The Global Armored Vehicles MRO Market 2012-2022

iCD Research, July 2012, Pages: 161

Product Synopsis
This report is the result of ICD Research / Strategic Defence Intelligence's extensive market and company research covering the global armored vehicles MRO industry. It provides detailed analysis of both historic and forecast global industry values, factors influencing demand, the challenges faced by industry participants, analysis of the leading companies in the industry, and key news.

Introduction and Landscape
Why was the report written?
“The Global Armored Vehicles MRO Market 2012-2022” offers the reader detailed analysis of the global armored vehicle MRO market over the next ten years, alongside potential market opportunities to enter the industry, using detailed market size forecasts.

What is the current market landscape and what is changing?
The demand for armored vehicles MRO services is anticipated to be driven by ageing military equipment globally, technological innovations in the industry, internal and external security threats, territorial disputes and modernization initiatives undertaken by armed forces across the world. The expenditure in this segment during the forecast period is expected to be dominated by North America, followed by Asia Pacific and Europe. Despite the economic crisis in Europe, Europe's share of the global market is projected to increase during the forecast period, albeit marginally due to the scheduled deployment of various modernization programs which had been initiated in previous years

What are the key drivers behind recent market changes?
Technological innovations in the field of armored vehicles MRO have garnered significant interest over the last decade. With global defense budgets shrinking or glowing at a marginal pace, countries are now looking to maintain, repair and upgrade their defense equipment instead of developing new programs. Moreover, the recent nuclear proliferation being carried out by Iran has heightened military tensions between Iran, the US and Israel. The possible conflict has resulted in the US spending heavily on getting its existing military equipment ready for battle, which in turn is driving the armored vehicles MRO industry.

What makes this report unique and essential to read?
“The Global Armored Vehicle MRO Market 2012-2022” provides detailed analysis of the current industry size and growth expectations from 2012 to 2022, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides detailed understanding of emerging opportunities in specific areas.

Key Features and Benefits
Detailed market analysis.
The report provides detailed analysis of the market for armoured vehicles MRO during 2012-2022, including the factors that influence why countries are investing or cutting defense expenditure. It provides detailed expectations of growth rates and projected total expenditure.

The main providers in the industry.
Lockheed Martin, Navistar, BAE Systems, Rheinmetall, Mantech International, Honeywell International, SAIC, Thales, Northrop Grumman, General Dynamics, Nexter, Elbit Systems, Krauss-Maffei Wegmann (KMW), Oshkosh Defence

Market entry opportunities and entry strategies.
The armored vehicles MRO market is currently characterized by a focus on survivability and adaptability. Traditional threats such as enemy tanks or sophisticated antitank missiles have assumed less importance in recent years; while large improvised explosive devices (IED) and rocket propelled grenades (RPG) that are used to attack the more vulnerable flanks and rear of the armored vehicles, pose the maximum threat. Military operations in former Yugoslavia, Somalia, Israel and Iraq have shown the need for all-round protection particularly when operating in urban environments. Companies operating in the military armored vehicles MRO domain are now aware that solutions must be oriented towards protection against a range of threats including medium and large-calibre kinetic energy rounds, shaped-charge warheads, explosively formed projectiles, high explosive squash head, shell fragments and small arms.

Key Market Issues
Increased emphasis on technological innovations.
Technological innovations in the field of armored vehicles MRO have garnered significant interest over the last decade. With global defense budgets shrinking or glowing at a marginal pace, countries are now looking to maintain, repair and upgrade their defense equipment instead of developing new programs. Moreover, the recent nuclear proliferation being carried out by Iran has heightened military tensions between Iran, the US and Israel. The possible conflict has resulted in the US spending heavily on getting its existing military equipment ready for battle, which in turn is driving the armored vehicles MRO industry. Technological innovations in this domain are oriented towards developing stealth capabilities, enhancing armor protection and other counter insurgency measures.

Focus on survivability and adaptability.
The armored vehicles MRO market is currently characterized by a focus on survivability and adaptability. Traditional threats such as enemy tanks or sophisticated antitank missiles have assumed less importance in recent years; while large improvised explosive devices (IED) and rocket propelled grenades (RPG) that are used to attack the more vulnerable flanks and rear of the armored vehicles, pose the maximum threat. Military operations in former Yugoslavia, Somalia, Israel and Iraq have shown the need for all-round protection particularly when operating in urban environments. Companies operating in the military armored vehicles MRO domain are now aware that solutions must be oriented towards protection against a range of threats including medium and large-calibre kinetic energy rounds, shaped-charge warheads, explosively formed projectiles, high explosive squash head, shell fragments and small arms.

Balancing increased protection with reduced weight.
One of the major challenges being faced by the global armored vehicles MRO industry is balancing the ever increasing weight of the armored vehicles with the need for increased protection. Moreover, manufacturers are also facing a problem of achieving high mobility for heavily protected vehicles. To combat this problem, the US Army is investing in technologies to develop composite armors that are lighter than the all-metal equivalent, occupying a larger volume for the same resistance to penetration. However, these currently are expensive and governments are looking for ways to develop this material affordably.

Threat from IEDs.
The impact of IEDs upon armored vehicle units has been one of the major threats to the survivability of the US Army soldiers. The threat from IEDs has evolved considerably owing to the fact that from 60mm and 81mm mortar rounds in 2006-2009, current armored vehicle units face munitions like single 122 to 155mm artillery shells, daisy-chained series of shells, triple stacked mines, shape charge weapons and even suicide car bombs. This has lead to significant investment in the armored vehicle MRO market by compelling governments to incorporate heavier armor for vehicles and upgrading older vehicles to blast resistant levels.

Key Highlights
North America to continue to dominate the market.
Despite budget cuts, North America is expected to account for the largest share of the total global expenditure on military aviation MRO, with 43% share during the forecast period. High demand in the region is primarily driven by the region's modernization programs and the overseas war against global terrorism.

Growth in performance based logistics (PBL) contracts.
Performance-based logistics contracts are rising in both civilian and military aviation MRO as they enable operators to offload investments in spares and other MRO capabilities. As a result, the company can focus on its core competencies thereby reducing costs and maximizing efficiencies. PBL contracts consist of an operator contracting with a supplier on a long-term basis to deliver a particular kind of service-related performance and sometimes take the form of a per-hour maintenance cost or a specific reliability guarantee. PBL contracts focus primarily on performance or output, rather than tasks or inputs by the service provider.

Joint programs expected to increase over the forecast period.
A significant number of countries are investing in the development of their domestic military armored vehicles MRO capabilities by establishing strategic alliances and technology transfer agreements with established global manufacturers. In addition to improving the indigenous capabilities of a domestic firm, this provides the foreign company with an opportunity to cater to a new market. This is especially true in today's economic scenario when companies are looking to maximize efficiencies and cut costs.

