Armored Vehicles Market Forecasts to 2028 – Global Analysis By Platform (Combat Vehicles, Combat Support Vehicles and Unmanned Armored Ground Vehicles), System (Fire Control Systems (FCS), Armaments, Engines, Ballistic Armor and Other Systems), Mobility,

Armored Vehicles Market Forecasts to 2028 – Global Analysis By Platform (Combat Vehicles, Combat Support Vehicles and Unmanned Armored Ground Vehicles), System (Fire Control Systems (FCS), Armaments, Engines, Ballistic Armor and Other Systems), Mobility, Type, Mode of Operation, Point of Sale and By Geography

According to Stratistics MRC, the Global Armored Vehicle Market is accounted for $26.59 billion in 2022 and is expected to reach $35.83 billion by 2028 growing at a CAGR of 5.1% during the forecast period. An armoured vehicle is a defended land vehicle that combines operational mobility with offensive and defensive capabilities. Depending on the kind, armoured vehicles can be wheeled or tracked. The armoured vehicle procurement and upgrade market provides information on the acquisition of military armoured vehicles, as well as maintenance, repair, and overhaul services, as well as upgrades and retrofits performed on these armoured vehicles. Upgrades include the addition of new technology or features to outdated system, subsystems as a retrofit.

According to the Stockholm International Peace Research Institute (SIPRI) report 2021, there was a 2.6% increase in global defense expenditure in 2020 compared to 2019.

Market Dynamics:

Driver:

Defence services are increasingly using unmanned combat ground vehicles

Military forces from several nations are focused on the employment of autonomous armoured ground vehicles on battlefields to decrease losses, since these vehicles are capable of completing vital and hazardous jobs that war fighters in combat zones are now performing. Unmanned armoured ground vehicles can also communicate with third-party payloads such as interrogation arms, remote weapon stations (RWS), and reconnaissance, surveillance, and target acquisition (RSTA) systems to support combat, CBRN defence, RSTA, and route clearance missions. Thus, all of the benefits of unmanned armoured ground vehicles over manned combat vehicles have resulted in their growing acceptance by many countries' defence forces.

Restraint:

Hardware and software failures

Hardware and software failures are common in autonomous cars and systems. Even though they are developed and engineered to withstand harsh conditions, they are nonetheless subjected to a variety of obstacles like as excessive temperatures, component malfunctions, software jams, and so on. Human operators control unmanned armoured ground vehicles either through tethered modes or remotely. In certain situations, human operators may lose control of these robots, or robots may miscalculate directives, resulting in mission failures. Engineers have encountered difficulties in developing completely autonomous cars and systems since this technology is still in its early stages.

Opportunity:

Improving defence forces' ISR and target acquisition capabilities

The increasing requirement for greater surveillance of maritime and land borders is critical for defence forces, especially given the rise in terror acts throughout the world, particularly near borders. In certain circumstances, armed forces struggle to respond effectively since the reaction time between the identification of threats and their interception is extremely fast and immediate. In these circumstances, robots can be a better option to people since they can do enhanced cross-border surveillance and information collection with a faster reaction time and more precision. Robots can monitor country boundaries effectively and efficiently while continually relaying real-time data to ground stations.

Threat:

Mechanical and electrical failures in armored vehicles

Armoured vehicles are subject to mechanical strain as a result of their travel across uneven terrain, as well as logistical pressure as a result of cross-country operations. These vehicles' constant high-speed travel frequently leads in mechanical breakdown of their engines and gearbox systems. They also experience power outages, component malfunction, and part jamming, among other things. These mistakes are sometimes difficult for rescue and recovery teams to correct, resulting in grave circumstances during wartime. Furthermore, detecting damaged components or elements that cause armoured vehicles to fail might be difficult at times. As a result, armoured vehicle makers are always working to correct these flaws by designing new and novel designs employing composites and implementing modern technologies in these vehicles.

