Armored Vehicle Upgrade and Retrofit Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Armored Vehicle Upgrade and Retrofit Market is Segmented by Type (Armored Personnel Carrier [APC], Infantry Fighting Vehicle [IFV], Mine-resistant Ambush Protected [MRAP], Main Battle Tank [MBT], and Other Vehicle Types) and Geography (North America United States and Canada), Europe (United Kingdom, France, Germany, Russia, and Rest of Europe) Asia-Pacific (China, India, Japan, South Korea, and Rest of Asia-Pacific), Latin America (Brazil and Rest of Latin America), and Middle East and Africa (United Arab Emirates, Saudi Arabia, Egypt, Turkey, and Rest of Middle East and Africa)). The report offers the market size in value terms in USD (billion) for all the abovementioned segments.

Armored Vehicle Upgrade And Retrofit Market Size

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Armored Vehicle Upgrade And Retrofit Market Summary
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Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 9.92 %
Fastest Growing Market North America
Largest Market Asia Pacific
Market Concentration Medium

Major Players

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*Disclaimer: Major Players sorted in no particular order

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Armored Vehicle Upgrade And Retrofit Market Analysis

The armored vehicle upgrade and retrofit market was valued at USD 6.51 billion in 2023 and is projected to reach USD 10.45 billion in 2028 with a CAGR of 9.92% during the forecast period.

Armored vehicles are land combat vehicles employed for the transportation of different offensive and defensive operations. These vehicles are usually employed for the transportation of military personnel and cargo as well as operations in active combat. Moreover, such vehicles are armed with weapons and shielded by armor against bullets, shell fragments, and other projectiles. Armored vehicles give significant strength to a country's army. They are utilized in great numbers by various defense forces worldwide.

The main factors which are driving this market can be attributed to the increasing defense budget of various countries leading to frequent upgradation of armored vehicles to make them more compliant with the changing battlefield scenario and the increasing demand for low-cost armor for military vehicles. According to the Stockholm International Peace Research Institute (SIPRI), global defense expenditure reached a record high of USD 2,240 billion in 2022.

Moreover, the rise in terrorism and hostile activities around the world has been increasing the demand for incorporating the latest technologies into land vehicles coupled with the aging fleet of armored vehicles, which has been forcing various countries to invest in upgrade programs to increase efficiency, lethality, and connectivity. Currently, several programs are being conducted to upgrade the equipment and systems in old armored vehicles across the globe. Additionally, the processes of upgrade and retrofit are comparatively less expensive than manufacturing a fully equipped vehicle.

Armored Vehicle Upgrade And Retrofit Market Trends

Infantry Fighting Vehicle (IFV) Segment Dominates the Market During the Forecast Period

The infantry fighting vehicle segment holds the highest shares in the market and continue its domination during the forecast period. The growth is due to rising investment in the defense sector from most countries and increasing focus on improving defense capabilities.

An infantry fighting vehicle (IFV), also called a mechanized infantry combat vehicle (MICV), is a type of armored fighting vehicle used to carry infantry into battle and provide direct-fire support. The countries have been working on the improvement of fire control, firepower, and ergonomic and functional characteristics of the aging infantry fighting vehicles.

For instance, in December 2022, Sweden signed a contract worth USD 1.37 billion with the Slovak Republic, the Ministry of Defense of the Slovak Republic, for the delivery of 152 CV9035 infantry fighting vehicles (IFVs) from BAE Systems. In June 2021, the Federal Office for Bundeswehr Equipment, Information Technology, and In-Service Support (BAAINBw) signed a contract with PSM GmbH (a 50 - 50 JV of Rheinmetall and Krauss-Maffei Wegmann) to upgrade the first lot of Bundeswehr's Puma IFVs. The contract was awarded as part of the German Bundeswehr plan to maintain a combat-ready, fully digitized fleet of IFVs, and under the contract, the company will modernize 154 vehicles with an option to modernize additional 143 Puma IFVs. The modernization of vehicles is expected to be completed by 2029. Such modernization programs of the armed forces are anticipated to accelerate the growth of the segment during the forecast period.

Armored Fighting Vehicle Strength By Country (Thousands), 2023

North America is Projected to Show Highest Growth During the Forecast Period

North America is anticipated to show the highest growth in the armored vehicle upgrade and retrofit market during the forecast period. The growth is due to the high defense expenditure, the presence of the largest armored vehicle fleet, and rising spending on military modernization programs from The United States and Canada. The Stockholm International Peace Research Institute (SIPRI) report published in 2022 stated that the US government allocated a defense budget of USD 877 billion in 2022.

The US Army has different types of armored vehicles. It includes main battle tanks, armored personnel carriers, infantry fighting vehicles, engineering support vehicles, mine-protected vehicles, prime movers and trucks, mobile artillery, light tactical vehicles, and light utility vehicles. The vehicle is of different sizes and weights, from the 70-plus ton Abrams main battle tank to the Special Forces' Lightweight Tactical All-Terrain Vehicle at around one ton. The Army also maintains several modified commercially available vehicles, such as dump trucks and pickups. In total, the US Army has nearly 225,000 vehicles of all types. For instance, in June 2023, the US Army was awarded a contract to develop a new mechanized infantry combat vehicle prototype. Under the contract, General Dynamics Land Systems Inc. and American Rheinmetall Vehicles LLC will prepare vehicle prototypes to replace the M2 Bradley Infantry Fighting Vehicle used for reconnaissance and provide protection, transportation, and small-arms firepower for squad elements. The total value for both contracts is approximately USD 1.6 billion.

