Market Trends of Military Truck Industry
Heavy Military Trucks Accounted For the Largest Share of the Market
The most important characteristics of military logistics trucks are dependability, high transport efficiency, tactical mobility, and protection. Heavy trucks are capable of traversing virtually any terrain, including deep snow off-road and soft wet terrain. With a maximum payload capacity of approximately 1 ton, these trucks are capable of tow weight of approximately 3 tons.
The growing military budgets globally have led to the acquisition of various types of military hardware. In this context, the heavy military trucks, play a crucial role as the main carrier for several types of weapons, sensors and communication platforms which has aided their procurement. For instance, in May 2023 the Defense Resources Agency of Lithuania forged an agreement with the German truck manufacturer Daimler Trucks for the purchase of 230 vehicles, including Arocs, and 141 vehicles, including Zetros. The total value of the contract is estimated to be around EUR 216 million (USD 236 million). The new contract is intended to strengthen the defense forces of the armed forces of Lithuania. The service procured specialised Arocs vehicles with all the required parts and Zetros vehicles with cranes. The delivery of the trucks is planned to take place in the years 2023 to 2030. Thus, growing spending on defense sector and rising procurement of military trucks drive the market growth in coming years.
North America is Anticipated to Dominate the Market During the Forecast Period
North America held the largest share in the military truck market and continue its domination during the forecast period. The main reason for the higher revenue share of the region is the high demand for military transportation systems from the US. In 2022, the US Army maintained both its regular and reserve personnel strength at approximately the same level as in 2021. The Army’s 2022 staffing targets were 485,000 for the regular Army 336,000 for the National Guard and 189,500 for the Army Reserve. Additonally, the deployment of US troops in various regions of the world, due to the US engaging in various global conflicts, is one of the major factors driving the growth of revenues from the region. These military camps and command units demand continuous land-based logistics and unit resupply missions, due to which the country is procuring military trucks on a large scale. Since February 2022, the US Department of Defense (DoD) has deployed or redeployed more than 20,000 additional troops to Europe in the wake of the Ukraine crisis.
Innovation is also a prime driver of market growth as manufacturers are consistently investing towards the R&D of advanced military trucks to enhance the level of safety and capabilities of the current generation. For instance, in January 2023, the US Army selected four companies to build new tactical truck prototypes. Mack Defense, Navistar Defense, Oshkosh Defense, and a team made up of American Rheinmetall Vehicles and GM Defense will build prototypes for a Common Tactical Truck after the US Army awarded them deals worth a cumulative USD 24.3 million. Such contracts are envisioned to bolster the market prospects for the region during the forecast period.
