Armored Vehicles Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Application (Defense (Armored Personnel Carriers, Infantry Fighting Vehicle, Light Protected Vehicle, Others), Commercial (SUV, Luxury, Others)), And By Geography - Forecasts From 2023 To 2028

  • Published : Aug 2023
  • Report Code : KSI061612946
  • Pages : 132

The armored vehicle market is projected to witness a compound annual growth rate of 3.29%, growing to US$22.371 billion by 2028 from US$17.831 billion in 2021.

Armed combat vehicles with armour are protected against IEDs, missiles, weapons, shrapnel, bullets, and projectiles, among others. The advancement of military vehicle technology and improvements in automotive, electronics, material science, and weapons will accelerate market expansion.

The industry is seeing the introduction of next-generation vehicles with active protection systems, reactive armour technology, programmable ammunition, sophisticated autoloaders, and others. For instance, in September 2022, Larsen and Toubro showcased an 8*8 defense armored vehicle, a wheeled amour fighting vehicle, in a Defexpo in December 2022, in Gandhinagar, Gujarat.

Drivers:

  • Rising defense budget

Countries like China, India, Australia, South Korea, Singapore, and Japan are spending heavily on purchasing new armored vehicles to replace their aging fleets that have existed for more than 30 years due to the rising geopolitical tensions in the area. The industry is projected to expand because of the increased emphasis on protecting soldiers from potential dangers. The need for individual armored vehicles is also predicted to grow as company security awareness rises, leading to new introductions and advancements in the market. For instance, the first hybrid electric JLTV (Joint Light Tactical Vehicle) was unveiled in January 2022 by Oshkosh Defense, LLC, which develops military vehicles, mobility systems, and technological solutions.

Various developing countries are investing a significant sum of their GDP in the upgradation and making their military more powerful. The government of India set aside 5.94 lakh crores in the budget of 2023-24 for the defense segment, a jump of 13% in value from the previous year. Rs 1,62,600 crore will be allocated to just modernization & infrastructure development in the defense industry, which includes using higher-quality guns, tanks, and various armored vehicles. Similarly, various other governments are also allocating a major share of their budget for developing their defense.

Market Developments:

Furthermore, investments and funding by key firms in this market are also expected to fuel its growth. In the upcoming years, improvements, including increased fuel efficiency and cutting-edge sensors, are expected to boost market expansion. For instance,

  • The German-based multinational business HENSOLDT announced the upgrading of its multipurpose self-protection system in November 2021. HENSOLDT focuses on sensor technologies for protection and surveillance missions in the security, defense, and aerospace sectors. The Multifunctional Self-Protection System 2.0 is designed to maximize the number, weight, and dimension of components. The new laser rider improves danger detection and directional solutions.
  • Otokar, a Turkish company situated in Sakarya that produces military vehicles, set out in March 2022 to increase its market share in the Asia Pacific region. At the Defence Services Asia exhibition in Kuala Lumpur, Malaysia, the company showed COBRA II tactical armored vehicles and ARMA 66-wheeled armored vehicles. The increasing expenditure on the defense segment and the surging need for armored vehicles by various politicians and company officials will boost the armored vehicle market in the coming years.

Application in Defense

Heightened geopolitical tensions across regions have resulted in a growing focus on defense and national security. As countries seek to protect their interests, there is an increased demand for armored vehicles that can effectively operate in various challenging environments and provide superior protection to military personnel. For instance, the Russia-Ukraine war is one of the major conflicts of the 21st century, marked by Russia's annexation of Crimea and subsequent armed conflict in eastern Ukraine, resulting in significant casualties, displacement, and geopolitical tensions. Border security and counter-terrorism operations have gained prominence globally.

Armored vehicles are crucial in securing borders, conducting surveillance, and supporting operations against terrorist threats. The need for specialized vehicles capable of operating in challenging terrains and providing enhanced protection in these contexts has spurred the growth of the defense segment in the armored vehicle market.

Regional Insights.

The armored vehicle market by geography is divided into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. The growing defense spending and VIP movements, coupled with the presence of major armored vehicle manufacturers, are driving the armored vehicle market growth in the Asia Pacific region.

Indian Market Insight:

The increasing VIP movements, coupled with the surge in defense spending of the Indian government, have provided a positive outlook to the market demand for armored vehicles in India. For instance, according to police records, in 2022, the number of VVIPs who visited Visakhapatnam stood at 1,143, signifying an increase of 83.5% compared to 623 VVIPs visited in 2021. According to the Ministry of Defense, the Defense budget for 2023-2024 witnessed a 13% increase compared to 2022.

Besides growing government spending, various collaborations between the government and major armored vehicle manufacturing companies are further paving the way for future market growth. For instance, in July 2022, Tata Advance System Limited delivered Quick Reaction Fighting Vehicle-Medium, which would enhance the Indian army's operational capabilities during war-like situations.

Armored Vehicles Market Scope:

 

Report Metric Details
Market Size Value in 2021 US$17.831 billion
Market Size Value in 2028 US$22.371 billion
Growth Rate CAGR of 3.29% from 2021 to 2028
Base Year 2021
Forecast Period 2023 – 2028
Forecast Unit (Value) USD Billion
Segments Covered Application, and Geography
Regions Covered North America, South America, Europe, Middle East and Africa, Asia Pacific
Companies Covered International Armored Group, Lockheed Martin Corporation, Thales Group, General Dynamics Corporation, BAE Systems, Denel Vehicle Systems, Oshkosh Defense, LLC, Rheinmetall AG, Elbit Systems Ltd., INKAS Armored Vehicle Manufacturing
Customization Scope Free report customization with purchase

 

Market Segmentation:

  • By Application
    • Defense
      • Armored Personnel Carriers
      • Infantry fighting vehicle
      • Light protected vehicle
      • Others
    • Commercial
      • SUV
      • Luxury
      • Others
  • By Geography
    • North America
      • United States
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • UK
      • Germany
      • France
      • Italy
      • Spain
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • UAE
      • Israel
      • Others
    • Asia Pacific
      • China
      • India
      • South Korea
      • Taiwan
      • Thailand
      • Indonesia
      • Japan
      • Others

Frequently Asked Questions (FAQs)

Armored Vehicle Market was valued at US$17.831 billion in 2021.
The armored vehicle market is projected to reach a market size of US$22.371 billion by 2028.
The global armored vehicle market is projected to grow at a CAGR of 3.29% over the forecast period.
The advancement of military vehicle technology and improvements in automotive, electronics, material science, and weapons will accelerate armored vehicle market growth.
North America is expected to hold a significant share of the armored vehicle market.

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Data

2.3. Validation

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. ARMORED VEHICLES MARKET, BY APPLICATION

5.1. Introduction

5.2. Defense 

5.2.1. Armored Personnel Carriers

5.2.2. Infantry Fighting Vehicle

5.2.3. Light Protected Vehicle

5.2.4. Others

5.3. Commercial

5.3.1. SUV

5.3.2. Luxury

5.3.3. Others

6. ARMORED VEHICLES MARKET, BY GEOGRAPHY

6.1. Introduction

6.2. North America

6.2.1. By Application

6.2.2. By Country

6.2.2.1. USA

6.2.2.2. Canada

6.2.2.3. Mexico

6.3. South America

6.3.1. By Application

6.3.2. By Country

6.3.2.1. Brazil

6.3.2.2. Argentina

6.3.2.3. Others

6.4. Europe

6.4.1. By Application

6.4.2. By Country

6.4.2.1. Germany

6.4.2.2. France

6.4.2.3. United Kingdom

6.4.2.4. Spain

6.4.2.5. Others

6.5. Middle East and Africa

6.5.1. By Application

6.5.2. By Country

6.5.2.1. Saudi Arabia

6.5.2.2. UAE

6.5.2.3. Israel

6.5.2.4. Others

6.6. Asia Pacific

6.6.1. By Application

6.6.2. By Country

6.6.2.1. China

6.6.2.2. India

6.6.2.3. South Korea

6.6.2.4. Taiwan

6.6.2.5. Thailand

6.6.2.6. Indonesia

6.6.2.7. Japan

6.6.2.8. Others

7. COMPETITIVE ENVIRONMENT AND ANALYSIS

7.1. Major Players and Strategy Analysis

7.2. Emerging Players and Market Lucrativeness

7.3. Mergers, Acquisitions, Agreements, and Collaborations

7.4. Vendor Competitiveness Matrix

8. COMPANY PROFILES

8.1. International Armored Group 

8.2. Lockheed Martin Corporation

8.3. Thales Group

8.4. General Dynamics Corporation

8.5. BAE Systems

8.6. Denel Vehicle Systems

8.7. Oshkosh Defense, LLC

8.8. Rheinmetall AG

8.9. Elbit Systems Ltd.

8.10. INKAS Armored Vehicle Manufacturing


International Armored Group

Lockheed Martin Corporation

Thales Group

General Dynamics Corporation

BAE Systems

Denel Vehicle Systems

Oshkosh Defense, LLC

Rheinmetall AG

Elbit Systems Ltd.

INKAS Armored Vehicle Manufacturing