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Armored Vehicle Market Size To Reach $44.56Bn By 2030

Armored Vehicle Market Size To Reach $44.56 Billion By 2030

May 2025 | Report Format: Electronic (PDF)

Armored Vehicle Market Growth & Trends

The global armored vehicle market size is expected to reach USD 44.56 billion by 2030, registering a CAGR of 5.4% from 2025 to 2030, according to a new report by Grand View Research, Inc. The growing internal and external terrorist activities across the globe are expected to drive the market demand over the forecast period. Technological advancements, such as unmanned vehicles, are expected to further fuel the market growth. For instance, in February 2021, ADASI, a reputable end-to-end solution provider in the autonomous systems industry with a presence in the MENA area, revealed an armored robotic vehicle and two new unmanned ground vehicles at the International Defense Exhibition and Conference.

The unmanned vehicles, controlled by a ground control station with a transmission range of 12 kilometers and an endurance of six to 8 hours, can travel at speeds of up to 50 kilometers per hour to provide greater firepower to the Armed Forces while decreasing the risk to troop life. Armored vehicles are protected by depleted uranium or stainless steel and are equipped with powerful weapons that combine defensive, tactical offensive and operational mobility capabilities. The development of advanced vehicles, such as unmanned armored vehicles, and AI-based smart object recognition & tracking technology used in the military sector are expected to propel market demand over the next few years.

For instance, In January 2022, Rafael, an Israeli defense technology company, unveiled its first next-generation tank powered by artificial intelligence. The advanced vehicular integrated combat systems developed by the organization are a fusion of automated technologies and battlefield sensors that can react faster than humans. It combines a vehicle's defense and weapons and can take over combat tasks that have been given to it. The growing need to protect military recruits from land mines and fire is expected to drive the demand for armored vehicles over the next seven years. Furthermore, the demand for vehicles is increasing in the Asia Pacific and Middle East & African regions due to the constant tension among neighboring countries and internal threats from rebels.

For instance, in March 2022, the Ministry of Defense Hungary, which maintains political and civil control over the army in the country, announced that the Hungarian Armed Forces had received 40 tactical wheeled armored vehicles known as Gidran for its military from Turkey. The vehicles are 4x4 mine-resistant ambush-protected armored vehicles that Hungary’s army will use. The country has become the first European Union to permit a Turkish defense firm’s operation on its territory by accepting the Gidran for military use and constructing a production line. The major players are investing in R&D programs to develop new technologies and products.

Enhanced protection and fuel efficiency are the key aspects considered for future developments in armored vehicles. For instance, in March 2022, Rheinmetall AG, a German automotive and arms company headquartered in Düsseldorf, Germany, announced plans for a new facility in Eastern Slovakia and a significant investment in the Slovak economy. The company has invested €30 million in the project as a whole. The plant has 12,000 square meters of production lines and a 15,000 square meter test space. The new facility will be Rheinmetall’s central hub in the Slovak Republic, responsible for delivering 80% of the Ministry of Defence’s new IFVs.

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Armored Vehicle Market Report Highlights

The conventional armored vehicles segment witnessed the highest market share in 2024. The electric armored vehicles segment is estimated to grow at the highest CAGR over the forecast period.
The manned armored vehicles segment held the largest revenue share in 2024. The unmanned armored vehicles segment is predicted to foresee significant growth in the forecast years.
The OEM segment held the largest revenue share in 2024. The retrofit segment is anticipated to grow at the highest CAGR during the forecast period.
The fire control systems (FCS) segment held the largest revenue share in 2024. The navigation systems segment is predicted to foresee significant growth in the forecast years.
The wheeled segment held the largest revenue share in 2024. The tracked segment is predicted to foresee significant growth in the forecast years.
The armored vehicle industry in Asia Pacific dominated the market with a revenue share of 33.2% in 2024 due to rising defense expenditures and growing indigenous production capabilities.

Armored Vehicle Market Segmentation

Grand View Research has segmented global armored vehicle market report based on product, type, mobility, mode of operation, point of sale, system, and region:

Armored Vehicle Product Outlook (Revenue, USD Million, 2017 - 2030)

Combat Vehicles
- Armored Personnel Carrier (APC)
- Infantry Fighting Vehicles (IFV)
- Light Protected Vehicles (LPV)
- Main Battle Tanks (MBT)
- Mine-resistant Ambush Protected (MRAP)
- Tactical Vehicle
- Others
Combat Support Vehicles
- Armored Supply Trucks
- Armored Command & Control Vehicles
- Repair & Recovery Vehicles
- Unmanned Armored Ground Vehicles