The Armored Vehicles Upgrade and Retrofit Market is estimated to register a CAGR more than 3.6% during the period of 2019–2025. Armored Vehicles Upgrade and Retrofit Market is a dynamic and upcoming market allied with the defense sector. Armored vehicles are very important for the transport and logistics of military personnel and equipment. Military personnel and equipment are always at risk of attack and damage. Armored vehicles reduce this risk to a great extent. These types of vehicles come to use in combat situations and ceasefire situations to ensure the security of military personnel and cargo. Armored vehicles are a crucial part of the army's inventory as the secured transport of all other manuals, and technical capabilities depend on them.
The use of Armored Vehicles has been for years. Even after many years of use, there is still a great demand for armored vehicles. This demand for armored vehicles arises from countries' constant need to upgrade the equipment and vehicles used for defense purposes. Research and development of defense technologies and their use in Armored Vehicles is a continuous process. Thus, the Armored Vehicles Upgrade and Retrofit Market witnesses demand throughout the year. All the nations make significant investments in upgrading defense forces and their equipment.
Moreover, the use of armored vehicles has been going up in recent years because of counter-terrorism activities and covert operations against terrorist organizations. The need to keep human lives safe while reducing casualties without compromising on combat techniques has created a demand for advanced armored vehicles. Even rescue operations during natural calamities where the military is involved create a need for armored vehicles. Since natural calamities due to global warming are rising, military armored vehicles also need repairs and upgrades. Thus, the Market has been quite active in the past years and will continue to grow in upcoming forecast years.
COVID 19 Impact
The COVID 19 pandemic has affected different sectors of the global market. The Armored Vehicles Upgrade and Retrofit Market also suffered in the immediate aftermath of the COVID 19 pandemic. The COVID 19 pandemic disrupted the global supply chain, which hugely impacted manufacturing and other core sectors. Thus, the Market went through a decline in demand and capacity. The Market could not properly function amid lockdown restrictions and regulations. The import and export of vehicle parts were also affected negatively. Many countries redirected the defense budget into the economic recovery, which led to budget cuts for Armored Vehicles Upgrade. Thus, the revenue for the Market also went down.
However, the Market will pick up the pace in the post-pandemic phase. With economic recovery on track, reinforcing security and adding new technical advancements to defense vehicles will prioritize countries. In a move to increase cross-border security, governments will go for pending upgrades on armored vehicles. Thus, the Market will witness a favorable period in the next few years.
Segmentation of the Global Armored Vehicles Upgrade and Retrofit Market
Multiple drivers of the Armored Vehicles Upgrade and Retrofit Market influence the market positively. The major driver of the Market is the introduction of new defense technologies and capabilities in the recent past. With emerging defense technologies, nations prefer to upgrade armored defense vehicles instead of new ones. The defense forces use almost 90 percent of armored vehicles in the world. As presented by different national defense forces, the need for constant upgrade and modification is a major factor of Market growth. Moreover, the demand for upgrading cargo aircraft into armored ones is also a major factor contributing to military aircraft modernization and upgrade and retrofit market progress.
Major governments are taking the initiative to increase the capability and functionality of the present fleet of armored vehicles. This initiative to modify existing defense vehicles to reduce losses and increase cost efficiency, in the long run, is a great opportunity of expanding the armored vehicle upgrade and retrofit market size. The opportunity to upgrade and modify old defense vehicles will benefit key stakeholders of the Armored Vehicles Upgrade and Retrofit Market.
Certain limiting factors continue to influence the Armored Vehicles Upgrade and Retrofit Market. One such restraint is the lack of proper standards, benchmarks, and protocols to ensure high-quality upgrades are made in armored vehicles. There is a void of a solid framework of regulations for quality control and enhancement of modifications done to defense vehicles. This limits the growth of the Armored Vehicles Upgrade and Retrofit Market Size negatively because of inconsistency.
