"Smart Market Solutions to Help Your Business Gain Edge over Competitors"
The global armored vehicle market size was USD 17.57 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with military vehicles witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 1.42% in 2020 compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 18.08 billion in 2021 to USD 27.83 billion in 2028 at a CAGR of 6.36% in the 2021-2028 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Armored vehicles are armed combat vehicles shielded by armor for protection against IEDs, missiles, weapons, shrapnel, bullets, projectiles, and weapon systems. The development of military vehicle technologies combined with innovations in weaponry, automotive, electronics, and material science will boost the market growth. The unveiling of next-generation vehicles with active protection systems, reactive armor technology, programmable ammunition, advanced autoloaders, and others is a prevailing trend in the market.
Defense Industry to Face Unmatched Challenges Due to COVID-19 Pandemic
The defense industry has faced unprecedented challenges due to the COVID-19 pandemic. The market has faced a slower growth rate due to the reduced defense budget in India, Thailand, South Korea, and other countries. Armored vehicle manufacturers in the market faced delays in the deliveries of military vehicles due to the pandemic.
Request a Free sample to learn more about this report.
Growing Adoption of Active Protection System (APS) to Propel Market Growth
The APS automatically detects and counteracts incoming threat projectiles before they reach a target. APS uses launchers, tracking radar, sensors, and countermeasure munitions, which protect combat vehicles from grenades and anti-tank guided missiles.
In January 2021, The U.S. Army received Trophy APS units for its M1 Abrams main battle tanks developed by Rafael and Leonardo DRS. The system enhances the survivability of the tanks against large-caliber projectiles. Raytheon Technologies offered APS that provides squad and vehicle protection using a countermeasure system and an integrated multi-mission fire-control radar that detects, tracks, and destroys multiple threats.
Growing Defense Expenditure and Procurement Programs in Asian Countries Will Aid Market Growth
Increasing defense budgets and growing demand for armored vehicles, especially in Asian countries, may drive market growth. According to the Stockholm International Peace Research Institute (SIPRI) report 2021, there was a 2.6% increase in the global defense expenditure in 2020 compared to 2019. The global military spending rose to USD 1981 billion in 2020. The five major defense spenders, U.S., China, India, Russia, and the U.K., contributed 62% of the global military expenditure. In 2020, the U.S. allocated USD 778 billion for the defense sector, representing a 4.4% increase over 2019.
Increasing Cross-Border Disputes to Spur Demand for Next-Generation Military Vehicles
There has been a rise in disputes, terrorist activities, and wars worldwide in the past few years. The rising violence, and cross-border activities between Asian countries and other regions, has encouraged several countries to modernize their existing defense system. The governments around the globe are focusing on safeguarding and strengthening military forces by deploying advanced main battle tanks (MBTs), light protecting vehicles (LPVs), infantry fighting vehicles (IFVs), and others. Thus, this factor may drive the armored vehicle market growth during the forecast period.
High Chances of Electrical and Mechanical Components Failure in Armored Combat Vehicles to Hinder Market Growth
The vehicles are prone to mechanical stresses caused by their movement on uneven topographies, resulting in mechanical failures in the transmission system and engine due to high-speed operating systems. As a result, these vehicles undergo breakdowns of jammed parts, components, power failures, and others due to mechanical failures. These failures lead to a severe breakdown in military operations as such failures are critical to rectify by rescue teams. Thus, the identification of faulty components results in the malfunctioning of military vehicles. Therefore, original equipment manufacturers (OEMs) focus on designing new and innovative products to reduce and rectify such failures in vehicles.
Combat Vehicle Market to Account for the Highest Share Due to Increasing Defense Spending Worldwide
Based on the platform, the market is segmented into combat vehicles, combat support vehicles, and unmanned armored ground vehicles. The combat vehicle segment is anticipated to be the largest segment during 2021-2028. Rising demand for armored personnel carriers (APCs) and light armored vehicles (LAVs) across the globe is propelling the market's growth.
The unmanned armored ground vehicle will witness significant growth during 2021-2028. These unmanned vehicles can operate in high-risk situations and provide the potential for defense operations. Thus, the rising demand for the development and deployment of these unmanned military vehicles will accelerate the market's growth. The combat support vehicle segment is projected to showcase moderate growth of the market during the forecast period due to its various operational assistance, fire assistance, and others.
