North America Armored Fighting Vehicles Market Size
| Study Period | 2019-2028 |
| Base Year For Estimation | 2022 |
| CAGR | > 5.00 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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North America Armored Fighting Vehicles Market Analysis
The North American armored fighting vehicles market is anticipated to register a CAGR of over 5% during the forecast period.
- The North American defense sector was mildly affected by the COVID-19 pandemic. However, the effects were short-term in nature. For instance, during the pandemic, defense manufacturing was slightly declined due to the supply chain disruption caused by the imposition of lockdowns in key countries. Thus, there was a slight increase in the overall costs of active defense programs.
- The United States and Canada are increasing their defense budgets, and a significant share is being allocated for procuring new armored vehicles that can enhance the ground combat capabilities of both countries. The United States is the largest defense spender in the world, with a defense budget of USD 801 billion in 2021. Also, the involvement of the United States in various peacekeeping missions on the global front is generating demand for armored vehicle fleet expansion and modernization.
- Furthermore, the aging armored vehicle fleet in the region has necessitated frequent upgrades and modernization, which also supports the market's growth. The United States is also shifting its research and development focus toward robotic ground vehicles. It is expected to procure several unmanned armored trucks and cargo vehicles in the coming years, which may further propel the market's growth.
North America Armored Fighting Vehicles Industry Segmentation
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 study covers the upgrades and the procurement of armored vehicles in the North American region. The study also offers details about ongoing and future armored vehicle programs in the United States and Canada. Furthermore, unmanned armored vehicles are included in the scope of the report.
The North American armored fighting vehicles market is segmented by vehicle type and country. By vehicle type, the market is segmented into armored personnel carriers (APC), infantry fighting vehicles (IFV), main battle tanks (MBT), and others. The other vehicles include mine-resistant ambush-protected (MRAP) vehicles, armored cars and armored self-propelled guns, anti-aircraft, self-propelled artillery, light armored vehicles, and light utility vehicles. By geography, the market is divided into the United States and Canada.
The market sizing and forecasts have been provided in value (USD million) for all the above segments.
| Vehicle Type | |
| Armored Personnel Carrier (APC) | |
| Infantry Fighting Vehicle (IFV) | |
| Main Battle Tank (MBT) | |
| Other Vehicle Types |
| Geography | |
| United States | |
| Canada |
North America Armored Fighting Vehicles Market Trends
Infantry Fighting Vehicle (IFV) Segment Dominated the Market
- The infantry fighting vehicle segment held the highest shares in the market and continued its domination during the forecast period. Increasing procurement of IFVs and rising defense expenditure drive the segment's growth. Infantry fighting vehicles effectively carry mechanized infantry units into battle and provide direct-fire support. These IFVs can be fitted with modular add-on armor and composite or spaced laminated armor for protection against various munitions or rounds.
- According to the US Congressional Budget Office (CBO), the total acquisition costs for the US Army’s ground combat vehicles are forecasted to average about USD 5 billion per year through 2050, of which USD 4.5 billion for procurement and USD 0.5 billion for RDT&E. The projected acquisition costs are mainly for remanufactured and upgraded versions of existing vehicles.
- Also, the US Army plans to procure an optionally manned fighting vehicle, which will replace the Bradley armored personnel carrier, a new mobile protected firepower tank, which will be lighter than an Abrams tank, and an armored multi-purpose vehicle, which will replace the M113 armored personnel carrier. Thus, growing expenditure on the upgradation of the current fleet and rising procurement plans of advanced IFVs from the US and Canada boost market growth.
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The United States Will Showcase Remarkable Growth During the Forecast Period
- The US will showcase remarkable growth during the forecast period. Being an avid user of armored vehicles in North America, the nation is currently focusing on upgrading its existing vehicle fleet and complementary capabilities. For the fiscal year 2023, the US Army has requested USD 671 million for 102 upgraded Strykers, USD 279 million for its Bradley modification efforts, and USD 493 million for the procurement of 27 M109A6 Paladin Integrated Management (PIM) vehicles. The country is working to develop armored fighting vehicles that can offer high survivability over a wide range of terrains. The need for upgrading the existing fleet of military armored vehicles to counter emerging threats resulted in a flurry of contracts being awarded for catering to the diversified needs of the armed forces.
