The Armored Vehicle Market is modernizing defense capabilities by 2031
The Armored Vehicle Market is modernizing defense capabilities by 2031
Blog Article
The armored vehicle market comprises armored fighting vehicles, infantry fighting vehicles, battle tanks, armored personnel carriers, armored amphibious vehicles, and reconnaissance vehicles. Armored vehicles provide high-powered defensive capabilities and protection from explosives and small arms fire. Their modular designs allow for quick customization based on mission requirements. The ballistic and mine-resistant structures in armored vehicles help defend troops operating in high-risk environments.
The global armored vehicle market is estimated to be valued at US$28 billion in 2024 and is expected to exhibit a CAGR of 7.1% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the armored vehicle market are General Dynamics Corporation, BAE Systems, Rheinmetall AG, Oshkosh Corporation, ST Engineering, and Elbit Systems. These companies continuously invest in R&D to develop advanced technologies and meet the evolving needs of defense forces globally.
The growing demand for armored vehicles stems from rising geopolitical tensions, asymmetric warfare, and instability in various regions. Many countries are procuring new generation armored fleets to modernize their land forces and ensure troop safety.
Due to increasing defense budgets and consolidation of vehicle manufacturers, the armored vehicle industry has seen rapid global expansion over the past decade. Major players are forming strategic partnerships and establishing production facilities worldwide to gain new orders.
Market Key Trends
One of the key trends in the armored vehicle market is the integration of active protection systems (APS). APS utilizes sensors, countermeasures, and quick-reaction times to intercept threats like rocket-propelled grenades before they make contact. This significantly enhances vehicle survivability against ambushes and roadside bomb attacks. Other innovations being adopted include remote weapon stations, advanced communications suites, active mine-detection technologies, and upgraded power packs for superior mobility and on-board systems. Joint venture partnerships and local production collaborations are also growing worldwide to boost technology transfers and offset costs.
Porter's Analysis
Threat of new entrants: There are relatively high barriers for new companies to enter into the armored vehicle market as it requires huge capital investments and technologies. The existing key players dominate the market.
Bargaining power of buyers: Buyers have moderate bargaining power due to presence of multiple established players with varied product portfolios in this market. However, military modernization budgets influence purchase decisions.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of component substitutes and global presence of raw material suppliers.
Threat of new substitutes: There is low threat from substitutes as armored vehicles provide unmatched safety and protection during law enforcement, peacekeeping, and military operations.
Competitive rivalry: The global armored vehicle market is consolidated in nature with top players competing on the basis of product quality, innovations, and integrated security solutions.
The global armored vehicle market is concentrated in North America and Europe as these regions have ongoing military modernization programs and invest significantly in interior security. According to a report published in 2022, North America held over 30% of global market share.
The Asia Pacific region is identified as the fastest growing market for armored vehicles. Major contributors include China, Japan, and India with increasing defense spending and procurement of armored cars, trucks, and infantry fighting vehicles. Countries are bolstering their armed forces and law enforcement capabilities to tackle rising security threats and transnational crimes.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191) Report this page