Armored Vehicle Market (By Type: Conventional, Electric; By Product: Combat Support, Combat; By Mobility; By Mode Of Operation; By Point Of Sale; By System) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2023-2032

The global armored vehicle market was surpassed at USD 29.41 billion in 2022 and is expected to hit around USD 49.95 billion by 2032, growing at a CAGR of 5.44% from 2023 to 2032. The armored vehicle market in the United States was estimated for USD 9.5 billion in 2022.

Key Pointers

• Asia Pacific accounted for the highest share and over 32.04% of the global revenue in 2022. 
• The combat vehicles segment accounted for the highest revenue share of over 64.02% in 2022. 
• The conventional armored vehicles segment witnessed the highest share of over 96.05% of the global revenue in 2022. 
• The electric armored vehicles segment is estimated to grow significantly over the forecast period. 
• The manned armored vehicles segment held the largest revenue share of over 76.03% in 2022. 
• The OEM segment held the largest revenue share of over 78.05% in 2022.
• The retrofit segment is predicted to foresee significant growth in the forecast years. 
• The fire control systems (FCS) segment held the largest revenue share of over 31.12% in 2022. 
• The wheeled segment held the largest revenue share of over 70.05% in 2022.

Report Scope of the Armored Vehicle Market

The growing internal and external terrorist activities across the globe are expected to drive the market demand over the forecast period. Technological advancements, such as unmanned vehicles, are expected to further fuel the market growth. For instance, in February 2021, ADASI, a reputable end-to-end solution provider in the autonomous systems industry with a presence in the MENA area, revealed an armored robotic vehicle and two new unmanned ground vehicles at the International Defense Exhibition and Conference.

The unmanned vehicles, controlled by a ground control station with a transmission range of 12 kilometers and an endurance of six to 8 hours, can travel at speeds of up to 50 kilometers per hour to provide greater firepower to the Armed Forces while decreasing the risk to troop life. Armored vehicles are protected by depleted uranium or stainless steel and are equipped with powerful weapons that combine defensive, tactical offensive and operational mobility capabilities. The development of advanced vehicles, such as unmanned armored vehicles, and AI-based smart object recognition & tracking technology used in the military sector are expected to propel market demand over the next few years.

For instance, In January 2022, Rafael, an Israeli defense technology company, unveiled its first next-generation tank powered by artificial intelligence. The advanced vehicular integrated combat systems developed by the organization are a fusion of automated technologies and battlefield sensors that can react faster than humans. It combines a vehicle's defense and weapons and can take over combat tasks that have been given to it. The growing need to protect military recruits from land mines and fire is expected to drive the demand for armored vehicles over the next seven years. Furthermore, the demand for vehicles is increasing in the Asia Pacific and Middle East & African regions due to the constant tension among neighboring countries and internal threats from rebels.

For instance, in March 2022, the Ministry of Defense Hungary, which maintains political and civil control over the army in the country, announced that the Hungarian Armed Forces had received 40 tactical wheeled armored vehicles known as Gidran for its military from Turkey. The vehicles are 4x4 mine-resistant ambush-protected armored vehicles that Hungary’s army will use. The country has become the first European Union to permit a Turkish defense firm’s operation on its territory by accepting the Gidran for military use and constructing a production line. The major players are investing in R&D programs to develop new technologies and products.

Enhanced protection and fuel efficiency are the key aspects considered for future developments in armored vehicles. For instance, in March 2022, Rheinmetall AG, a German automotive and arms company headquartered in Düsseldorf, Germany, announced plans for a new facility in Eastern Slovakia and a significant investment in the Slovak economy. The company has invested €30 million in the project as a whole. The plant has 12,000 square meters of production lines and a 15,000 square meter test space. The new facility will be Rheinmetall’s central hub in the Slovak Republic, responsible for delivering 80% of the Ministry of Defence’s new IFVs.

Product Insights

The combat vehicles segment accounted for the highest revenue share of over 64.02% in 2022. The segment is anticipated to hold the leading position throughout the forecast period. As the threat environment evolves, combat vehicles become more critical in military and security operations. It includes the development of new technologies and capabilities, such as advanced armor, weapons systems, and electronic warfare capabilities. Combat vehicles are also becoming increasingly versatile, with the ability to perform various missions and tasks. It includes the development of vehicles that can operate in multiple environments, such as amphibious vehicles that can operate on land and in water.

