Armored Vehicle Procurement and Upgrade Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Armored Vehicle Procurement and Upgrade Market is Segmented by Vehicle Type (Armored Personnel Carrier (APC), Infantry Fighting Vehicle (IFV), Mine-resistant Ambush Protected (MRAP), Main Battle Tank (MBT), and Other Vehicle Types) and Geography.

Market Snapshot

Armored Vehicle Procurement and Upgrade Market Overview
Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: 4.76 %

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Market Overview

The armored vehicle procurement and upgrade market is projected to register a CAGR of 4.76% during the forecast period. 

  • Due to the ever-increasing need for national and regional security, countries, such as India, the United Kingdom, France, and the United States, are anticipated to be the primary centers in the market studied. Growing military expenditure of these countries is expected to help in this regard, by giving freedom to the militaries for spending huge amounts for the procurement of these vehicles, in order to satisfy the increasing demand.
  • Countries with vast land-based borders are emerging as lucrative markets for armored vehicles. The procurement of land-based vehicles has been increasing, particularly in Asia-Pacific and Europe, due to the growing political tensions between the neighboring countries and increasing hostile activities in the regions.
  • In addition, these factors are increasing the need for incorporating the latest technologies into the land vehicles. This, in turn, is a major driver for upgrade and retrofit activities.

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, depending on the type. The armored vehicle procurement and upgrade market provide insights into the procurement of military armored vehicles, along with maintenance, repair, and overhaul services and the upgrade and retrofits that are done to these armored vehicles. The addition of new technology or features to older systems/subsystems, as a retrofit, is considered under upgrades. Upgrades also cover the replacement of parts/systems/subsystems with newer generation models. Anti-aircraft, self-propelled artillery, light armored vehicles, reconnaissance vehicles, and light utility vehicles are considered in the other vehicle types segment.
Vehicle Type
Armored Personnel Carrier (APC)
Infantry Fighting Vehicle (IFV)
Mine-resistant Ambush Protected (MRAP)
Main Battle Tank (MBT)
Other Vehicle Types
Geography
North America
United States
Canada
Europe
United Kingdom
France
Germany
Rest of Europe
Asia-Pacific
China
India
Japan
Rest of Asia-Pacific
Other Regions
Brazil
Saudi Arabia
Rest of the World

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Key Market Trends

The Infantry Fighting Vehicle Segment Held the Largest Market Share in 2019

As of 2019, the infantry fighting vehicle segment had the largest market share. The demand for IFVs has increased in the recent past from the armies worldwide due to the requirement for vehicles with high firepower. IFVs are less expensive and easier to maintain than MBTs. Also, IFVs are designed to have higher mobility than MBTs. In addition, IFCs also provide personnel protection like APCs with greater firing capabilities, and thus, they are used as substitutes for APCs. Driven by their growing popularity, there has been an increase in the procurement and upgrades of IFVs in recent times. For instance, as part of the US Army’s combat vehicle modernization strategy that aims at ensuring force readiness of the Armored Brigade Combat Teams (ABCT), in October 2019, BAE Systems was awarded a contract covering the upgrade of the Bradley Fighting Vehicle (BFV) to Bradley A4 configuration, in addition to the production of new vehicles. On the other hand, Russia received the upgraded BMP-3Ms in 2019, with new “Sodema” gunner’s sight and new radios. The United Kingdom is also expected to upgrade its fighting vehicles, as the army is focusing on the modernization of its armored fighting vehicle fleet, including the Warrior, Challenger 2, and mechanized infantry vehicles. Such procurement and upgrade requirements are expected to increase the revenues for the segment in the years to come. 

