May 2024 | Report Format: Electronic (PDF)
Armored Vehicle Market Growth & Trends
The global armored vehicle market size is anticipated to reach USD 44.56 billion by 2030, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 5.4% from 2023 to 2030. The growing internal and external terrorist activities across the globe are expected to drive the market demand over the forecast period. Technological advancements, such as unmanned vehicles, are expected to further fuel the market growth. For instance, in February 2021, ADASI, a reputable end-to-end solution provider in the autonomous systems industry with a presence in the MENA area, revealed an armored robotic vehicle and two new unmanned ground vehicles at the International Defense Exhibition and Conference.
The unmanned vehicles, controlled by a ground control station with a transmission range of 12 kilometers and an endurance of six to 8 hours, can travel at speeds of up to 50 kilometers per hour to provide greater firepower to the Armed Forces while decreasing the risk to troop life. Armored vehicles are protected by depleted uranium or stainless steel and are equipped with powerful weapons that combine defensive, tactical offensive and operational mobility capabilities. The development of advanced vehicles, such as unmanned armored vehicles, and AI-based smart object recognition & tracking technology used in the military sector are expected to propel market demand over the next few years.
For instance, In January 2022, Rafael, an Israeli defense technology company, unveiled its first next-generation tank powered by artificial intelligence. The advanced vehicular integrated combat systems developed by the organization are a fusion of automated technologies and battlefield sensors that can react faster than humans. It combines a vehicle’s defense and weapons and can take over combat tasks that have been given to it. The growing need to protect military recruits from land mines and fire is expected to drive the demand for armored vehicles over the next seven years. Furthermore, the demand for vehicles is increasing in the Asia Pacific and Middle East & African regions due to the constant tension among neighboring countries and internal threats from rebels.
For instance, in March 2022, the Ministry of Defense Hungary, which maintains political and civil control over the army in the country, announced that the Hungarian Armed Forces had received 40 tactical wheeled armored vehicles known as Gidran for its military from Turkey. The vehicles are 4x4 mine-resistant ambush-protected armored vehicles that Hungary’s army will use. The country has become the first European Union to permit a Turkish defense firm’s operation on its territory by accepting the Gidran for military use and constructing a production line. The major players are investing in R&D programs to develop new technologies and products.
Enhanced protection and fuel efficiency are the key aspects considered for future developments in armored vehicles. For instance, in March 2022, Rheinmetall AG, a German automotive and arms company headquartered in Düsseldorf, Germany, announced plans for a new facility in Eastern Slovakia and a significant investment in the Slovak economy. The company has invested €30 million in the project as a whole. The plant has 12,000 square meters of production lines and a 15,000 square meter test space. The new facility will be Rheinmetall’s central hub in the Slovak Republic, responsible for delivering 80% of the Ministry of Defence’s new IFVs.
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Armored Vehicle Market Report
Armored Vehicle Market Report Highlights
- The combat vehicles segment led the market in 2022 accounting for over 64% of the global revenue owing to various factors. One of the main reasons for this is the increase in defense spending by various governments worldwide to strengthen their military capabilities
- The conventional armored vehicles segment held the largest revenue share of over 96% in 2022, as these vehicles are widely used in military operations and are considered to be an essential component of a nation’s defense arsenal
- The wheeled segment led the market in 2022 accounting for over 70% of the global revenue share. The primary reason for the growth is the versatility and mobility of wheeled vehicles, making them suitable for a wide range of military operations
- The manned armored vehicles segment held the largest revenue share of over 76% in 2022. The superior protection, advanced technologies, highly skilled personnel, geopolitical tensions & conflicts, and longevity & durability are all factors that contribute to the dominance of the segment in the global market
- The OEM armored vehicles segment held the largest revenue share of over 78% in 2022. OEMs often have extensive experience designing and producing military-grade armored vehicles, allowing them to incorporate the latest technologies and innovations into their products
- The Fire Control Systems (FCS) segment held the largest revenue share of over 31% in 2022. FCS are critical components of modern military vehicles, enabling accurate targeting and effective engagement of enemy targets. The increasing use of unmanned and autonomous military vehicles has further driven the demand for FCS, as these vehicles rely heavily on advanced targeting and guidance systems to carry out their missions
