Armored Vehicle Market Overview
Armored Vehicle Market Size estimated to attain USD 32.26 Billion by 2030, registering a CAGR of 6.35% during 2020-2030.
Armored vehicles are the security vehicles used for armed forces secured and safe transportation. Traditionally, these vehicles were only possessed by military personnel, law enforcement professionals, and ministers. However, these vehicles are now being used by the major players in the corporate world, VIPs, and celebrities. Armored personnel carriers, armored cars, and battle tanks are major examples of armored vehicles. The global market for armored vehicles has experienced a major spike in the last few years. The growing focus to safeguard the soldiers from external and internal threats is the primary aspect causing an upsurge in the market's growth.Furthermore, the factors such as growing instances of asymmetric warfare and an increase in cross-border conflicts across the globe are also projected to catalyze the market's growth in the coming years. Moreover, the continuous rise of security challenges, technological improvements and developments, and incorporation of the COTS component is also projected to impact the market's growth in the coming years positively. On the other hand, the high cost involved, absence of key OEMs of armored vehicles, and fluctuating raw materials prices may impede the market's growth.
COVID 19 Analysis
The outbreak of COVID-19 pandemic has a multi-level impact on the different economies of the global armored vehicle market. The manufacturers of automotive components, parts, and assembly lines have been significantly impacted. The production of the armored vehicle has also slowed down owing to the pandemic situation.The major players in the global armored vehicle market are increasingly adopting various approaches and strategies to resume manufacturing and increase the demand for the vehicles. The joint efforts of the key armored vehicle manufacturers and measures taken by the government will result in significant growth of the market during the forecast years.
Market Dynamics of Armored Vehicle
Prominent Market Drivers of Armored Vehicle
The increase in asymmetric warfare is one of the prominent drivers of the global armored vehicle market. The militarization of the law enforcement agencies and rise in cross-border disputes are other significant factors that will drive the demand for the armored vehicle during the forecast year. Moreover, the need of reducing the size and vehicles used in the defense sector and the growing demand for robust, compact, and highly efficient US armored vehicles will further drive the expansion of the global market.The asymmetric warfare worldwide is increasing owing to political instability, economic, socio-cultural, and religious factors. The increase in asymmetric warfare has resulted in the need for government agencies to adopt Bradley armored vehicles as they provide better protection against blast and ballistic attacks.
Major Opportunities for Armored Vehicle
The increase in the rate of adoption of unmanned systems for military operations by the defense forces of different countries is expected to create opportunities for the growth of the global armored vehicle market. The innovations in the transmission medium, navigation, surveillance, adaptability, protection, and increase in situational awareness will further enhance growth opportunities for an armored vehicle.The demand for unmanned systems is increasing owing to its wide used by military forces of various countries. It is used for combat operations and Intelligence, Surveillance, and Reconnaissance (ISR). The rise in the use of unmanned systems is anticipated to boost the global armored vehicle market.
Prominent Market Restraints of Armored Vehicle
The high cost involved with the adoption of the advanced armored vehicle is one of the major factors that is expected to hinder the armored vehicle market growth. The absence of key OEMs of armored vehicle is another significant factor that is likely to limit the growth of the industry.The fluctuating prices of raw materials, high taxes imposed by different countries, and import expenses are some of the main reasons for the increase in the cost of the armored vehicle. However, the leading players in the global market are combing efforts and adopting strategies to lower the cost and improve the market growth.
Major Market Challenges of Armored Vehicle
The lack of standardization in operations of different companies and the various government rules and regulations are significant challenges that are likely to negatively impact the growth of the global armored vehicle market. Further, the limited defense budgets in countries will also hinder the growth of the global armored vehicle market.The key players in the industry are adopting various measures to overcome the potential challenges and increase the demand for the armored vehicle during the forecast year.
Cumulative Growth Analysis of Armored Vehicle
The global armored vehicle market is likely to reach USD 32.26 Billion by the year 2025. The revenues of the market will grow significantly during the forecast year.The major players in the armored vehicle services industry are increasingly putting efforts into the rapid growth of the global market.
The increase in adoption of active protection system (APS) in the armored vehicle is the latest technological development in the industry. The APS makes use of tracking radars, sensors, launchers, and countermeasure munitions to detect and protect the armored vehicle from potential attacks. The introduction of an ultra-lightweight armored vehicle with green technology is another technological development in the industry.The major players can now rely on green technology to meet the growing demands of light weight armored vehicle.
Segmentation Analysis of Armored Vehicle
Based on system, the global armored vehicle market is segmented into ballistic armor, fire control systems (FCS), armaments, turret drivers, ammunition handling systems, engine, drive systems, countermeasure systems, observation & display systems, command & control (C2) systems, navigation systems, power systems, and hulls/ frames.The segment of armaments occupies the largest share in the global armored vehicle market and is expected to register a high CAGR during the forecast year. The increase in the use of remote weapon station is the major reason for the growth of the armament segment.
Depending on the product, the global armored vehicle market is classified into commercial armored vehicle and defense armored vehicle. The commercial armored vehicle segment is further divided into bus/ van, limousine, SUV, sedan, and other. The defense armored vehicle segment is also further classified into the main battle tank (MBT), infantry fighting vehicles (IFV), mine-resistant ambush-protected (MRAP), armored personnel carriers (APC), tactical trunks, lightly protected vehicles (LPV), and others.The defense armored vehicle accounts for the highest share in the global market owing to the increase in expenditure in the development of military transport vehicle. The defence armored vehicle segment is also expected to grow rapidly during the forecast years owing to its use in the military operations.
By End User
Based on end user, the global armored vehicle market is divided into defense and commercial. The defense segment accounts for the largest share in the global market.The defense segment is further anticipated to witness significant growth during the forecast year owing to an increase in the need for enhanced security for defense personnel.
Regional Analysis of Armored Vehicle
Based on the geographical region, the global armored vehicle market is segmented into Europe, North America, Asia Pacific, Latin America, and Middle East & Africa. North America occupies the largest share in the global armored vehicle market.The Asia Pacific region is forecasted to grow at a rapid pace during the forecast year owing to increase in defense expenditure in countries like India and China.
The key players of the global armored vehicle market are BAE Systems, PLC (UK), Lockheed Martin Corporation (US), Rheinmetall AG (Germany), International Armored Group (US), Krauss-Maffei Wegmann GmbH & Co. (Germany), Elbit Systems Ltd (Israel), General Dynamics Corporation (US), INKAS Armored Vehicle Manufacturing (Canada), Mitsubishi Heavy Industries, Ltd (Japan), Oshkosh Corporation (US), and Diehl Defence GmbH & Co. KG (Germany).BAE Systems, PLC (UK) is a trusted partner of armed forces worldwide. The company designs and manufactures amphibious and specialist wheeled combat vehicles.
March 2022- the UAE-based company Streit Group, at World Defense Show 2022 in Saudi Arabia, promotes its complete variety of tactical and armored vehicles for the Middle-East market. Streit Group is one of the prominent, privately owned armored vehicles manufacturers with manufacturing units across the United States, Uganda, Mali, India, Pakistan, Turkey, Thailand, Jordan, and Iraq, and sales offices worldwide.
February 2022- a leading designer and manufacturer of conventional and electrified vehicle propulsion solutions, Allison Transmission, has announced that it has gained unprecedented growth in the global defense market. Both wheeled and tracked vehicle OEMs from the United States, Israel, France, South Korea, Canada, Turkey, and Germany powered by Allison transmissions, have been awarded several defense contracts in 2021 across the Middle East and Africa Australia, Asia, and Europe.
The global armored vehicle market report overview is as follows:
The report sheds light on the different growth factors that contribute to the expansion of armored vehicle market.
By End User
Agreement between Qinetiq and the U.S. Office of Naval Research for Developing Electric Armored Reconnaissance Vehicles is Further Proof of the Technology being Used in the Future.
General Dynamics Corporation, BAE Systems, Textron Inc, Oshkosh Corporation, Elbit Systems Ltd and Others are the Leading Players Included in Armored Vehicle Market.
Armored Vehicle Regions Market Divided into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America.
Armored Vehicles Market is Expected to Grow USD 32.26 Billion by End of Year 2030.
It Covers Market Drivers, Opportunities, Trends, Restraints, Porter’s Five Forces, Supply Chain and Value Chain Analysis.