Armored Fighting Vehicle Market Overview
Armored Fighting Vehicle Market Size was estimated at 17.6 (USD Billion) in 2022.The Armored Fighting Vehicle Market Industry is expected to grow from 18.06(USD Billion) in 2023 to 22.77 (USD Billion) by 2032. The Armored Fighting Vehicle Market CAGR (growth rate) is expected to be around 2.61% during the forecast period (2024 - 2032).
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Key Armored Fighting Vehicle Market Trends Highlighted
The armored fighting vehicle market is witnessing a significant shift towards advanced technologies and enhanced capabilities. Key market drivers include growing geopolitical tensions, modernization and expansion of military forces, and the need for enhanced protection and mobility in warfare. The rising threat of cyberattacks and the integration of artificial intelligence in armored fighting vehicles are emerging trends.Opportunities for growth in the armored fighting vehicle market lie in exploring new technologies such as unmanned combat vehicles, hybrid-electric systems, and directed-energy weapons. Additionally, partnerships between defense contractors and technology companies are fostering innovation and driving the development of cutting-edge solutions. The market is also expected to benefit from the increasing demand for training and simulation systems as militaries focus on preparing personnel for future combat scenarios.
Armored Fighting Vehicle Market Drivers
Increasing Demand for Armored Fighting Vehicles Due to Rising Geopolitical Tensions
I chose this industry because the increasing level of geopolitical tensions and conflicts around the globe has substantially increased the need for armored fighting vehicles. Many governments and defense organizations are spending large amounts of money on acquiring and upgrading their fleets of AFVs to protect the country. They are beneficial because they provide the main means of protection and mobility for troops to operate effectively in high-risk environments and in combat.Therefore, I want to know what types of companies operate in the armored fighting vehicle industry, what their profits are, and how well the AFV market is currently performing. Reviews On the Armored Fighting Vehicle Market Industry. I expect that the market for AFVs is going to grow because demand for these vehicles is also increasing. Nations need more tanks and armored personnel carriers, and they can be sure that these vehicles can save the lives of the soldiers and make the army stronger.The armored fighting vehicle market industry is expected to grow because many nations want to be well protected.
Technological Advancements Enhance Armored Fighting Vehicle Capabilities
Technological improvements have allowed for the increase of the capabilities of armored fighting vehicles. AFVs nowadays are equipped with new sensors, communication systems, and weapons and can be used for a wider range of missions. These advancements have helped to increase situational awareness, lethality, and survivability, making AFVs more effective in combat situations. As technology keeps advancing, the range of tasks that a vehicle can perform will also increase, putting the market on the growth stage.
Counter-terrorism and Peacekeeping Operations Bolster Demand
Recently, the rise in the number of counter-terrorism and peacekeeping operations across the globe has resulted in an increased demand for armored fighting vehicles. Such vehicles provide both safety and freedom of movement to the troops conducting counter-terrorism and peacekeeping actions. The latter should be kept in mind by the manufacturers of the identified asset, and they should be particularly mindful of the changes in the sphere of military operations.Even though the needs of the community are perplexing, with terrorism remaining a major threat to international security and new conflicts emerging across the globe, the demand for armored fighting vehicles is likely to remain at a considerable level.
Armored Fighting Vehicle Market Segment Insights
Armored Fighting Vehicle Market Type Insights
The Armored Fighting Vehicle Market is segmented by Type into Main Battle Tanks, Armored Personnel Carriers, Infantry Fighting Vehicles, Self-Propelled Guns, and Armored Reconnaissance Vehicles. The Type segment of Main Battle Tanks is expected to be the highest ow.ly/6hbA30oU3Mt for the market in 2023, holding over 32 percent of the market share. This is due to the growing demand for highly advanced main battle tanks, which incorporate highly improved firepower, mobility, and enhanced protection. The completion of several regional-level conflicts in the last few years has led major countries to start focusing on improving their weapons and military equipment to maintain peace within their borders.Consequently, they are investing heavily in the production of tanks with improved equipment to possess heightened firepower and protection. The Armored Personnel Carriers segment is also estimated to witness considerable market growth during the projected period due to its rising demand for troop transportation and infantry support. The Infantry Fighting Vehicles segment is also likely to witness a steady growth rate due to the expanding roles of these vehicles required for mechanized infantry operations. The Self-Propelled Guns segment is estimated to witness a relatively moderate growth rate due to its increasing demand for such vehicles possessing long-range, high projection, and good mobility to help in artillery support.The Armored Reconnaissance Vehicles segment is also likely to witness a steady growth rate during the projected period, mainly due to the increased demand for such vehicles for reconnaissance and surveillance purposes. Overall, the Armored Fighting Vehicle Market is estimated to witness considerable growth during the projected period gar.ly/sldfV30pLr0. This high growth rate is likely due to the surging demand from several countries ly to possess these advanced armored vehicles. The increasing defense expenditure and rising geopolitical warfare will also act as market drivers during the projected period.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Armored Fighting Vehicle Market Weight Insights
The Armored Fighting Vehicle Market is segmented by weight into Light (less than 20 tons), Medium (20-40 tons), and Heavy (over 40 tons). The Medium-weight segment held the largest market share in 2023, accounting for over 45% of the revenue. The Medium-weight segment is expected to continue to dominate the market, owing to the increasing demand for versatile and maneuverable armored vehicles that can be deployed in a wide range of combat scenarios. The Light weight segment is expected to witness a significant growth rate over the forecast period due to the rising demand for lightweight and agile armored vehicles for reconnaissance and peacekeeping missions.The market is expected to reach a valuation of USD 22.77 billion by 2032, up from USD 18.06 billion in 2023. The growth of the market is attributed to the increasing demand for armored fighting vehicles from developing countries and the rising geopolitical tensions around the world.
Armored Fighting Vehicle Market Drive Type Insights
Drive Type Segment Insights and Overview The Armored Fighting Vehicle Market Segmentation by Drive Type. In 2023, the tracked drive type segment held the largest market share of around 65%. This can be attributed to the superior off-road capabilities and stability of tracked vehicles, making them well-suited for rugged terrains and combat situations. However, the wheeled drive type segment is projected to witness significant growth over the forecast period, owing to its advantages in terms of speed, maneuverability, and fuel efficiency. Hybrid drive types, which combine the benefits of both tracked and wheeled vehicles, are also gaining traction in the market.The Armored Fighting Vehicle Market revenue for the tracked drive type segment is estimated to be around USD 10.8 billion in 2023 and is projected to reach USD 13.2 billion by 2032, exhibiting a CAGR of 2.2%. The wheeled drive type segment is expected to grow from USD 5.6 billion in 2023 to USD 7.3 billion by 2032, at a CAGR of 2.8%. The hybrid drive type segment is anticipated to witness a CAGR of 3.1% over the forecast period, reaching a market value of USD 1.2 billion by 2032. Factors driving the growth of the armored fighting vehicle market include rising geopolitical tensions, increasing defense budgets, and technological advancements.The market is expected to be further fueled by the growing demand for advanced armored fighting vehicles with enhanced protection, firepower, and mobility.
Armored Fighting Vehicle Market Armament Insights
The armament segment of the Armored Fighting Vehicle Market is expected to witness significant growth over the forecast period. The increasing demand for armored fighting vehicles with advanced weaponry is driving the growth of this segment. The main gun (cannon) is the primary armament of armored fighting vehicles. It is used to engage enemy targets at long ranges. The Armored Fighting Vehicle Market revenue for main guns is projected to reach USD 5.6 billion by 2024. Machine guns are used to provide close-range defense against infantry and light armored vehicles.The Armored Fighting Vehicle Market segmentation for machine guns is expected to grow at a CAGR of 3.2% during the forecast period. Anti-tank guided missiles are used to destroy enemy tanks and other armored vehicles. The Armored Fighting Vehicle Market data for anti-tank guided missiles is anticipated to reach USD 2.8 billion by 2024. Mortars are used to provide indirect fire support to armored fighting vehicles. The Armored Fighting Vehicle Market statistics for mortars are projected to grow at a CAGR of 2.5% over the forecast period.
