power density and increases efficiency by over 10% compared to prior electrolysis. Pilot-series production will begin at St. Leon-Rot.

Will Military Vehicle Electrification Balance Power, Performance, and Sustainability?

Hybrid and fully electric military vehicles will increasingly be used in the future due to their ability to allow for silent and efficient vehicle operation, thereby enhancing stealth capabilities and reducing fuel logistics. The rapid development of military and military vehicle electrification can be attributed to the goals associated with sustainability and technological innovation. Implementing technological advancement will help mitigate the limitations associated with current batteries including range, weight, and other factors. Thus, driving innovative solutions to battery limitations such as developing solid-state batteries and hydrogen or fuel cell technologies will create a new generation of autonomous and intelligent battlefield platforms.