One major challenge that influences the
Market is training personnel for upgrading the defense vehicles. The technology linked with defense purposes is highly classified and advanced. The absence of a skilled workforce can leave gaps in the proper integration and deployment of armored vehicles. This defeats the entire purpose of the Market in the future. Thus, the Market has to step up to employ a skilled workforce that can work in tandem with the advances made in this sector.
Cumulative growth analysis
After a brief armored vehicles upgrade and retrofit market analysis, it is found that the Market will grow in the next forecast period. The Market had an Armored Vehicles Upgrade and Retrofit Market Size of $6.3 billion US dollars in the forecast period. In the next few years, the CAGR of the Market will be 3.6 percent. The growth rate is at an average percentage and may not be high. However, it is an improvement from the decline the market showed in the 2020 pandemic.
Specific armored vehicles upgrade and retrofit market analysis by segment is necessary to understand the segmentation of the industrial sub-sectors. It helps in understanding production trends and revenue graphs. The different segments of the market are based on different criteria. For example, the main categories of market segmentation are vehicle type and design. By vehicle type, the armored vehicles upgrade and retrofit market divides into Main Battle Tank, Light Armored vehicle, Infantry fighting vehicles, etc. By design, the market divides into Wheeled Armored Vehicles and Track Armored Vehicles.
Armored vehicles upgrade and retrofit market analysis by region is necessary for a brief look into the regional markets of the sector. The region analysis gives an idea of market distribution, supply chains, stakeholders, and revenue in the sector. The major regional markets of the armored vehicle upgrade and retrofit market are North America, Europe, MEA, APAC, and Latin America. The North American region will hold the largest armored vehicles upgrade and retrofit market share, with USA leading activity in the regional market. The fastest-growing market share will be the APAC region, where countries are keen on upgrading armored vehicles to existing defense fleets.
The competitive landscape of the military aircraft modernization and upgrade and retrofit market is dotted with many stakeholders that significantly contribute to the market's revenue share. A deeper look into the market's competitive landscape will help in understanding the developments and trends of the military aircraft modernization and upgrade and retrofit market. The major stakeholders of the Armored Vehicles Upgrade and Retrofit Market are as follows
There are many activities like mergers and acquisitions to support the development and expansion of the Armored Vehicles Upgrade and Retrofit Market. Stakeholders take up R &D and new product launches to keep the Market growing. In 2021, the US Defence Advanced Research Projects Agency announced funding the development of inertial sensor technology in collaboration with Honeywell.
The Armored Vehicles Upgrade and Retrofit Market Insights Outlook summary is as follows-
The Armored Vehicles Upgrade and Retrofit Market Outlook is a complete, concise report on the present condition of the market and its past influences that discuss the market's prospects in view. The Market Insight Outlook discuss the present drivers and opportunities in the market. The report also talks about the restraints and challenges influencing the market to create a fair view of the present market. The report also considers the changes brought by COVID 19 and how they will shape the Market in the future. The report also includes analysis by regions, industrial segments, and competitors to better understand the market composition and distribution. The Market Outlook discuss CAGR and trends for the future that can create a clear, insightful view of the market forecast.
The Global Armored Vehicles Upgrade and Retrofit Market can expect to attain a CAGR of more than 3.6% between 2019 and 2025.
The demand for armored vehicles has been rising across countries owing to the surge in terrorist attacks as well as cross border disputes. There has been a dramatic surge in terrorism and various terrorism-related fatalities in the past decade, leading to higher need for armored vehicles for better border security.
The tracked armored vehicles segment accounted for the largest market share in 2018. This is due to a large number of upgrades in battle tanks by the military forces of various countries. The wheeled armored vehicles segment is expected to exhibit the highest CAGR during the forecast period.
Factors that have helped North America land the top spot in the global market include the rise of ISIS combined with the increasing involvement of the US troops in various parts of the world forcing the US to maintain its strength and spend considerably on military troops.
APAC can proceed at the fastest rate in the following years.
The key vehicle types discussed in the report are main battle tank, light protected vehicles, amphibious armored vehicles, mine-resistant ambush-protected, infantry fighting vehicles, armored personnel carriers, and more.