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
The global armored ground vehicles market showcased a revenue of USD 19.44 billion in 2022 and is projected to witness a compounded annual growth rate (CAGR) of more than 7.33% over the forecast period of 2023-2033.
Russia-Ukraine War Impact
About the Market
Impact of COVID-19
Global Economic Slowdown
How is this report helpful
Armored ground vehicles are military, commercial, or passenger vehicles that protect against assault, such as bullets, shell fragments, and other projectiles. These vehicles have partial or complete armor plating, which can traverse using wheels or tracks. On the military front, armored ground vehicles are the centerpiece of any arsenal required to protect the soldiers from various threats. On the commercial or passenger front, the increasing communal riots and organized crimes challenging the security of popular public figures and elite groups are propelling the demand for this market. The development of robust, lightweight, compact, and highly efficient armored vehicles will propel the market growth of armored vehicles in the forecast period.
As per the analysis over the forecast period, the major demand for armored ground vehicles will come from the military front. This is credited to the increase in cross-border criminal activities and terrorism. Safer deployment of infantry on battlefields or high threat-prone areas demands armored ground vehicles since they can provide unparalleled protection against mine attacks. This demand is resulting in countries having to increase their military budget. For instance, in April 2022, the global military expenditure reached an all-time high of $2.1 Trillion in 2022, with India ranking among the top 3 spenders. Moreover, many automobile companies are also manufacturing armored vehicles to meet consumers' demand. For instance, in January 2023, Rezvani Motors, an American automaker, launched its 2023 Vengeance SUV, equipped with protective elements such as bulletproof glass, body armor, run-flat tires, and ram bumpers. In February 2023, STREIT Group, a leading private armored vehicle manufacturer at IDEX in Abu Dhabi, unveiled the Cobra 4, a Light Armored Multirole Vehicle (LAMR). The Cobra 4 is best suited for tactical intelligence teams in need of urban driving capabilities, special operation forces, and anti-terror groups. Major automakers taking an interest in manufacturing armored ground vehicles and an increase in military operations globally will determine the market growth of armored ground vehicles in the forecast period.
In 2021, the US, China, India, the U.K., and Russia were the top 5 military spenders in the world, accounting for 62% of the total expenditure. The North American region will dominate the armored ground vehicles market during the forecast period. However, the Asia-Pacific region is not too far. In the North American region, the presence of a large number of military machine and equipment manufacturers, along with rising technological development coupled with initiatives taken by the U.S. government, will boost the market demand in the region. As for the Asia Pacific region, the increasing terrorism activities and geopolitical conflicts have resulted in countries investing more in the armored vehicle market while most are attempting to become self-dependent. 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, during which 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. Increasing manufacturing capabilities of the Asia Pacific region will give strong competition to the North American region.
Impact of the Russia-Ukraine War on the Armoured Ground Vehicles Market
There is a direct impact of the Russia-Ukraine war on the global armored ground vehicles market. However, the European region will witness the highest impact. Increased trade sanctions across the European region, followed by disruption in global trade routes, are one of the major factors imposed due to war and limiting business opportunities. Factors such as limited manufacturing capabilities in the European region and the withdrawal of major armored ground vehicle manufacturers from Russia and Ukraine, creating a demand gap indirectly impacting the inflation within the region, are poised to hinder business opportunities. Russia and Ukraine suffered heavy losses of armored ground vehicles, leading to Ukraine turning to its allies for aid. Looking at this crisis, several countries have strengthened their armored ground vehicle arsenal due to the uncertainty of which country would be Russia's next target if they do not comply. This has created a demand for armored vehicles leading to overall market growth.
Armoured ground vehicles: Market Scope
The armored ground vehicles market is primarily divided into four segments vehicle type, drive, end-use, and system. Furthermore, these segments are subdivided into respective categories and cross-referenced to North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa for regional analysis. The vehicle type segment is further categorized into combat vehicles [main battle tanks (MBT), infantry fighting vehicles (IFV), armored personal carriers (APC), air defense vehicles, mine-resistant ambush protectors (MRAP) and others], combat support vehicles [ supply vehicles, command and control vehicles, repair and medical vehicles and mine clearance and bridge laying vehicles] and unmanned ground vehicles. The drive segment is segregated into tracked and wheeled. The end-user segment of the armored ground vehicles market is bifurcated into military and homeland security. With respect to the system, the industry is analyzed by vehicle automotive system, fire control system (FCS), command and control (C2), navigation, surveillance, observation, armor and storage system, and electronics and power management system. Each of these segments is further classified into regions: North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. The historical dataset of 2018-2022 is provided in the report, whereas the forecast period of 2023-2033 is offered.
