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Armored Vehicles Market - Forecasts from 2022 to 2027

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    Report

  • 132 Pages
  • December 2022
  • Region: Global
  • Knowledge Sourcing Intelligence LLP
  • ID: 5716758

The armored vehicle market was valued at US$17.223 billion in 2020 and is expected to grow at a CAGR of 5.99% over the forecast period to reach a market size of US$25.887 billion in 2027.

Armored vehicles are protected by uranium or stainless steel and equipped with robust weapons. Armored vehicles are majorly used by the military, law enforcement, VIPs, and celebrities. Armored vehicles are used either for defense or homeland security purposes. The increasing number of border and terrorist attacks have boosted demand for armored vehicles in defence. Landmines are major threats to military vehicles, which boosted the demand for armored defence vehicles. Civil wars and terrorist attacks are the drivers of the market for commercial armored vehicles. Geographically, the Europe region has a significant market share owing to the government's continuous spending on the defence sector. The market of the North American region is also expected to grow owing to increasing disposable income and safety concerns.

The declining defence budget of developed economies and the increasing use of unmanned systems are hampering the growth of the market. Other major challenges of the markets are high initial costs and stringent government regulations for manufacturing armored vehicles. However, the market of armored vehicles is expected to boost due to global increasing safety concerns, a rise in the demand for commercial armored vehicles, and increasing defence budgets.

Applications in the defence sector to boost growth

The growing focus on protecting soldiers from external and internal threats is projected to propel market growth. Further, rising awareness about commercial security is predicted to drive the demand for personnel armored vehicles. For instance, in January 2022, Oshkosh Defense, LLC, a military vehicles, mobility systems, and technology solutions designing company, launched its first hybrid-electric JLTV (Joint Light Tactical Vehicle). The electric JLTV, launched by the company, has helped in protecting soldiers from physical threats, increased fuel efficiency, and offered a battery capacity of 30kWh. Multilateral collaboration between countries such as the North Atlantic Treaty Organization (NATO) and the African Union (AU) in order to counter terrorism and maintain peace is further expected to favour market growth. Furthermore, various governments are opting for the latest machinery to counter emergencies like insurgencies and militant attacks, which is increasing the demand for armored vehicles, thus providing growth to the market. Increasing defence budgets, particularly in the Asia Pacific region, is likely to drive further market growth. For instance, the Indian military budget increased to INR 47,590 crores in 2022 from INR 33,253 crores in 2021. Adding to that, innovations such as increased fuel efficiency and the use of high-tech sensors in these armored vehicles are expected to accelerate market growth over the forecast period. For instance, in November 2021, HENSOLDT, which is a German multinational company focusing on sensor technologies for protection and surveillance missions in the security, defense, and aerospace sectors, announced the upgrade of its MSFS (Multifunctional Self-Protection System), which is a sensor-based system to counter threats. MSFS helps in fighting threats like anti-tank guided missiles and laser-directed ammunition and makes vehicles to identify and eschew newly emerging dangers. Furthermore, the Multifunctional Self-Protection System 2.0 is to optimize the size, weight, and quantity of assemblies. The novel laser rider improves directional resolution and threat-detecting capability, while the increased computer power of the central unit aids in the detection of missile and projectile threats. Therefore, developments like these in the defence sector are expected to drive market growth.

Increasing crimes and riots to accelerate market growth

Increasing communal riots and organized crimes in various regions like the MEA, the Asia Pacific and the Americas is another factor driving the growth of the market. For instance, in April 2021, INKAS Armored Vehicle Manufacturing, which is a Canadian privately held firm specializing in the manufacturing, security, and development of armored vehicles, announced its procurement of vehicles to the US government. The company expanded its capacity and expertise to provide high-quality armored vehicles and fleets, which would be available through the United States General Services Administration's Advantage program. Further, the rising cross-border criminal activities and terrorism trigger asymmetric warfare between several nations, which is predicted to increase the demand for armored vehicles. The development of lightweight, robust, highly efficient, and compact armored vehicles suitable for defense operations in order to tackle these issues is further expected to propel the growth of the market. In February 2021, Arquus, which is an automotive firm that provides a variety of light and medium-sized wheeled armored vehicles for the military and internal security forces, introduced Scarabee, which is a lightweight rugged vehicle to spot, lock, acquire, and hit. It is fast, compact, robust, and exceptionally well-defended for its class vehicle. It was very critically designed to combine protection, stealth, and agility to safeguard soldiers against any attacks that they may face. Thus, the increase in terrorism and criminal activities has driven the demand and development of these vehicles, thus providing substantial growth in the market.