Armored Fighting Vehicle Market Protection Insights
The protection segment in the Armored Fighting Vehicle Market is a crucial aspect to consider due to its significance in enhancing vehicle survivability. Reactive armor, composite armor, active protection systems, and countermeasures are key technologies employed for protection. The reactive armor market is projected to reach $3.8 billion by 2026, driven by the growing need for advanced armor solutions against modern threats. Composite armor, offering lightweight and enhanced protection capabilities, is also experiencing significant demand. Active protection systems, capable of detecting and intercepting incoming projectiles, are gaining traction as they provide superior protection levels.Countermeasures, such as smoke grenades and decoys, play a vital role in evading enemy detection and attacks. The integration of these protection technologies is essential for the development of next-generation armored fighting vehicles that can effectively withstand various combat scenarios.
Armored Fighting Vehicle Market Regional Insights
The regional landscape of the Armored Fighting Vehicle Market exhibits a dynamic competitive scenario, with each region contributing significantly to the overall market growth. North America is projected to dominate the market in terms of revenue, with a significant share in 2023 and maintaining its dominance throughout the forecast period. The region's high military spending and advanced technological capabilities drive market growth. Europe follows closely, with key players such as Germany, France, and the United Kingdom contributing to regional market growth.The ongoing conflicts and geopolitical tensions in the region are expected to fuel demand for armored fighting vehicles. APAC is anticipated to witness substantial growth over the forecast period, driven by rising defense budgets and modernization plans in countries such as China, India, and South Korea. The increasing border disputes and territorial claims in the region are also contributing to the demand for armored fighting vehicles. South America is expected to experience moderate growth, with Brazil being a key market in the region. MEA is also projected to grow steadily, driven by rising security concerns and the need to strengthen border security.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Armored Fighting Vehicle Market Key Players and Competitive Insights
In order to be competitive, major participants in the industry strive to gain a competitive advantage via strategic partnerships and mergers and acquisitions. In March 2022, Rheinmetall signed a contract with the US Army, and the Concise Report explained that the company was to deliver as many as 272 Lynx KF41 infantry fighting vehicles for around 1,98 billion USD. Major manufacturers of armored fighting vehicle market armored fighting vehicles, such as General Dynamics and BAE, pursue an aggressive expansion strategy, setting up new offices and bases in countries that are currently spending a significant amount of money on new military equipment. Research and development are another strong point of all the leading armored fighting vehicle players. The companies have a solid track record of producing vehicles with top-notch protection, very high mobility, and exceptional lethality. Nowadays, the major manufacturers of armored vehicles are busy developing new designs that are likely to set new standards in performance. BAE Systems e.g., has produced the concept of the AJAX, which is supposed to be amongst the most sophisticated armored fighting vehicles in the world. All these developments have an enormous impact on the future of the armored fighting vehicle market.
The leading manufacturer and supplier of military equipment in the USA and one of the most prominent armored fighting vehicle players is General Dynamics Land Systems. The company produces the Abrams main battle tank and the Stryker armored fighting vehicle, which have a long tradition of supplying the US military and being exported to other countries around the world. The company is known for the high quality of its products and excellent customer service. General Dynamics Land Systems has a strong position in the armored fighting vehicle market and is likely to remain one of the top players in the near future. A similar situation may be observed in the case of Rheinmetall. The company produces the Leopard main battle tank and the Boxer armored fighting vehicle. The company is known for new-looking innovative solutions, and its engineers are famous for using the most advanced technologies. That is why the company has established a strong position in all the most interesting markets and will most likely remain one of the industry leaders in the coming years.
Key Companies in the Armored Fighting Vehicle Market Include
- WZM
- ASELSAN
- General Dynamics Land Systems
- Raytheon Technologies
- Otokar
- BAE Systems
- Uralvagonzavod
- KMW
- Lockheed Martin
- Mitsubishi Heavy Industries
- Hyundai Rotem
- Rheinmetall
- Nexter
- Iveco Defence Vehicles
- Norinco
Armored Fighting Vehicle Market Industry Developments
The armored fighting vehicle market is projected to reach USD 22.77 billion by 2032, exhibiting a CAGR of 2.61% during the forecast period (2024-2032). The increasing demand for advanced armored vehicles from developing economies, coupled with rising security concerns and geopolitical tensions, is driving market growth. The ongoing conflicts in regions such as the Middle East and Eastern Europe have spurred demand for armored vehicles to protect military personnel and enhance combat capabilities. Technological advancements, including the integration of active protection systems, improved mobility, and enhanced firepower, are further fueling market expansion. Key players in the market include General Dynamics, BAE Systems, Rheinmetall, and Uralvagonzavod. Recent developments include the launch of the Rheinmetall KF51 Panther and the BAE Systems CV90 MkIV, showcasing the industry's focus on innovation and meeting the evolving needs of armed forces worldwide.
Armored Fighting Vehicle Market Segmentation Insights
Armored Fighting Vehicle Market Type Outlook
- Main Battle Tanks
- Armored Personnel Carriers
- Infantry Fighting Vehicles
- Self-Propelled Guns
- Armored Reconnaissance Vehicles
Armored Fighting Vehicle Market Weight Outlook
- Light (less than 20 tons)
- Medium (20-40 tons)
- Heavy (over 40 tons)
Armored Fighting Vehicle Market Drive Type Outlook
Armored Fighting Vehicle Market Armament Outlook
- Main gun (cannon)
- Machine guns
- Anti-tank guided missiles
- Mortars
Armored Fighting Vehicle Market Protection Outlook
- Reactive armor
- Composite armor
- Active protection systems
- Countermeasures
Armored Fighting Vehicle Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
17.6(USD Billion) |
| Market Size 2023 |
18.06(USD Billion) |
| Market Size 2032 |
22.77(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
2.61% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
WZM, ASELSAN, General Dynamics Land Systems, Raytheon Technologies, Otokar, BAE Systems, Uralvagonzavod, KMW, Lockheed Martin, Mitsubishi Heavy Industries, Hyundai Rotem, Rheinmetall, Nexter, Iveco Defence Vehicles, Norinco |
| Segments Covered |
Type, Weight, Drive Type, Armament, Protection, Regional |
| Key Market Opportunities |
Advanced Technology Integration CounterIED Operations Urban Warfare Modernization Programs Emerging Markets |
| Key Market Dynamics |
Increasing defense spending ly Rising demand for advanced armored vehicles Technological advancements in armored vehicle systems Growing emphasis on modernization and replacement of existing fleets Strategic partnerships and collaborations among industry players |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Armored Fighting Vehicle Market was valued at USD 18.06 Billion in 2023 and is projected to reach USD 22.77 Billion by 2032, exhibiting a CAGR of 2.61% during the forecast period.
North America is expected to dominate the Armored Fighting Vehicle Market in 2023, accounting for a market share of around 35%. The presence of major defense contractors and significant defense spending are the key factors driving the market growth in this region.
Armored Fighting Vehicles are primarily used for combat operations, including reconnaissance, infantry support, and direct fire support. These vehicles provide protection to troops and equipment, allowing them to engage in combat effectively.
Major players in the Armored Fighting Vehicle Market include BAE Systems, General Dynamics, Rheinmetall, Uralvagonzavod, and CNH Industrial. These companies offer a range of armored fighting vehicles, including tanks, armored personnel carriers, and infantry fighting vehicles.
The increasing need for military modernization, growing geopolitical tensions, and rising threats from terrorism and insurgencies are the primary factors driving the growth of the Armored Fighting Vehicle Market.
The high cost of development and production, stringent regulations, and evolving technologies pose significant challenges to the growth of the Armored Fighting Vehicle Market.
The growing adoption of advanced technologies, such as artificial intelligence, unmanned systems, and active protection systems, is a prominent trend in the Armored Fighting Vehicle Market.
The Armored Fighting Vehicle Market is expected to witness steady growth over the forecast period, driven by increasing defense spending and the need for advanced combat vehicles.
The Armored Fighting Vehicle Market is segmented based on type (tanks, armored personnel carriers, infantry fighting vehicles), platform (tracked, wheeled), and region (North America, Europe, Asia Pacific, Middle East and Africa, South America).
Government defense spending, technological advancements, geopolitical tensions, and the threat of terrorism are the key factors influencing the Armored Fighting Vehicle Market.
