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 2022 To 2027

The armored vehicle market was valued at US$17.223 billion in 2020 and is expected to grow at a CAGR of 3.80% over the forecast period to reach a total market size of US$22.364 billion in 2027. Armored vehicles are protected by uranium or stainless steel and equipped with robust weapons. Armored vehicles are majorly used by the military, law enforcement, VIPs, and celebrities. Armored vehicles are used either for defense or homeland security purposes. The increasing number of border and terrorist attacks have boosted demand for armored vehicles for armored defence vehicles. Civil wars and terrorist attacks are the drivers of the market for commercial armored vehicles. Geographically, the Europe region has a significant market share owing to the government's continuous spending on the defence sector. The market of the North American region is also expected to grow owing to increasing disposable income and safety concernsin defence. Landmines are major threats to military vehicles, which boosted the demand.

The declining defence budget of developed economies and the increasing use of unmanned systems are hampering the growth of the market.  Other major challenges of the markets are high initial costs and stringent government regulations for manufacturing armored vehicles. However, the market of armored vehicles is expected to boost due to global increasing safety concerns, a rise in the demand for commercial armored vehicles, and increasing defence budgets.

Applications in the defence sector to boost growth

The increased emphasis on defending soldiers from potential threats is anticipated to fuel market expansion. Additionally, it is anticipated that increased business security awareness will increase demand for personnel armoured vehicles, giving rise to product innovations and launches in the market. For instance, Oshkosh Defense, LLC, a firm that designs military vehicles, mobility systems, and technology solutions, debuted the first hybrid-electric JLTV (Joint Light Tactical Vehicle) in January 2022.  The company's electric JLTV, which it introduced, boasted improved fuel efficiency, protected soldiers from physical harm, and provided a battery with a 30kWh capacity. Another factor that is anticipated to support market expansion is international cooperation between nations, such as the North Atlantic Treaty Organization (NATO) and the African Union (AU), to combat terrorism and uphold peace. Additionally, a number of countries are choosing the most advanced equipment to combat events like insurgencies and militant attacks, which is raising the need for armoured vehicles and fueling market expansion. More defence spending is projected to fuel market expansion, especially in the Asia Pacific region. For instance, the Indian military budget increased to INR 47,590 crores in 2022 from INR 33,253 crores in 2021 . Additionally, throughout the course of the projected period, technological advancements like improved fuel efficiency and the incorporation of advanced sensors in these armoured vehicles are anticipated to bolster market growth. For instance, the German global corporation HENSOLDT announced the update of its MSFS (Multifunctional Self-Protection System), a sensor-based framework to combat threats, in November 2021. HENSOLDT focuses on sensor technologies for safety and surveillance missions in the security, defence, and aerospace sectors. MSFS develops vehicles that can recognise and avoid newly emerging threats, including anti-tank guided missiles and laser-directed fire. The Multifunctional Self-Protection System 2.0 will also maximise assembly size, weight, and quantity. The core unit's improved computational power helps in the identification of missile and projectile attacks, while the innovative laser rider enhances directional sensitivity and threat-detecting performance. Therefore, it is anticipated that advancements like these in the defence industry will propel market expansion.

Increasing crimes and riots to accelerate market growth

Another reason boosting the market's expansion is the rise in organised crime and racial rioting in areas like the MEA, Asia Pacific, and the Americas. For instance, INKAS Armored Vehicle Manufacturing, a privately owned Canadian company that specialises in the production, security, and research of armoured vehicles,  in April 2021 revealed that it would be procuring vehicles for the US government. In order to produce top-notch armoured vehicles and fleets that would be accessible through the Advantage programme of the United States General Services Administration, the company increased its capability and domain specialization. Additionally, the rise in transnational crime and terrorism leads to warfare between different countries, which is expected to boost the need for armoured vehicles. Further, the development of armoured vehicles that are small, light, strong, highly efficient, and suited for defence activities against these threats are expected to drive the market. The Scarabee is a lightweight, tough vehicle that can locate, lock, acquire, and hit targets. It was unveiled in February 2021 by Arquus, an automotive company that supplies the military and internal security forces with a portfolio of light and medium-sized wheeled armoured vehicles. It is fast, compact, robust, and exceptionally well-defended for its class vehicle. It was very critically designed to combine protection, stealth, and agility to safeguard soldiers against any attacks that they may face. Thus, the increase in terrorism and criminal activities has driven the demand and development of these vehicles, thus providing substantial growth in the market.

Key Companies & Market Share Insights

• February 2021: American Rheinmetall Vehicles, LLC, which is a subsidiary of Rheinmetall AG, signed a partnership agreement with L3Harris Technologies, an American technology company, defense contractor, and information technology services provider. The partnership was aimed at developing an Optionally Manned Fighting Vehicle (OMFV) for the US Army.
• February 2021: In order to integrate abilities, technologies, and knowledge for the creation of armoured vehicles in India, engineering and technology firm Bharat Forge partnered with the global aerospace and technology giant, Paramount Group.

COVID-19 Impact on the Armored Vehicles Market

The outbreak of the COVID-19 pandemic caused the market to slow down. This was due to the subsequent lockdowns and social distancing measures, that caused a halt in the production facilities, especially in the automotive sector. However, the ease of restrictions and resumption of these facilities is expected to drive the market.

Armored Vehicles Market Scope:

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 (MEA)
    • Saudi Arabia
    • UAE
    • Isreal
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Indonesia
    • Thailand
    • Taiwan
    • Others