Armored Vehicle Market Size, Share & Trends Analysis Report By Product (Defense Armored Vehicle, Commercial Armored Vehicle), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global armored vehicle market size was valued at USD 16.68 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 6.9% from 2022 to 2030. The rising focus on protecting soldiers from external and internal threats is expected to propel market growth. The rising awareness about commercial security is expected to drive the demand for personnel armored vehicles. In January 2022, Oshkosh Defense, LLC; military vehicles, mobility systems, and technology solutions designing company; launched its first hybrid-electric Joint Light Tactical Vehicle (JLTV).  

The electric JLTV, launched by Oshkosh Defense, LLC, helped in protecting soldiers from physical threats, increased fuel efficiency, and offered a battery capacity of 30kWh. Multilateral collaboration between countries such as North Atlantic Treaty Organization (NATO) and the African Union (AU) to counter terrorism and maintain peace is expected to favor the market growth. Moreover, various governments are opting for the latest machinery to counter emergencies such as insurgencies and militant attacks, which is propelling the demand for armored vehicles.

Increasing communal riots and organized crimes in regions such as MEA and the Asia Pacific is another factor driving the growth of the market. For instance, in April 2021, INKAS Armored Vehicle Manufacturing, a Canadian privately held firm specializing in manufacturing, security, and development of armored vehicles, announced its procurement of vehicles to the U.S. government. The company has expanded its capacity and expertise to provide high-quality armored vehicles and fleets, which are available through the United States General Services Administration's (GSA) Advantage program.

Increasing defense budgets, particularly in the Asia Pacific region, is anticipated to drive market growth. Advancements such as increased fuel efficiency and the use of high-tech sensors in armored vehicles are expected to drive market growth over the forecast period. For instance, in November 2021, HENSOLDT, a German multinational company focusing on sensor technologies for protection and surveillance missions in the security, defense, and aerospace sectors, announced the upgrade of its Multifunctional Self-Protection System (MSFS), a sensor-based system to counter threats.

MSFS helps fight threats such as anti-tank guided missiles and laser-directed ammunition and makes vehicles to identify and ward off newly emerging dangers. The Multifunctional Self-Protection System 2.0 is to optimize the size, weight, and quantity of assemblies. The new laser rider improves directional resolution and threat detecting capability. The increased computer power of the central unit also aids in the detection of missile and projectile threats.

Increasing cross-border criminal activities and terrorism have triggered asymmetric warfare between nations, which is expected to further increase the demand for armored vehicles. The development of lightweight, robust, highly efficient, and compact armored vehicles suitable for defense operations is further expected to propel the growth of the market. In February 2021, Arquus, an automotive firm that provides a variety of light and medium-sized wheeled armored vehicles for military services and internal security forces, introduced Scarabee, a lightweight rugged vehicle to spot, lock, acquire, and hit.

Scarabee is fast, compact, robust, and exceptionally well-defended for its class vehicle. It has been meticulously designed to combine protection, stealth, and agility to safeguard soldiers. However, a limited budget for military spending, particularly in North America and Europe, may pose a challenge to the armored vehicle industry over the forecast period. Additionally, the increasing prices of raw materials, components, vehicle assembly, and machining equipment are expected to hinder the growth of the armored vehicle market.

Product Insights

The Main Battle Tanks (MBTs) segment dominated the global market with a share of over 28% in 2021. Government initiatives for strengthening the armed forces across various countries fuel market growth. In March 2021, The Indian Defense Ministry signed an agreement of INR 1,056 Crore (USD 144 million) with Mahindra Emirates Vehicle Armouring FZ LLC, an innovative armored solutions provider for the military and paramilitary forces, to supply 1,300 Light Specialist Vehicles (LSVs) to the Army. The LSVs are incredibly agile and provide all-around defense against small arms fire.

