Military Vehicle Electrification Market Analysis And Forecast To 2032: By Technology (Hybrid Electric Vehicles, Fully Electric Vehicles), By Platform (Combat Vehicles, Support Vehicles, Unmanned Armored Vehicles), By Mode of Operation (Manned Vehicles, Au

Military Vehicle Electrification Market Analysis And Forecast To 2032: By Technology (Hybrid Electric Vehicles, Fully Electric Vehicles), By Platform (Combat Vehicles, Support Vehicles, Unmanned Armored Vehicles), By Mode of Operation (Manned Vehicles, Autonomous/Semi-Autonomous Vehicles), By Application (Power Generation, Cooling Systems, Energy Storage Systems, Traction Drive Systems, Power Conversion, Transmission Systems), And By Region

The global Military Vehicle Electrification Market was valued at 2.8 billion in 2022 and it is anticipated to grow up to USD 14.6 billion by 2032, at a CAGR of 18.0% during the forecast period.

Military vehicle electrification is the process of converting a traditional military vehicle to an electric vehicle. This can be done by replacing the internal combustion engine with an electric motor, or by installing a hybrid system that uses both an electric motor and a traditional engine.

There are a number of benefits to military vehicle electrification. Electric vehicles are more efficient than traditional gasoline-powered vehicles, meaning that they use less fuel and emit fewer greenhouse gases. They also tend to be quieter, which can be advantageous during military operations. Electric vehicles also have lower maintenance costs, since there are no oil changes or tune-ups required.
Global Military Vehicle Electrification Market Scope and Report Structure
Market Trends and Drivers
The increase in demand for lithium-ion batteries for military vehicles is expected to propel the growth of the military vehicle electrification market. Over the years, lithium-ion batteries have been widely used in military applications such as tactical radios, thermal imagers, ECM, ESM, and portable computing. The usage of lithium batteries is expected to further expand to heavy-duty platforms, such as military vehicles, boats, shelter applications, aircraft, and missiles, in coming years. For instance, in July 2021, the U.S. Department of Defence invested $1.65 million in NanoGraf Corporation, a US-based company that manufactures and sells lithium-ion batteries. The investment aims to give U.S. military troops better portable power for the gear they need to use in a safe and efficient manner. NanoGraf will create silicon anode-based lithium-ion technology that is compatible with all portable batteries in order to achieve a runtime increase of 50–100% over conventional graphite anode lithium-ion cells. Therefore, increasing demand for lithium-ion batteries for military vehicles is driving the growth of the military vehicle electrification market.
Market Restraints & Challenges
The key restraints and challenges in Military Vehicle Electrification market are:

1. High cost of electric vehicles: The cost of electric vehicles is still high as compared to traditional petrol or diesel vehicles. This is a major challenge for the widespread adoption of electric vehicles in the military.

2. Limited range: The range of electric vehicles is still limited as compared to traditional petrol or diesel vehicles. This is a major challenge for the widespread adoption of electric vehicles in the military.

3. Lack of infrastructure: There is a lack of infrastructure for charging electric vehicles. This is a major challenge for the widespread adoption of electric vehicles in the military.

4. Limited battery life: The battery life of electric vehicles is still limited as compared to traditional petrol or diesel vehicles. This is a major challenge for the widespread adoption of electric vehicles in the military.
Global Military Vehicle Electrification Market Segmental Overview

The report analyses the global Military Vehicle Electrification Market based on technology, platform, mode of operation, application, and Region.

Global Military Vehicle Electrification Market by Technology

Based on the technology, the Military Vehicle Electrification Market is divided Hybrid Electric Vehicles, and Fully Electric Vehicles. Of these, the hybrid electric vehicle segment registered significant revenue in 2022. The hybrid military vehicle refers to a vehicle that can work with fuel and battery. These hybrid vehicles store energy during braking and decelerating by converting kinetic energy to electricity. The military vehicle can be operated manned, autonomous/ semi-autonomous. Electrification systems are used in combat, support, and unmanned armored vehicles in power generation, cooling systems, energy storage, traction drive systems, and power conversion. Furthermore, increased preference for the presence of dual systems to operate as per convenience has forecasted Hybrid Military vehicles to dominate the Technology segment of the Global Military Vehicle Electrification Market in the coming years. An increase in the concerns over the damage caused by military machinery over the environment has resulted in a 1.7% increase in the use of Fully Electric technology in 2019 as compared to the duration of 2014-2018 by the defense sectors of developed countries like the US, France, and Japan.

