Armored Vehicles Market - By Vehicle Type (Combat Vehicle, Combat Support Vehicle, Unmanned Armored Vehicle), By Propulsion Type (IC Engine, Electric), By Mobility (Wheeled, Tracked), By Sales Channel (OEM, Retrofit) & Forecast, 2023 - 2032

Armored Vehicles Market Size

Armored Vehicles Market was valued at over USD 21.7 billion in 2022 and is anticipated to grow at a CAGR of over 5% between 2023 and 2032.

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Armored vehicles are specially designed military or security transport vehicles equipped with reinforced armor plating, bulletproof glass, and advanced technologies to provide protection against various threats including gunfire, explosives, and environmental hazards. These vehicles are essential for safeguarding personnel, equipment, and goods, and they play a vital role in defense, law enforcement, and security operations. The demand for these vehicles has surged due to the unique challenges posed by densely populated cities. Urban conflict including terrorism and civil unrest has become more prevalent, necessitating armored vehicles for effective response and protection. These vehicles are crucial for crowd control, safeguarding critical urban infrastructure, hostage rescue operations, ensuring the safety of law enforcement personnel, and countering insurgent activities that often find a foothold in urban environments. Hence, the growing urbanization underscores the essential role of armored vehicles in maintaining security and order across the world. For instance, in October 2020, U.S. Special Forces used armored vehicles to rescue two American hostages who were kidnapped by terrorists in Nigeria.

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The increasing prevalence of cyber threats presents an indirect but significant challenge to the armored vehicles market. While armored vehicles are primarily designed to counter physical threats, their operation often relies on advanced technologies, which are vulnerable to cyberattacks. Cybersecurity breaches could compromise vehicle systems, affecting critical functions including communication, navigation, and weapon systems, thereby undermining the vehicles' reliability and effectiveness. Consequently, ensuring robust cybersecurity measures is paramount for safeguarding the integrity and functionality of armored vehicles.

COVID-19 Impact

The COVID-19 pandemic had multifaceted impacts on the armored vehicles industry. It disrupted global supply chains, leading to delays in production and delivery. Governments allocated resources to healthcare, affecting defense budgets. However, the pandemic also highlighted the need for rapid response and medical support, increasing the demand for versatile armored vehicles during crises. The pandemic underscored the significance of preparedness, further driving investments in armored vehicle modernization and innovations, particularly for medical and disaster relief capabilities.
Armored Vehicles Market Trends

The trend of continuous technological advancements can be witnessed in armored vehicles integrating cutting-edge technologies such as autonomous systems, improved communication, and heightened situational awareness. Modular design is on the rise, enabling adaptability for diverse mission profiles. Lightweight materials are being developed to enhance mobility without compromising security. With conflicts increasingly shifting to urban areas, armored vehicles are being designed for urban warfare scenarios. There is a growing emphasis on electrification to improve efficiency and reduce environmental impacts.

The global market is expanding, presenting export opportunities as various countries seek armored vehicles for security and military applications. The threat of Unmanned Aerial Systems (UAS) has led to the integration of anti-drone capabilities into armored vehicles. Sustainability is gaining traction, with a focus on developing more fuel-efficient and eco-friendly armored vehicles. Overall, the armored vehicles industry is evolving to meet modern security challenges, enhance versatility, and address environmental concerns, reflecting the dynamic nature of global defense and security needs.

Armored Vehicles Market Analysis

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Based on the vehicle type, the market is segmented into combat vehicle, combat support vehicle, and unmanned armored vehicle. The combat vehicle segment dominated the market in 2022 with a share of over 55%.

• The growth of combat vehicles can be attributed to several key factors. Escalating security concerns due to regional conflicts and rising geopolitical tensions propel the demand for these specialized military assets. Countries are modernizing their armed forces including combat vehicles to enhance military readiness and adapt to evolving threats. The prevalence of urban warfare necessitates combat vehicles designed for effective operation in densely populated areas.
• Technological advancements, international sales opportunities, and a focus on hybridization to address environmental concerns collectively contribute to the expanding role of combat vehicles in modern military operations and strategic defense planning. These developments enhance the versatility, sustainability, and effectiveness of combat vehicles, making them crucial assets for contemporary armed forces seeking to address evolving security challenges.

