Armored Vehicle Market

Global Armored Vehicle Market Size (2024 to 2029)

The global armored vehicle market size is expected to be worth USD 16.29 billion in 2024. It is expected to grow at a CAGR of 3.25% during the forecast period and reach a value of USD 19.12 billion by 2029.

Armored vehicles are security vehicles used to transport armed security. The armored vehicles were owned and used exclusively by the military, law enforcement, and ministers, but in recent years, prominent corporate figures, VIPs, and celebrities have also contributed to the request for these vehicles. Increasing security concerns are the major cause of the adoption of armed vehicles by various government and civil agencies. Demand for new, technologically advanced transmission equipment in an armored vehicle, which is highly efficient and safe, is essential to maintain an advantage over extremist powers. Frequent investments in R&D activities and the development of highly advanced and innovative technologies will be at the core of growth strategies for the coming years.

MARKET DRIVERS

The market has grown considerably due to the increasing importance given to protecting soldiers from external and internal threats. The rise in awareness related to commercial security is foreseen to stimulate demand for various armored vehicles over the calculated period.

The market is also expected to be dragged down by several governments opting for the latest machines to counter emergencies caused by insurgencies and militant attacks. In addition, the increase in community unrest and organized crime in regions such as the Middle East and Africa, as well as Asia-Pacific, is expected to stimulate market demand. Increased defense budgets, particularly in the Asia Pacific, are expected to spur market growth. The goodwill of industry participants must play a key role in awarding contracts. Advances such as increasing energy efficiency and the use of high-tech sensors should stimulate the market in the coming years.

In modern years, there has been a rise in cases of armed conflict and disputes worldwide at the intrastate and interstate levels. Some of the conflicts across the globe, like the war against the Islamic State in Iraq, the civil war in Syria, the crisis in North Korea, and others, have also had a significant impact on the world economy. These conflicts have mobilized the armed forces and the police of the main world economies, in particular the United States, the United Kingdom, and France, among others. Although the defense budget cuts of these countries in recent years have resulted in a reduction in the size of their military troops, the demand for armored vehicles has remained more or less the same due to their increased use by civilians and local and national authorities. Law enforcement agencies in affected areas use these vehicles primarily for the safety and protection of users against ballistic attacks and explosions.

MARKET RESTRAINTS

The increase in cross-border criminal activity and terrorism has caused an asymmetric war between different nations of the world, which is expected to further increase the demand for products. The development of light, robust, highly efficient, and compact armored vehicles suitable for defense operations should also maintain optimistic growth prospects. In addition, higher prices for raw materials, components, vehicle assembly, and machining equipment are expected to hamper the market growth.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Armored Vehicle Market Analysis By system

The armaments segment accounted for a substantial share and is expected to grow to the highest CAGR during the forecast period. The increasing adoption of remote weapon stations in armored vehicles is fueling the growth of the segment.

Global Armored Vehicle Market Analysis By Product

Defense armored vehicles dominated the market and is expected to grow to a higher CAGR from 2023 to 2028. Increased spending on the development of advanced military transport vehicles is driving growth in the segment.

Global Armored Vehicle Market Analysis By End User

The defense segment dominated the market and is likely to experience a higher CAGR during the forecast period. The growing need to provide greater security for defense personnel is the engine of growth in the segment.

REGIONAL ANALYSIS

The global market for armored vehicles has been categorized into North America, Asia Pacific, Europe, Latin America, the Middle East, and Africa.  Asia-Pacific recorded the most exceptional revenue of USD 7.9 billion in 2018, which is credited to government initiatives that strengthen the military power to address internal or external terrorism. In addition, several government agencies are making significant investments to develop the defense sector in the region. Countries like India, South Korea, and China are investing in buying and developing advanced armored vehicles. For example, in February 2018, South Korea announced its decision to create a research center to develop navigation algorithms for unmanned armored vehicles and artificial object recognition and tracking technology based on artificial intelligence. Manufacturers in the Asia-Pacific are funding more in research and development activities to implement advanced and hybrid armored vehicles to increase border and maritime patrols. Furthermore, increased military spending and growing demand for medium-sized light armored vehicles for patrol operations should spur regional growth in the coming years.

KEY PLAYERS IN THE ARMORED VEHICLE MARKET

The armored vehicle market is concentrated with well-established players. Key players in the armored vehicle market include Elbit Systems Ltd, STREIT Group, General Dynamics Corporation, INKAS Armored Vehicle Manufacturing, BAE Systems, The Raytheon Company, Rheinmetall Defence, Lockheed Martin, Textron Inc., International Armored Group, Krauss-Maffei Wegmann GmbH & Co. KG, and Oshkosh Corporation. General Dynamics Corporation had the largest share of the Armored Vehicle Market in terms of sales and revenue in 2018.

RECENT HAPPENINGS IN THE MARKET

• In May 2015, Rheinmetall AG, PolskaGrupaZbrojeniowa SA, Obrum, the company's subsidiary, signed a cooperation agreement to develop a new 6X6 army amphibious car for the Polish army.

• In April 2015, BAE Systems implemented an upgrade to the Active Damping System for the CV90 Fighter Car, thereby increasing its agility by reducing the vehicle's pitch acceleration by approximately 40%. In December 2014, the company also announced that it had received a $ 1.2 billion contract from the US Army. USA For multipurpose armored vehicles.

DETAILED SEGMENTATION OF THE GLOBAL ARMORED VEHICLE MARKET INCLUDED IN THIS REPORT

This research report on the global armored vehicle market has been segmented and sub-segmented based on the system, product, end user, and region. 

By system

• Drive systems
• Motor
• Ballistic armor
• Ammunition management systems
• Turrets
• Fire control systems (FCS)
• Countermeasures systems
• Weapons
• Systems command and control (C2)
• Observation and visualization systems
• Helmets/frames
• Navigation systems
• Power Systems

By Product

• Defense armored vehicles
• Armored Personnel Transport Vehicles (APC)
• Lightly Protected Vehicles (LPV)
• infantry Combat Vehicles (IFV)
• Mine Resistant Ambushes (MRAP)
• Main Battle Tanks (MBT)
• Truck tactics
• Others
• Commercial armored vehicles
• Limousines
• Buses/vans
• Sedans
• SUVs
• Others

By End User

• Commercial
• Defense

By Region

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa