ARMORED VEHICLE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Market Size and Trends

The Global Armored Vehicle Market is estimated to be valued at US$ 28.45 Bn in 2024 and is expected to reach US$ 42.21 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.8% from 2024 to 2031.

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The rise can be attributed to increasing defense spending across countries amid geopolitical tensions. Several government initiatives to upgrade armed forces with improved protective systems will also drive demand. The armored vehicle market is expected to witness significant growth due to rising threats from extremists and militants. More countries are investing in armored vehicles like tanks, armored personnel carriers, and combat support vehicles to enhance security. Adoption of advanced technologies like active protection systems, composite armors, and upgraded weaponry in vehicles is expected to provide lucrative opportunities.

Geopolitical tensions fuel demand

With ongoing conflicts and instability across several regions, countries around the world continue to significantly invest in their armed forces and protect assets at risk. The proliferation of non-state militant groups and terrorist organizations operating across borders has made national security a top priority. For many nations, upgrading and expanding their fleets of armored vehicles is crucial to effectively protect borders as well as military and peacekeeping operations deployed in conflict zones. The terrain optimization and survivability features of modern armored vehicles make them indispensable tools for missions conducted in hazardous terrain and hostile environments. With countries actively scaling up their defense budgets to deter cross-border threats, major procurements of technologically advanced armored vehicles remain an integral part of these investments.

For instance, in February 2021, American Rheinmetall Vehicles, a subsidiary of Rheinmetall AG, and L3Harris Technologies, an American technology company, defense contractor, and information technology services provider signed a partnering agreement to develop the next-generation Optionally Manned Fighting Vehicle (OMFV) for the U.S. Army, which will replace the Bradley infantry fighting vehicle.

Revolution in technology and capability

Over the years, there has been a revolution in military land technology with cutting-edge innovations completely transforming modern armored vehicles. Advanced armor composites, active protection systems, networked C4ISR capabilities are now allowing unprecedented levels of survivability, mobility and lethality. Vehicles can now be equipped for a vast array of missions with versatile and customizable platform architectures. Militaries seek to gain decisive edge through vehicles integrated with lastest sensors, command and control interfaces, high-energy weapons. This has prompted upgrading of existing fleets as well as new product development. Continuous modernization remains crucial as adversaries also gain capabilities. Technology leaders continuously invest heavily in R&D to integrate newest materials, propulsion and digital systems - giving platforms multi-domain flexibility. Novel platforms promise revolutionary capabilities, attracting defense modernization budgets and development orders from early adopter nations.