1 Introduction
1.1 What is this Report About?
1.2 Definitions
1.3 Summary Methodology
1.4 About Strategic Defence Intelligence
2 Executive Summary
3 Global Armored Vehicles MRO Market Size and Drivers
3.1 Armored Vehicles MRO Market Size and Forecast 2012-2022
3.1.1 Global armored vehicles MRO market to show positive growth during the forecast period
3.2 Global Armored Vehicles MRO Market - Regional Analysis
3.2.1 North America dominates the global armored vehicles MRO market
3.2.2 Demand for APC MRO in the US to support the global armored vehicles MRO market
3.2.3 Armored vehicles MRO market to be robust in Europe due to planned budget cuts
3.2.4 The armored vehicles MRO market in the Asia-Pacific to be witness robust spending over the forecast period
3.2.5 Armored vehicles MRO market in the Middle East to increase during the forecast period
3.2.6 Brazil and Colombia expected to be the highest spenders in the armored vehicles MRO sector in the Latin American region
3.2.7 Markets in Africa expected to increase over the forecast period
3.3 Armored Vehicles MRO Sub-Sector Market Size Composition
3.3.1 APC MRO market to record strong CAGR growth
3.3.2 MBT MRO to account for the second largest segment in this sector
3.3.3 Market for MRAP MRO to account for the third largest segment in this sector
3.3.4 Market for Tactical truck MRO to register a CAGR of XX% during the forecast period
3.4 Demand Drivers and Growth Stimulators
3.4.1 Modernization initiatives will drive the demand for armored vehicles MRO
3.4.2 Technological innovations driving the military armored vehicles MRO market
3.5 Defense Budget Spending Review
3.5.1 European capital expenditure expected to increase during the forecast period
3.5.2 Asian defense budgets expected to increase at a robust pace
3.5.3 North American defense expenditure projected to decline marginally during the forecast period
3.5.4 Modernization programs likely to drive defense expenditure in South American countries
3.5.5 Military budgets of African countries expected to increase during the forecast period
3.5.6 Defense budgets of Middle Eastern countries likely to increase during the forecast period
3.6 Defense Modernization Review
3.6.1 Financial constraints causing delays in European defense modernization programs
3.6.2 Defense budgets of Asian countries likely to be driven by competitive arms acquisitions
3.6.3 Global economic slowdown leading to defense budget cuts in the North American region
3.6.4 Need to replace aging equipment driving South American defense expenditure
3.6.5 Security threats increasing the defense budget of African countries
3.6.6 Demand for air defense systems is likely to increase in the Middle East
4 Industry Trends, Recent Developments and Challenges
4.1 Technological Developments
4.1.1 South Korea has pioneered an active protection system for military vehicles
4.1.2 Northrop Grumman develops advanced vehicle protection technologies
4.1.3 Fuel cell technology for Main Battle Tanks
4.2 Market Trends
4.2.1 Focus on survivability and adaptability
4.2.2 Growth in performance based logistics (PBL) contracts
4.3 Industry Consolidation
4.3.1 Joint programs expected to increase over the forecast period
4.3.2 Companies are expected to consolidate in the face of global defense budget cuts
4.4 Key Challenges
4.4.1 Balancing increased protection with reduced weight
4.4.2 High taxes hamper indigenous growth in some countries
5 SWOT Analysis of the Armored Vehicles MRO Market
5.2 Strengths
5.2.1 Wear and tear of armored vehicles used in recent wars expected to augment sector growth
5.2.2 Modernization of existing armored vehicle fleets driving the market
5.2.3 Force readiness initiatives by major defense spenders driving expenditure on maintenance of vehicles
5.3 Weaknesses
5.3.1 Lack of domestic MRO capabilities in some countries
5.3.2 Extended cycle times often lead to a reduction in number of operational vehicles
5.4 Opportunities
5.4.1 Aging fleets of armored vehicles expected to boost expenditure in the MRO market
5.4.2 Defense budget cuts expected to channel more funds towards the armored vehicle MRO sector
5.4.3 Threat from IEDs expected to attract increased investment on enhanced armor protection capabilities
5.5 Threats
5.5.1 A large portion of the MRO workload brought under the ambit of government depots in US
5.5.2 The US and European economic crisis
6 Country Analysis - Armored Vehicles MRO Market
6.1 United States Market Size and Forecast 2012-2022
6.1.1 APC MRO segment of armored vehicle MRO expected to constitute the largest market share
6.1.2 MRAP MRO expected to account for the second largest share
6.1.3 MBT MRO segment to exhibit a CAGR of XX% during the forecast period
6.2 France Market Size and Forecast 2012-2022
6.2.1 MBT MRO market to be attractive in France during the forecast period
6.3 Russia Market Size and Forecast 2012-2022
6.3.1 Expenditure on APC MRO to be robust during the forecast period
6.3.2 T-90A tanks maintenance, a major program in MBT MRO market
6.4 The United Kingdom Market Size and Forecast 2012-2022
6.4.1 APC MRO market in the UK to increase during the forecast period
6.4.2 MBT MRO market to be robust until 2016
6.5 Saudi Arabia Market Size and Forecast 2012-2022
