Armoured Fighting Vehicles Market Forecasts to 2030 – Global Analysis By Type (Armored Personnel Carrier (APC), Infantry Fighting Vehicle (IFV), Mine-Resistant Ambush Protected (MRAP), Main Battle Tank (MBT) and Other Types), By Application (Military, Com

Armoured Fighting Vehicles Market Forecasts to 2030 – Global Analysis By Type (Armored Personnel Carrier (APC), Infantry Fighting Vehicle (IFV), Mine-Resistant Ambush Protected (MRAP), Main Battle Tank (MBT) and Other Types), By Application (Military, Commercial and Other Applications) and By Geography

According to Stratistics MRC, the Global Armoured Fighting Vehicles Market is accounted for $24.1 billion in 2023 and is expected to reach $36.1 billion by 2030 growing at a CAGR of 5.9% during the forecast period. The Armoured Fighting Vehicles (AFV) Market encompasses the industry focused on the development, manufacturing, and distribution of military vehicles designed for the protection and offensive capabilities of ground forces. AFVs, such as tanks and armored personnel carriers, serve as vital assets in modern warfare, providing enhanced protection, mobility, and firepower. Their advantages lie in shielding personnel from enemy threats, enabling manoeuvrability on the battlefield, and bolstering mission success while minimizing soldier casualties.

According to the US Congressional Budget Office (CBO), the total acquisition costs for the US Army’s ground combat vehicles are forecasted to average about USD 5 billion per year through 2050, of which USD 4.5 billion for procurement and USD 0.5 billion for RDT&E.

Market Dynamics

Driver

Rising incidence of asymmetric warfare across the globe

Asymmetric conflicts often involve unconventional and guerrilla-style tactics, where insurgents or non-state actors employ hit-and-run strategies and ambushes. In such scenarios, AFVs become essential for providing both offensive capabilities and enhanced protection for military personnel, making them crucial tools for counterinsurgency operations. The demand for agile and well-armored vehicles that can navigate difficult terrains and withstand unconventional threats has increased, prompting military forces to invest in modern AFVs. This trend drives growth in the AFV market, with an emphasis on adaptability and improved defensive capabilities.

Restraint

Occurrence of mechanical and electrical failure

These failures can lead to operational downtime, compromise mission readiness, and escalate maintenance costs. In the context of military operations, reliability is paramount, and any technical issues can put the safety of personnel and the success of missions at risk. Addressing these failures requires advanced diagnostics, robust maintenance procedures, and skilled personnel, all of which add to the overall lifecycle costs of AFVs. Consequently, these reliability concerns pose a considerable challenge for both manufacturers and military operators, influencing procurement decisions and necessitating ongoing innovation in the industry.

Opportunity

Military modernization plans across the globe

As countries aim to enhance their defense capabilities, they prioritize the acquisition of technologically advanced AFVs to meet evolving security challenges. These modernization efforts often include the replacement or upgrade of existing armored fleets, driving demand for cutting-edge, highly capable vehicles that offer improved mobility, firepower, and protection. This trend provides an advantageous environment for AFV manufacturers to secure contracts and collaborations, fostering innovation and growth in the market as they strive to meet the diverse and increasingly sophisticated requirements of military forces worldwide.

Threat

Hardware and software malfunctions

AFVs rely on complex systems that integrate advanced technology, including sensors, communication systems, and control software. Malfunctions in these critical components can compromise the vehicle's operational readiness and the safety of personnel. These issues can lead to costly maintenance, reduced mission effectiveness, and, in worst-case scenarios, endanger the lives of troops. To address this threat, manufacturers must invest in robust quality control, rigorous testing, and ongoing software updates to ensure the reliability and resilience of AFV systems, ultimately maintaining the confidence of military customers and sustaining market competitiveness.

