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US Infantry Fighting Vehicle Market

ID: MRFR/AD/14473-HCR
100 Pages
Garvit Vyas
October 2025

US Infantry Fighting Vehicle Market Research Report: By Vehicle Type (Armored Personnel Carrier, Mechanized Infantry Combat Vehicle, Light Infantry Fighting Vehicle, Heavy Infantry Fighting Vehicle), By Mobility Type (Wheeled, Tracked), By Firepower (Low Caliber Armament, Medium Caliber Armament, High Caliber Armament), By Application (Combat Operations, Support Operations, Reconnaissance) and By End Use (Military, Paramilitary, Government) - Forecast to 2035

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US Infantry Fighting Vehicle Market Summary

As per MRFR analysis, the US infantry fighting-vehicle market size was estimated at 5.5 USD Billion in 2024. The US infantry fighting-vehicle market is projected to grow from 5.82 USD Billion in 2025 to 10.2 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 5.78% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The US infantry fighting-vehicle market is experiencing robust growth driven by technological advancements and increased defense spending.

  • Technological advancements are enhancing the capabilities of infantry fighting vehicles, making them more effective on the battlefield.
  • The largest segment in the market is the armored personnel carriers, while the fastest-growing segment is the wheeled infantry fighting vehicles.
  • Increased defense spending is evident as nations prioritize modernization of their armed forces to address rising geopolitical tensions.
  • Key market drivers include the emphasis on soldier protection and survivability, alongside the integration of innovative technologies.

Market Size & Forecast

2024 Market Size 5.5 (USD Billion)
2035 Market Size 10.2 (USD Billion)
CAGR (2025 - 2035) 5.78%

Major Players

General Dynamics (US), BAE Systems (GB), Rheinmetall (DE), Kurganmashzavod (RU), Oshkosh Defense (US), Thales Group (FR), Hanwha Defense (KR), Nexter Systems (FR), Elbit Systems (IL)

US Infantry Fighting Vehicle Market Trends

The infantry fighting-vehicle market is currently experiencing a dynamic evolution, driven by advancements in technology and changing defense strategies. As military forces adapt to modern warfare, there is a noticeable shift towards vehicles that offer enhanced mobility, protection, and firepower. This transformation is influenced by the need for versatile platforms capable of operating in diverse environments, from urban settings to rugged terrains. Furthermore, the integration of advanced systems such as artificial intelligence and autonomous capabilities is becoming increasingly prevalent, suggesting a future where infantry fighting vehicles are not only more effective but also more efficient in their operations. In addition to technological advancements, geopolitical factors are playing a crucial role in shaping the infantry fighting-vehicle market. Heightened tensions in various regions have led to increased defense budgets, prompting military organizations to invest in modernizing their fleets. This trend indicates a growing recognition of the importance of maintaining a robust ground force equipped with state-of-the-art vehicles. As nations prioritize their defense capabilities, the infantry fighting-vehicle market is poised for continued growth, reflecting the evolving landscape of military needs and strategic priorities.

Technological Advancements

The infantry fighting-vehicle market is witnessing rapid technological innovations, particularly in areas such as automation and connectivity. Enhanced sensors, communication systems, and weaponry are being integrated into new models, allowing for improved situational awareness and combat effectiveness. This trend indicates a shift towards vehicles that can operate autonomously or semi-autonomously, potentially reducing the risk to personnel in combat scenarios.

Increased Defense Spending

Rising geopolitical tensions are prompting nations to bolster their military capabilities, leading to increased defense budgets. This trend is particularly evident in the procurement of advanced infantry fighting vehicles, as governments prioritize modernization efforts. The focus on enhancing ground forces suggests a long-term commitment to maintaining operational readiness and strategic deterrence.

Focus on Versatility and Adaptability

The infantry fighting-vehicle market is increasingly emphasizing the need for versatile platforms that can adapt to various combat scenarios. This includes the ability to operate in urban environments, as well as in traditional battlefield settings. Manufacturers are responding by designing vehicles that can be easily modified for different missions, enhancing their utility and effectiveness in diverse operational contexts.

US Infantry Fighting Vehicle Market Drivers

Rising Geopolitical Tensions

The current geopolitical landscape appears to be increasingly volatile, which may drive demand for advanced military capabilities. The infantry fighting-vehicle market could see heightened interest as nations prioritize defense readiness. In the US, military budgets have been adjusted to reflect these tensions, with an estimated increase of 5% in defense allocations for 2025. This shift suggests a potential surge in procurement of infantry fighting vehicles, as they are essential for modern warfare. The need for enhanced mobility and protection in conflict zones may further stimulate investments in this sector. As nations respond to perceived threats, the infantry fighting-vehicle market is likely to benefit from these strategic shifts.

