Armored Vehicle Upgrade And Retrofit Market Size (2024 - 2029)

Armored Vehicle Upgrade And Retrofit Market Analysis

The Armored Vehicle Upgrade And Retrofit Market size is estimated at USD 6.54 billion in 2024, and is expected to reach USD 7.96 billion by 2029, growing at a CAGR of 4.01% during the forecast period (2024-2029).

Armored vehicles, pivotal in land combat, play dual roles in military operations, supporting offense and defense. These vehicles transport military personnel and cargo and engage in active combat, boasting weapons and armor to deflect various projectiles. They are the cornerstone of a nation's military might and are widely utilized across defense forces worldwide.

The armored vehicle upgrade and retrofit market is predominantly driven by the escalating defense budgets globally, leading to frequent upgrades to match evolving battlefield scenarios. Moreover, there is a rising appetite for cost-efficient armor solutions. In 2023, global defense spending, as highlighted by the Stockholm International Peace Research Institute (SIPRI), hit a record high of USD 2,443 billion.

Mounting global terrorism and conflicts are driving a surge in demand for cutting-edge technologies in land vehicles. With many nations facing aging armored fleets, they are increasingly turning to upgrade programs to boost efficiency, lethality, and connectivity.

However, challenges persist, especially with the high R&D costs and the swift advancements in weaponry, such as high explosive anti-tank (HEAT) warheads, which can potentially reduce the effectiveness and lifespan of armored systems. While these hurdles pose a threat to market expansion, the ongoing global efforts to modernize aging armored vehicles are poised to propel the market in the coming years.

Armored Vehicle Upgrade And Retrofit Industry Segmentation

Armored vehicles are land combat vehicles used for the transportation of different offensive and defensive operations. They are usually employed for the transportation of military personnel and cargo as well as operations in active combat.

The armored vehicle upgrade and retrofit 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 in major countries across different regions. For each segment, the market size is provided in terms of value (USD).