armored vehicle procurement and upgrade market_segment

Asia-Pacific is Projected to Dominate the Market During the Forecast Period

In terms of geography, the Asia-Pacific region accounted for the highest market share in 2019. The region is also projected to witness the highest CAGR during the forecast period, driven by the increasing demand from countries, like China and India, among others. China’s production capacity is advancing in almost every category of ground systems, like armored personnel carriers, assault vehicles, artillery systems and pieces, air defense artillery systems, and main and light battle tanks. China North Industries Corporation (Norinco) has been focusing on increasing the production and sales of domestically manufactured armored vehicles for the past few years. In November 2018, China started testing unmanned Type-59 tanks. Also, in February 2019, Norinco revealed a concept for a heavy IFV, based on the VT4 export main battle tank. Currently, the demand for maintenance and modernization of the existing armored vehicles fleet is high, as several armored vehicles, like Norinco A-100 MLRS, Norinco PGZ-07, Norinco PGZ-95 (Type 95), and Norinco Type 99 (ZTZ-99 / WZ-123), are 20-30 years old. To extend their lifespan, these vehicles require an update. Hence, the market for retrofit and modernization is expected to witness immense growth in China. In addition, India is also increasing its armored vehicle strength, due to its issues with land-border sharing countries. A significant focus is on the modernization of its aging armored vehicle fleet. In April 2019, the Indian government approved the procurement of 464 upgraded T-90 Bhishma tanks at a cost of approximately USD 2 billion, as part of the modernization of ground forces between 2022-2026. Furthermore, India is planning to replace its aging T-72 tanks with new generation tanks under the Future Ready Combat Vehicle program. Such plans are expected to increase the prospects for the market in Asia-Pacific on a whole, in the years to come. 
armored vehicle procurement and upgrade market_geography

Competitive Landscape

The armored vehicle procurement and upgrade market is a fragmented one, with many global and local players competing with their manufacturing, MRO, and upgrade capabilities. General Dynamics Corporation, BAE Systems PLC, Rheinmetall AG, Textron Inc., Elbit Systems Ltd, and Oshkosh Corporation are some of the prominent players in the market. The market has seen an increase in the number of local players over the last decade. The aging fleet of armored vehicles in Asia-Pacific and Middle-East and Africa have given the necessary opportunities for the local players in these regions to develop their capabilities, helping them gain significant shares in the local markets. The countries now have the capability to produce their own 3rd and 4th generation MBTs and other armored vehicles locally. In such a competitive environment, the global players are compelled to improve their policies and delivery promises to remain major players outside the United States and EU, where they enjoy higher revenues. Also, in the coming years, global players may also have to cut down on prices to compete with local manufacturers. 

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Challenges and Restraints

    4. 4.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Vehicle Type

      1. 5.1.1 Armored Personnel Carrier (APC)

      2. 5.1.2 Infantry Fighting Vehicle (IFV)

      3. 5.1.3 Mine-resistant Ambush Protected (MRAP)

      4. 5.1.4 Main Battle Tank (MBT)

      5. 5.1.5 Other Vehicle Types

    2. 5.2 Geography

      1. 5.2.1 North America

        1. 5.2.1.1 United States

        2. 5.2.1.2 Canada

      2. 5.2.2 Europe

        1. 5.2.2.1 United Kingdom

        2. 5.2.2.2 France

        3. 5.2.2.3 Germany

        4. 5.2.2.4 Rest of Europe

      3. 5.2.3 Asia-Pacific

        1. 5.2.3.1 China

        2. 5.2.3.2 India

        3. 5.2.3.3 Japan

        4. 5.2.3.4 Rest of Asia-Pacific

      4. 5.2.4 Other Regions

        1. 5.2.4.1 Brazil

        2. 5.2.4.2 Saudi Arabia

        3. 5.2.4.3 Rest of the World

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 General Dynamics Corporation

      2. 6.2.2 Rheinmetall AG

      3. 6.2.3 BAE Systems PLC

      4. 6.2.4 Textron Inc.

      5. 6.2.5 Elbit Systems Ltd

      6. 6.2.6 RUAG Group

      7. 6.2.7 Nexter KNDS Group

      8. 6.2.8 Oshkosh Corp.

      9. 6.2.9 Thales Group

      10. 6.2.10 Krauss-Maffei Wegmann GmbH & Co. KG

      11. 6.2.11 CMI Group

      12. 6.2.12 FNSS Savunma Sistemleri

      13. 6.2.13 IVECO SPA

      14. 6.2.14 BMC

      15. 6.2.15 STREIT Group

      16. 6.2.16 AM General

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Armored Vehicle Procurement And Upgrade Market market is studied from 2018 - 2026.

The Armored Vehicle Procurement And Upgrade Market is growing at a CAGR of 4.76% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

General Dynamics Corporation, Rheinmetall AG, BAE Systems PLC, Textron Inc., Elbit Systems Ltd are the major companies operating in Armored Vehicle Procurement And Upgrade Market.

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