U.S. Armored Vehicle Market (By Product: Combat Vehicles; By Vehicle Type; By Mobility; By Mode of Operation; By Point of Sale) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The U.S. armored vehicle market size was estimated at around USD 8.56 billion in 2023 and it is projected to hit around USD 14.56 billion by 2033, growing at a CAGR of 5.45% from 2024 to 2033. The primary drivers of this development are the necessity for armed forces modernization and rising geopolitical tensions, which have led to greater military spending by the US government.

Key Pointers

• By Product, the combat vehicles segment held the highest revenue share of 35% in 2023.
• By Vehicle Type, the conventional armored vehicles segment contributed the largest market share of 96% in 2023.
• By Mobility, the wheeled segment generated the maximum market share of 82% in 2023. 
• By Mode of Operation, the manned armored vehicles segment captured the maximum market share of 86% in 2023.
• By Point of Sale, the OEM segment had the largest market share of 83% in 2023.

U.S. Armored Vehicle Market Overview

The U.S. armored vehicle market serves as a cornerstone in the nation's defense infrastructure, providing a robust and technologically advanced fleet of vehicles to meet the evolving challenges of modern warfare. This overview aims to encapsulate the key aspects that define the market, including its historical context, current landscape, major players, and future trajectories.

U.S. Armored Vehicle Market Growth 

The growth of the U.S. armored vehicle market is propelled by several key factors that collectively contribute to its sustained expansion. Firstly, geopolitical tensions and the evolving nature of global security challenges drive the demand for advanced armored vehicles, fostering a continual need for modernization within the defense sector. Additionally, strategic initiatives aimed at enhancing national defense capabilities play a pivotal role, encouraging investments in cutting-edge technologies and innovative solutions. The integration of advanced materials, artificial intelligence, and autonomous systems further amplifies the market's growth trajectory, enabling the development of armored vehicles with heightened mobility, firepower, and survivability.

Report Scope of the U.S. Armored Vehicle Market

U.S. Armored Vehicle Market Dynamics 

Drivers

• Geopolitical Tensions: Geopolitical uncertainties and rising tensions globally drive the demand for advanced armored vehicles in the U.S. as the nation seeks to bolster its defense capabilities and maintain a strategic advantage on the international stage.
• Modernization Imperative: The constant need for military modernization acts as a significant driver, compelling the U.S. to invest in cutting-edge technologies and upgrade its armored vehicle fleet to stay ahead of emerging threats and challenges.

Restraints

• Balancing Cost-Effectiveness: Striking a balance between cost-effectiveness and incorporating cutting-edge technologies presents an ongoing challenge. The quest for advanced features may lead to higher production costs, requiring careful consideration to ensure affordability without compromising performance.
• Integration of New Technologies: While technological advancements drive market growth, the integration of new technologies poses challenges related to compatibility, interoperability, and the training of personnel. Overcoming these hurdles requires substantial investments and strategic planning.

Opportunities

• Rising Demand for Unmanned Systems: The increasing emphasis on unmanned systems within the defense sector presents a significant opportunity for the U.S. Armored Vehicle Market. Developing and integrating unmanned ground vehicles can enhance military capabilities, providing innovative solutions for reconnaissance, surveillance, and logistics.
• Advanced Communication Systems Integration: Opportunities lie in the integration of state-of-the-art communication systems into armored vehicles. Enhanced connectivity can facilitate real-time data exchange, improving situational awareness and coordination on the battlefield, and ensuring a seamless integration of armored assets with broader military operations.

Product Insights

The combat vehicles segment held the largest revenue share of 35% in 2023. The segment is anticipated to retain its dominance throughout the forecast period. The constantly evolving threat environment has made the use of these vehicles more critical in security and military operations. The scenario draws attention to the need to develop new technologies and capabilities, such as weapon systems, advanced armor, and electronic warfare capabilities. As an increasing number of market players focus on designing products that offer these capabilities, combat vehicles are becoming increasingly versatile, with the ability to perform various missions and tasks. This includes the development of vehicles that can operate in multiple environments, such as amphibious vehicles that can operate on land and in water.

The cash in transit vehicles segment is predicted to foresee significant growth in the forecast period driven by the vital role these vehicles play in the security and financial sectors. The continued popularity of cash transactions, despite the growth of digital payments, continues to necessitate the secure and efficient transportation of physical currency. Furthermore, the rising concerns over security and the need to protect valuable assets have prompted financial institutions and CIT service providers to invest in technologically advanced and fortified vehicles.