Key Companies & Market Share Insights

  • February 2021: American Rheinmetall Vehicles, LLC, which is a subsidiary of Rheinmetall AG, signed a partnership agreement with L3Harris Technologies, an American technology company, defense contractor, and information technology services provider. The partnership was aimed at developing an Optionally Manned Fighting Vehicle (OMFV) for the US Army.
  • February 2021: Bharat Forge, which is an engineering and technology company, collaborated with the international aerospace and technology conglomerate Paramount Group in order to combine skills, technologies, and expertise for the development of armored vehicles in India.

COVID-19 Impact on the Armored Vehicles Market

The outbreak of the COVID-19 pandemic caused the market to slow down. This was due to the subsequent lockdowns and social distancing measures, that caused a halt in the production facilities, especially in the automotive sector. However, the ease of restrictions and resumption of these facilities is expected to drive the market.

Market Segmentation:

By Application

  • Defense
  • Armored Personnel Carriers
  • Infantry fighting vehicle
  • Light protected vehicle
  • Others
  • Commercial
  • SUV
  • Luxury
  • Others

By Geography

  • North America
  • United States
  • Canada
  • Mexico
  • South America
  • Brazil
  • Argentina
  • Others
  • Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Others
  • Middle East and Africa (MEA)
  • Saudi Arabia
  • UAE
  • Isreal
  • Others
  • Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Indonesia
  • Thailand
  • Taiwan
  • Others
Frequently Asked Questions about the Armored Vehicles Market

What is the estimated value of the Armored Vehicles Market?

The Armored Vehicles Market was estimated to be valued at $17.22 billion in 2020.

What is the growth rate of the Armored Vehicles Market?

The growth rate of the Armored Vehicles Market is 5.9%, with an estimated value of $25.89 billion by 2027.

What is the forecasted size of the Armored Vehicles Market?

The Armored Vehicles Market is estimated to be worth $25.89 billion by 2027.

Who are the key companies in the Armored Vehicles Market?

Key companies in the Armored Vehicles Market include International Armored Group, Lockheed Martin Corporation, Thales Group, General Dynamics Corporation, BAE Systems, Denel Vehicle Systems, Oshkosh Defense, LLC, Rheinmetall AG and INKAS Armored Vehicle Manufacturing.

Table of Contents

1. INTRODUCTION
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation

2. RESEARCH METHODOLOGY
2.1. Research Data
2.2. Assumptions

3. EXECUTIVE SUMMARY
3.1. Research Highlights

4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter's Five Forces Analysis
4.3.1. Bargaining Power of End-Users
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis

5. ARMORED VEHICLE MARKET BY APPLICATION
5.1. Introduction
5.2. Defense
5.2.1. Armored Personnel Carriers
5.2.2. Infantry fighting vehicle
5.2.3. Light protected vehicle
5.2.4. Others
5.3. Commercial
5.3.1. SUV
5.3.2. Luxury
5.3.3. Others

6. ARMORED VEHICLE MARKET BY GEOGRAPHY
6.1. Introduction
6.2. North America
6.2.1. United States
6.2.2. Canada
6.2.3. Mexico
6.3. South America
6.3.1. Brazil
6.3.2. Argentina
6.3.3. Others
6.4. Europe
6.4.1. UK
6.4.2. Germany
6.4.3. France
6.4.4. Italy
6.4.5. Spain
6.4.6. Others
6.5. Middle East and Africa (MEA)
6.5.1. Saudi Arabia
6.5.2. UAE
6.5.3. Isreal
6.5.4. Others
6.6. Asia Pacific
6.6.1. China
6.6.2. Japan
6.6.3. South Korea
6.6.4. India
6.6.5. Indonesia
6.6.6. Thailand
6.6.7. Taiwan
6.6.8. Others

7. COMPETITIVE ENVIRONMENT AND ANALYSIS
7.1. Major Players and Strategy Analysis
7.2. Emerging Players and Market Lucrativeness
7.3. Mergers, Acquisitions, Agreements, and Collaborations
7.4. Vendor Competitiveness Matrix

8. COMPANY PROFILES
8.1. International Armored Group
8.2. Lockheed Martin Corporation
8.3. Thales Group
8.4. General Dynamics Corporation
8.5. BAE Systems
8.6. Denel Vehicle Systems
8.7. Oshkosh Defense, LLC
8.8. Rheinmetall AG
8.9. Elbit Systems Ltd.
8.10. INKAS Armored Vehicle Manufacturing

Companies Mentioned

  • International Armored Group
  • Lockheed Martin Corporation
  • Thales Group
  • General Dynamics Corporation
  • BAE Systems
  • Denel Vehicle Systems
  • Oshkosh Defense, LLC
  • Rheinmetall AG
  • Elbit Systems Ltd.
  • INKAS Armored Vehicle Manufacturing