Market Trends of Armor Materials Industry
Body Armors Application expected to lead the Market
- Homeland security concerns have made it necessary for all countries to have well-trained defense forces. The requirement for army training is increasing owing to the increasing bilateral tensions between nations.
- For homeland security, soldiers are meant to fight, for which they require weapons, vehicles, and body shields to protect them. China had the world's largest armed forces in terms of active duty military personnel in 2022, with over 2 million active soldiers. The top five largest armies were India, the United States, North Korea, and Russia.
- Russia spent around USD 86.4 billion on its military expenses in 2022, having increased its spending by 31 percent over the previous year.
- Wearing body armor is almost a common practice, and in many instances, mandatory among military personnel and special forces, as they help reduce fatalities in military environments.
- During wars, soldiers have to wear body armor and carry weapons, such as guns, grenades, etc. Hence, these are to be made available to military personnel during wars. Every year, more individuals join the army, creating further demand for armor and weapons.
- Furthermore, Philippines is planning to modernize its military over the next decade and has allocated PHP 25 billion (~USD 447.55 million) for the same. Under this program, the Armed Forces of the Philippines (AFP) is expected to receive more night-capable attack helicopters and fast boats, along with more body armor, rifles, and helmets.
- Additionally, according to the Department of Defence Production (India), in the financial year 2022, the export value of defense equipment from India reached INR 128.2 billion (~USD 1.63 billion).
- According to the Union Budget 2022-23 of India, 25% of the defense R&D budget has been designated for private industry and start-ups, paving the door for the development of innovative defensive technology in India.
- The Spanish government has announced its decision to increase its military expenditure to approximately EUR 18 billion (~USD 18.97 billion) by 2024.
- Owing to all the above-mentioned factors, the body armors segment is expected to dominate the market during the forecast period.
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North America to dominate the Market
- North America dominated the global market in terms of market share. The United States is one of the largest consumers of armor materials globally.
- This is majorly owing to the rising homeland security concerns due to terrorism. The United States has the highest military expenditure and has the largest military force globally.
- According to the US Army's most recent budget document, a total of 504 units of fire vehicles are expected to be procured with 260 being ordered through 2022-2027.
- Additionally, the US Army and BAE Systems are collaborating to find ways to speed up manufacturing of the new Armoured Multi-Purpose Vehicle, which would allow the service to replace aging M113 armored troop carriers more swiftly.
- Furthermore, the emerging geopolitical and bilateral tensions between the major nations and the increasing terrorist activities lead to the increasing procurement of armor materials to manufacture defense equipment.
- The United States also struck a significant deal with Saudi Arabia for arms deal sales, along with the sale of F-35 combat aircraft.
- Lockheed Martin, the largest domestic fighter jet manufacturer, announced its decision to nearly triple its annual production to more than 160 jets by 2023.
- The US army also announced its plans to spend about USD 1.4 billion on manufacturing lightweight tanks over the forecast period.
- These factors will likely drive the demand for armor materials in North America over the forecast period.
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