Vehicle Type Insights

The conventional armored vehicles segment contributed the largest market share of 96% in 2023. Conventional armored vehicles have proven their worth in a wide range of military and security applications owing to the stability and reliability offered. These vehicles are trusted for their battle-hardened design, robust construction, and proven track record in protecting military personnel and crucial assets in high-threat environments. Moreover, while there is a growing interest in technologically advanced armored vehicles, the conventional segment remains appealing due to its cost-effectiveness. Upgrading and modernizing existing fleets of conventional armored vehicles is often more budget-friendly than procuring entirely new, cutting-edge platforms.

The electric armored vehicles segment is expected to showcase significant growth over the forecast period. As concerns over climate change and air pollution continue to grow, there is an increasing demand for environmentally friendly solutions such as Electric Vehicles (EVs) 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.

Mobility Insights

The wheeled segment generated the maximum market share of 82% in 2023. Wheeled armored vehicles offer superior mobility compared to tracked vehicles, particularly on highways and roads, making them well-suited for swift deployment in a wide range of environments, including urban areas. These vehicles are known for their relatively lower maintenance requirements, resulting in reduced long-term operating costs. With ongoing advancements in technology and design, wheeled armored vehicles are expected to become increasingly advanced and capable, thereby becoming a more critical asset in military and security operations across various landscapes.

The tracked segment will witness significant growth in the coming years. Tracked vehicles are typically used for military or security applications such as armored reconnaissance, combat operations, and logistical support. These vehicles are often developed to offer robust heavy armor protection, which makes them particularly well-suited for high-risk conditions and combat operations. Their tracked configuration offers a low center of gravity, enhancing stability and diminishing the risk of tipping over, a crucial advantage in challenging terrains.

Mode of Operation Insights

The manned armored vehicles segment captured the maximum market share of 86% in 2023. The high share can be attributed to their effectiveness in protecting the occupants against a wide range of threats, including small arms fire and Improvised Explosive Devices (IEDs), which make them essential for personnel safety in high-risk environments. Armored vehicle manufacturers provide customization options, making them ideal for military forces, government agencies, and private security firms, thus driving segment growth. These vehicles are designed to transport personnel safely in high-threat environments.

The unmanned armored vehicles segment will witness significant growth in the coming 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 logistics, surveillance, 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.

Point of Sale Insights

The OEM segment had the largest market share of 83% in 2023. The growth can be attributed to OEMs serving as the primary manufacturers and suppliers of armored vehicles to governments and militaries worldwide. Their product portfolios include a diverse range of armored vehicles, encompassing main battle tanks, infantry fighting vehicles, armored personnel carriers, and mine-resistant ambush-protected vehicles. With the increasing demand for armored vehicles, OEMs are capitalizing on opportunities to expand their offerings and cater to clients in the military, security, and law enforcement sectors. These companies are actively investing in cutting-edge technologies and capabilities to develop more advanced and effective armored vehicles, ensuring they remain at the forefront of the market's growth and innovation.

The retrofit segment will witness significant growth in the coming years. This growth is driven by the aging armored vehicle fleet within the U.S. military, where upgrading and retrofitting these vehicles proves to be a more cost-effective option compared to procuring new ones. In addition, continuous technological advancements, such as active protection systems, enhanced situational awareness systems, and new weaponry, provide opportunities to improve the performance and survivability of existing armored vehicles.

U.S. Armored Vehicle Market Key Companies

• BAE Systems
• BMW AG
• Mercedes-Benz Group AG
• Elbit Systems Ltd.
• Ford Motor Company
• General Dynamics Corporation
• INKAS Armored Vehicle Manufacturing
• International Armored Group
• Iveco Group N. V
• Krauss-Maffei Wegmann GmbH & Co. (KMW)
• Lenco Industries, Inc.
• Lockheed Martin Corporation
• Navistar, Inc.
• Oshkosh Defense, LLC
• Rheinmetall AG
• STAT, Inc.
• Textron, Inc.
• Thales Group.

U.S. Armored Vehicle Market Report 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
• Cash in Transit Vehicles
• Law Enforcement Vehicles
• Others

By Vehicle 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