Furthermore, the Canadian Army uses Heavy Logistics Vehicle Wheeled (HLVW) vehicles, providing the Army with heavy lift transport capability. The HLVW fleet transports combat supplies, troops, cargo, and spare parts. Thus, growing spending on military modernization programs and increasing defense expenditure drive market growth across the region.

Armored Vehicles Upgrade and Retrofit Market - Growth Rate by Region (2023 - 2028)

Armored Vehicle Upgrade And Retrofit Industry Overview

The armored vehicle upgrade and retrofit market is moderately fragmented in nature, with the presence of several global and local players holding significant shares in the market. Some of the key players in the market are General Dynamics Corporation, Rheinmetall AG, Nexter Group, Textron Inc., and BAE Systems plc. Key players in the market are highly investing in research and development and the introduction of advanced solutions for armored vehicles. For instance, In April 2023, the manufacturer BMC Otomotive announced the transfer of two pre-production samples of the Altay MBT to the military. These samples will be tested in the field for 1.5-2 years before starting mass production. So far, 10 samples of the Altay MBT have been built in various configurations with different engines and transmissions. Serial production of tanks will start tentatively in 2024-2025.

Armored Vehicle Upgrade And Retrofit Market Leaders

  1. General Dynamics Corporation

  2. Rheinmetall AG

  3. Textron Inc.

  4. Nexter Group

  5. BAE Systems plc

*Disclaimer: Major Players sorted in no particular order

Armored Vehicle Upgrade And Retrofit Market Concentration
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Armored Vehicle Upgrade And Retrofit Market News

May 2023- Turkey's FNSS Defence Systems was contracted to provide capability enhancement to the Turkish Army's ACV-15 advanced armored personnel carriers (AAPCs). The agreement was signed to boost the vehicle's performance and extend its service life for an additional 20 years. According to the company, the AAPCs will be fitted with modern subsystems to support more missions and help address sophisticated threats on the battlefield.

April 2023- Rheinmetall AG and Krauss-Maffei Wegmann (KMW) received an order from the German army to upgrade 143 Puma infantry fighting vehicles. The companies announced that they will retrofit the armored vehicles with key capabilities for firepower and command and control by 2029.

Armoured Vehicles Upgrade & Retrofit Market Report - 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 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 By 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 By 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 Russia

        5. 5.2.2.5 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 South Korea

        5. 5.2.3.5 Rest of Asia-Pacific

      4. 5.2.4 Latin America

        1. 5.2.4.1 Brazil

        2. 5.2.4.2 Rest of Latin America

      5. 5.2.5 Middle East and Africa

        1. 5.2.5.1 United Arab Emirates

        2. 5.2.5.2 Saudi Arabia

        3. 5.2.5.3 Egypt

        4. 5.2.5.4 Turkey

        5. 5.2.5.5 Rest of Middle East and Africa

  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 Oshkosh Corporation

      7. 6.2.7 Nexter Group

      8. 6.2.8 FNSS Savunma Sistemleri A.S.

      9. 6.2.9 THALES

      10. 6.2.10 Ruag International Holding AG

      11. 6.2.11 Patria Group

      12. 6.2.12 Bharat Electronics Limited (BEL)

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Armored Vehicle Upgrade And Retrofit Industry Segmentation

Armored vehicles are land combat vehicles employed for the transportation of different offensive and defensive operations. These vehicles are usually employed for the transportation of military personnel and cargo as well as operations in active combat.

The Armored Vehicle Upgrade and Retrofit Market is Segmented by Type (Armored Personnel Carrier [APC], Infantry Fighting Vehicle [IFV], Mine-resistant Ambush Protected [MRAP], Main Battle Tank [MBT], and Other Vehicle Types) and Geography (North America United States and Canada), Europe (United Kingdom, France, Germany, Russia, and Rest of Europe) Asia-Pacific (China, India, Japan, South Korea, and Rest of Asia-Pacific), Latin America (Brazil and Rest of Latin America), and Middle East and Africa (United Arab Emirates, Saudi Arabia, Egypt, Turkey, and Rest of Middle East and Africa)). The report offers the market size in value terms in USD (billion) for all the abovementioned segments.

By Vehicle Type
Armored Personnel Carrier (APC)
Infantry Fighting Vehicle (IFV)
Mine-resistant Ambush Protected (MRAP)
Main Battle Tank (MBT)
Other Vehicle Types
By Geography
North America
United States
Canada
Europe
United Kingdom
France
Germany
Russia
Rest of Europe
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
Latin America
Brazil
Rest of Latin America
Middle East and Africa
United Arab Emirates
Saudi Arabia
Egypt
Turkey
Rest of Middle East and Africa
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Armoured Vehicles Upgrade & Retrofit Market Research FAQs

The Armored Vehicle Upgrade and Retrofit Market is projected to register a CAGR of 9.92% during the forecast period (2024-2029)

General Dynamics Corporation, Rheinmetall AG, Textron Inc., Nexter Group and BAE Systems plc are the major companies operating in the Armored Vehicle Upgrade and Retrofit Market.

North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the Asia Pacific accounts for the largest market share in Armored Vehicle Upgrade and Retrofit Market.

The report covers the Armored Vehicle Upgrade and Retrofit Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Armored Vehicle Upgrade and Retrofit Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Armored Vehicle Upgrade and Retrofit Industry Report

Statistics for the 2024 Armored Vehicle Upgrade And Retrofit market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Armored Vehicle Upgrade And Retrofit analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Armored Vehicle Upgrade and Retrofit Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)