Armored Vehicles Market to Generate Revenue Worth $35.2 Billion by 2030

The global armored vehicles market is projected to generate $35.2 billion revenue by 2030, advancing at a CAGR of 5.1% during 2021–2030. This can be ascribed to the increasing development in military vehicle technologies and the rising military spending on R&D and equipment procurement. Moreover, the growing rivalry between several nations, which is leading to complicated geopolitical conditions, is fueling the market growth.

Wheeled Armored Vehicles To Show Faster Growth

Based on mobility, the market is bifurcated into wheeled and tracked. Of them, the wheeled category will witness the faster growth during the forecast period, with a CAGR of around 5.6%. This rapid expansion would be due to defense forces' growing demand for 4X4 light armored vehicles (LAVs) to execute intelligence, surveillance, and reconnaissance (ISR) operations and transport defense personnel and equipment.

Based on platform, the market is bifurcated into combat and combat support and unmanned armored ground vehicles. Of them, the combat vehicles category accounted for the higher revenue contribution in 2021, and it is further expected to maintain its position during the decade. This is due to the mounting demand for light armored vehicles (LAVs) and armored personnel carriers (APCs) across the globe. Moreover, the burgeoning defense budgets and growing need for armored vehicles in Asian countries fuel the market growth.

Defense, based on product type, accounted for the larger revenue share in 2021, and it is further expected to maintain its position till 2030. This will be owing to the rising investment in the defense sector and the mounting need for lightweight, compact, robust, and highly efficient vehicles for ammunition supply and other military operations.

Geographically, APAC will witness the fastest growth during the forecast period. This can be attributed to the growing count of government initiatives to strengthen their military forces and the increasing defense expenditure of China, India, South Korea, and Australia. Furthermore, the rising investment for the militarization of law enforcement agencies, to strengthen combat and counter-terrorist operations, is expected to propel the demand for armored vehicles.

Additionally, North America held the largest revenue share in 2021, and it is further expected to maintain its dominance in the coming the years. This can be ascribed to the large number of armored vehicle manufacturers, high R&D spending, and increasing investment for developing newer-generation armored vehicles by the U.S. government, in collaboration with private organizations.

Some of the major players in the armored vehicles market are General Dynamics Corporation, Rheinmetall AG, Elbit Systems Ltd., Textron Inc., Oshkosh Corporation, Mitsubishi Heavy Industries Ltd., BAE Systems plc, Saudi Arabian Military Industries (SAMI), and Nexter Group KNDS.