The global armored vehicle market size is projected to reach USD 26.12 billion by 2026, exhibiting a CAGR of 5.36% during the forecast period. Steady ramping up of military expenditure by countries will prove beneficial for this market, observes Fortune Business Insights™ in its report, titled “Armored Vehicle Market Size, Share and Industry Analysis, By Platform (Combat Vehicles, Combat Support Vehicles, Unmanned Armored Ground Vehicles), By Mobility (Wheeled, Tracked), By System (Engine, Drive Systems, Ballistic Armor, Turret Drives, Ammunition Handling Systems, Others) and Regional Forecast, 2019-2026”. The latest report by the Stockholm International Peace Research Institute (SIPRI) reveals that in 2019, cumulative global military spending stood at USD 1917 billion, rising by 3.6% from 2018 level.
The largest spenders, the SIPRI reports, were US, China, India, Russia, and Saudi Arabia (in that order). This increasing expenditure on the armed forces shows the intent of the major world economies in upgrading their defense forces with modern weaponry to better equip their soldiers in the battlefield, which augurs well for this market as armor for vehicles are vital in ground-level combat as well as in border patrolling activities during peacetime.
Increasing demand for armored vehicles due to the rise in the instances of cross-border conflicts and rising incidences of asymmetric warfare across the globe are major factors driving the growth of the armored vehicles market. However, the absence of major OEMs of armored vehicles in the Middle East and Asia Pacific region and the occurrence of mechanical, electrical, and other kinds of failure in armored vehicles are projected to hinder the growth of the market.
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List of Companies Profiled in the Armored Vehicle Market Report are:
- UralVagonZavod (Russia)
- Textron Inc. (the U.S.)
- Otokar, a KOC Group Company (Turkey)
- NORINCO (China)
- IVECO DEFENCE VEHICLES (Italy)
- Denel SOC Ltd (South Africa)
- Ukroboronprom (Ukraine)
- Rheinmetall AG (Germany)
- Oshkosh Corporation (the U.S)
- Krauss-Maffei Wegmann GmbH & Co. KG (Germany)
- General Dynamics Corporation (the U.S.)
- BAE Systems plc (the UK)
The report states that the market value was at USD 17.18 billion in 2018. Its other highlights include:
- Panoramic overview of the current trends in the defense industry;
- Comprehensive profiling of all the players in the market;
- Detailed analysis of the market drivers and restraints;
- Microscopic evaluation of the market segments; and
- Exhaustive examination of the regional developments influencing the market.
Intensification of Cross-Border Conflicts around the World to Accelerate Market Growth
The armored vehicle market growth trajectory is likely to get a major upward push on account of the rising intensity of cross-border tensions across the globe. For example, in Asia, tensions between India and Pakistan have always been high, even resulting in open wars in some cases. Similarly, cross-border skirmishes between India and China have become commonplace. In many other regions also such tensions have escalated in recent years.
For instance, the complex military situation in Syria and Libya has kept regions surrounding these countries in a mode of self-preservation. Moreover, historical conflicts such as the one between North Korea and South Korea have kept governments on their toes. Armored vehicles are a key component in a nation’s military arsenal as they empower armed forces to efficiently monitor border situations and deter any forthcoming attacks.
Contract Between OSHKOSH and U.S. Army to Augment Market Expansion
Oshkosh Defense, LLC, a leader in defense vehicles, components, and technologies for military announced It has signed a contract with the U.S. Army for $803.9 million with a delivery of 2,721 Joint Light Tactical Vehicles (JLTVs). The contract includes the delivery of JLTVs for the U.S. Army, U.S. Marine Corps, U.S. Air Force, and U.S. Navy alongside vehicles for the country of Montenegro via Foreign Military Sale (FMS).
