Global armored vehicle market is expected to witness significant growth over the next seven years on account of its rapid demand primarily in developing countries, viable conflicts in global scenario, preeminent importance for homeland securities and growing conflicts within several nations.
The market was at its peak between 2007 and 2012 primarily in the U.S. This market is expected to grow at a rapid pace particularly in the military & defense sector as they give protection in severe mine attacks. Special kinds of vehicles were introduced such as mine resistant ambush protected vehicles (MRAPs) which are extensively used in the military sector. Growth in this sector is expected to boost product demand over the next seven years. Till 2012, over 42,000 vehicles were produced in the U.S. on account of growing demand from the military & defense industry.
Armored vehicles are protected by very strong armor and generally armed with robust weapons which combine defensive, tactical offensive and operation mobility capabilities which can be tracked easily. Defense sector is contributing towards the major market share in this industry. Europe and North America contributes majorly towards the armored vehicle market on account of high growth in the industry.
Various types of armor vehicles include tanks, flame tank, infantry tank, cruiser tank, armored car, aerosani, scout car, reconnaissance vehicle, mortar carrier, multiple rocket launcher, internal security vehicle, improvised fighting vehicle, troop carriers, armored personnel carrier, infantry fighting vehicle, infantry mobility vehicle, main battle tank, tankette, super-heavy tank, air defense vehicles, self-propelled artillery, amphibious vehicle, armored engineering vehicle, assault breacher vehicle, assault gun, tank destroyer and armored train.
The fastest growing product type is main battle tanks (MBT) which accounted for over 25% of the overall revenue share in 2014. Ascending concern to safeguard military personnel is foreseen to drive unmanned ground military carrier demand over the forecast period.
The global armored vehicle market is expected to significantly grow over the next seven years as it is not only used in the defense sector but also in the commercial sector. The MRAP market has reached saturation in U.S., but there is a substantial amount of growth in the Asia Pacific and Middle East, as the investment in defense in these regions increased significantly over the past few years. Furthermore, these countries are taking precautionary measures to hinder various threats from cross border terrorists, civilian unrest due to contrast in ideas and rebellious groups. This in turn is expected to have a positive impact on the market over the forecast period.
Demand for armored vehicle is increasing in Asia Pacific, Africa and Middle East region due to the continuous tension within neighboring countries, recent economic booms and internal threat from rebels.
North America armored vehicle market is expected to show stagnant growth over the forecast period owing to finite defense budget. The U.S. held over 80% of the overall North America revenue share in 2014.
Armored vehicle market in Asia Pacific is expected to show tremendous growth owing to government initiative to enhance its military power to counter internal or external terrorism. This region accounted for over 25% of the global share in 2014. MEA is expected to witness growth on account of recent terrorism activity and rising dissension in Iraq.
The acquisition of armored vehicle for homeland security is also expected to increase in future. “The Beast” is an armored vehicle used in the U.S. and it weighs over 10,000 lbs. due its thickness. In addition, it can withstand a missile attack and even has the capability to protect the occupants against any chemical weapons.
Growing need to protect the military recruits from various attacks including mine and fire is expected to drive product industry over the next seven years. Tactical military carriers are constructed primarily for use by the military personnel’s. Armored personnel carrier (APC) are used for safer deployment of infantry to battle fields or high threat range and it can be distinguished from infantry fighting Vehicle (IFV) based on the weapons it bears. Growth in the defense sector in various regions is expected to boost product market over the forecast period.
From modernization programs, sufficient amount of investment is expected in this industry. However, there is a significant reduction in the investment in defense sector by the U.S. government and the western countries. In Asia Pacific, China has drastically increased its expenditure in defense sector which is expected to have a positive impact on the market over the forecast period.
Key players in the market include Oshkosh Defense, BAE Systems, Rheinmetall and Navistar, and most of them are from Europe and US. The major challenge for this industry is that it is majorly dependent on the defense sector.
In April 2015, BAE Systems enforced Active Damping system upgrade to CV90 combat automobile which expanded its agility by condensing automobile’s pitch acceleration by approximately 40.0 %. In December 2014, the company declared that U.S. army has awarded armored multi-purpose vehicle contract worth up to USD 1.2 billion.
Source : Armored Vehicle Market Analysis By Product (Armored Personnel Carriers (APC), Infantry Fighting Vehicle (IFV), Light Protected Vehicle (LPV), Main Battle Tanks (MBT), Mine-Resistant Ambush Protected (MRAP), Tactical Trucks), By Application (Defense, Homeland Security, Commercial) And Segment Forecasts To 2022
Get your queries resolved from an industry expert. Request for a free product review before report purchase.
Speak to the report author to design an exclusive study to serve your research needs.
A testimonial for service excellence represented in the form of BBB "A" Accreditation.
Your personal and confidential information is safe and secure.