Combat vehicles will witness the highest growth rate within the vehicle type segment
Combat vehicles show a fulfilling revenue generation in the vehicle type segment. The combat vehicles comprise main battle tanks (MBT), infantry fighting vehicles (IFV), armored personal carriers (APC), air defense vehicles, mine-resistant ambush protectors (MRAP), and others. Combat vehicles are majorly used in military operations. The leading market leader, the U.S., has each type of combat vehicle incorporated into its arsenal. 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). The army has five combat vehicle families, which it operates: M1 Abrams tanks, Strykers, M2 Bradley fighting vehicles, M109 Paladins and M88 HERCULES. Abrams tanks are MBT, and M2 Bradley are APC while Strykers are wheeled combat vehicles augmented for use on paved roads, the Paladin is the army's self-propelled howitzer, designed to provide indirect fire, and the HERCULES is the army's tracked and armored "tow truck." The U.S. Army will continue to operate these combat vehicles during the forecast period while heavily investing in and technologically advancing them. Likewise, other countries are equipping themselves with a high range of combat vehicles assuring national security and regional dominance.
The tracked segment will capture the highest market share between 2023-2033
During the forecast period, it is observed that the tracked segment would be capturing a higher market share as compared to wheeled-based drive. This observation is credited to the advantages that tracked-based drive provides over wheeled. Using a tracked-based armored ground vehicle offers mobility, stability, survivability, and a higher capacity for carrying heavy arms since the weight of the vehicle is distributed evenly over its tracks. For instance, Russia possesses T-14 Armata main battle tanks (MBT) and T-15 heavy infantry fighting vehicles (IFV), both track-based armored vehicles. In August 2018, the Russian Ministry of Defense (MoD) signed a contract with Russia's main tank manufacturer Uralvagonzavod (UVZ) to produce 132 T-14 and T-15 vehicles until 2020. These tanks were used against Ukraine in the war in 2022. In February 2023, Russia was keen to share Armata tank technologies with India to contribute to the joint expansion of the future main battle tank for the Indian Army. The global powerhouses' development of these track-based tanks will drive the demand for such drive-based armored ground vehicles during the forecast period.
The military segment will capture the highest market share in the coming years
The military segment is capturing a larger market in the end-user segment. The increasing arms race due to regional conflicts, such as the recent Russia-Ukraine face-off, has demanded that countries strengthen their military forces. The need to protect soldiers on the battlefield fuels the growth of armored ground vehicles that can withstand heavy offensive strikes. For instance, in February 2021, The Defence Acquisition Council (DAC) approved the acquisition of 118 main battle tanks (MBT) Arjun Mk 1A accounting for about Rs 8350 crore, and the protection and countermeasure systems for Armored Fighting Vehicles valued around Rs 5000 crore. The order was placed at Heavy Vehicles Factory (HVF) at Avadi, Chennai making this a Make-in-India project. The attempt to increase self-military sustainability, prolonged with the development of armored ground vehicles, is making the military end-use the forerunner in the end-use segment.
Electronic and Power Management system segment within the system to witness the highest CAGR during the forecast timeframe
The forecast timeframe has predicted the proliferation in demand for electronic and power management systems during the system segment's forecast period. The growth of this segment is credited to the contributions of companies such as Bae Systems and Thales Group. The Bae Systems power management system optimizes mechanical and electrical power in armored ground vehicles to provide military networks customized, high-energy capabilities for use in C4ISR capabilities, autonomous systems, active protection systems (APS), directed energy weapons (DEW), "stealth" electric propulsion drivetrains, and more. Likewise, the Thales group's next-generation power management system for tracked and wheeled armor ground vehicles provides export power capabilities (Microgrid), economies on fuel and batteries even under demanding mission conditions, long life operability, and augmented efforts in logistics and maintenance. Companies with innovations such as these are fostering market growth and share of power management systems.
North America is to witness the highest growth rate during the forecast period
North American region holds the highest market share in the armored ground vehicle market owing to the presence of many military machine and equipment manufacturers, rising technological development, and initiatives taken by the U.S. government. The U.S. government accounts for the highest military expenditure around the globe. For instance, in December 2022, the U.S. Congress approved a bill that included additional resources for the upgradation of 73 Stryker vehicles and 46 Abramas. These resources accounted for $219.9 million for Stryker and $602 million for Abrams. The U.S. has been focusing on military research and development, primarily focusing on next-generation technologies. The U.S. funding for military research and development (R&D) rose by 24% between 2012 and 2021. The region's increasing focus on developing next-generation armored ground vehicles and the presence of major manufacturers is fostering the growth of the market in this region.
Impact of COVID-19 on the Armoured Ground Vehicles Market
Despite COVID-19 significantly impacting the economies, the armoured ground vehicles market was largely unaffected in terms of losses and sales on the commercial front. The national governments were forced to shift their priorities towards health care infrastructure, cutting down the military expenditure in 2020. However, the countries increased the global military expenditure in 2021. The world's second-largest spender, China, assigned an estimated $293 billion to its military in 2021, an increase of 4.7% from 2020. Nigeria raised its military spending by 56% in 2021 compared to 2020, and India's military spending was $76.6 billion, up by 0.9% from 2020. The pandemic largely had a very minimal effect on the armoured ground vehicles market, which will be recovered with ease in the coming future, looking at the growth of the market.
Armored Ground Vehicles: Market Dynamics
The market dynamics section of the report covers a depth analysis of drivers, restraints, and opportunities impacting the armored ground vehicles market. The report also encompasses major market strategies practiced by the industry, followed by patent analysis, product analysis, competitive benchmarking of companies, PORTER and PESTLE analysis of the armored ground vehicles industry, pricing analysis, and geographic competitiveness to provide a detailed understanding. The major players operating 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. These companies cumulatively hold the majority of the armored ground vehicles market share and actively undergoes strategic development such as new product launch, merger, collaboration, business expansion, acquisition, and long-term contracts to ensure market penetration. These companies also largely focus on research and development to gain competitiveness in the market. A detailed analysis of these companies is offered in the report.
Driver: Increasing geopolitical conflicts and war scenarios across the globe to boost market growth
The increasing market demand for armored ground vehicles is a collective outcome of growing geopolitical conflicts all around the globe. Nations looking to take a stronghold in terms of asserting political and strategic dominance globally are a primary factor in these conflicts. The recent Ukraine-Russia war is a primary example of a regional conflict. India and Pakistan also have a history of military face-offs over the Kashmir region, with China also involved in exchanges with India in the recent past. The U.S., Russia, and China are leading military leaders in the world. Nations are trying to make themselves self-sufficient to get ahead in the arms race by forming alliances to assert their global dominance. For instance, in June 2022, Katmerciler, a Turkish land vehicle manufacturer, exported its 4x4 Tactical Wheeled armored combat vehicle Hızır to the Gambia. The two countries also signed an updated military cooperation and training agreement. It was one of many alliances formed globally to strengthen their forces. The attempt to assert regional dominance by the nations giving rise to conflict is fostering the armored ground vehicles market growth.
Restrain: High manufacturing and operational cost hinder market growth.
Maintaining an arsenal with armored ground vehicles is necessary and can be awfully expensive. The cost involves testing, developing, and modernizing the vehicle and maintaining it in the arsenal. The defense budget allocation has to be increased every year. As a result, to maintain the arsenal. For instance, in June 2021, German defense technology giant Rheinmetall completed the delivery of the first 25 Boxer combat reconnaissance vehicles (CRV) to the Australian army under the $5.2 billion LAND 400 Phase 2 Mounted Combat Reconnaissance Capability project. As per the deal, Rheinmetall will deliver a total of 211 Boxer 8×8 Vehicles in different versions, out of which 131 will be the CRV variant. These Boxer combat vehicles will substitute the Australian Army's Light Armored Vehicles (ASLAV) under LAND 400 Phase 2. Upgradation in arsenals such as these is awfully expensive for countries to bear, especially emerging economies. The covid pandemic has not made things any easier. Continuous technological advancement and the increasing cost of maintaining an arsenal equipped with an armored ground vehicle will hinder the market growth of armored ground vehicles.
Opportunity: Countries developing next-generation armored vehicles to create market demand
The armored ground vehicles market shows promising opportunities in North America and developing countries of other regions. With the risk of rising conflicts, nations are looking to advance their military power. The U.S. has been focusing on military research and development, primarily focusing on next-generation technologies. The U.S. funding for military research and development (R&D) rose 24% between 2012 and 2021. For instance, in June 2018, the U.S. Army announced a new reconstruction strategy and nominated the Next Generation Combat Vehicle (NGCV) as the program to replace the M-2 Bradley. In October 2018, army leadership decided to re-designate the NGCV as the Optionally Manned Fighting Vehicle (OMFV) and to add additional vehicle programs to what would be called the NGCV Program. In April 2020, the army provided innovative OMFV program guidance to the industry featuring a five-phased approach to procurement as well as a pledge to "reduce foreign barriers to competition" and "identify a pathway to integrate relevant but immature technologies" into the program. In April 2021, the U.S. Army started developing three classes of Robotic Combat Vehicles (RCVs), light, medium, and heavy, that could eventually fill a combat role under the OMFV Programme. Moreover, the availability of RCVs could reduce the number of soldiers in the army, reducing the service's personnel costs. Nations developing and implementing next-generation technology will create opportunities for market growth.
