|Fastest Growing Market:||Asia-Pacific|
|Largest Market:||North America|
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The armored fighting vehicles market was valued at about USD 15.57 billion in 2020, and it is projected to reach USD 24 billion in 2030, with a CAGR of 4.6% during the forecast period (2021-2030).
Despite the significant impact of the COVID-19 pandemic on the economy, the market for armored fighting vehicles remained unaffected, as the procurement projects were on track and the sales and revenues of armored vehicles increased steadily for the manufacturing companies.
The growing geopolitical tensions and border issues between various countries in Asia-Pacific, Europe, and the Middle East are generating demand for the procurement of new armored vehicles to enhance the combat capabilities of the ground forces.
In addition, the aging fleet of armored vehicles is also forcing some countries to invest in new programs to improve the efficiency, lethality, and sophistication of the vehicles.
The increasing focus on the development of local manufacturing capabilities in Asia-Pacific and the Middle East is expected to accelerate the growth of the market during the forecast period.
Scope of the Report
An armored vehicle is an armed land vehicle protected by armor, generally combining operational mobility with offensive and defensive capabilities. Armored vehicles can be wheeled or tracked. The market is segmented by type into armored personnel carrier (APC), infantry fighting vehicle (IFV), mine-resistant ambush-protected (MRAP), main battle tank (MBT), and other types. The other types segment includes self-propelled artillery, light armored vehicles, reconnaissance vehicles, light utility vehicles, bridge vehicles, engineering vehicles, recovery vehicles, military trucks, and heavy equipment transport (HET) military vehicles. The report also covers the market sizes and forecasts for the market in major countries across different regions. The market sizing and forecasts have been provided in value (USD billion). The market only includes demand for new armored vehicles and maintenance of the existing fleet of armored fighting vehicles. The scope does not include the upgrade and retrofit of existing armored vehicles.
|Armored Personnel Carrier (APC)|
|Infantry Fighting Vehicle (IFV)|
|Mine-resistant Ambush Protected (MRAP)|
|Main Battle Tank (MBT)|
Key Market Trends
Infantry Fighting Vehicle (IFV) Segment Accounted for the Highest Share in 2020
The infantry fighting vehicle (IFV) segment currently dominates the market and is expected to continue its dominance during the forecast period. This is mainly due to increased demand for IFVs due to their tactical advantage to provide direct-fire support along with infantry troop carrying capabilities. Several countries globally are undertaking various programs for robustly modernizing their fleet of IFVs to enhance their attack and troop support capabilities. Currently, the United States has a fleet of over 2,000 Bradley IFVs in services. To further increase its fleet, in October 2019, BAE Systems was awarded a USD 269 million contract by the US armed forces to manufacture and deliver 168 additional units of the Bradley A4 IFV. Similarly, Argentina received approval from the US State government for the procurement of 27 M1126 Stryker infantry carrier vehicles and related equipment for USD 100 million in mid-2020. Recently, in 2021, the Australian government officially unveiled the names of the two infantry fighting vehicle (IFV) contenders for the army’s LAND 400 Phase 3 project. Rheinmetall Defence Australia and Hanwha Defense Australia have been officially unveiled as contenders. The total acquisition cost of the vehicles is estimated to be worth up to USD 27 billion. Such large-scale procurement and the growing tensions in the Asia-Pacific region and the Middle East will further propel the growth of this segment during the forecast period.
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Asia-Pacific Region is Expected to Witness the Highest Growth During the Forecast Period
China, India, Australia, South Korea, Singapore, and Japan are generating significant demand for new armored vehicles. The demand is primarily to replace an aging fleet that has been in operation for over 30-40 years. For instance, in 2017, the Singapore Ministry of Defence awarded a contract to ST Kinetics to produce Hunter AFVs. The Hunter AFV was commissioned by the Singapore Army in June 2019 and replaced the Singapore Army’s aging M113 Ultra armored vehicle, which has been in service since the 1970s. Likewise, in February 2021, the Indian Army placed an emergency procurement order worth USD 24.4 million for M4 armored vehicles from the Kalyani group. The new armored vehicles will support the Indian Army to transport troops faster and operate in high-altitude regions. These countries are also focusing on indigenous armored vehicle manufacturing. Mahindra Defence Systems (MDS) developed a light strike vehicle (LSV) for the Indian Army, and it has also been awarded a contract worth about USD 145 million. The induction of vehicles is planned to be completed in four years (by 2025), commencing in 2021. China's NORINCO has been focusing on increasing the production and sales of domestically manufactured armored vehicles for the past few years. Such developments are anticipated to accelerate the growth of the market in this region.
