| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 9.52 Billion |
| Market Size (2030) | USD 12.51 Billion |
| CAGR (2025 - 2030) | 5.62 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Europe Armored Fighting Vehicles Market Analysis
The Europe Armored Fighting Vehicles Market size is estimated at USD 9.52 billion in 2025, and is expected to reach USD 12.51 billion by 2030, at a CAGR of 5.62% during the forecast period (2025-2030).
Due to the COVID-19 pandemic, industries were badly affected in Europe, and many countries in the region were on the verge of a recession that would exceed the economic depression that followed the 2008 financial crisis. Since the ramifications of such a situation for the defense sector could be catastrophic, the governments of the nations in the region mitigated the impact on the defense sector at an early phase. The market showcased strong recovery post covid due to increased procurement of armored vehicles and growing defense expenditure.
The Russia-Ukraine conflict has altered the European defense landscape. With NATO countries supplying large caches of weapons and other defense equipment to Ukraine, the demand has witnessed a new high due to the continuation of the war and the use of sophisticated weaponry on both sides.Thus, to defend political and defense interests, EU and NATO member states acted collaboratively and aggressively. A progressive and strategic increase in the European defense budget and the launch of infantry support projects are expected to create demand for sophisticated new-generation ammunition with advanced capabilities, thereby driving the market in focus during the forecast period.
Europe Armored Fighting Vehicles Market Trends
Main Battle Tank Segment is Projected to Lead the Market During the Forecast Period
The main battle tank (MBT) segment dominates the market, and it is expected to continue its domination during the forecast period. The segment is propelled by the increasing procurements of tanks by various countries, like Hungary, Russia, Poland, France, and Germany. Countries in the region, like France and Germany, are collaborating to produce the next generation of MBTs. Moreover, the ongoing war between Russia and Ukraine is one of the driving factors for procuring more combat vehicles. The demand is expected to be generated from countries, like the United Kingdom, Italy, Finland, France, Germany, Croatia, Poland, Sweden, and Turkey, in the coming years. For instance, In March 2022, Germany started testing their first action-ready models of Leopard 2 A7V two years ago. In February 2022, the first 30-unit group of the most advanced main battle tanks developed in this country joined the military ranks. All these factors are expected to help the market's growth in the region during the forecast period.
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Russia is the Largest Market for Armored Fighting Vehicles in Europe
Russia has the largest fleet of armored fighting vehicles in Europe. Russia is Europe's top defense spender, with a defense budget of USD 65.9 billion in 2021. The continuous conflict with Ukraine and cross-border disputes with NATO nations increased the demand for defense equipment, weapons, and associated ammunition. As Russia maintains its military occupation of Ukraine, the Russian military may face major weaponry shortages by the end of the year. Recent sanctions against Russia and successful counter-offensives by Ukrainian troops have resulted in rapid declines in its stockpiles of artillery shells and armored vehicles.Russia is aggressively developing the BMPT armored vehicle, which is meant to carry a variety of missiles, light cannons, and machine guns capable of engaging a variety of targets, including enemy tanks and ground personnel.The presence of manufacturers, such as Kurganmashzavod and KAMAZ, which are actively spending in the research and development of existing product lines is also driving the market.
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Europe Armored Fighting Vehicles Industry Overview
The Europe armored fighting vehicles market is moderately fragmented in nature with a presence of several players holding significant shares in the market. The prominent players in the market are BAE Systems PLC, Rheinmetall AG, General Dynamics Corporation, KNDS N.V., and Iveco Defence Vehicles. The majority of armored fighting vehicles' fleet is present in nearly 3-4 countries; therefore, a need arises to equip the other European countries with advanced fighting vehicles. Many countries are using the older generation fleet. Collaborations for the development of new fighting vehicles are anticipated to propel the growth of the market in these countries. For instance, Germany's Krauss-Maffei Wegmann GmbH and France's Nexter Systems have collaborated to produce next-generation battle tanks that would replace the Leopard 2 Tanks of Germany. Such partnerships may help boost the growth of the players' revenues.
Europe Armored Fighting Vehicles Market Leaders
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BAE Systems PLC
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Rheinmetall AG
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General Dynamics Corporation
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Iveco Defence Vehicles
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KNDS N.V.
- *Disclaimer: Major Players sorted in no particular order
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Europe Armored Fighting Vehicles Market News
March 2023, Australian and German officials signed an agreement to cooperate on the procurement of the new combat reconnaissance vehicles, based on the Boxer family of armored fighting vehicles and equipped with a 30-millimeter gun. The deliveries will start in 2025.
March 2022, The British Army began work on its next-generation main battle tank or MBT, the Challenger 3 upgrade. The 148 Challenger 3s, to be upgraded from the existing Challenger 2s at the cost of around USD 1.3 billion, will be expected to ensure these capabilities remain intact until at least 2040.
Europe Armored Fighting Vehicles 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 study covers the upgrades and the procurement of armored vehicles in the European region.
The European armored fighting vehicles market is segmented by type and country. By type, the market is segmented into armored personnel carriers (APC), infantry fighting vehicles (IFV), main battle tanks (MBT), and others. The other vehicles include mine-resistant ambush-protected (MRAP) vehicles, armored cars and armored self-propelled guns, anti-aircraft, self-propelled artillery, light armored vehicles, and light utility vehicles. By country, the market is divided into the Germany, United Kingdom, France, Spain, Russia and Rest of Europe. The report offers the market size and forecasts by value (USD Billion) for all the above segments.
| Type | Armored Personal Carrier (APC) |
| Infantry Fighting Vehicle (IFV) | |
| Main Battle Tank (MBT) | |
| Other Types | |
| Country | Germany |
| United Kingdom | |
| France | |
| Russia | |
| Spain | |
| Rest of Europe |
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Europe Armored Fighting Vehicles Market Research FAQs
How big is the Europe Armored Fighting Vehicles Market?
The Europe Armored Fighting Vehicles Market size is expected to reach USD 9.52 billion in 2025 and grow at a CAGR of 5.62% to reach USD 12.51 billion by 2030.
What is the current Europe Armored Fighting Vehicles Market size?
In 2025, the Europe Armored Fighting Vehicles Market size is expected to reach USD 9.52 billion.
Who are the key players in Europe Armored Fighting Vehicles Market?
BAE Systems PLC, Rheinmetall AG, General Dynamics Corporation, Iveco Defence Vehicles and KNDS N.V. are the major companies operating in the Europe Armored Fighting Vehicles Market.
What years does this Europe Armored Fighting Vehicles Market cover, and what was the market size in 2024?
In 2024, the Europe Armored Fighting Vehicles Market size was estimated at USD 8.98 billion. The report covers the Europe Armored Fighting Vehicles Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Europe Armored Fighting Vehicles Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Europe Armored Fighting Vehicles Industry Report
Statistics for the 2025 Europe Armored Fighting Vehicles market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Armored Fighting Vehicles analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