Covid-19 Impact

The COVID-19 pandemic had a notable impact on the Armoured Fighting Vehicles (AFV) market. It disrupted global supply chains, causing production delays and increasing costs due to lockdowns and restrictions. Military budgets in some regions were reallocated to address pandemic-related issues, affecting defense procurement plans. Furthermore, as governments grappled with economic challenges, defense spending came under scrutiny, potentially leading to delays or reductions in AFV acquisitions. However, the pandemic also highlighted the importance of military preparedness, potentially driving investments in advanced AFVs as nations seek to bolster their security capabilities in a post-COVID world, presenting both challenges and opportunities in the market.

The Main Battle Tank (MBT) segment is expected to be the largest during the forecast period

The Main Battle Tank (MBT) segment is expected to have a lucrative growth. As heavily armored, heavily armed, and highly mobile vehicles, MBTs are the backbone of ground warfare, offering superior offensive capabilities and unmatched protection for military personnel. Their versatility in a wide range of terrains and combat scenarios makes them indispensable assets for modern armed forces. MBTs continue to be a focal point for defense modernization efforts globally, with countries upgrading their existing fleets and developing next-generation MBTs to meet evolving security challenges, presenting both a significant market demand and an area of constant innovation within the AFV sector.

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

The military segment is anticipated to witness the fastest CAGR growth during the forecast period. As the primary end-users, they significantly influence market dynamics through procurement decisions, setting the standards for AFV performance, protection, and mobility. Military modernization initiatives worldwide have accelerated the demand for technologically advanced AFVs to bolster national defense capabilities. Armed forces rely on these vehicles to ensure operational effectiveness, enhance troop safety, and address diverse security challenges. Collaborations with AFV manufacturers and extensive field testing are commonplace, contributing to ongoing innovations in the sector.

Region with largest share

During the forecast period, it is expected that the North American Armoured Fighting Vehicles market will continue to hold a majority of the market share. It hosts a robust defense industry with a high demand for technologically advanced AFVs to support its military operations. The region is characterized by significant investments in modernization and the development of next-generation AFVs to address evolving security challenges. In particular, the United States, as a major player in the global defense sector, drives innovation and sets trends in AFV technology. The presence of numerous defense contractors and research facilities ensures a competitive market landscape, making North America a vital hub for AFV development and procurement, both for domestic use and exports.

Region with highest CAGR

Asia Pacific is projected to have the highest CAGR over the forecast period. Asia Pacific is a burgeoning hub in the Armoured Fighting Vehicles (AFV) market. The region's escalating geopolitical tensions, territorial disputes, and ongoing military modernization efforts have fuelled a substantial demand for advanced AFVs. Nations like China and India are investing heavily in upgrading their armored fleets, while Southeast Asian countries are focusing on enhancing their defense capabilities. The dynamic market in Asia Pacific attracts global defense manufacturers and spurs innovation in AFV technology. As a result, the region plays a pivotal role in driving the growth and competitiveness of the AFV market, with a focus on addressing diverse security challenges unique to the region.

Key players in the market

Some of the key players in Armoured Fighting Vehicles Market include BMC Otomotiv Sanayi ve Ticarest AS, Denel SOC Ltd., Elbit Systems Ltd., FNSS Savunma Sistemleri A.Ş., General Dynamics Corporation, Hanwha Corporation, Mitsubishi Heavy Industries Ltd., Nexter Group, Oshkosh Corporation, Patria Group, Rheinmetall AG and Textron Inc.

Key Developments

In March 2023, Australian and German officials signed an agreement to cooperate on the procurement of the new combat reconnaissance vehicles, based on the Boxer family of armored fighting vehicles and equipped with a 30-millimeter gun. The deliveries will start in 2025.

In December 2022, Japan selected Patria-built armored modular vehicles (AMV) to replace the Type-96 8X8 wheeled armored personnel carriers of the Japan Ground Self-Defense Force.

Types Covered
• Armored Personnel Carrier (APC)
• Infantry Fighting Vehicle (IFV)
• Mine-resistant Ambush Protected (MRAP)
• Main Battle Tank (MBT)
• Other Types

Applications Covered
• Military
• Commercial
• Other Applications

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
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 2021, 2022, 2023, 2026, and 2030
- 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