The rising need to protect military personnel from mine attacks is expected to increase the demand for the mine-resistant ambush-protected vehicle over the forecast period. Tactical military carriers and armored personnel carriers are used for safer deployment of infantry on battlefields or high threat areas. In July 2020, Mahindra Emirates Vehicle Armoring FZ LLC, a premium vehicle armoring firm, launched its latest high-tech Mine Resistant Ambush Protected Specialty (MRAPS) vehicle, which is equipped with interrogator arms capable of lifting roadside Improvised Explosive Devices (IEDs).

Regional Insights

The Asia Pacific accounted for the highest share with more than 31% of the global revenue in 2021. The market growth in the region is attributable to the increasing government initiatives to strengthen the military power for countering terrorism. Various government bodies are focusing on the development of the defense sector. In March 2022, Otokar, a Turkish bus and military vehicle manufacturing company, expanded its presence in the Asia Pacific. The firm displayed its COBRA II tactical armored vehicle and ARMA 66 wheeled armored vehicle at the Defense Services Asia expo in Kuala Lumpur, Malaysia.

Countries such as India, South Korea, and China are investing in procuring and developing advanced armored vehicles. Manufacturers in the Asia Pacific are making ample investments in R&D activities to develop advanced and hybrid armored vehicles for enhanced maritime and border patrolling. Additionally, increasing military expenditures and growing demand for medium-sized, light-armored vehicles for patrolling operations are expected to boost the growth of the market in the region over the forecast period.

In January 2021, Elbit Systems Ltd., an international high technology corporation engaged in a wide range of homeland security, defense, and commercial applications, signed a tank and armored vehicle contract with the Asia Pacific government. The company will supply the Sabrah light tank, a tracked or wheeled light tank based on the tracked ASCOD platform, and the Pandur II eight-wheel drive vehicle as a prime contractor for the three-year initiative.

Key Companies & Market Share Insights

The key market players are investing in new product development to gain a competitive advantage. In February 2021, American Rheinmetall Vehicles, LLC, a subsidiary of Rheinmetall AG, and L3Harris Technologies, an American technology company, defense contractor, and information technology services provider signed a partnership agreement. The partnership aimed to develop an Optionally Manned Fighting Vehicle (OMFV) for the U.S. Army. This vehicle replaced the Bradley Infantry Fighting Vehicle (IFV), a tracked fighting vehicle designed to move scouts with armor protection.

Prominent players are focusing on collaborating with companies engaged in manufacturing advanced systems and components to equip their products with cutting-edge technologies for better combat capabilities. For instance, in February 2021, Bharat Forge, an engineering and technology company, collaborated with the international aerospace and technology conglomerate Paramount Group to combine skills, technologies, and expertise to develop armored vehicles in India. Some prominent players in the global armored vehicle market include:

• BAE Systems

• BMW AG

• Daimler AG (Mercedes Benz)

• Elbit Systems

• Ford Motor Company

• General Dynamics Corporation

• INKAS Armored Vehicle Manufacturing

• International Armored Group

• IVECO

• Krauss-Maffei Wegmann GmbH & Co. (KMW)

• Lenco Industries, Inc.

• Lockheed Martin Corporation

• Navistar, Inc.

• Oshkosh Defense, LLC

• Rheinmetall AG

• STAT, Inc.

• Textron, Inc.

• Thales Group

Armored Vehicle Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global armored vehicle market report based on product and region:

• Product Outlook (Volume, Thousand Units; Revenue, USD Million, 2017 - 2030)

  • Defense

    • Armored Personnel Carrier (APC)

    • Infantry Fighting Vehicles (IFVs)

    • Light Protected Vehicles (LPVs)

    • Main Battle Tanks (MBTs)

    • Mine-resistant Ambush Protected (MRAP)

    • Tactical Vehicle

    • Others

  • Commercial

    • Bus/Van

    • Limousine

    • Sedan

    • SUV

    • Others

• Regional Outlook (Volume, Thousand Units; Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Russia

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa (MEA)