Analysis by Platform (Combat Vehicles, Combat Support Vehicles, and Others); by Movement (Wheeled, and Tracked); by Role (Attack, Reconnaissance, and Support); by End-User (Military, and Civilian); and by Armor (Heavy, Medium, and Light Armor Vehicle) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
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The global armored vehicle market is estimated to garner a revenue of ~USD 30 billion by the end of 2033 by growing at a CAGR of ~6% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~USD 18 billion in the year 2022. The growth of the market can be attributed to the increasing spending on defense, which spends a large percentage of that amount on the manufacturing or importing of armored vehicles to make the defense system robust for any major or minor combat situation. Furthermore, the rising use of combat vehicles worldwide for suppressing military and civilian unrest is also estimated to flourish the market growth over the forecast period. According to the United States Government Accountability Office, defense spending amounted to ~USD 714 billion in 2020 and more than USD 730 billion in FY 2021.
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Global armored vehicle market trends such as, rising terrorism and anti-national activities have led to an increased demand for such vehicles, for protection from both domestic and international threats, and are estimated to influence the growth of the market over the forecast period. It is estimated that there are around 90,000 armored vehicles in use currently across the globe. The main armored vehicle for bigger military units is the tank, whereas further military kinds include amphibious landing vessels, infantry fighting vehicles, and others. As of 2021, Egypt became the country to have the highest number of military combat tanks, which sums up to around 4000.
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~6% |
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Base Year Market Size (2022) |
~ USD 18 Billion |
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Forecast Year Market Size (2033) |
~ USD 30 Billion |
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Regional Scope |
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Growth Drivers
Growing Threat of Terrorism - It is estimated that over 20,000 people died owing to the terrorist-related activities in 2019.
With the increasing audacity of terrorist groups, the use of armored vehicles is bound to increase and is expected to boost the armored vehicles market in the forecasted period. When a country owns a huge number of armored vehicles, it shows the power owned by the country to the world and escalates its reputation on a global scale.
Increment in Organized and Riot Crime – There has been an increase in the riot crime cases across the globe, and it is anticipated to boost the growth of the global armored vehicle market. For instance, it was observed that in India, ~51,500 cases of riots were registered in 2020, an increase of ~5,000 cases from 2019.
Growing Advancement and Advent of Unmanned Vehicles - According to data, over the course of the missions, more than 130 US Air Force, Army, Navy, and Marine Corps EOD soldiers were killed in Iraq.
Increased Use in Private Security – According to statistics, over 1 million people were employed in private security in the U.S.
Challenges
The global armored vehicle market is segmented and analyzed for demand and supply by end-user into military and civilian. Out of these sub-segments, the military segment is estimated to gain the largest market share over the projected time frame. The growth of the segment can be attributed to the increasing geopolitical issues, acts of terrorism, and military spending, followed by the increasing global budget on defense. The military, also known as the armed forces, is described to be the largest group of international ambassadors since it has the highest responsibility to show. The military is a highly organized group that deals with multiple missions, whether they are national or international. For instance, the world military expenditure crossed over USD 2000 billion in 2022. Additionally, the military has the highest number of armored vehicles, backed by the escalated export/import volumes of tanks and other armored vehicles. For instance, in 2022, Ukraine imported 240 T-20 tanks from Poland and nearly 150 M133 armored personnel carriers from the United States.
The global armored vehicle market is also segmented and analyzed for demand and supply by armor into heavy, medium, and light armor vehicle. Out of these, the heavy armor vehicle segment is anticipated to hold the largest market size over the forecast period owing to its highly utilization in the defense system. Moreover, heavy armor vehicles have the capacity to include multiple types of weapons in a single vehicle. Tanks are the most common example of heavy armor vehicles, and they are used in the military at a higher scale. Germany is known to produce and sell a higher number of the main battle tank (MBT), Hence, the country is very popular with foreign armies. In addition, these tanks provide protection from the artillery ammunition that is further anticipated to boost the segment’s growth in the market. Furthermore, these vehicles provide excellent protection against suspicious attackers. For instance, it has been observed that it takes only 6 seconds for attackers to complete their task. Hence, with the help of heavily armed vehicles, their users are provided with sufficient time to realize that they are under attack and can plan accordingly.
Our in-depth analysis of the global armored vehicle market includes the following segments:
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By Platform |
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By Movement |
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By Role |
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By End-User |
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By Armor |
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The North America armored vehicle market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The growth of the market can be attributed to the fact that the United States is the country with the highest spending on defense and military in the world. Furthermore, in the announced Defense Budget of 2023 by the United States Department of Defense, an estimated USD 773 billion will be spent on defense in total, with USD 12.6 billion to modernizing army and marine corps fighting vehicles. The United States is quite developed when it comes to its tank force since it has the world’s largest tank force. In 2020, the United States was observed to have around 5000 tanks in the active position and a stock of approximately 2000 in reserve. Additionally, it has the most advanced tanks in the world which are M1 Abrams Tanks. Hence, such factors are estimated to hike the market growth in the region over the forecast period.
General Dynamics Corporation
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: Rising spending on global military across the globe is the major factor driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~6% over the forecast period, i.e., 2023 – 2033.
Ans: High costs of acquisition and maintenance are estimated to be the growth-hindering factors for market expansion.
Ans: The market in the North America region is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are BAE Systems plc, Oshkosh Defense, LLC, Rheinmetall Group, Krauss-Maffei Wegmann GmbH & Co. KG, Hyundai Rotem Co., Ltd., Nexter group KNDS, Craft Machine Inc., Lenco Industries, Inc., Lockheed Martin Corporation, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by platform, movement, role, end-user, armor, and by region.
Ans: The military segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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