To know how our report can help streamline your business, Speak to Analyst
Wheeled Segment to Gain Momentum During the Forecast Period Due to the Adoption of Next-Generation Vehicles for Defense Operations
By mobility, the market has been classified into wheeled and tracked. The wheeled segment is estimated to be the fastest-growing segment during 2021-2028. The growth is attributed to the military's growing demand for 4X4 LAVs for intelligence, surveillance, reconnaissance (ISR), and transportation application. In May 2020, Airdrop-capable four-wheeled armored vehicles developed by China North Industries Group Corporation (NORINCO) entered the Chinese Air Force service. The tracked segment will witness significant growth owing to the rising procurement of main battle tanks and vehicles used on rough terrain.
Growing Military Modernization Programs for Strengthening Defense Forces Across the Globe to Propel Segment Growth
Based on the system, the market is divided into an engine, ballistic armor, turret drives, drive system, ammunition handling system, armaments, fire control system (FCS), countermeasure system, command & control (C2) system, navigation system, observation, and display system, power system, and hull/frames. The armaments segment is anticipated to show the highest growth during the forecast period due to rising demand for remote weapon stations, anti-tank guided missile (AGTM) launchers, and other armaments worldwide. The market for the engine segment is estimated to grow due to the increase in demand for durable and robust diesel engines. Moreover, owing to the modernization programs of main battle tanks, there is increasing demand for turbine engines. Command and control systems will witness significant growth due to the increasing demand for unmanned ground armored vehicles.
North America Armored Vehicle Market Size, 2020 (USD billion)
To get more information on the regional analysis of this market, Request a Free sample
The global market is segmented based on regions, namely, North America, Europe, Asia-Pacific, the Middle East, and the rest of the world.
North America dominated the market in 2020 with a market size of USD 6.12 billion. The region’s dominance is attributed to the highest defense spending by the U.S. government on the procurement and modernization of military vehicles. For instance, key players such as General Dynamics Corporation, Textron Systems, Oshkosh Defense, and others boost market growth across North America.
Asia Pacific’s market will showcase the highest growth owing to the rising defense expenditure by countries such as India, China, South Korea, Japan, and others. Increasing terrorism, cross-border issues, and political unrest led to warfare situations in Asian countries, which, in turn, drives the market's growth. In March 2021, the Indian Ministry of Defense signed a contract worth USD 144.79 million with Mahindra Defence Systems Ltd (MDSL) to supply 1,300 light specialist vehicles to the Indian Army.
Europe’s market is anticipated to show moderate growth due to key players such as BAE Systems, Rheinmetall AG, and others. The Middle East is estimated to show moderate growth due to growing military expenditure by Saudi Arabia, the UAE, Turkey, and others. In the Rest of the World, rising procurement programs from South Africa, Brazil, and others are expected to drive market growth.
Key Players Focus on Development of Next Generation Military Vehicles
The market is fragmented and comprises several key players are involved in developing and designing military vehicles. OEMs focus on developing technologically advanced products and establishing strong partnerships with the governments of developed and emerging countries.
General Dynamics Corporation, BAE Systems, Oshkosh Corporation, Rheinmetall AG were some of the major players in 2020. In February 2021, the Indian Prime Minister handed over Arjun Main Battle Tank Mark-1A (MK-1A) to the Indian Army, developed by Defence Research and Development Organisation (DRDO). The Arjun MBT Mk IA provides high mobility, superior firepower, excellent protection, and crew comfort.
An Infographic Representation of Armored Vehicle Market
To get information on various segments, share your queries with us
The global armored vehicle market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, different platforms, systems, competitive landscape, and product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the developed market in recent years.
Value (USD billion)
Fortune Business Insights says that the global market size was USD 17.57 billion in 2020 and is projected to reach USD 27.83 billion by 2028.
Registering a CAGR of 6.36%, the market will exhibit steady growth in the forecast period (2021-2028).
The combat vehicles in the platform segment are expected to lead this market during the forecast period due to increasing cross-border conflicts and political unrest worldwide.
General Dynamics Corporation is the leading player in the global market.
North America dominated the market in terms of share in 2020.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry