Armoured Ground Vehicles (AGV) Market

By Vehicle Type (Combat Vehicles [Main Battle Tanks (MBT), Infantry Fighting Vehicles (IFV), Armored Personal Carriers (APC), Air Defense Vehicles, Mine-Resistant Ambush protectors (MRAP), Others], Combat Support Vehicles [ Supply Vehicles, Command and Control Vehicles, Repair and Medical Vehicles, Mine Clearance and Bridget laying Vehicles], Unmanned Ground Vehicles),
By Drive (Tracked, Wheeled),
By End Use (Military, Homeland Security),
By System (Vehicle Automotive System, Fire Control System (FCS), Command and Control (C2), Navigation, Surveillance, Observation, Armor and Storage System, Electronics and Power Management System),
By Region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa):

Global Analysis and Forecast 2023-2033

Aerospace and Defence
Report Code:
Published Date:
July 2023

The global armored ground vehicle market will be worth more than USD 42.34 billion by 2033.

The ongoing proliferation of regional conflicts coupled with growing technological advancements in developing regions is predicted to enormously support armored ground vehicle market growth. The analysis has represented vast opportunities in the North American region, where governments are forming key alliances and focusing on the next generation of armored vehicles. The growing preference for having a well-developed arsenal is propelling more demand for armored ground vehicles globally. Armored ground vehicles are most preferred for military use, propelling demand by major countries.

Another triggering factor for armored ground vehicle market growth lies in the fact that armored ground vehicle offers security for commercial and passenger uses as well. For instance, in January 2023, Rezvani Motors, an American automaker, launched its 2023 Vengeance SUV, which is equipped with protective elements such as bulletproof glass, body armor, run-flat tires, and ram bumpers. The growth of armored ground vehicles is majorly hindered due to their operational cost. For instance, in April 2021, according to Congressional Budget Office's (CBO) projections, total acquisition costs for the U.S. Army's armored ground combat vehicles averaged about $5 billion annually through 2050: $4.5 billion for procurement and $0.5 billion for research, development, test & evaluation (RDT&E). With the Covid pandemic demanding countries to develop the healthcare infrastructure, military developments such as these could put a strain on the nation's economy. Many countries are trying to become self-dependent to assert global dominance. For instance, in March 2021, under the Makin in India initiative, the Ministry of Defence (MoD) signed a contract with Mahindra Defence Systems Ltd (MDSL). The contract is valid until 2025. Mahindra will supply 1,300 Light Specialist Vehicles to the Indian Army, accounting for Rs 1,056 crore. This flagship project defines the manufacturing capabilities of India falling under Aatmanirbhar Bharat Abhiyaan.  

The companies operating within the armored ground vehicle industry are undergoing mergers, collaboration, acquisition, long-term contracts, and service agreements to increase their global footprint. In May 2022, operating through the Engin Blindé Multirole (EBMR) (France's multirole armored vehicle program) consortium, the French defense procurement agency (DGA) awarded the order for conditional tranche 4 (TC4) of the SCORPION program to Nexter, Arquus, and Thales. Tranche TC4 resembles an additional 88 JAGUAR armored reconnaissance and fighting vehicles and 302 GRIFFON multirole armored vehicles. This novel order will bring the number of JAGUAR and GRIFFON vehicles ordered to 150 and 909, respectively, in line with the target in France's 2019–25 Military Programming Law. Launched in 2014, the SCORPION program (a collaboration of contact strengthened by adaptability and info valorization) aims to recommence and revolutionize the Army's combat capabilities with the arrival of new armored vehicles such as the Griffon and the Jaguar.

According to the CXOs and primary research conducted, the rise in a number of geopolitical conflicts and the advancement of technology in developing or developed regions would aggressively impact armored ground vehicle market growth. The reason behind these rising conflicts is most often the need to assert regional dominance. Moreover, the attempt to become self-dependent and developed countries investing in R&D will fuel the market growth of the armored ground vehicle market.
The armored ground vehicle market is analyzed across North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. In line with the analyzed region, the North American region will witness the highest market growth, followed by Europe, Asia-Pacific, Latin America, and Middle East & Africa. The quick rise in geopolitical conflicts, proliferation in R&D investments, increasing government alliances, and the presence of major industry players within the region are primary factors supporting market potential within the North American region. The major companies operating within the market are BAE Systems, Elbit Systems, General Dynamics, IAI, L3Harris Technologies, Lockheed Martin Corporation, Northrop Grumman Corporation, Oshkosh Corporation, Rheinmetall AG, and Textron Systems.

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Dhvanil Dave
Quadrant Market Insights