Armored Vehicle Market to Increase Gradually with the CAGR of 6.2%, Introduction Of New Age Upgraded Vehicles With Reactive Armor Technology Is Driving Market Growth

The global armored vehicle market size is estimated to display strong growth by reaching USD 33.9 billion by 2030. Fortune Business Insights™ in its report titled “Armored Vehicle Market Growth, Size, Share & Russia-Ukraine War Impact Analysis, By Platform (Combat Vehicle, Combat Support Vehicle, and Unmanned Armored Ground Vehicles), By Propulsion (Conventional and Electric), By Mobility (Wheeled and Tracked), By System (Drive Systems, Structures & Mechanisms, Weapons & Ammunition Control Systems, Countermeasure Systems, Command & Control Systems, Navigation Systems, Observation & Display Systems, and Others), By Solution (Line Fit and Retrofit), and Regional Forecasts, 2023-2030” observes that the market size in 2022 stood at USD 19.5 billion and is expected to reach USD 22.2 billion in 2023. The market is expected to witness a strong CAGR of 6.2% during 2023-2030. Introduction of new age upgraded vehicles with reactive armor technology, programmable ammunition, sophisticated autoloaders, and other features is driving market growth. Rising demand for light-protected mobility, increasing investment in lighter, cheaper, and more accurate active protection systems for Main Battle Tanks (MBTs) drive market growth.

Oshkosh Defense was Awarded a Contract of USD 100 Million by the Israeli Ministry of Defense (IMOD)

In January 2023, Oshkosh Defense was awarded a contract of USD 100 million by Israeli Ministry of Defense (IMOD) for manufacturing the Armored Personnel Carrier (APC) hulls for the Israeli Defense Forces. Oshkosh Defense is a global leader in developing and applying new technologies which offers advanced safety and mission success. Such industrial developments in the market are set to push the market growth. 

Russian-Ukraine War Prompted the Increase of Vehicle amongst NATO Members

The Russian-Ukraine war crisis changed the dynamics of the defense industry of European countries in 2022. The conflict between Russia and Ukraine prompted the increased vehicle use across Europe, particularly among NATO members. For war action and border defense, the army increased deploying military vehicles. In addition, according to Ukraine Security Assistance Initiative (USAI), Ukraine will demand additional armor capabilities, including MBTs, if it's to reacquire territory taken by Russia in the east of the country, with hints that Kyiv is seeking around 300 MBTs.

Adoption of Electric Technology in Armored Vehicles to Propel Market Development

Adoption of electric technology in armored vehicles is predicted to drive the market growth. The hybrid electric drive systems allow silent mobility while providing possible military advantages by decreasing noise and boosting stealth capability. Hybrid technology decreases the dependency on fossil fuels and will also bring technological and operational improvements.

However, military vehicles are vulnerable to the mechanical strain caused by their movement on uneven terrains and logistical strain caused by various operations, which is expected to create mechanical failures in vehicles.

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Key Players of the Market have Opted for New Product Launches and Approvals

Key players of the market have opted for new product launched and approvals. In February 2021, Arjun Main Battle Tank Mark-1A (MK-1A) was handed to the Indian Army by the Indian Prime Minister. The tank was developed by Defense Research and Development Organization (DRDO). Arjun MBT Mk IA provides high mobility, superior firepower, excellent protection, and crew comfort.

Notable Industry Development

• February 2021: The U.S. Army granted BAE Systems Land & Armaments LP a USD 400.9 million contract for the acquisition of 160 armored multipurpose vehicles. The M113s will be replaced by the vehicles, which will operate alongside the M1 Abrams Tank and the M2 Bradley as part of the Armored Brigade Combat Team.

List of Key Companies Profiled in the Report:

• BAE Systems (U.K.)


• General Dynamics Corporation (U.S.)


• Rheinmetall AG (Germany)


• Krauss-Maffei Wegmann GmbH (Germany)


• Denel SOC ltd (South Africa)


• IVECO DEFENCE VEHICLES (Italy)


• NORINCOGROUP.com Inc. (China)


• Oshkosh Defense, LLC An Oshkosh Corporation Company (U.S.)


• Otokar, a KOC Group Company (Turkey)


• Textron Systems (U.S.)

Further Report Findings

• The market in North America stood at USD 8.84 billion in 2022 due to the presence of various key players such as General Dynamics Corporation, Textron Systems, Oshkosh Defense, and others. The U.S. is also spending increasingly on defense, which is expected to drive the armored vehicle market share.


• Europe is the second largest region of the market after North America due to increasing demand for battle tanks. Rheinmetall BAE Systems Land (RBSL) granted a contract to Curtiss-Wright to supply Turret Drive Servo System (TDSS) for the upcoming British Army’s Challenger 3 main battle tank.


• Asia Pacific is set to be the fastest growing region with increasing level of defense spending in India, China, South Korea, Japan, and others.

Table of Segmentation