all report title image

Market Size and Trends

The Global Armored Vehicle Market is estimated to be valued at US$ 28.45 Bn in 2024 and is expected to reach US$ 42.21 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.8% from 2024 to 2031.

Armored Vehicle Market Key Factors

To learn more about this report, request a free sample copy

The rise can be attributed to increasing defense spending across countries amid geopolitical tensions. Several government initiatives to upgrade armed forces with improved protective systems will also drive demand. The armored vehicle market is expected to witness significant growth due to rising threats from extremists and militants. More countries are investing in armored vehicles like tanks, armored personnel carriers, and combat support vehicles to enhance security. Adoption of advanced technologies like active protection systems, composite armors, and upgraded weaponry in vehicles is expected to provide lucrative opportunities.

Geopolitical tensions fuel demand

With ongoing conflicts and instability across several regions, countries around the world continue to significantly invest in their armed forces and protect assets at risk. The proliferation of non-state militant groups and terrorist organizations operating across borders has made national security a top priority. For many nations, upgrading and expanding their fleets of armored vehicles is crucial to effectively protect borders as well as military and peacekeeping operations deployed in conflict zones. The terrain optimization and survivability features of modern armored vehicles make them indispensable tools for missions conducted in hazardous terrain and hostile environments. With countries actively scaling up their defense budgets to deter cross-border threats, major procurements of technologically advanced armored vehicles remain an integral part of these investments.

For instance, in February 2021, American Rheinmetall Vehicles, a subsidiary of Rheinmetall AG, and L3Harris Technologies, an American technology company, defense contractor, and information technology services provider signed a partnering agreement to develop the next-generation Optionally Manned Fighting Vehicle (OMFV) for the U.S. Army, which will replace the Bradley infantry fighting vehicle.

Market Concentration and Competitive Landscape

Armored Vehicle Market Concentration By Players

To learn more about this report, request a free sample copy

Revolution in technology and capability

Over the years, there has been a revolution in military land technology with cutting-edge innovations completely transforming modern armored vehicles. Advanced armor composites, active protection systems, networked C4ISR capabilities are now allowing unprecedented levels of survivability, mobility and lethality. Vehicles can now be equipped for a vast array of missions with versatile and customizable platform architectures. Militaries seek to gain decisive edge through vehicles integrated with lastest sensors, command and control interfaces, high-energy weapons. This has prompted upgrading of existing fleets as well as new product development. Continuous modernization remains crucial as adversaries also gain capabilities. Technology leaders continuously invest heavily in R&D to integrate newest materials, propulsion and digital systems - giving platforms multi-domain flexibility. Novel platforms promise revolutionary capabilities, attracting defense modernization budgets and development orders from early adopter nations.

Key Takeaways from Analyst:

Rising geopolitical tensions and increasing defense budgets of major economies are likely to drive demand for advanced armored vehicles for military and law enforcement applications. Additionally, growing instances of cross-border terrorism and internal insurgencies have compelled several nations to bolster their land warfare and border protection capabilities.

However, high research and development costs associated with the production of technologically advanced armored vehicles could limit market expansion to a certain extent. Moreover, fiscal austerity measures imposed by various governments may negatively impact defense outlays. On the other hand, growing maritime territorial disputes and regional conflicts in the Middle East and Asia Pacific are expected to spur opportunities for key manufacturers.

North America currently dominates the global armored vehicle landscape owing to large-scale military modernization programs being undertaken by the U.S. and Canada. Meanwhile, several European nations are renewing their land warfare assets, which is fueling growth in this region. Going forward, the market is anticipated to witness rising demand from the Asia Pacific region attributed to increasing defense budgets of India, China, and South Korea. Major players could also explore opportunities in the Middle East on account of ongoing conflicts and security threats faced by various nations.

Market Challenges: High research and development cost involved

High research and development costs involved are significantly restraining the growth of the global armored vehicle market. Developing advanced armored vehicles equipped with the latest technologies requires massive investments in R&D. It takes years of sustained research efforts and testing to build robust and resilient armored vehicles that can effectively counter varied threats on the modern battlefield. Several critical components and materials used in armored vehicles such as bulletproof glass and composite armor plating are also highly specialized and expensive.

The addition of cutting-edge capabilities like active protection systems, advanced optics, communication suites further inflate the R&D expenditures.

Market Opportunities: Technological advancements in protection, communication and surveillance systems

Technological advancements have significantly impacted the global armored vehicle market by improving protection, communication, and surveillance capabilities. Protection systems have seen rapid developments with active protection systems (APS) and enhanced armor. APS uses radar, laser, or projectile interceptors to detect and neutralize incoming fire within fractions of a second before impact. They provide 360-degree coverage against rockets, anti-tank missiles, and even artillery shells. Some recent APS includes the Israeli-developed Trophy system and Russian-developed Arena.

Communication and surveillance technologies have also grown tremendously. Vehicles now have high-speed satellite links with advanced encryption for seamless communication on the move. Systems like Barrett's VCS and Harris Falcon III allow real-time sharing of situational awareness with complete battlefield visibility through day and night vision cameras, thermal imaging as well as nuclear, biological and chemical detection capabilities.

Armored Vehicle Market By Type

To learn more about this report, request a free sample copy

Insights by Type - Growth in Technological Advancements and Rise of Insurgencies drive the Conventional Armored Vehicles Segment Growth

In terms of Type, Conventional Armored Vehicles contributes the 68.6% share in 2024 of the market owing to continuous technological advancements as well as a rise in global insurgencies and internal conflicts. Conventional armored vehicles are being upgraded with advanced armor materials, active protection systems, sophisticated surveillance, and communications equipment to deal with emerging threats. Manufacturers are also focusing on improving mobility, payload capacity and ease of maintenance of conventional vehicles. The growing investments by military forces around the world to replace or modernize their aging vehicle fleet is bolstering demand. Further, rising cross-border tensions and instability in various regions has increased deployment of conventional vehicles for patrolling borders and internal security duties, thus supplementing their sales.

Insights by Mode of Operation - Escalating Threats from Asymmetric Warfare fuel demand for Manned Armored Vehicles

In terms of Mode of Operation, Manned Armored Vehicles contributes the 72.1% share in 2024  owing to the continued relevance of manned systems in combat and surveillance missions. The threats posed by guerrilla tactics, ambushes and improvised explosive devices have grown significantly in current battlefields. Manned vehicles with enhanced situational awareness, survivability and firepower provide commandos and soldiers an edge over non-state actors employing asymmetric warfare. Their ability to transport troops into hotzones and provide cover-fire makes them irreplaceable compared to unmanned systems. Moreover, Manned vehicles allow for rapid decision making and adapting to dynamic terrains and situations that autonomous vehicles may find difficult to handle. This has ensured steady budgets remain directed towards upgrading and procuring 4th/5th generation manned armored vehicle platforms.

Insights by System - Emphasis on C4ISR Systems Drives Growth in Drive Systems segment

In terms of System, Drive Systems contributes the 35.1% share in 2024 as focus shifts towards mobility, networking and transport ability of armored vehicles. Modern battlefields demand swift movement of armored units alongside real-time sharing of intelligence. This has directed R&D focus onto developing more robust and durable drive systems fitted with advanced C4ISR (Command, Control, Computers, Communications, Intelligence, Surveillance and Reconnaissance) suites. Drive systems are being made lighter, more fuel efficient and digitally integrated with a vehicles’ command and sensor network. Features such as remote turret control, 360-degree situational awareness and automatic transmission are being integrated at affordable costs. Additionally, independent suspension, run-flat tires and routes planning software are helping drive systems navigate varied terrains at top speeds while staying networked with other assets. The need for strategic transport of troops and supplies in active conflict zones continues to drive investments into modernized drive systems.

Regional Insights

Armored Vehicle Market Regional Insights

To learn more about this report, request a free sample copy

North America has dominated the global armored vehicle market with 36.4% share in 2024 for decades owing to significant military spending and substantial demand from defense and homeland security agencies. The U.S. is the largest military spender in the world and has high demands for technologically advanced protection solutions. Major American companies like General Dynamics, Oshkosh, and Textron have dominated the indigenous production of light, medium, and heavy armored vehicles. These firms have decades of experience and capabilities developed to cater to the exact requirements of the U.S. military and security forces. Additionally, North American nations import certain types of vehicles to supplement their fleets. The extensive defense budgets allotted every year guarantee a steady flow of contracts and support the North American regional market's top position.

The Asia Pacific region has emerged as the fastest-growing market for armored vehicles globally in recent years. Growing defense expenditures, evolving geopolitical scenarios, and increasing indigenization efforts are some key factors driving the APAC market growth. China has become a major player in the domestic production and export of vehicles. Other nations are also boosting their Military, Police, and Peacekeeping capabilities through new procurements. The openness to imports from other established makers in the past few years has nurtured healthy competition and technology transfers in the region. Moreover, some Asian nations have started joint ventures with European and American OEMs to manufacture armored vehicles as per their needs utilizing global expertise. The large and rapidly expanding market size along with lucrative opportunities presented by domestic requirements as well as external exports make Asia Pacific the future hotspot for global armored vehicle manufacturers.

Market Report Scope

Armored Vehicle Market Report Coverage

Report Coverage Details
Base Year: 2023 Market Size in 2024: US$ 28.45 Bn
Historical Data for: 2019 To 2023 Forecast Period: 2024 To 2031
Forecast Period 2024 to 2031 CAGR: 5.8% 2031 Value Projection: US$ 42.21 Bn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East & Africa: GCC Countries, Israel, South Africa, and Rest of Middle East & Africa
Segments covered:
  • By Type: Electric Armored Vehicles and Conventional Armored Vehicles
  • By Mode of Operation: Manned Armored Vehicles and Unmanned Armored Vehicles
  • By System: Drive Systems, Structures & Mechanisms, Weapons & Ammunition Control Systems, Countermeasure Systems, Command & Control Systems, Navigation Systems, Observation & Display Systems, and Others 
Companies covered:

BAE Systems, BMW AG, Daimler AG (Mercedes Benz), Ford Motor Company, General Dynamics Corporation, INKAS Armored Vehicle Manufacturing, International Armored Group, Lenco Industries, Inc., Lockheed Martin Corporation, Navistar, Inc., Oshkosh Defense, LLC, Rheinmetall AG, STAT, Inc., Textron, Inc., and Thales Group

Growth Drivers:
  • Geopolitical tensions fuel demand
  • Revolution in technology and capability
Restraints & Challenges:
  • High research and development cost involved
  • Stringent regulatory and compliance policies

Key Developments

  • In December 2022, Japan chose Patria-built armored modular vehicles (AMV) to replace the Type-96 8x8 wheeled armored personnel carriers used by the Japan Ground Self-Defense Force.
  • In March 2023, Australian and German officials signed an agreement to cooperate on the procurement of new combat reconnaissance vehicles based on the Boxer family of armored fighting vehicles, equipped with a 30-millimeter gun. The deliveries are scheduled to begin in 2025.
  • In March 2022, Otokar, a Turkey-based military vehicle manufacturer based in Sakarya, aimed to expand its presence in the Asia Pacific region. The company exhibited its ARMA 6x6 wheeled armored vehicle and COBRA II tactical armored vehicle at the Defence Services Asia (DSA) expo in Kuala Lumpur, Malaysia.
  • In April 2021, INKAS Armored Vehicle Manufacturing, a Canada-based company specializing in manufacturing, security, and development, accelerated the procurement of its vehicles for the U.S. government. The company expanded its capacity and expertise to provide high-quality armored vehicles and fleets, which are now available through the U.S. General Services Administration’s GSA Advantage program. The growth in defense budgets, particularly in the Asia Pacific region, is expected to drive market growth, with industry goodwill playing a crucial role in contract allotments.
  • In February 2021, Bharat Forge, a leading engineering and technology company, and Paramount Group, an international aerospace and technology conglomerate, joined forces to leverage their combined skills, technologies, and expertise to develop armored vehicles in India. This strategic collaboration brings together two prominent manufacturing and technology companies with matching synergies and complementary capacities.
  • In January 2021, Elbit Systems, an Israel-based international military technology company and defense contractor signed a contract with an unnamed Asia-Pacific nation to supply the Sabrah light tank and the Pandur II vehicle as the prime contractor for a three-year project.

