Armored Vehicle Market Size, Share, Trends, Forecast 2024–2032

According to Fortune Business Insights™, the global armored vehicle market size was valued at USD 22.28 billion in 2023 and is projected to reach USD 23.73 billion in 2024. The market is expected to grow significantly and reach USD 37.85 billion by 2032, exhibiting a CAGR of 6.0% during the forecast period (2024–2032). Market growth is primarily driven by the introduction of advanced military technologies such as reactive armor, programmable ammunition, and sophisticated autoloaders. Additionally, the rising demand for next-generation military vehicles equipped with advanced weaponry systems is expected to further accelerate market development.

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)

• Norinco (China)

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

• Otokar, a KOC Group Company (Turkey)

• Textron Systems (U.S.)

Source:

https://www.fortunebusinessinsights.com/industry-reports/armored-vehicle-market-101817

Market Segmentation Insights:

• By Platform: The combat vehicles segment is anticipated to dominate the armored vehicle market. This growth is fueled by the increasing focus on infantry mechanization and modernization programs across both developed and developing nations, aimed at enhancing combat readiness and troop mobility.

• By Propulsion: The conventional propulsion segment led the market in 2022. Its dominance is attributed to the continuation of military modernization programs globally, especially amid geopolitical tensions such as the Russia-Ukraine war and rising civil unrest, which are prompting urgent procurement of conventional armored platforms.

• By Mobility: Wheeled armored vehicles captured the largest share in 2022 and are projected to experience the fastest growth rate. Their high operational versatility makes them ideal for special missions, border security, troop transport, command and control tasks, and medical evacuation operations, driving their widespread adoption.

• By System: The drive systems segment emerged as the leading category in 2022 and is expected to maintain its dominance. This is primarily due to the increasing military demand for technologically advanced mobility solutions, offering superior vehicle handling, control, and reliability in complex terrains.

• By Solution: The retrofit segment is expected to grow at the highest CAGR over the forecast period. This growth is largely supported by the global shift toward license-based production and the upgrading of existing vehicle fleets to meet current battlefield requirements without incurring the cost of complete replacements.

• By Region:
  North America holds the leading share in the global market, driven by substantial defense spending by the U.S. government and the presence of major OEMs such as General Dynamics, Oshkosh Defense, and Textron Systems. The region continues to invest in both new acquisitions and upgrades of armored platforms.
  
  Europe ranks second in regional market share, largely propelled by the surging demand for main battle tanks and armored vehicles amid the ongoing Russia-Ukraine conflict, prompting European nations to ramp up defense procurement and fleet expansion.

Market Drivers and Challenges:

Drivers:

• Increasing instances of asymmetric warfare—conflicts where weaker opponents use unconventional methods and weapons—are fueling the demand for advanced armored vehicles globally.

• Military modernization and strategic defense investments across various nations are boosting vehicle procurement.

Restraints:

• The market faces potential challenges from mechanical and electrical failures associated with armored vehicle systems, which can hinder operational performance and increase maintenance costs.

Competitive Landscape:

The global armored vehicle market is highly competitive, with several key players focusing on innovative and technologically advanced products. Companies like BAE Systems, Rheinmetall AG, General Dynamics, and Oshkosh Defense are investing heavily in R&D and forming partnerships with governments to expand their defense portfolios.

Recent Industry Development:

• In February 2023, A.M. General was awarded a contract by the U.S. Army Contracting Command at Detroit Arsenal to produce 20,000 Joint Tactical Vehicles and approximately 10,000 trailers for the U.S. Armed Forces. Although the total contract value was undisclosed, this move is a major step in modernizing tactical ground mobility for the U.S. military.