The combat support vehicles segment is estimated to grow significantly over the forecast period. The segment includes a wide range of vehicles, such as fuel tankers, ammunition carriers, and transport, medical evacuation, & recovery vehicles. They are designed to operate in various environments, from harsh desert conditions to rugged mountain terrain. The growth of the segment is driven by the need to support modern military operations, technological advances, expansion of military operations, and the replacement of aging fleets. As technology continues to evolve, combat support vehicles will likely become even more advanced, providing troops with the support they need to carry out their missions effectively.

Type Insights

The conventional armored vehicles segment witnessed the highest share of over 96.05% of the global revenue in 2022. Many countries worldwide are increasing their military and security spending and, as a result, there has been a more significant investment in conventional armored vehicles. This trend is particularly evident in regions facing security challenges or engaging in military conflicts. Countries, such as Saudi Arabia, UAE, and Qatar, have immense military spending, mainly due to the conflicts in Syria and Yemen. These countries have invested heavily in conventional vehicles, such as tanks and armored personnel carriers, to protect their military personnel and equipment.

The electric armored vehicles segment is estimated to grow significantly over the forecast period. As concerns over climate change and air pollution continue to grow, there is an increasing demand for environmentally friendly solutions across various industries, including the military and security sectors. Advances in battery technology have made it possible to develop armored electric vehicles with sufficient power and range to meet the needs of military and security applications. Over the long term, armored electric vehicles may offer cost savings over their conventional counterparts due to lower operating costs and maintenance requirements.

Mode of Operation Insights

The manned armored vehicles segment held the largest revenue share of over 76.03% in 2022. The high share can be attributed to the fact that these vehicles provide protection to the occupants inside. Armored vehicles are designed to protect against a wide range of threats, including small arms fire, explosive devices, and Improvised Explosive Devices (IEDs), which make them essential for personnel safety in high-risk environments. Armored vehicle manufacturers offer customization options, making them ideal for government agencies, military forces, and private security firms, thus driving segment growth. The unmanned armored vehicles segment is predicted to foresee significant growth in the forecast years.

Unmanned armored vehicles, also known as unmanned ground vehicles (UGVs), are a type of armored vehicle that can operate without a human operator on board. These vehicles are remotely controlled or can operate autonomously. They are equipped with various sensors and other advanced technology that allow them to perform various tasks, including reconnaissance, surveillance, logistics, and combat operations. Unmanned armored vehicles are designed to operate in a wide range of environments and conditions and can be customized to meet specific mission requirements. They offer several advantages, including reduced risk to personnel, increased efficiency & cost savings, and improved performance & capabilities.

Point of Sale Insights

The OEM segment held the largest revenue share of over 78.05% in 2022. As the demand for armored vehicles increases, OEMs are seeing a growing opportunity to expand their product offerings and cater to customers in the military, security, and law enforcement sectors. OEMs are partnering with armored vehicle manufacturers to provide integrated solutions that meet the needs of military and security customers. These partnerships often involve the OEM providing specialized components optimized for use in armored vehicles, such as engines, transmissions, and braking systems. By partnering with armored vehicle manufacturers, OEMs can leverage their expertise in designing and manufacturing high-quality components to create integrated solutions with superior performance and reliability.

The retrofit segment is predicted to foresee significant growth in the forecast years. Retrofitting existing vehicles with armor is often a cost-effective way to add protection to a fleet of vehicles, particularly for customers who may need more money to purchase new armored vehicles outright. The growth in retrofit armored vehicles is driven by cost-effectiveness, flexibility, faster turnaround times, upgrading existing vehicles, and increased customer demand. As the demand for armored vehicles continues to grow, retrofitting existing vehicles is likely to remain a popular option for customers who need to add protection to their fleet of vehicles.

System Insights

The fire control systems (FCS) segment held the largest revenue share of over 31.12% in 2022. Fire control systems are designed to assist operators in accurately targeting and engaging enemy targets, increasing the effectiveness and lethality of armored vehicles in combat situations. In addition, as the threat environment continues to evolve, armored vehicle manufacturers invest in developing new FCS technology to stay ahead of the curve. It incorporates advanced artificial intelligence and machine learning algorithms to improve target identification, engagement accuracy, and speed. The navigation systems segment is predicted to foresee significant growth in the forecast years.

The growth of navigation systems has played a critical role in the growth of armored vehicles, enabling operators to navigate the terrain and reach their destinations safely and efficiently. As technology continues to evolve, navigation systems will likely become even more advanced, providing operators with the information they need to complete their missions. Navigation systems are also becoming more advanced, with features, such as route planning, real-time traffic updates, etc., that can help operators optimize their routes and avoid potential hazards. These advanced systems are essential for military and security applications, where armored vehicles are often used in complex or hazardous environments.

Mobility Insights

The wheeled segment held the largest revenue share of over 70.05% in 2022. Wheeled armored vehicles offer greater mobility than tracked vehicles, particularly on roads and highways. It makes them ideal for rapid deployment in various environments, including urban areas. It typically has lower maintenance requirements than tracked vehicles, which can result in lower operating costs over the long term. As these vehicles continue to evolve, they will become more advanced and capable, making them an increasingly important tool for military and security operations in various environments. The tracked segment is predicted to foresee significant growth in the forecast years.

These vehicles are typically used for military or security applications, such as combat operations, armored reconnaissance, and logistical support. Tracked vehicles are often designed to offer heavy armor protection, which makes them well-suited for combat operations and other high-risk situations. The tracks provide a low center of gravity, which improves stability and reduces the risk of tipping over. The heavy armor can protect the vehicle and its occupants from small arms fire, shrapnel, and other battlefield hazards. Tracked vehicles are a critical component of modern military and security operations, providing a high level of mobility, protection, and firepower. Tracked vehicles will become even more capable and versatile as technology advances, allowing them to operate in a broader range of environments and conditions.

Regional Insights

Asia Pacific accounted for the highest share and over 32.04% of the global revenue in 2022. The region’s growth can be attributed to the government's efforts to strengthen military power to counter internal or external terrorism. Furthermore, various government bodies are investing considerably to develop the defense sector. For instance, in March 2022, Otokar, a Turkish military vehicle manufacturer based in Sakarya, aimed to expand its presence in Asia Pacific. The firm displayed ARMA 66-wheeled armored and COBRA II tactical armored vehicles at the Defense Services Asia expo in Kuala Lumpur, Malaysia. The company intends to expand its regional operations to meet current and future client demands.

China, South Korea, and India are among the nations investing in creating and acquiring cutting-edge armored vehicles. During the projection period, these variables are anticipated to fuel market demand. Manufacturers in Asia Pacific are investing in R&D initiatives to create innovative, hybrid armored vehicles for improved marine and border patrolling. The regional market is anticipated to develop over the next few years due to rising military spending and the need for medium-sized, light armored vehicles for patrolling activities. For instance, in January 2021, a tank and armored vehicle contract was signed between Elbit Systems and an unnamed Asia Pacific nation. As the prime contractor for the three-year project, the business had contracted to provide the Sabrah light tank and the Pandur II vehicle.

Armored Vehicle Market Segmentations:

By Product

• Combat Vehicles
  • Armored Personnel Carrier (APC)
  • Infantry Fighting Vehicles (IFV)
  • Light Protected Vehicles (LPV)
  • Main Battle Tanks (MBT)
  • Mine-resistant Ambush Protected (MRAP)
  • Tactical Vehicle
  • Others
• Combat Support Vehicles
  • Armored Supply Trucks
  • Armored Command & Control Vehicles
  • Repair & Recovery Vehicles
  • Unmanned Armored Ground Vehicles

By Type

• Electric Armored Vehicles
• Conventional Armored Vehicles

By Mobility

• Wheeled
• Tracked

By Mode of Operation

• Manned Armored Vehicles
• Unmanned Armored Vehicles

By Point of Sale

• OEM
• Retrofit

By System

• Engines
• Drive Systems
• Ballistic Armor
• Fire Control Systems (FCS)
• Navigation Systems

By Regional

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa (MEA)
  • Kingdom of Saudi Arabia (KSA)
  • UAE
  • South Africa