Covid-19 Impact

Because of the COVID-19 pandemic, the defence sector has faced unprecedented hurdles. Due to declining defence budgets in India, Thailand, South Korea, and other nations, the market has grown at a slower rate. Due to the pandemic, armoured vehicle manufacturers in the market experienced delays in military vehicle delivery.

The armaments segment is expected to be the largest during the forecast period

The armaments segment is estimated to have a lucrative growth, due to increased demand for remote weapon stations, anti-tank guided missile (AGTM) launchers, and other armaments, the armaments segment is expected to rise the most throughout the projection period. Moreover armaments are used all throughout the world. The engine segment market is expected to develop due to increased demand for durable and strong diesel engines. Furthermore, as a result of main battle tank modernisation programmes, demand for turbine-fuelled engines is growing. The desire for autonomous ground armoured vehicles will drive considerable expansion in command and control systems.

The unmanned segment is expected to have the highest CAGR during the forecast period

The unmanned segment is anticipated to witness the fastest CAGR growth during the forecast period, due to these autonomous vehicles can operate in high-risk environments and have the ability to conduct defence activities. As a result, increased demand for the development and deployment of these unmanned military vehicles will propel the market forward. Due to its different operational aid, fire assistance, and others, the combat support vehicle category is expected to exhibit modest market expansion throughout the forecast period.

Region with highest share:

Asia Pacific is projected to hold the highest market share during the forecast period owing to rising defence spending in India and China is expected to propel the market's growth. The need for new armoured vehicles in Asia Pacific is increasing as a result of the military's need to replace ageing armoured vehicles and deploy sophisticated armoured vehicles. Furthermore, expanding capacities of domestic manufacturing firms in India, China, and Japan are projected to accelerate market expansion. Japan's armoured vehicle sector, like that of India and China, is thriving since the government expanded testing for new armoured vehicles.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to the presence of significant manufacturers in the area, as well as considerable military budgets in the United States, has aided market expansion in North America. Furthermore, the United States Defence Department is concentrating on deploying armoured electric vehicles for efficient operating capabilities; this factor is expected to fuel market growth throughout the forecast period.

Key players in the market

Some of the key players profiled in the Armored Vehicle Market include General Dynamics Corporation, BAE Systems PLC, Rheinmetall AG, RUAG Group, Elbit Systems Ltd, Textron Inc., Oshkosh Corp, Thales Group, CMI Group, IVECO SPA, BMC, STREIT Group, Nexter KNDS Group, FNSS Savunma Sistemleri, AM General, Krauss-Maffei Wegmann GmbH & Co. KG, Hanwha Defense and Northrop Grumman Corporation

Key Developments:

In April 2021, Israel Aerospace Industries (IAI) signed a contract with Israel’s Ministry of Defense (MOD) to manufacture and supply nine Z-MAG all-terrain vehicles to the Israel Defense Forces (IDF), with an option to order 21 additional units.
In April 2021, L3Harris Technologies and American Rheinmetall Vehicles, a subsidiary of Rheinmetall AG, signed an agreement to develop the U.S. Army’s new Optionally Manned Fighting Vehicle (OMFV) to replace the Bradley Infantry Fighting Vehicle.

Platforms Covered:
• Combat Vehicles
• Combat Support Vehicles
• Unmanned Armored Ground Vehicles

Systems Covered:
• Fire Control Systems (FCS)
• Armaments
• Engines
• Ballistic Armor
• Command & Control (C2) Systems
• Countermeasure Systems
• Turret Drives
• Drive Systems
• Ammunition Handling System
• Navigation System
• Observation & Display System
• Power System
• Hulls/Frames

Mobilities Covered:
• Tracked
• Wheeled

Types Covered:
• Electric
• Conventional

Mode of Operations Covered:
• Manned
• Unmanned

Point of Sales Covered:
• OEM (Original Equipment Manufacturer)
• Retrofit

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements