The Armored Vehicles MRO Market is expected to grow from US$5.830 billion in 2025 to US$7.923 billion in 2030, at a CAGR of 6.33%.
MRO stands for Military Maintenance, Repair, and Overhaul, and it relates to the upkeep, repair, and overhaul of armored vehicles employed in military operations. This involves component and system maintenance, as well as examination and repair of the vehicle's armor plate. It also covers the replacement and repair of old or broken parts, as well as the testing and examination of the vehicle for any performance difficulties. Therefore, the increasing investment in military equipment is one of the primary reasons for the surge in market demand in the next five years.
The primary factor driving market demand is the increasing deployment of armored vehicles in the security and military industries, which has resulted in a significant need for MRO for armored vehicles. Additionally, one of the primary factors driving growth in the armored vehicle MRO market is increased worldwide military spending in tandem with economic expansion and significant GDP growth. Furthermore, another important aspect supporting the armored vehicle MRO market is an increase in expenditure and creativity, which has resulted in new introductions and the growth of market dynamics. With increased demand and significant expansion in the military and defence industries, market leaders have invested in armored vehicles to provide novel and more secure solutions.
Moreover, the improvement in the military budget and increase in investments by the governments of countries in the same region have provided a positive market outlook to the demand for main battle tanks. For instance, in April 2022, the Biden administration approved an additional budget of US$29 billion for defence spending during the fiscal year 2022. The overall budget for the year stood at US$782 billion, which signified a growth of 5.6% over 2021’s defense spending.
Based on vehicle type, the armored vehicle MRO market is segmented into infantry fighting vehicles, main battle tanks, armored personnel carriers, multirole armored carriers, and others. The growing emphasis on providing better protection for VIPs during their movement, coupled with the surge in the number of millionaires, is a major driving factor that is propelling the demand for armored personnel carriers. Further, main battle tanks constitute one of the key components for modern armies, owing to their cross-country mobility and weapon mounting. Such armored vehicle types provide protection to their platoon and allow them to face a wide range of dangers on the battlefield.
The growing concern to improve national security has made countries improve their military fleet, including improving their battle tank strength. For instance, according to the 2021 annual report, namely “Military and Security Development Involving People’s Republic of China” issued by the Department of Defense of the United States, China had 6,300 battle tanks in 2021, which represented a significant increase of 8.6% in the country’s battle tank fleet in comparison to the 5,800 recorded in 2019.
The market is further bifurcated into China, India, Japan, South Korea, and others. The region is expected to show considerable growth due to the growing military expenditure in the country, which is propelling the development of new armored vehicles. Further, armored vehicle MRO service providers in the region are expected to keep the demand for these services in check. For example, according to data from Invest India, the defence expenditure of India for FY2022-23 was valued at about USD 70.6 billion, thus observing a 4.4% increase since the past year and constituting a sizeable portion of the GDP.
This increasing trend in military expenditure is thus expected to drive the acquisition of armored vehicles in the defence sector, which will, in turn, drive the demand in the armored vehicle MRO market. Further, the government of the country has also set ambitious goals with respect to the defence sector in India. The Ministry of Defence in the country has set an aim to achieve a turnover of over US$25 billion by 2025 in defence and aerospace manufacturing. Such visions set by the government are thus further expected to drive the manufacture and development of such vehicles in the country, thus driving demand for their maintenance, repair, and operations.
Armored Vehicles MRO Market Segmentation: