Armored Vehicle Market size is anticipated to reach USD 30 Billion by the end of 2033, growing at a CAGR of 6% during the forecast period, i.e., 2023-2033. In the year 2022, the industry size of armored vehicle was USD 18 Billion. 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.
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.
Growth Drivers
Challenges
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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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End-user (Military, Civilian)
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.
Armor (Heavy, Medium, Light Armor Vehicle)
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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North American Market Forecast
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’s modification contract was recently won by Land Systems, a division of General Dynamics Corporation, to procure replacement parts for the Light Armored Vehicle class of vehicles, as well as the Abrams Main Battle Tank. The USD 414.7 million contract is anticipated to be finished on September 28, 2029.
BAE Systems was offered a contract of building multiple ACV-30 production-ready test vehicles (PRTVs) by the U.S. Marine Corps. To constitute these PRTVs, Marine Corps awarded USD 88 million. AVC-30 is designed in a way to increase crew protection and to reduce weight.
Author Credits: Harshita Srivastava, Saima Khursheed
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