Armored Vehicles Procurement and Upgrade Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 6.66 Billion |
| Market Size (2029) | USD 8.19 Billion |
| CAGR (2024 - 2029) | 4.23 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Armored Vehicles Procurement and Upgrade Market Analysis
The Armored Vehicle Procurement And Upgrade Market size is estimated at USD 6.66 billion in 2024, and is expected to reach USD 8.19 billion by 2029, growing at a CAGR of 4.23% during the forecast period (2024-2029).
With the ever-increasing need for national and regional security, countries such as India, the UK, France, and the US are anticipated to be the primary centers in the market studied. Growing military expenditure of these countries is expected to help in this regard by giving freedom to the militaries to spend huge amounts for the procurement of these vehicles in order to satisfy the increasing demand.
Countries with vast land-based borders are emerging as lucrative markets for armored vehicles. The procurement of land-based vehicles is increasing, particularly in Asia-Pacific and Europe. It is due to the growing political tensions between the neighboring countries and increasing hostile activities in the regions. In addition, these factors are increasing the need for incorporating the latest technologies into the land vehicles. It, in turn, is a major driver for upgrade and retrofit activities.
The demand for upgrading existing armored vehicles will be triggered by the development of weapon systems, communication, and other new materials related to vehicle protection and armory. It is expected to generate market opportunities in the area of armor upgrades and retrofitting.
Armored Vehicles Procurement and Upgrade Market Trends
The Infantry Fighting Vehicle Segment to Dominate Market Share
The demand for IFVs increased in the recent past from armies worldwide due to the requirement for vehicles with high firepower. IFVs are less expensive and easier to maintain than MBTs. Also, IFVs are designed to include higher mobility than MBTs. In addition, IFCs also provide personnel protection like APCs with greater firing capabilities, and thus, they are used as substitutes for APCs.
Driven by their growing popularity, there is an increase in the procurement and upgrades of IFVs in recent times. For instance, the UK Army is in the process of modernizing its armored vehicles with Ajax (Armoured cavalry) and Boxer (mechanized infantry) vehicles. Nasmyth Group Limited won a contract to provide precision machined and fabricated components for the Boxer program. Ajax is a fully digitalized, advanced land vehicle that delivers transformational change in the UK army's future armored fleet. The Ajax vehicle system offers enhanced lethality, mobility, survivability, all-weather intelligence, surveillance, target acquisition, and recognition capabilities. In 2022, Ajax vehicle was tested for noise and vibrations, and the first round of deliveries of vehicles is planned for 2023.
Similarly, in August 2023, the Polish Government announced a partnership between the Polish Armaments Agency (AA) and the Polish Armaments Group (PGZ) to deliver 400 'Polonised' Kia Light Tactical Vehicles (KLTVs). Moreover, the Polish Armaments Group (PGZ) also gave the contract to Huta Stalowa to deliver wheeled infantry fighting vehicles (IFVs) with comprehensive logistics and training packages. Such procurement and upgrade requirements are expected to increase the revenues for the segment in the years to come.
Asia-Pacific is Projected to Dominate the Market During the Forecast Period
In terms of geography, the Asia-Pacific region accounted for the highest market share in 2023. The region is also projected to witness the highest CAGR during the forecast period, driven by the increasing demand from countries like China and India, among others.
China's production capacity is advancing in almost every category of ground systems, like armored personnel carriers, assault vehicles, artillery systems and pieces, air defense artillery systems, and main and light battle tanks. China North Industries Corporation (Norinco) is focusing on increasing the production and sales of domestically manufactured armored vehicles for the past few years. These vehicles require an update to extend their lifespan.
In addition, India is also increasing its armored vehicle strength due to its issues with land-border-sharing countries. A significant focus is on the modernization of its aging armored vehicle fleet. For instance, in March 2021, Mahindra Defence Systems (MDS) won a USD 127.4 million contract from the Indian Ministry of Defence (MoD) to deliver 1,300 Armoured Tactical Vehicles (LSV) for the Indian Army. Mahindra's Armoured Tactical Vehicles will be utilized as a medium of carriage for machine guns, automatic grenade launchers, and anti-tank guided missiles.
Similarly, in December 2021, Australia awarded a USD 1 billion contract to Hanwha Defense to deliver 30 self-propelled howitzers and 15 armored ammunition resupply vehicles and military vehicles for the Australian Army. Moreover, in July 2023, the Australian Army awarded a USD 6 billion contract to Hanwha Defense, where it selected Hanwha's "Redback" IFV over Rheinmetall's rival "Lynx" infantry Fighting Vehicle.
Armored Vehicles Procurement and Upgrade Industry Overview
The armored vehicle procurement and upgrade market is fragmented, with many global and local players competing with their manufacturing, MRO, and upgrade capabilities. General Dynamics Corporation, BAE Systems plc, Rheinmetall AG, Textron Inc., and Elbit Systems Ltd. are some of the prominent players in the market.
The aging fleet of armored vehicles in Asia-Pacific, the Middle East, and Africa gave the necessary opportunities for the local players in these regions to develop their capabilities, helping them gain significant shares in the local markets. The countries now can produce their own 3rd and 4th generation MBTs and other armored vehicles locally. In such a competitive environment, the global players are compelled to improve their policies and delivery promises to remain major players outside the US and European Union (EU), where they enjoy higher revenues. Also, in the coming years, global players may cut down on prices to compete with local manufacturers.
Armored Vehicles Procurement and Upgrade Market Leaders
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General Dynamics Corporation
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Rheinmetall AG
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BAE Systems plc
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Textron Inc.
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Elbit Systems Ltd.
*Disclaimer: Major Players sorted in no particular order
Armored Vehicles Procurement and Upgrade Market News
- May 2023: Elbit Systems Ltd. was awarded a contract under the British Army's Project Vulcan to maintain and operate the Ground Manoeuvre Synthetic Trainer system (GMST), the Boxer armored vehicles, and Challenger 3 tanks. The contract includes a training management system with high-fidelity driver trainers and cabins for turret and armament variants.
- May 2023: Czech MoD awarded a USD 2.2 billion contract to BAE Systems plc to deliver 246 CV90 Mk IV infantry fighting vehicles, and the Slovakia government ordered 152 CV90 Mk IV vehicles. The CV90 vehicle will replace BVP-1 IFV vehicles.
Armored Vehicles Procurement and Upgrade Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Challenges and Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Vehicle Type
5.1.1 Armored Personnel Carrier (APC)
5.1.2 Infantry Fighting Vehicle (IFV)
5.1.3 Mine-resistant Ambush Protected (MRAP)
5.1.4 Main Battle Tank (MBT)
5.1.5 Other Vehicle Types
5.2 Geography
5.2.1 North America
5.2.1.1 United States
5.2.1.2 Canada
5.2.2 Europe
5.2.2.1 United Kingdom
5.2.2.2 France
5.2.2.3 Germany
5.2.2.4 Russia
5.2.2.5 Rest of Europe
5.2.3 Asia-Pacific
5.2.3.1 China
5.2.3.2 India
5.2.3.3 Japan
5.2.3.4 South Korea
5.2.3.5 Australia
5.2.3.6 Rest of Asia-Pacific
5.2.4 Latin America
5.2.4.1 Brazil
5.2.4.2 Mexico
5.2.4.3 Rest of Latin America
5.2.5 Middle East & Africa
5.2.5.1 United Arab Emirates
5.2.5.2 Saudi Arabia
5.2.5.3 Turkey
5.2.5.4 South Africa
5.2.5.5 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 General Dynamics Corporation
6.2.2 Rheinmetall AG
6.2.3 BAE Systems plc
6.2.4 Textron Inc.
6.2.5 Elbit Systems Ltd.
6.2.6 RUAG International Holding Ltd.
6.2.7 KNDS N.V.
6.2.8 Oshkosh Corporation
6.2.9 THALES
6.2.10 The CMI Group, Inc.
6.2.11 FNSS Savunma Sistemleri A.Ş.
6.2.12 IVECO S.p.A
6.2.13 BMC Otomotiv Sanayi ve Ticaret A.Ş.
6.2.14 Streit Group
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Armored Vehicles Procurement and Upgrade Industry Segmentation
An armored vehicle is an armed land vehicle protected by armor, generally combining operational mobility with offensive and defensive capabilities. Armored vehicles can be wheeled or tracked, depending on the type.
The armored vehicle procurement and upgrade market provides insights into the procurement of military armored vehicles, along with maintenance, repair, and overhaul services and the upgrades and retrofits that are done to these armored vehicles. The addition of new technology or features to older systems/subsystems, as a retrofit, is considered under upgrades. Upgrades also cover the replacement of parts/systems/subsystems with newer generation models. Anti-aircraft, self-propelled artillery, light armored vehicles, reconnaissance vehicles, and light utility vehicles are considered in the other vehicle types of the segment.
The armored vehicle procurement and upgrade market is segmented by vehicle type and geography. By vehicle type, the market is segmented into armored personnel carrier (APC), infantry fighting vehicle (IFV), mine-resistant ambush protected (MRAP), main battle tank (MBT), and other vehicle types. The report also covers the market sizes and forecasts for the armored vehicle procurement and upgrade market in major countries across different regions. For each segment, the market size is provided in terms of value (USD).
| Vehicle Type | |
| Armored Personnel Carrier (APC) | |
| Infantry Fighting Vehicle (IFV) | |
| Mine-resistant Ambush Protected (MRAP) | |
| Main Battle Tank (MBT) | |
| Other Vehicle Types |
| Geography | ||||||||
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Armored Vehicles Procurement and Upgrade Market Research FAQs
How big is the Armored Vehicle Procurement and Upgrade Market?
The Armored Vehicle Procurement and Upgrade Market size is expected to reach USD 6.66 billion in 2024 and grow at a CAGR of 4.23% to reach USD 8.19 billion by 2029.
What is the current Armored Vehicle Procurement and Upgrade Market size?
In 2024, the Armored Vehicle Procurement and Upgrade Market size is expected to reach USD 6.66 billion.
Who are the key players in Armored Vehicle Procurement and Upgrade Market?
General Dynamics Corporation, Rheinmetall AG, BAE Systems plc, Textron Inc. and Elbit Systems Ltd. are the major companies operating in the Armored Vehicle Procurement and Upgrade Market.
Which is the fastest growing region in Armored Vehicle Procurement and Upgrade Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Armored Vehicle Procurement and Upgrade Market?
In 2024, the Asia Pacific accounts for the largest market share in Armored Vehicle Procurement and Upgrade Market.
What years does this Armored Vehicle Procurement and Upgrade Market cover, and what was the market size in 2023?
In 2023, the Armored Vehicle Procurement and Upgrade Market size was estimated at USD 6.38 billion. The report covers the Armored Vehicle Procurement and Upgrade Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Armored Vehicle Procurement and Upgrade Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Armored Vehicles Procurement & Upgrade Industry Report
Statistics for the 2024 Armored Vehicles Procurement & Upgrade market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Armored Vehicles Procurement & Upgrade analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
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