The Military Electric Vehicle Market encompasses the electrification of military ground-based platforms, which consist of hybrid-electric tactical vehicles, fully-electric logistics trucks, and unmanned ground vehicles (UGVs) that serve to improve operational effectiveness, lessen logistical dependence on fossil fuels, increase battlefield stealth and increase survivability. To address these challenges, government defence budgets are progressively stressing the electrification of military ground vehicle platforms in research, development, and procurement programs through programs such as the U.S. Department of Defence’s FY2025 Research, Development, Test & Evaluation (RDT&E) budget, whereby the majority of the budget includes funding for advanced mobility technologies and energy-efficient platforms.
Armed forces across the world are currently evaluating and developing new electric powertrains for the purpose of reducing the burden of fuel logistics and enhancing the amount of usable on-board electrical power available for UAVs (sensors, communication networks, and directed-energy systems). Furthermore, the advances in electrification will result in greater energy resiliency at forward operating bases, and this meets yet another strategic initiative to enhance military force readiness.
Military Operations Have Long Relied on Fuel Logistics; However, Many Military Operations Require Transportation of Fuel (through fuel convoys); therefore, These Operations Have Increased Expense, Risk of Being Attacked During Transit (Vulnerability), Increased Complexity (Logistical), Government Initiating the Fleet Use of Electric Vehicles as A Means to Reduce the Dependency and Exposure of Fuel during Transport Increases Operational Resiliency for Forward Operating Bases and Domestic (Home) Installations.
DoD Is Required to Meet National Zero Emission and Sustainability Mandates (The Policy Will Drive Increased Procurement for the Utilization of Electric Vehicles)/Electric and Hybrid MILITARY Vehicles Mainly Support, but are not limited to, the Military's Non-Tactical Automotive Fleet: Transport, Patrol, Maintenance, and Base Support Vehicles within ALL Armed Forces.
With Electric Drive Trains, You Are Nearly Silent in Movement (Light and Tactical Support to Stealth Operations). In Addition, By Reducing Thermal and Sound Signatures, Military Organizations Are Funding Electric Vehicles (Hybrid) for Tactical Support of Stealth Operations, Reconnaissance Missions, and Special Forces. Noise, Heat, and Vibration Reduction Provides a Distinct Tactical Advantage/Benefit.
The Defence Budgets of Governments Are Increasing the Level of Funds Directed Towards Electric Propulsion/R&D as Well as Advanced Batteries and Onboard Power Systems. The Increased Electrification Required by Future Platforms Will Require Higher Load Requirements for Sensors, Communications, Autonomous Systems, and Directed Energy Capabilities.
The military will need to deal with battery devices when it comes to extreme temperatures and the lack of forward bases that have sufficient charging capabilities, along with the Military set Standards for Battery Durability and Cyber Security, etc. There is still a lot of concern regarding power availability during long missions that are not currently supported in remote locations, and in particular, in enemy territory. However, there are also many positive opportunities because there are many countries that are looking for ways to reduce the risk of logistics for fuel and improve their energy resilience to enable silent mobility. Furthermore, Defence Electrification will allow a higher level of power available for on-board sensors, on-board communications equipment, autonomous systems, etc. Also, continued support by Governments for funding for Research, Development and Testing of Advanced Battery Technologies, Hybrid Systems and Government-approved Military Grade Power Management Solutions.
October 2025: In October 2025, Oshkosh Defence unveiled its Family of Multi?Mission Autonomous Vehicles (FMAV) at the Association of the U.S. Army (AUSA) Annual Meeting & Exposition. The FMAV portfolio includes autonomous?capable platforms designed for optional manning, automated resupply, counter?UAS, electronic warfare, and launcher missions. This represents a major step in autonomous military ground mobility, aligning with U.S. Army modernisation priorities and battlefield automation strategies.
The market is segmented by vehicle type, propulsion type, Application and geography.
Electric armoured vehicles are primarily hybrid-electric in design due to the objectives of governments to achieve a suitable balance of protection, mobility and power supply. The defence programs relating to this type of vehicle put an emphasis on the use of hybrid drivelines to allow for silent watch, mitigating acoustic and thermal signatures, as well as providing more power to the on-board electrical system supporting communications, sensors and active-protection systems. The introduction of electric propulsion into the armoured vehicle market has resulted in greater fuel efficiencies and reduced logistical requirements on fuel convoys while operating in a combat environment. Governments have also supported research initiatives that allow for testing of electric propulsion components in extreme environmental conditions where survivability, dependability and mission readiness are critical.