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Some of the prominent players in the armored fighting vehicles market are General Dynamics Corporation, Oshkosh Corporation, BAE Systems, Rheinmetall AG, and Nexter Group. For decades, the market for armored fighting vehicles was highly consolidated, with few international players accounting for the majority share of the market. However, over the past few years, due to the global trend of indigenous manufacturing, many new local players have entered the market in the Asia-Pacific and Middle East region. Saudi Arabian Military Industries (SAMI), STREIT Group, Nurol Makina, BMC Otomotiv Sanayi ve Ticarest AS (BMC), and Katmerciler HIZIR, among others, are some of the local players based out of the Middle Eastern region. To further enhance their footprint in the market, the local players are signing long-term contracts to meet the requirements of regional armed forces. In this regard, companies in Turkey have been rapidly expanding their presence in the Middle East and North Africa countries through strategic partnerships with the local defense authorities. In 2020, the Turkish defense companies delivered MRAPs, armored combat vehicles, tanks, etc., to the armed forces of Tunisia. Due to high competitiveness in the market, the international players are investing in the development of next-generation armored vehicle models with advanced weapons and electro-optic infrared sensor suites, which will enhance the situational awareness and survivability of the military personnel on the battlefield.
- In January 2021, Katmerciler HIZIR, a Turkey-based company, was selected by Kenya’s Department of Defense to deliver 118 armored personnel carriers (APCs). These APCs are planned to be deployed by the Kenyan Army against al-Shabaab militants from Somalia.
- In September 2020, Hungary placed an order for 218 Lynx Infantry Fighting Vehicles (IFVs) that are manufactured by Rheinmetall. According to the contract, initial 46 vehicles are planned to be manufactured in Germany, and the remaining 172 vehicles will be built in Hungary. The contract is worth USD 2.44 billion (EUR 2 billion), and the initial batch of 46 vehicles is scheduled to be delivered by early 2023.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers/Consumers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - USD billion)
5.1.1 Armored Personnel Carrier (APC)
5.1.2 Infantry Fighting Vehicle (IFV)
5.1.3 Mine-resistant Ambush Protected (MRAP)
5.1.4 Main Battle Tank (MBT)
5.1.5 Other Types
5.2.1 North America
188.8.131.52 United States
184.108.40.206 United Kingdom
220.127.116.11 Rest of Europe
18.104.22.168 South Korea
22.214.171.124 Rest of Asia-Pacific
5.2.4 Latin America
126.96.36.199 Rest of Latin America
5.2.5 Middle-East and Africa
188.8.131.52 Saudi Arabia
184.108.40.206 United Arab Emirates
220.127.116.11 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 General Dynamics Corporation
6.2.2 Rheinmetall AG
6.2.3 BAE Systems PLC
6.2.4 Textron Inc.
6.2.5 Elbit Systems Ltd
6.2.6 Oshkosh Corporation
6.2.7 Nexter Group
6.2.8 Denel SOC Ltd
6.2.9 FNSS Savunma Sistemleri
6.2.10 BMC Otomotiv Sanayi ve Ticarest AS
6.2.11 Saudi Arabian Military Industries (SAMI)
6.2.12 Patria Group
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Armored Fighting Vehicles Market market is studied from 2018 - 2030.
What is the growth rate of Armored Fighting Vehicles Market?
The Armored Fighting Vehicles Market is growing at a CAGR of 4.6% over the next 5 years.
What is Armored Fighting Vehicles Market size in 2018?
The Armored Fighting Vehicles Market is valued at 15 Billion USD in 2018.
What is Armored Fighting Vehicles Market size in 2030?
The Armored Fighting Vehicles Market is valued at 24 Billion USD in 2030.
Which region has highest growth rate in Armored Fighting Vehicles Market?
Asia-Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Armored Fighting Vehicles Market?
North America holds highest share in 2020.
Who are the key players in Armored Fighting Vehicles Market?
Oshkosh Corp., Rheinmetall AG, General Dynamics Corporation, Nexter Group, BAE Systems plc are the major companies operating in Armored Fighting Vehicles Market.