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Based on the propulsion type, the market is divided into IC engine and electric. The electric segment is anticipated to register a CAGR of over 6% through 2032.

• Environmental concerns and sustainability have become critical issues in recent years. Electric armored vehicles produce lower emissions, reducing their environmental impact, which aligns with global efforts to reduce Greenhouse Gas (GHG) emissions and combat climate change. Electric propulsion offers significant operational advantages. Electric Vehicles (EVs) are quieter than traditional armored vehicles, making them more suitable for stealth and covert operations. They also have fewer moving parts, leading to reduced maintenance costs and increased operational efficiency. Electric propulsion allows for better torque control, improving off-road mobility and enhancing the overall performance.
• The shift toward electric propulsion aligns with broader technological trends including the development of autonomous and remotely operated vehicles. Electric powertrains can be integrated seamlessly with these technologies, enabling more advanced features and capabilities. The adoption of electric propulsion in the armored vehicles market is augmented by environmental considerations, operational advantages, improved technology, and its compatibility with emerging technologies, making it a viable & attractive choice for modern defense and security needs.

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North America dominated the global armored vehicles market with a share of over 30% in 2022. North America is experiencing growth owing to increased defense spending, particularly in the U.S., which has bolstered the demand for advanced armored vehicles. Heightened concerns about domestic security and the need to modernize aging military fleets have boosted procurement. The region's critical infrastructure including transportation and utilities requires protection in an ever-changing security landscape. Additionally, technological innovations and the development of versatile armored vehicles have garnered the attention of both the military and law enforcement agencies, contributing to market expansion.

Armored Vehicles Market Share

Players operating in the armored vehicles industry focus on implementing different growth strategies to strengthen their offerings and expand their market reach. These strategies involve new product development & launches, partnerships & collaborations, mergers & acquisitions, and customer retention. These players also heavily invest in research & development to introduce innovative and technologically advanced solutions in the market. Some major players operating in the armored vehicles industry are mentioned below

• BAE Systems
• General Dynamics Corporation
• Hanwha Defense
• IVECO Defence Vehicles
• Krauss-Maffei Wegmann GmbH & Co.
• L3harris Technologies
• Oshkosh Corporation, Inc.

Armored Vehicles Industry News

• In June 2023, L3Harris Technologies and its Team Lynx partners, received a contract to design and prototype the U.S. Army’s Optionally Manned Fighting Vehicle, the XM30 Mechanized Infantry Combat Vehicle. The Lynx team also includes Textron Systems, Raytheon, Allison Transmission, and Anduril Industries. Team Lynx produced a vehicle design to build and test prototypes to increase mobility, lethality, and safety for future warfighters. The U.S. Army awarded contracts worth more than USD 700 million to two groups with a final contract expected in 2027.
• In March 2020, The U.S. Army awarded BAE Systems with a USD 339 million contract modification for the production of 48 vehicle sets of M109A7 Self-propelled Howitzer (SPH) and its companion, the M992A3 Carrier, Ammunition, Tracked (CAT) vehicle. The contract also includes post-delivery support and spare parts. The M109A7 SPH and M992A3 CAT vehicle set is a vital program enhancement for increased combat capability and sustainment of the Army’s Armored Brigade Combat Teams (ABCTs). The program offers enhanced indirect-fire artillery capabilities to the ABCTs with new technologies for power generation and survivability.

The armored vehicles market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments

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Market, By Vehicle Type

• Combat vehicles
  • Armored Personnel Carriers (APCs)
  • Armored Amphibious Vehicles (AAVs)
  • Light Protected Vehicles (LPVs)
  • Main Battle Tanks (MBTs)
  • Air defense vehicles
  • Mine-resistant Ambush Protected (MRAP)
• Combat support vehicles
• Unmanned armored vehicles

Market, By Propulsion Type

• IC engine
• Electric

Market, By Mobility

• Wheeled
  • 4x4
  • 6x6
  • 8x8
  • 10x10
  • 12x12
• Tracked

Market, By Sales Channel

• OEM
• Retrofit

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Singapore
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • GCC
  • South Africa
  • Rest of MEA