The agreement between Oshkosh Defense and the U.S. Army can be a critical factor in boosting the armored vehicle market share in the forthcoming years owing to the distribution of JLTVs for multiple branches in the United States military. The delivery of light tactical vehicles will spur demand among other countries to deploy armored vehicles to strengthen their defense system. Moreover, the up-gradation of battle tanks by the U.S. Federal Government will accelerate the sales of armored vehicles in the foreseeable future. For instance, in April 2019 – Krauss-Maffei Wegmann was awarded a contract worth USD 832.0 million by the U.S. Federal Government for upgrading its 104 Leopard 2 Battle Tank. This new development will simplify the logistical footprint of the system and therefore reinforce the armored combat vehicle defense system.
Surge in Terrorist Activities to Spur Business Opportunities for the Market
The increasing disputes, terrorist activities, and wars around the world can be a vital factor for the deployment of armored vehicles. Moreover, the growing border disputes among various nations such as Syria and Iraq have led to up-gradation and modernization of the existing defense system. In addition, the rising focus of countries towards reinforcing their defense systems and deployment of advanced light protecting vehicles (LPVs), main battle tanks (MBTs), infantry fighting vehicles (IFVs), and others will augur well for the market.
However, mechanical stresses and failures in armored vehicles caused by uneven topographies will consequently restrict the growth of the market. In addition, malfunctioning and failures such as a breakdown of components, jamming of parts, power failures, and others during battlefield operations can also be a restricting factor for the armored military vehicle.
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Marketing Strategies of Key players to Maintain Strong Position
Key players in the market are emphasizing on collaborations and partnerships to get a staong foothold in the market. The manufacturing of advanced systems and components by key players to provide innovative products with cutting-edge technologies for better combat capabilities will enhance market potential. Moreover, the key players in the market are focused on R&D for the development of active protection systems, AI-based smart object recognition and tracking technology, navigation algorithms for unmanned armored vehicles, and others, which in turn will augment healthy growth of the market.
Armored Vehicle Highlights of the Report:
- Market Penetration: Comprehensive information on the product portfolios of the top players in the market.
- Product Development/Innovation: Detailed insights on the upcoming technologies, RandD activities, and product launches in the market
- Competitive Assessment: In-depth assessment of the market strategies, geographic and business segments of the leading players in the market
- Market Development: Comprehensive information about emerging markets. This report analyzes the market for various segments across geographies
- Market Diversification: Exhaustive information about new products, untapped geographies, recent developments, and investments in the market
Asia-Pacific to Showcase Impressive Growth; North America to Have Tight Grip on Market Revenue
The market growth is anticipated to be the fastest in Asia-Pacific owing to the constant threat of terrorist activities in the region. To counter these threats, countries in the region, mainly India and China, have strategically increased their budgetary allocation to the defense sector to modernize their arsenal, which bodes well for this market. In addition, the region is home to strong weapons manufacturers such as the Ordnance Factory Board in India and Mitsubishi Heavy Industries in Japan.
However, the region dominating the armored vehicle market share is expected to be North America, primarily owing to the heavy military spending by the US and massive investments in R&D activities for advanced weapons technologies and upgrading the national defense infrastructure. In 2018, the region’s armored vehicle market size was at USD 6.61 billion.
Key Players to Enter Lucrative Collaborations to Enlarge Market Share
The competitive dynamics of this market are shaped by the presence and activities of industry bigwigs such as Lockheed Martin and Textron. These companies are increasingly entering into strategic partnerships to diversify their offerings and expand their market presence regionally as well as globally.
Major Industry Developments:
- July 2019: UK-based BAE Systems and Germany-based Rheinmetall teamed up to establish a new and independent military vehicle support, manufacturing, and design joint venture in the UK. Called the Rheinmetall BAE Systems Land (RBSL), the venture aims at enhancing the manufacturing of the Boxer 8×8 for the Mechanized Infantry Vehicle Program of the British Army.
- February 2019: The Canadian arm of the US-based aerospace & defense major, General Dynamics, clinched a contract worth USD 37.2 million to provide 60 hardware kits for the Light Armored Vehicle Reset Program of the US Marine Corps. The kits will comprise of a new turret slip ring, a modern instrument panel for the driver, a driveline system, and improved power-pack.
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