Electric and hybrid military vehicles are regarded for their tactical advantages, including silent mobility, stealth movement, and prolonged surveillance without engine noise and heat signatures, in combat operations. Governments pursue the electrification of military vehicles to improve operational capabilities. Hybrid vehicles are also capable of powering mission equipment while in a static position, thereby reducing fuel consumption and detection by enemy forces. The capability of electric propulsion enables rapid acceleration and more precise control over urban and complicated terrains. Defence agencies are evaluating electric systems for their applicability in combat roles. These systems are under evaluation through controlled testing and are focusing on survivability, power requirements and integration with newer battlefield technologies as well as command-and-control systems.
Due to the strong emphasis on policy and defence funding in North America, the region has been at the forefront of military vehicle electrification. The DoD's most significant push into electric and hybrid vehicles is through non-tactical fleets, base operations, and logistics. This push by the DoD is driven by federal mandates for zero-emission vehicles. In addition, Canada has developed hybrid vehicles into its Defence infrastructure to mitigate CO2 emissions while enhancing energy resilience for its military bases. R&D Programs funded by the government are focused on developing hybrid tactical platforms with stealth capability, silent mobility, and onboard power-generation capability. There are well-established and mature defence procurement systems and testing facilities in the region, as well as clear, strategic, long-term electrification plans.
South America’s military electric vehicle adoption is primarily driven by sustainability goals, cost reduction, and modernisation of non-combat fleets. Defence electrification efforts focus on logistics, transport, and base utility vehicles rather than frontline combat platforms. Government policies supporting clean transportation and domestic manufacturing indirectly support military EV adoption. Limited defence budgets slow large-scale deployment, but gradual integration continues through government procurement and pilot programs.
Many European Countries are beginning to implement militarised electric vehicles within their military strategy as part of their climate change obligations and modernisation of military capabilities. NATO Nations (e.g., Germany, France, UK) are continuing to include electric and hybrid vehicles into the logistics, patrol, and base support functions of their militaries. European Nations are looking to lower their carbon emissions, increase their fuel efficiency, and provide energy security for themselves as well as for any joint operations they undertake with other Nations. A large portion of government-supported defence research is focused on developing Hybrid Propulsion Systems, vehicle battery safety and interoperability among military vehicles of all types.
The adoption of military electric vehicles within the Middle East and Africa is in its early phases; however, the focus on sustainability and modernisation in the area's defence sectors has begun to draw interest to it. As part of their broader energy transition strategies, Gulf Cooperation Council (GCC) nations are currently considering how they can utilise electrification for their military base operations and for their support fleet operations. African nations have primarily a cost-effective approach to using military vehicles. They see electric vehicles as a solution to the shortages of fuel supplies and a means of improving their logistics operations. While there have been some government-funded pilot programs to support testing of the electric military vehicles, the state of defence infrastructure upgrades has begun the slow adoption of military electric vehicles throughout the Middle East and Africa. Harsh climatic conditions in parts of Africa are helping drive interest in testing battery performance and thermal management systems in extreme environments.
With defence modernisation rapidly evolving and the need for clean energy as a national goal, the Asia Pacific is starting to demonstrate increased interest in military electric vehicles. In particular, China, Japan, South Korea, and Australia are all looking into options for electrifying military logistics, as well as support vehicles and unmanned platforms.
List of companies
Oshkosh Defense
General Dynamics Land Systems
BAE Systems
Rheinmetall AG
GM Defense
Leonardo S.p.A.
Textron Systems
Hanwha Defense
Milrem Robotics
Elbit Systems
The Military Electric Vehicle Market shares its competitive landscape between IT leaders, which are already well-established and offer horizontal governance platforms, and specialised automotive telematics companies, which provide vertical, industry-specific solutions.
Oshkosh Defence is a U.S. military vehicle manufacturer known for tactical wheeled platforms and advanced mobility systems. The company develops hybrid and autonomous military vehicles designed for survivability, logistics support, and modern battlefield roles. Its Family of Multi?Mission Autonomous Vehicles (FMAV) portfolio showcases production?ready optional?manned and autonomous ground vehicles that support long?range precision fires, resupply, and other mission sets. Oshkosh combines robust chassis engineering with scalable autonomy technologies to meet evolving defence needs and improve operational flexibility.
General Dynamics Land Systems is a major provider of armoured and tracked military platforms worldwide. Its portfolio includes combat vehicles like Abrams tanks, Strykers, and robotic platforms, combined with modern electronic systems and autonomy?ready capabilities. GDLS is advancing next?generation mobility solutions by integrating hybrid?electric propulsion and modular designs to improve mobility, power export, and battlefield effectiveness. The company also collaborates internationally to tailor mobility solutions for specific defence requirements and enhance interoperability with allied forces’ platforms.