Modernization of Armed Forces

The ongoing modernization initiatives within the US armed forces are likely to significantly impact the infantry fighting-vehicle market. The military's focus on upgrading existing fleets and integrating new technologies suggests a robust demand for advanced vehicles. Reports indicate that the US Department of Defense plans to allocate approximately $10 billion for modernization projects in 2025, which includes infantry fighting vehicles. This investment reflects a commitment to enhancing operational capabilities and ensuring that forces remain competitive. As the infantry fighting-vehicle market adapts to these modernization efforts, manufacturers may need to innovate to meet the evolving requirements of the military.

Increased Emphasis on Joint Operations

The trend towards joint operations among military branches is becoming more pronounced, which may influence the infantry fighting-vehicle market. The US military is increasingly focusing on interoperability between different service branches, necessitating vehicles that can operate seamlessly in diverse environments. This shift could lead to a demand for infantry fighting vehicles that are versatile and adaptable. The infantry fighting-vehicle market may see growth as manufacturers develop platforms that support joint operations, potentially increasing sales by 7% in the coming years. This emphasis on collaboration suggests a strategic direction that could reshape procurement priorities.

Technological Integration and Innovation

The integration of cutting-edge technologies into military vehicles is a driving force in the infantry fighting-vehicle market. Innovations such as artificial intelligence, advanced sensors, and enhanced communication systems are becoming essential for modern combat scenarios. The US military's investment in research and development is projected to reach $15 billion in 2025, with a significant portion allocated to vehicle technology. This focus on technological advancement indicates a potential transformation in the infantry fighting-vehicle market, as manufacturers strive to incorporate these innovations into their offerings. The demand for smarter, more capable vehicles is likely to reshape the competitive landscape.

Focus on Soldier Protection and Survivability

The increasing emphasis on soldier protection and survivability is a critical driver for the infantry fighting-vehicle market. As threats evolve, the need for vehicles that provide enhanced armor and safety features is paramount. The US military has recognized this need, with a projected increase of 6% in funding for protective technologies in 2025. This focus on safeguarding personnel suggests a growing market for infantry fighting vehicles designed with advanced protective capabilities. The infantry fighting-vehicle market may experience growth as manufacturers respond to these requirements, potentially leading to innovations that prioritize crew safety in combat situations.

Market Segment Insights

By Type: Armored Personnel Carrier (Largest) vs. Mechanized Infantry Combat Vehicle (Fastest-Growing)

In the US infantry fighting-vehicle market, the Armored Personnel Carrier dominates the segment, holding a significant market share due to its versatility and established presence within military forces. The Mechanized Infantry Combat Vehicle, while smaller in market share compared to Armored Personnel Carriers, is rapidly gaining traction as military applications evolve, making it an increasingly crucial player in the segment. Growth trends indicate a shift towards more advanced mechanized vehicles, driven by technological innovations and the increasing need for enhanced battlefield protection. The demand for Mechanized Infantry Combat Vehicles is expected to rise as defense strategies focus on adaptability and mobility, highlighting a move towards vehicles that offer both protection and offensive capabilities. This trend is complemented by ongoing investments in research and development to upgrade existing platforms and create next-generation designs.

Armored Personnel Carrier (Dominant) vs. Light Infantry Fighting Vehicle (Emerging)

Armored Personnel Carriers have established themselves as the dominant force in the segment due to their proven capabilities in troop transport and combat support. They are heavily armored and equipped for a variety of tactical missions, ensuring that they remain a first choice for military operations. In contrast, Light Infantry Fighting Vehicles are emerging as adaptable solutions that offer increased maneuverability and reduced weight, making them suitable for rapid deployment in diverse environments. With growing interest in lightweight and versatile vehicles, the market is likely to see an increase in the development of Light Infantry Fighting Vehicles, which are perceived as integral to modern warfare strategies.

By Mobility Type: Tracked (Largest) vs. Wheeled (Fastest-Growing)

In the US infantry fighting-vehicle market, tracked vehicles hold the largest market share due to their superior off-road capabilities and stability in combat conditions. They are primarily utilized by forces requiring heavy firepower and mobility across diverse terrains, often favored in traditional warfare settings. In contrast, wheeled vehicles are gaining traction, appealing to those seeking versatility and lower operational costs, which positions them as a significant segment in the market. The growth trends in the mobility type segment highlight a shift towards wheeled infantry fighting vehicles, driven by the increasing demand for enhanced maneuverability and cost-effectiveness. Innovations and advancements in technology are propelling this segment, making wheeled vehicles more appealing for rapid deployment and versatile operations. Additionally, government initiatives to modernize armed forces provide further impetus for investments in this emerging segment.

Tracked (Dominant) vs. Wheeled (Emerging)

Tracked infantry fighting vehicles are a dominant force in the market, known for their robust construction and ability to traverse difficult terrains, providing unmatched firepower and armored protection. Their traditional roles in combat scenarios have garnered them a loyal following among military forces. On the other hand, wheeled vehicles are emerging as a crucial component of modern warfare, favored for their speed, agility, and lower logistical costs. These vehicles are increasingly recognized for operations in urban and varied environments, marking a significant shift in the operational strategies of armed forces. The dynamics between these two segments highlight the evolving landscape of the market, with tracked vehicles maintaining prominence while wheeled variants capture a growing share.

By Firepower: Medium Caliber Armament (Largest) vs. High Caliber Armament (Fastest-Growing)

In the US infantry fighting-vehicle market, the distribution of firepower segments shows that Medium Caliber Armament holds the largest share, benefiting from its versatility and effectiveness in various combat scenarios. This segment's dominance is attributed to its capability to engage a wide range of targets while maintaining a manageable weight for mobility. On the other hand, High Caliber Armament is gaining traction, particularly among modernization initiatives, focusing on enhanced lethality and penetration capabilities. The growth trends for these segments are driven by increasing defense budgets and the demand for advanced weaponry in military operations. The push for more capable systems has led to investments in High Caliber Armament, reflecting a shift in strategic defense postures. Furthermore, technological advancements and the evolving nature of warfare are contributing to the rising popularity of high-caliber systems, which are becoming integral to future combat vehicles.

Medium Caliber Armament (Dominant) vs. High Caliber Armament (Emerging)

Medium Caliber Armament is characterized by its well-rounded performance, offering a balance between firepower and mobility. This segment is popular among military forces for its ability to effectively engage enemy personnel and vehicles without compromising maneuverability. Its established presence in the market allows for a stable production line and reliability in combat situations. Conversely, High Caliber Armament is considered an emerging force, gaining importance due to its increased firepower and specialization in anti-armor capabilities. As military strategies adapt to evolving threats, the role of high-caliber systems is expanding, making them critical for modern warfare. This growth is fueled by technological enhancements that promise greater effectiveness in complex combat environments.

By Application: Combat Operations (Largest) vs. Support Operations (Fastest-Growing)

In the US infantry fighting-vehicle market, the market share distribution among application segments is heavily tilted towards Combat Operations, which accounts for the largest portion. Combat Operations encompass a variety of tactical engagements, showcasing the necessity of armored vehicles in direct confrontation scenarios. Conversely, Support Operations, while smaller in market share currently, are gaining traction due to an increased focus on logistical support and troop mobility within combat zones. The growth trends indicate a significant rise in Support Operations, fueled by the evolving battlefield requirements and the need for versatile vehicles that can adapt to multiple roles. This transformation is largely driven by advancements in technology and changing military doctrines that favor multifunctional units. As armed forces look to enhance operational efficiency, the demand for vehicles that can support both Combat and Support Operations is expected to intensify.

Combat Operations: Dominant vs. Support Operations: Emerging

Combat Operations are characterized by their essential role in direct confrontations and are equipped with advanced features to ensure high levels of protection and firepower. These vehicles are designed to withstand harsh conditions and engage effectively with enemy forces, making them indispensable on the battlefield. On the other hand, Support Operations focus on enhancing troop mobility and providing logistical advantages. While traditionally viewed as secondary to combat roles, these vehicles are becoming increasingly prevalent as military strategies evolve. They are engineered for durability and modularity, allowing for modifications tailored to support missions such as reconnaissance and supply transport, thus elevating their importance in modern warfare.

By End Use: Military (Largest) vs. Paramilitary (Fastest-Growing)

The market share distribution for end-use segments in the US infantry fighting-vehicle market reveals that the Military sector dominates significantly, accounting for the largest portion of sales and utilization. This strong position is driven by the continuous demand for advanced combat vehicles to enhance operational capabilities. Conversely, the Paramilitary segment, while smaller, exhibits rapid growth as governments look to bolster security forces and response units, leading to an increased need for modern infantry fighting vehicles specifically tailored for these entities. Growth trends indicate that the Military segment will likely continue to hold its dominance, fueled by ongoing defense budget increases and military modernization programs. In contrast, the Paramilitary segment's expansion is propelled by rising global security threats and the diversification of roles that require specialized vehicles. The Government sector, while stable, is experiencing moderate growth rates as procurement focuses on supporting existing infrastructure through upgrades rather than new acquisitions, making it less dynamic than the other two segments.

Military (Dominant) vs. Paramilitary (Emerging)

The Military segment represents a dominant force in the US infantry fighting-vehicle market, characterized by significant investments in technology and capability enhancements to meet evolving battlefield demands. This segment prioritizes vehicles with advanced armor, weaponry, and mobility features essential for modern warfare. On the other hand, the Paramilitary segment is emerging strongly as forces seek to equip law enforcement and other security agencies with reliable, tactical-grade vehicles. These vehicles are increasingly being designed to meet specific operational needs, such as urban warfare and counter-terrorism, blending military-grade specifications with service functionalities. This dynamic positions both segments uniquely within the market, highlighting the Military's robust foundation and the Paramilitary's innovative, responsive growth.

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Key Players and Competitive Insights

The infantry fighting-vehicle market is characterized by a dynamic competitive landscape, driven by technological advancements, increasing defense budgets, and evolving military requirements. Key players such as General Dynamics (US), BAE Systems (GB), and Rheinmetall (DE) are at the forefront, each adopting distinct strategies to enhance their market positioning. General Dynamics (US) focuses on innovation and modernization of existing platforms, while BAE Systems (GB) emphasizes strategic partnerships and international collaborations to expand its global footprint. Rheinmetall (DE) appears to be concentrating on integrating advanced technologies into its vehicles, thereby enhancing operational capabilities. Collectively, these strategies contribute to a competitive environment that is increasingly focused on technological superiority and operational effectiveness.

In terms of business tactics, companies are localizing manufacturing to reduce costs and improve supply chain efficiency. This approach is particularly evident in the US market, where firms are establishing production facilities closer to key military bases. The market structure is moderately fragmented, with several players vying for market share, yet dominated by a few major companies that wield significant influence over pricing and innovation trends. The collective actions of these key players shape the competitive dynamics, fostering an environment where technological advancements are paramount.

In October 2025, General Dynamics (US) announced a partnership with a leading tech firm to develop AI-driven systems for its infantry fighting vehicles. This strategic move is likely to enhance the operational capabilities of their platforms, allowing for improved situational awareness and decision-making in combat scenarios. The integration of AI technologies may provide General Dynamics (US) with a competitive edge, positioning it as a leader in the next generation of military vehicles.

In September 2025, BAE Systems (GB) secured a contract with the US Army to deliver advanced armored vehicles equipped with next-generation communication systems. This contract not only reinforces BAE Systems' commitment to meeting the evolving needs of military clients but also highlights its focus on enhancing interoperability among allied forces. Such strategic actions are indicative of BAE's intent to solidify its market presence through tailored solutions that address specific operational challenges.

In August 2025, Rheinmetall (DE) unveiled a new infantry fighting vehicle prototype that incorporates modular design features, allowing for rapid upgrades and customization. This development reflects Rheinmetall's strategy to adapt to changing battlefield requirements and underscores the importance of flexibility in modern military operations. The ability to quickly modify vehicles in response to emerging threats may enhance Rheinmetall's appeal to defense forces seeking versatile solutions.

As of November 2025, current trends in the infantry fighting-vehicle market are increasingly defined by digitalization, sustainability, and the integration of AI technologies. Strategic alliances among key players are shaping the competitive landscape, fostering innovation and collaboration. Looking ahead, it is anticipated that competitive differentiation will evolve, with a shift from price-based competition to a focus on technological innovation, reliability of supply chains, and the ability to deliver advanced capabilities. This transition underscores the importance of adaptability and forward-thinking strategies in maintaining a competitive edge in the market.

Key Companies in the US Infantry Fighting Vehicle Market market include

Industry Developments

In recent months, the US Infantry Fighting Vehicle Market has seen notable developments, including a growing demand for modernization as military forces aim to enhance operational capabilities. Key players such as Lockheed Martin and General Dynamics are actively involved in initiatives to upgrade existing platforms and integrate advanced technologies, focusing on improved mobility and lethality. Notably, in August 2023, General Dynamics announced a contract to provide upgraded infantry fighting vehicles to the US Army, showcasing their commitment to innovation.

Additionally, merger and acquisition activity has been modest; however, in April 2022, BAE Systems acquired Ampthill-based organization Government Technologies, a move aimed at strengthening their position in the market. Market valuation has also seen a positive trend, with analysts projecting growth driven by increased defense budgets, emphasizing the need for enhanced infantry capabilities amidst evolving threats. Moreover, the US Army's ongoing commitment to the Future Combat Systems program, aimed at developing next-generation vehicles, underscores significant investment and strategic direction in the infantry fighting vehicle sector.

As of 2023, companies like Oshkosh Defense and Rheinmetall continue to collaborate on various contracts, demonstrating the competitive landscape and focus on state-of-the-art solutions in vehicle design and technology.

Future Outlook

US Infantry Fighting Vehicle Market Future Outlook

The Infantry Fighting Vehicle Market is projected to grow at 5.78% CAGR from 2024 to 2035, driven by technological advancements and increasing defense budgets.

New opportunities lie in:

  • Development of hybrid propulsion systems for enhanced fuel efficiency.
  • Integration of advanced AI for battlefield decision-making support.
  • Expansion of modular vehicle designs for versatile mission capabilities.

By 2035, the market is expected to achieve robust growth, driven by innovation and strategic investments.

Market Segmentation

US Infantry Fighting Vehicle Market Type Outlook

  • Armored Personnel Carrier
  • Mechanized Infantry Combat Vehicle
  • Light Infantry Fighting Vehicle
  • Heavy Infantry Fighting Vehicle

US Infantry Fighting Vehicle Market End Use Outlook

  • Military
  • Paramilitary
  • Government

US Infantry Fighting Vehicle Market Firepower Outlook

  • Low Caliber Armament
  • Medium Caliber Armament
  • High Caliber Armament

US Infantry Fighting Vehicle Market Application Outlook

  • Combat Operations
  • Support Operations
  • Reconnaissance

US Infantry Fighting Vehicle Market Mobility Type Outlook

  • Wheeled
  • Tracked

Report Scope

MARKET SIZE 2024 5.5(USD Billion)
MARKET SIZE 2025 5.82(USD Billion)
MARKET SIZE 2035 10.2(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR) 5.78% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Billion
Key Companies Profiled General Dynamics (US), BAE Systems (GB), Rheinmetall (DE), Kurganmashzavod (RU), Oshkosh Defense (US), Thales Group (FR), Hanwha Defense (KR), Nexter Systems (FR), Elbit Systems (IL)
Segments Covered Type, Mobility Type, Firepower, Application, End Use
Key Market Opportunities Integration of advanced artificial intelligence for enhanced battlefield decision-making in the infantry fighting-vehicle market.
Key Market Dynamics Technological advancements drive competition and innovation in the infantry fighting-vehicle market, enhancing operational capabilities.
Countries Covered US

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FAQs

What is the expected market size of the US Infantry Fighting Vehicle Market by 2024?

The US Infantry Fighting Vehicle Market is expected to be valued at 5.0 USD Billion by 2024.

What will be the market valuation of the US Infantry Fighting Vehicle Market by 2035?

By 2035, the US Infantry Fighting Vehicle Market is projected to reach a valuation of 10.0 USD Billion.

What is the expected compound annual growth rate (CAGR) for the US Infantry Fighting Vehicle Market from 2025 to 2035?

The expected CAGR for the US Infantry Fighting Vehicle Market from 2025 to 2035 is 6.504%.

Which segment of the US Infantry Fighting Vehicle Market is projected to have the largest market share in 2024?

The Armored Personnel Carrier segment is projected to have the largest market share valued at 1.5 USD Billion in 2024.

What is the market size of the Mechanized Infantry Combat Vehicle segment in 2024?

The Mechanized Infantry Combat Vehicle segment is valued at 1.2 USD Billion in 2024.

Who are the key players in the US Infantry Fighting Vehicle Market?

Major players in the market include Lockheed Martin, General Dynamics, BAE Systems, and Rheinmetall, among others.

What is the value of the Light Infantry Fighting Vehicle segment expected to be by 2035?

By 2035, the Light Infantry Fighting Vehicle segment is expected to be valued at 2.6 USD Billion.

What growth factors are driving the US Infantry Fighting Vehicle Market?

Key growth drivers include increasing defense budgets and the need for modernized military equipment.

How is the Heavy Infantry Fighting Vehicle segment valued for 2024?

The Heavy Infantry Fighting Vehicle segment is valued at 1.0 USD Billion in 2024.

What impact do current global conflicts have on the US Infantry Fighting Vehicle Market?

Current global conflicts are likely to increase demand for advanced infantry fighting vehicle technology and enhance military readiness.

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