*Definition: The global armored vehicle market includes the design, manufacturing, and sales of armored fighting vehicles such as tanks, armored personnel carriers, combat support vehicles, and combat support vehicles. Key players in this market provide both new build and modernization solutions to militaries around the world. The vehicles offer protection from enemy fire and are armed with weapons like cannons, heavy machine guns, missiles, and grenade launchers. Armored vehicles are essential for armed forces to gain superiority in land warfare operations against hostile threats.

Market Segmentation

  • Type Insights (Revenue, US$ Bn, 2019 - 2031)
    • Electric Armored Vehicles
    • Conventional Armored Vehicles
  •  Mode Of Operation Insights (Revenue, US$ Bn, 2019 - 2031)
    • Manned Armored Vehicles
    • Unmanned Armored Vehicles
  •  System Insights (Revenue, US$ Bn, 2019 - 2031)
    • Drive Systems
    • Structures & Mechanisms
    • Weapons & Ammunition Control Systems
    • Countermeasure Systems
    • Command & Control Systems
    • Navigation Systems
    • Observation & Display Systems
    • Others
  • Regional Insights (Revenue, US$ Bn, 2019 - 2031)
    • North America
      • U.S.
      • Canada
    • Latin America
      • Brazil
      • Argentina
      • Mexico
      • Rest of Latin America
    • Europe
      • Germany
      • U.K.
      • Spain
      • France
      • Italy
      • Russia
      • Rest of Europe
    • Asia Pacific
      • China
      • India
      • Japan
      • Australia
      • South Korea
      • ASEAN
      • Rest of Asia Pacific
    • Middle East & Africa
      • GCC Countries
      • Israel
      • South Africa
      • Rest of Middle East & Africa
  • Key Players Insights
    • BAE Systems
    • BMW AG
    • Daimler AG (Mercedes Benz)
    • Ford Motor Company
    • General Dynamics Corporation
    • INKAS Armored Vehicle Manufacturing
    • International Armored Group
    • Lenco Industries, Inc.
    • Lockheed Martin Corporation
    • Navistar, Inc.
    • Oshkosh Defense, LLC
    • Rheinmetall AG
    • STAT, Inc.
    • Textron, Inc.
    • Thales Group.

Frequently Asked Questions

The CAGR of the global armored vehicle market is projected to be 5.8% from 2024 to 2031.

Geopolitical tensions fuel demand and revolution in technology and capability are the major factors driving the growth of the global armored vehicle market.

High research and development cost involved and stringent regulatory and compliance policies are the major factors hampering the growth of the global armored vehicle market.

In terms of Type, Conventional Armored Vehicles is estimated to dominate the market revenue share in 2024.

BAE Systems, BMW AG, Daimler AG (Mercedes Benz), Ford Motor Company, General Dynamics Corporation, INKAS Armored Vehicle Manufacturing, International Armored Group, Lenco Industries, Inc., Lockheed Martin Corporation, Navistar, Inc., Oshkosh Defense, LLC, Rheinmetall AG, STAT, Inc., Textron, Inc., and Thales Group. are the major players.

North America is expected to lead the global armored vehicle market.

View Our Licence Options

Need a Custom Report?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports

Customize Now

Want to Buy a Report but have a Limited Budget?

We help clients to procure the report or sections of the report at their budgeted price. Kindly click on the below to avail

Request Discount

Reliability and Reputation

DUNS Registered
DMCA Protected


Reliability and Reputation


Reliability and Reputation


Joining thousands of companies around the world committed to making the Excellent Business Solutions.

View All Our Clients
trusted clients logo
© 2024 Coherent Market Insights Pvt Ltd. All Rights Reserved.