- In 2022, the US government requested USD 12.3 billion for ground combat systems. The request includes modifications and upgrades for 70 stalwart M1 Abrams tanks at USD 1 billion. Other investments request includes USD 1.1 billion for 3,799 joint light tactical vehicles for various missions and USD 613 million for 92 amphibious combat vehicles for use across the US Marine Corps. Several such developments are envisioned to enhance the market's growth across the US during the forecast period.
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North America Armored Fighting Vehicles Industry Overview
The North American armored fighting vehicles market is consolidated, with a few players controlling most of the market share. BAE Systems plc, Rheinmetall AG, Oshkosh Defense, LLC, General Dynamics Corporation, and Textron Inc. are some of the prominent players in the market. With the countries in the region focusing on upgrading the armored vehicle fleets, innovation becomes a key aspect of differentiation among the players, which may help the players with innovative technologies gain major contracts.
Also, as the countries are focusing on the next-generation combat vehicles, players are expected to focus on R&D in armored vehicle situational awareness systems and materials that offer better vehicle protection while reducing the overall weight. Such a focus on R&D activities is expected to help the growth of the players during the forecast period.
North America Armored Fighting Vehicles Market Leaders
BAE Systems PLC
Rheinmetall AG
Oshkosh Defense, LLC
General Dynamics Corporation
Textron Inc.
*Disclaimer: Major Players sorted in no particular order
North America Armored Fighting Vehicles Market News
- November 2022: BAE Systems plc was awarded a contract worth USD 32 million by the US Department of Defense (DoD) to supply M2A4 and M7A4 Bradley fighting vehicles to the US Army. These vehicles are designed to provide mechanized infantry with improved mobility, firepower, and protection. The project is slated to be completed by August 2023.
- November 2022: The Canadian military entered into a contract worth USD 165 million with the General Dynamics Corporation to acquire 39 additional light-armored vehicles. This procurement is part of Canada's effort to replace equipment previously donated to Ukraine.
North America Armored Fighting Vehicles Market Report - Table of Contents
1. INTRODUCTION
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 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Vehicle Type
5.1.1 Armored Personnel Carrier (APC)
5.1.2 Infantry Fighting Vehicle (IFV)
5.1.3 Main Battle Tank (MBT)
5.1.4 Other Vehicle Types
5.2 Geography
5.2.1 United States
5.2.2 Canada
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 BAE Systems plc
6.1.2 Rheinmetall AG
6.1.3 Oshkosh Defense, LLC
6.1.4 General Dynamics Corporation
6.1.5 Textron Inc.
6.1.6 Leonardo S.p.A.
6.1.7 AM General LLC
6.1.8 Science Applications International Corporation (SAIC)
6.1.9 HDT Global
6.1.10 QinetiQ Group
6.1.11 Teledyne FLIR LLC
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
North America Armored Fighting Vehicles Market Research FAQs
What is the current North America Armored Fighting Vehicles Market size?
The North America Armored Fighting Vehicles Market is projected to register a CAGR of greater than 5% during the forecast period (2023-2028).
Who are the key players in North America Armored Fighting Vehicles Market?
BAE Systems PLC, Rheinmetall AG, Oshkosh Defense, LLC, General Dynamics Corporation and Textron Inc. are the major companies operating in the North America Armored Fighting Vehicles Market.
Which is the fastest growing region in North America Armored Fighting Vehicles Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in North America Armored Fighting Vehicles Market?
In 2023, the North America accounts for the largest market share in the North America Armored Fighting Vehicles Market.
North America Armored Fighting Vehicles Industry Report
Statistics for the 2023 North America Armored Fighting Vehicles market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Armored Fighting Vehicles analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
North America Armored Fighting Vehicles Report Snapshots