Global Military Vehicle Electrification Market by Platform

By platform, the industry is bifurcated into combat vehicles, support vehicles, and unmanned armored vehicles. The requirement of military vehicle electrification in combat and support vehicles, are expected to be in a similar range during the forecast period. The importance of providing logistics to the soldiers in the war zone and increased demand for vehicles that can operate in tougher climatic conditions has forecasted Support Vehicles to dominate the Platform segment of the Global Military Vehicle Electrification Market in the coming years. The lowering of defense budgets by developing nations has resulted in increased demand for military vehicles that have low maintenance and operating cost. This has resulted in a 1.3% increase in demand for Combat vehicles that operate on electric machinery in the second decade of this century. The increased preference for remotely operated robots has resulted in a 2.8% increase in demand for the electrification of UAVs in 2019 as compared to the duration of 2015-2018 by the global defense sector.

Global Military Vehicle Electrification Market by Mode of Operation

Based on mode of operation, the industry is categorized into LoManned Vehicles, and Autonomous/Semi-Autonomous Vehicles. Based on operations, the autonomous/semi-autonomous military vehicle segment is projected to grow at the highest CAGR during the forecast period. The requirement of autonomous vehicles that help in reducing human loss and increasing capabilities are helping the growth of the market for Autonomous/semiautonomous military vehicles. Increased use of the remotely operated vehicle in the war zone has forecasted Autonomous vehicles to dominate the Operation segment of the Global Military Vehicle Electrification Market in the coming years. An increase in demand for military vehicles that work as an alternative for humans has resulted in a 1.7% increase in demand for Semi-autonomous vehicles in the second decade of this century by the global defense sector. The absence of technological infrastructure in most of the countries has resulted in a 3.1% increase in demand for Manually Operated Electric Military Vehicle by the defense sector of countries like China, South Korea, and Israel.

Global Military Vehicle Electrification Market by system

Based on system, the Military Vehicle Electrification Market is divided into Credit Power Generation, Cooling Systems, Energy Storage Systems, Traction Drive Systems, Power Conversion, and Transmission Systems. Based on systems, the power generation segment is projected to grow at the highest CAGR during the forecast period. Growing demand for power systems due to the integration of new technologies and increasing power requirements in the vehicles are projected to increase the growth of the military vehicle electrification market. Increased demand for fuelling stations by the defense sector has forecasted the Power Generation System to dominate the System segment of the Global Military Vehicle Electrification Market in the coming years. Growing demand for a military vehicle that can cover a long distance with efficiency has resulted in a 3.1% increase in demand for Energy Storage Systems for Military Vehicles in 2020 as compared to the duration of 2014-2019. An increase in preference for a Hybrid Machinery that performs the conversion of energy from one source to another has resulted in a 1.1% increase in demand for Power Conversion Systems in Military Vehicle Electrification in the second decade of this century.
Geographical Analysis of Global Military Vehicle Electrification Market

Region-wise, it is studied across North America, Europe, Asia Pacific, and the Rest of the World. The Europe region is estimated to account for the largest share of the Military vehicle electrification market in 2022. The, owing to increased investments in Military vehicle electrification technologies by countries in this region. Ministry of defense in the European countries are involved in the development of technologically advanced military vehicles and the procurement of new to increase their fleet size. Well-established and prominent manufacturers of Military vehicle electrification systems in this region include Bae systems (Uk), Leonardo Spa (Italy), Qinetiq(Uk) and Arquus (France).
Major Players in the Global Military Vehicle Electrification Market
Market players are focusing on strategic collaborations to enhance their product offerings. Some prominent participants in the global Military Vehicle Electrification Market include Arquus, BAE Systems, Inc., General Motors (GM Defense), Leonardo S.p.A., Oshkosh Corporation, Polaris Industries Inc., QinetiQ Group, Singapore Technologies Engineering Ltd, Textron Inc. (Howe & Howe), and Thales CommonBond, Inc. among others.
COVID-19 Impact:
The COVID-19 pandemic significantly impacted the automobile sector. Lockdowns and travel restrictions throughout the world resulted in the closure of factories affecting everything from supply chain and operations to capital investment, financing, and long-term strategy. The epidemic increased the pressure on vehicle electrification technology manufacturers to change their business models as the sector dealt with a financial downturn and an uncertain timescale. Although the crisis has left a significant financial hole and hampered various new vehicle programs, including EVs, the automobile industry's drive toward electrification remains strong. On the other hand, increased demand for cost-effective solutions and the growing trend of electrification of commercial vehicles and fleets are expected to provide lucrative opportunities for worldwide market advancement during the forecast period.
Recent Developments:

In 2021, General Motors, a major American automaker, had revealed plans to introduce electric automobiles designed for personal usage, in the next years
In January 2021, Elbit Systems Ltd., an international high technology corporation engaged in a wide range of homeland security, defense, and commercial applications, signed a tank and armored vehicle contract with the Asia Pacific government. The company will supply the Sabrah light tank, a tracked or wheeled light tank based on the tracked ASCOD platform, and the Pandur II eight-wheel drive vehicle as a prime contractor for the three-year initiative.
In February 2021, Bharat Forge, an engineering and technology company, collaborated with the international aerospace and technology conglomerate Paramount Group to combine skills, technologies, and expertise to develop armored vehicles in India.
In February 2021, American Rheinmetall Vehicles, LLC, a subsidiary of Rheinmetall AG, and L3Harris Technologies, an American technology company, defense contractor, and information technology services provider signed a partnership agreement. The partnership aimed to develop an Optionally Manned Fighting Vehicle (OMFV) for the U.S. Army. This vehicle replaced the Bradley Infantry Fighting Vehicle (IFV), a tracked fighting vehicle designed to move scouts with armor protection.
In 2020, CATL, a Chinese EV battery manufacturer, is extending its relationships with Coach B.V. & VDL Bus in the Netherlands and Quantron AG in Germany to advance commercial vehicle electrification in Europe by improving local services and product solutions. Such partnerships, mergers, and acquisitions have created an environment between all contemporaries to employ ideas and innovation for enhanced manufacturing and technologies.
In March 2022, Otokar, a Turkish bus and military vehicle manufacturing company, expanded its presence in the Asia Pacific. The firm displayed its COBRA II tactical armored vehicle and ARMA 66 wheeled armored vehicle at the Defense Services Asia expo in Kuala Lumpur, Malaysia.




Frequently Asked Questions
Q1. How big is the Alternative Lending Platform market?

Ans. The global Military Vehicle Electrification Market was valued at 2.8 billion in 2022 and it is anticipated to grow up to USD 14.6 billion by 2032, at a CAGR of 18.0% during the forecast period.

Q2. What is the Military Vehicle Electrification Market growth rate?

Ans. The growth rate of the Military Vehicle Electrification Market is 18.0%

Q3. Which region holds a major market share for the market?

Ans. North America holds a major market share of the Military Vehicle Electrification Market in 2021.

Q4. Which segment accounted for the largest Military Vehicle Electrification Market share?

Ans. By system, the Power Generation segment accounted for the largest Military Vehicle Electrification Market share.

Q5. Who are the key players in the Alternative Lending Platform market?

Ans. The global Military Vehicle Electrification Market report includes players such as Arquus, BAE Systems, Inc., General Motors (GM Defense), Leonardo S.p.A., Oshkosh Corporation, Polaris Industries Inc., QinetiQ Group, Singapore Technologies Engineering Ltd, Textron Inc. (Howe & Howe), and Thales CommonBond, Inc. among others.

Q6. What are the factors driving the Military Vehicle Electrification Market growth?

Ans. The major factors driving the growth of the market are the Enhancing land-based electrification capabilities can also imply taking a step toward autonomous or semi-autonomous operations and better situational awareness via upgraded sensors.

Q7. What are the key growth strategies of Military Vehicle Electrification Market players?

Ans. The key growth strategies of Military Vehicle Electrification Market players are product launch and product approval.

Q8. Which region will provide more business opportunities for the Military Vehicle Electrification Market during the forecast period?

Ans. The Asia-Pacific region will provide more business opportunities for the Military Vehicle Electrification Market during the forecast period.

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