Armoured Ground Vehicles Market: Recent Developments
- In April 2021, L3Harris Technologies and American Rheinmetall Vehicles signed a joint agreement to collectively develop the U.S. Army's new Optionally Manned Fighting Vehicle (OMFV), which will replace the Bradley Infantry Fighting Vehicle. The contract syndicates L3Harris' open system design and equipment manufacturing leadership with the maturity and modularity of American Rheinmetall Vehicles' next-generation fighting vehicle (Lynx) for an OMFV offering that is low-risk and easily upgradable.
- 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 laid out in France's 2019–25 Military Programming Law.
- In June 2022, the UK government publicly revealed concerns about the Ajax vehicles' unwarranted noise and vibration levels. Ajax is an armored fighting vehicle that will provide the UK Army with its first fully digitized platform. Ajax platform comprises six armored ground vehicles, each with a unique function: Ajax, Ares, Athena, Apollo, Atlas, and Argus.
Armored Ground Vehicles Market: Synopsis
The study of the armored ground vehicles market offers revenue and growth data sets of segments provided at the global, regional, and country levels. The report offers the historical data set of 2018-2022 and the forecast period of 2023-2033. For the purpose of analysis, Quadrant Market Insights (QMI) has segregated the armored ground vehicles market into four major segments as follows:
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)
- Combat Support Vehicles
- Supply Vehicles
- Command and Control Vehicles
- Repair and Medical Vehicles
- Mine Clearance and Bridget Laying Vehicles
- Unmanned Ground Vehicles
By End Use
- Homeland Security
- Vehicle Automotive System
- Fire Control System (FCS)
- Command and Control (C2)
- Navigation, Surveillance, Observation
- Armor and Storage System
- Electronics and Power Management System
The regional analysis of the armoured ground vehicles (AGV) market is as follows:
- Rest of Europe
- Rest of Asia-Pacific
Middle East & Africa
- South Africa
- Saudi Arabia
Key players operating in the armoured ground vehicles (AGV) industry are:
- Aerojet Rocketdyne Holdings, Inc.
- BAE System plc
- General Dynamic Corporation
- Lockheed Martin Corporation
- Northrop Grumman Corporation
- Orbital ATK, Inc.
- Rafael Advanced Defense Systems
- Thales Group
Armoured Ground Vehicle (AGV) Market: Who Should Purchase, and How It Will Help Readers
- The report is best suited for top-level decision-makers, individuals who are supposed to take a leadership role or require market research to start a business, independent researchers, research institutes, and anyone who wishes to gain detailed strategic insights into the armoured ground vehicle (AGV) market.
- This report provides a qualitative and quantitative analysis of the market segments, current trends, estimations, and dynamics of the armoured ground vehicle (AGV) market analysis from 2018 to 2033 to identify the prevailing market opportunities.
- Market research and information related to key drivers, restraints, and opportunities are offered.
- Porter's five forces and PESTLE analysis highlight the potency of buyers and suppliers to enable stakeholders' market profit-oriented business decisions and strengthen their supplier-buyer network.
- An in-depth analysis of the armoured ground vehicle (AGV) segmentation assists in determining the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes an analysis of the regional and global armoured ground vehicle (AGV) industry trends, key players, market segments, application areas, and market growth strategies.
- The report offers insights from primary interviews and CXOs of major industry players. It also offers a comprehensive contact and event repository to ensure future collaborations among industry stakeholders.
Armoured Ground Vehicle (AGV)Market: Frequently Asked Questions (FAQ)
Q: How big is the armoured ground vehicle (AGV) market?
A: The global armored ground vehicles market showcased a revenue of USD 19.44 billion in 2022 and is projected to witness a compounded annual growth rate (CAGR) of more than 7.33% over the forecast period of 2023-2033.
Q: Does the report have several armoured ground vehicle (AGV) numbers bifurcated by segments and regions?
A: The report offers a total number of oilfield equipment rental market , further bifurcated into segments and regions. Please refer to the TOC page for more information.
Q: What are the major trends in the armoured ground vehicle (AGV) market?
A: Proliferation in a several of regional conflicts, technological advancement in developing regions, and growing alliances between companies and countries affect the market growth of armored ground vehicles.
Q: How can I get the sample Report on the armoured ground vehicle (AGV) market?
A: The armoured ground vehicle (AGV) market report sample can be obtained on demand from the website. Also, 24*7 chat support and direct call services are provided to procure the sample report
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- Vehicle Type
- End Use
- North America
- Latin America
- Middle East & Africa
- Cloud infrastructure promoting the scope of remote operations
- Increasing geopolitical conflicts and war scenarios across the globe to boost market growth
- Strategic alliances and technology transfer partnership, followed by commercial spin off
- Countries developing next-generation armored vehicles to create market demand
- High manufacturing and operational cost hinder market growth.
BAE Systems, Elbit Systems, General Dynamics, IAI, L3Harris Technologies, Lockheed Martin Corporation, Northrop Grumman Corporation, Oshkosh Corporation, Rheinmetall AG, and Textron Systems.