The defense sector in most countries is the most prominent consumer of different kinds of armored vehicles. An increase in defense funds by emerging countries reflects positively on the growth of the global armored vehicles market. The market is driven primarily by the rising military expenditures across emerging and developed economies and is on the verge of a technological transformation. Integration of compact, lightweight technologically advanced electronic and photonic components for enhancing the operational efficiency of armored vehicles is gaining increased popularity.
Moreover, law enforcement agencies across the globe are also leading to an increased demand for armored vehicles with the aim of safeguarding human lives, undertaking critical missions, and securing VIPs. Transparency Market Research estimates that the global armored vehicles market will expand at a healthy CAGR of 5.2% over the period between 2015 and 2023. The market held an opportunity of US$22.73 bn in 2014 and is expected to rise to US$35.49 bn in 2023.
Active Mine Protection to Remain Dominant but Inter-operable Communication to Give Most Promising Returns
In terms of technology used across armored vehicles, the segment of active mine protection held the largest share of over 24% in the global armored vehicle market in 2014. The segment is expected to hold an equivalent share in the overall market by 2024 as well. However, the demand for inter-operable communication technology is expected to expand at the fastest CAGR of 5.5% over the period between 2015 and 2023.
Development across the commercial-off-the-shelf and embedded systems sectors, the inter-operable communication technology has observed significant development in the past few years and is expected to gain an increased level of adoption in future armored vehicles.
Fuelled by Swelling Military Investments, Demand for Armored Vehicles in Asia Pacific to Surge
Accounting for a share of over 40%, North America held the leading position in the global armored vehicle market in 2014. Vast defense funds, rising investment in the R&D of modern military vehicles, and the high concentration of some of the world’s most reputable and largest defense contractors will help the region retain its dominance in the next few years as well.
Europe held the second-largest position in the market in 2014. Owing to reductions in military budgets in most European countries in the past few years, the market for armored vehicles in the region is expected to witness expansion at a sluggish pace, bringing about a nominal reduction in its share in the global market in 2023.
Asia Pacific acquired ranked third in the global armored vehicle market in 2014. The market for armored vehicles in Asia Pacific is expected to expand at the fastest pace of 5.8% CAGR from 2015 to 2023 among key regional markets. Rising investments in the fields of development and procurement of technologically advanced armored vehicles across several countries in the region will emerge as a highly promising growth opportunity for the global armored vehicle market in the next few years. China accounted for over half the Asia Pacific armored vehicle market in 2014 and is expected to remain the dominant market for armored vehicle in the next few years as well.
Some of the key vendors operating in the market are The Raytheon Company, INKAS Armored Vehicle Manufacturing, Krauss-Maffei Wegmann GmbH & Co. KG, STREIT Group, Oshkosh Corporation, Elbit Systems Ltd., BAE Systems plc, Lockheed Martin Corporation, Rheinmetall Defence, General Dynamics Corporation, and International Armored Group.
Military vehicles require robust capabilities to overcome threats from both internal damages and external sources. The deployment of military troops in extreme environmental scenarios has led to the investments in improving the vehicle competencies in terms of technology. Various rugged systems and devices are constantly being integrated in the military vehicles worldwide specific to different regional applications. Moreover, the development of landmines and other improvised explosive devices (IEDs), which pose major challenges to military vehicles, have amplified the concerns to protect the soldiers’ lives in the battleground. These factors boost the demand for armored vehicles from the military organizations globally. Additionally, the advent of technology and improvement of multirole vehicles have also influenced the demand for armored vehicles among various law enforcement agencies worldwide. Considering the aforementioned factors, the global armored vehicles market is estimated to be growing at a significant pace.
Furthermore, the security challenges across the globe have lead to the generation of demand for armored commercial vehicles from civilians. The market for commercial armored vehicles is currently growing at a steady pace, however, it is expected to undergo a substantial boost during the forecast period and lead to the expansion of the overall armored vehicles market. This factor is estimated to develop new opportunities for the global armored vehicles manufacturers. On the contrary, the market for armored vehicles encounters major hindrances such as lack of standardized regulatory norms in Asia Pacific (APAC) and Rest of World (RoW). However, the impact of this restraint is analyzed to contract over the forecast period as the governments in different countries are gradually establishing regulations for armored vehicle manufacturing in all applications sectors namely, military, law enforcement and commercial.
In this report on the global armored vehicles, the market has been segmented based on technology, type and geography. The study highlights current market trends and provides the market size of 2014 and forecast from 2015 to 2023. The report covers the current market scenario for armored vehicle and highlights future trends that could affect the demand for the same. The global armored vehicles market is analyzed to observe a steady growth from 2015to2023 at a decent CAGR.
Based on geography, the market has been segmented into North America, Europe, Asia Pacific and Rest of the World. On the basis of segmentation by type, the market has been categorized into light protected vehicles, infantry fighting vehicles, armored personnel carriers, main battle tanks, armored amphibious vehicles, mine resistance ambush protected (MRAP) vehicles and others. Additionally, the market has been segmented on the basis of technology which includes active protection system, inter operable communication, modular ballistic armor, electric armor, situational awareness, active mine protection and vehicle information integration. In addition to the market size of 2014, the forecasted market values from 2015 to 2023 have been provided in the report.
The report includes, analysis of macro and micro economic factors driving and restraining the growth of the global armored vehicles market. Moreover, the market attractiveness analysis provided in the report, highlights the major areas for future investments in the global armored vehicles industry. The report is intended to help armored vehicles suppliers and original equipment manufacturers in understanding the current and upcoming opportunities in the global armored vehicles market and formulating their business strategies accordingly. In addition, the report is expected to benefit the governments, military organizations and other buyer communities.
This study includes the profiles of 10 major players in the global armored vehicle market and the strategies adopted by them to sustain in the competition. The key participants in the global armored vehicles market include Oshkosh Corporation, BAE Systems plc, Rheinmetall Defence, Lockheed Martin Corporation, Elbit Systems Ltd., The Raytheon Company, Krauss-Maffei Wegmann GmbH & Co. KG, General Dynamics Corporation, INKAS Armored Vehicle Manufacturing, International Armored Group and STREIT Group among others.
Global Armored Vehicle Market, 2015 – 2023: By Technology
- Active Protection System
- Inter Operable Communication
- Modular Ballistic Armor
- Electric Armor
- Situational Awareness System
- Active Mine Protection
- Vehicle Information Integration
Global Armored Vehicle Market, 2015 – 2023: By Type
- Light Protected Vehicles
- Infantry Fighting Vehicles
- Armored Personnel Carriers
- Armored Amphibious Vehicles
- Main Battle Tanks
- Mine Resistant Ambush Protected Vehicles
Global Armored Vehicle Market, 2015 – 2023: By Application
- Law Enforcement
Global Armored Vehicle Market, 2015 – 2023: By Geography
- North America
- Rest of Europe
- Asia Pacific (APAC)
- Rest of APAC
- Rest of the World (RoW)
- Middle East and Africa (MEA)
- Saudi Arabia
- South Africa
- Rest of MEA
- South America
- Rest of South America
- Middle East and Africa (MEA)