North America Armored Fighting Vehicles - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The north america armored fighting vehicles market size is expected to grow from USD 6.99 billion in 2025 to USD 7.29 billion in 2026 and is forecasted to reach USD 9.57 billion by 2031 at a 5.59% CAGR over 2026-2031. This report is Segmented by Platform Type (Armored Personnel Carriers, Infantry Fighting Vehicles, Mine-Resistant Ambush-Protected, and More), Mobility (Wheeled and Tracked), Propulsion (Conventional and Electric), End-User (Army, Marine/Naval Infantry, and More), and Geography (United States, Canada, and Mexico). The Market Forecasts are Provided in Terms of Value (USD).

North America Armored Fighting Vehicles Market Trends and Insights

Surging US Next-Gen Combat Vehicle Procurement Pipeline

The XM30 Optionally Manned Fighting Vehicle is progressing toward a Milestone B decision in 2025, with low-rate initial production expected by early 2028. This program aims to replace approximately 2,000 Bradley vehicles, with a ceiling unit cost of USD 8 million. Dual-track development contracts awarded to General Dynamics and Rheinmetall Anduril are driving changes in supply chains, as bidders localize armor fabrication and implement open-systems architectures to enable autonomous operation, edge computing, and standardized datalinks. Localization efforts, such as Rheinmetall’s acquisition of a Michigan plant, are also mitigating risks associated with tariffs and Buy America Act requirements, ensuring smoother program execution.

Elevated US and Canadian Defense Budgets Post-2025

Ground-systems appropriations reached USD 13 billion in the US for FY 2025 and CAD 2.58 billion (USD 1.86 billion) in Canada, primarily for light-vehicle modernization. While the US is reallocating some funds to long-range fires and cyber capabilities, budget lines for tracked IFV upgrades and APS retrofits remain intact. This ensures continued demand for hull fabrication, suspension kits, and sensor packages. In Canada, a maintenance backlog resulting in only 52% serviceability for LAV 6.0 vehicles provides additional revenue opportunities for sustainment and retrofit suppliers, further strengthening the market outlook.

Budget Reallocations Toward Cyber/Space Domains

In FY 2026, the Space Force and cyber budgets increased by 15%, resulting in a USD 1.4 billion reduction in Army modernization funding. This led to the cancellation of the M10 Booker program and delays in Joint Light Tactical Vehicle (JLTV) acquisitions. Light and medium vehicle programs are the most affected, while funding for tracked IFVs and APS upgrades remains prioritized to address peer armor threats. These reallocations reflect the shifting focus of defense priorities toward emerging domains.

Other drivers and restraints analyzed in the detailed report include:

• Intensifying Great-Power Competition in the Arctic Region
• Rapid Adoption of Active Protection Systems
• High Acquisition and Life-Cycle Costs of Heavy Platforms

Segment Analysis

APCs accounted for 31.34% of the North America armored fighting vehicles market share in 2025, supported by 4,900 Strykers in US inventories and 550 Canadian LAV 6.0 units. The modular hull design of the Stryker supports infantry, MEDEVAC, and command variants, ensuring a steady revenue stream for armor kits, drivetrain overhauls, and digital backbone upgrades.

Light protected/reconnaissance vehicles are projected to grow at the fastest rate, with a 6.98% CAGR, as Special Forces increasingly favor air-droppable GM Defense ISVs and Polaris MRZR vehicles for border security and Arctic patrols. Their 5,000-pound curb weight enables CH-47 sling loads and high-speed off-road mobility over tundra, highlighting how niche performance improvements drive growth in the North American armored fighting vehicles market.

IFVs are expected to grow at a 5.8% CAGR, driven by USD 1.6 billion in OMFV funding and USD 656 million in Bradley upgrades. These programs incorporate APS and 600-horsepower engines. The market share allocated to IFV programs is anticipated to increase steadily as peer-conflict scenarios demand enhanced firepower and networked sensors.

MRAP fleets are downsizing, while MBTs remain stable, relying on sustainment contracts rather than new production. However, hybrid-electric demonstrators and unmanned turrets could stimulate demand if they reduce operating costs and enhance crew survivability.

Wheeled chassis accounted for 65.43% of the market value in 2025, favored for their 60 mph road speeds and lower fuel consumption. Oshkosh FHTV V upgrades and Canada’s light-truck modernization programs sustain demand for 4x4, 6x6, and 8x8 logistics vehicles. Features such as rubber-insert run-flat tires, anti-lock braking systems, and digital dash retrofits further expand aftermarket opportunities.

Tracked vehicles are experiencing a resurgence, with a 5.89% CAGR, as Arctic operations require snow-capable hulls. The XM30 is designed to clear 6-foot obstacles at 40 mph cross-country, while Bradley E1 retrofits enhance torsion bars and idler wheels to accommodate the added weight of the Iron Fist system. Innovations such as rubber band tracks and in-arm suspension systems reduce vibration, narrowing the maintenance gap between tracked and wheeled systems.

Hybrid-electric prototypes are blurring the traditional boundaries of mobility categories. A battery-equipped Stryker prototype demonstrated 25% additional off-road torque and a 40% reduction in thermal signature, challenging the advantages of tracked vehicles. The Army’s 2026 mobility study anticipates mixed fleets, with wheeled vehicles prioritized for rapid deployment and tracked assets for assault operations, ensuring both segments remain integral to the North American armored fighting vehicles market.

Complete Report Scope:

• By Platform Type
  • Armored Personnel Carriers (APCs)
  • Infantry Fighting Vehicles (IFVs)
  • Mine-Resistant Ambush-Protected (MRAP)
  • Main Battle Tanks (MBTs)
  • Light Protected/Recon Vehicles
  • Others
• By Mobility
  • Wheeled (4x4, 6x6, 8x8)
  • Tracked
• By Propulsion
  • Conventional
  • Electric
• By End-User
  • Army
  • Marine/Naval Infantry
  • Special Forces
  • Homeland Security
• By Geography
  • United States
  • Canada
  • Mexico

List of Companies Covered in this Report:

• General Dynamics Corporation
• BAE Systems plc
• Rheinmetall AG
• KNDS N.V.
• Hanwha Systems Co., Ltd. (Hanwha Corporation)
• Oshkosh Corporation
• Textron Systems Corporation (Textron Inc.)
• Elbit Systems Ltd.
• FNSS Savunma Sistemleri A.Ş.
• Otokar Otomotiv ve Savunma Sanayi A.S.
• Mitsubishi Heavy Industries, Ltd.
• Paramount Group
• RTX Corporation
• QinetiQ Group
• AM General LLC
• CB-HDT Holdings, Inc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support