6.5.1 APC MRO market expected to increase during the forecast period
6.5.2 MBT MRO market expected to increase until 2016
6.6 Israel Market Size and Forecast 2012-2022
6.6.1 MBT MRO market expected to increase during the forecast period
6.7 Australia Market Size and Forecast 2012-2022
6.7.1 Australia to spend significantly on APC MRO contracts during the forecast period
6.7.2 Australia to spend US$XX billion on maintaining, repairing and overhauling its fleet of MBTs
6.8 China Market Size and Forecast 2012-2022
6.8.1 China is expected to invest heavily in MBT MRO during the forecast period
6.8.2 China expected to allocate US$XX billion towards APC MRO during the forecast period
6.9 India Market Size and Forecast 2012-2022
6.9.1 India's armored vehicles MRO market driven by the significant investment in upgrading its fleet of Main Battle Tanks (MBTs)
6.9.2 India expected to spend US$XX billion on Armored Personal Carriers (APCs) MRO over the forecast period
6.1 Brazil Market Size and Forecast 2012-2022
6.10.1 APC MRO expected to be the highest segment of expenditure by Brazil on armored vehicles MRO
6.10.2 MBT MRO segment to increase until 2016
6.1 Colombia Market Size and Forecast 2012-2022
6.1.1 Colombia's expenditure on APC MRO to increase at a CAGR of XX%
6.2 Algeria Market Size and Forecast 2012-2022
6.2.1 MBT MRO market to decline during the forecast period
7 Major Armored Vehicles MRO Programs
7.1 APC MRO
7.1.1 Warrior Capability Sustainment Program
7.1.2 Program to recapitalize high mobility multipurpose wheeled vehicles (HMMWVs)
7.1.3 Australian light armored vehicle (ASLAV) upgrade
7.2 MBT MRO
7.2.1 Through-life modernization of Leclerc main battle tanks
7.2.2 Challenger Lethality Improvement Program
7.2.3 T-72 upgrade
7.2.4 Abrams main battle tank modernization program
7.3 MRAP MRO
7.3.1 MRAP Contractor Logistics Sustainment and Support (CLSS) Services contract
7.3.2 Upgrade program for International MaxxPro Mine Resistant Ambush Protected (MRAP) vehicles
7.3.3 Upgrade of LAV-III wheeled APC fleet
7.4 Tactical Trucks MRO
7.4.1 Maintenance and Repair of Mercedes-Benz Trucks
7.4.2 Upgrade of Family of Medium Tactical Vehicles
7.4.3 Medium Support Vehicle System (MSVS) Program
8 Competitive Landscape and Strategic Insights
8.1 Competitive Landscape overview
8.1.1 Navistar: Overview
8.1.2 Navistar: Products and Services
8.1.3 Navistar: Alliances
8.1.4 Navistar: Recent Contract Wins
8.1.5 Navistar: Financial Analysis
8.1.6 BAE Systems: Overview
8.1.7 BAE Systems: Products and Services
8.1.8 BAE Systems: Alliances
8.1.9 BAE Systems: Recent Contract Wins
8.1.10 BAE Systems: Financial Analysis
8.1.11 ManTech International: Overview
8.1.12 ManTech International: Products and Services
8.1.13 ManTech International: Alliances
8.1.14 ManTech International: Recent Contract Wins
8.1.15 ManTech International: Financial Analysis
8.1.16 Rheinmetall: Overview
8.1.17 Rheinmetall: Products and Services
8.1.18 Rheinmetall: Alliances
8.1.19 Rheinmetall: Recent Contract Wins
8.1.20 Rheinmetall: Financial Analysis
8.1.21 Honeywell: overview
8.1.22 Honeywell: products and services
8.1.23 Honeywell: alliances
8.1.24 Honeywell International: recent contract wins
8.1.25 Honeywell: financial analysis
8.1.26 Krauss-Maffei Wegmann: Overview
8.1.27 Krauss-Maffei Wegmann: Products and Services
8.1.28 Krauss-Maffei Wegmann: Alliances
8.1.29 Krauss-Maffei Wegmann: Recent Contract Wins
8.1.30 Krauss-Maffei Wegmann: Financial Analysis
8.1.31 Lockheed Martin: Overview
8.1.32 Lockheed Martin: Products and Services
8.1.33 Lockheed Martin: Alliances
8.1.34 Lockheed Martin: Recent Contract Wins
8.1.35 Lockheed Martin: Financial Analysis
8.1.36 Thales: Overview
8.1.37 Thales: Products and Services
8.1.38 Thales: Alliances
8.1.39 Thales: Recent Contract Wins
8.1.40 Thales: Financial Analysis
8.1.41 Northrop Grumman: Overview
8.1.42 Northrop Grumman: Products and Services
8.1.43 Northrop Grumman: Alliances
8.1.44 Northrop Grumman: Recent Contract Wins
8.1.45 Northrop Grumman: Financial Analysis
8.1.46 General Dynamics: Overview
8.1.47 General Dynamics: Products and Services
8.1.48 General Dynamics: Alliances
8.1.49 General Dynamics: Recent Contract Wins
8.1.50 General Dynamics: Financial Analysis
8.1.51 Nexter: Overview
8.1.52 Nexter: Products and Services
8.1.53 Nexter: Alliances
8.1.54 Nexter: Recent Contract Wins
8.1.55 Nexter: Financial Analysis
8.1.56 Elbit Systems: Overview
8.1.57 Elbit Systems: Products and Services
8.1.58 Elbit Systems: Alliances
8.1.59 Elbit Systems: Recent Contract Wins
8.1.60 Elbit Systems: Financial Analysis
8.1.61 Oshkosh Defense: Overview
8.1.62 Oshkosh Defense: Products and Services
8.1.63 Oshkosh Defense: Alliances
8.1.64 Oshkosh Defense: Recent Contract Wins
8.1.65 Oshkosh Defense: Financial Analysis
8.1.66 SAIC: Overview
8.1.67 SAIC: Products and Services
8.1.68 SAIC: Alliances
8.1.69 SAIC: Recent Contract Wins
8.1.70 SAIC: Financial Analysis
9 Appendix
9.1 Methodology
9.2 Contact us
9.3 About SDI
9.4 Disclaimer

Lockheed Martin,

Navistar,

BAE Systems,

Rheinmetall,

Mantech International,

Honeywell International,

SAIC,

Thales,

Northrop Grumman,

General Dynamics,

Nexter,

Elbit Systems,

Krauss-Maffei Wegmann (KMW),

Oshkosh Defence

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