Armored Vehicles Market Report 2026

The armored vehicles market size has grown strongly in recent years. It will grow from $9.67 billion in 2025 to $10.27 billion in 2026 at a compound annual growth rate (CAGR) of 6.2%. The growth in the historic period can be attributed to growth in global defense budgets and military modernization programs, technological advancements in armored vehicle protection and weaponry, increased production of infantry fighting vehicles and tanks, expansion of domestic and international defense contracts, rising demand for mobility and survivability in combat operations.

The armored vehicles market size is expected to see strong growth in the next few years. It will grow to $13.57 billion in 2030 at a compound annual growth rate (CAGR) of 7.2%. The growth in the forecast period can be attributed to rising adoption of autonomous and unmanned armored vehicles, growth in defense spending for modernized combat fleets, advancements in lightweight and composite armor technologies, increased demand for rapid-deployment armored solutions, integration of AI and advanced communication systems in armored vehicles. Major trends in the forecast period include enhanced survivability and armor modernization, upgraded firepower and precision weapon integration, multi-role armored vehicles development, rapid deployment and lightweight vehicle focus, enhanced crew protection and ergonomic designs.

The rise in military spending is expected to drive the growth of the armored vehicles market in the coming years. Military spending refers to government expenditures allocated to armed forces, defense ministries, military equipment, operations, and national security activities. The increase in military spending is largely driven by geopolitical tensions and ongoing conflicts, as heightened security concerns and territorial disputes push nations to strengthen their defense capabilities and maintain military readiness. Rising defense budgets increase the demand for armored vehicles, as these protected mobility platforms are essential for troop transport, combat missions, and force protection in modern warfare environments. For example, in April 2024, the Stockholm International Peace Research Institute (SIPRI), a Sweden-based non-governmental organization, reported that global military spending reached $2.44 trillion in 2023, reflecting a 6.8% real-term increase from 2022. Therefore, the rise in military spending is contributing to the expansion of the armored vehicles market.

Key companies in the armored vehicles market are focusing on developing innovative products, such as armored light specialist vehicles, to deliver reliable and versatile solutions. A light specialist vehicle typically refers to a vehicle designed for specific tasks or operational roles, often used within military or emergency service contexts. For example, in June 2023, Mahindra Defence Systems Limited, an India-based provider of advanced armored solutions for military and paramilitary forces, introduced the Armoured Light Specialist Vehicle (ALSV). The ALSV is a lightweight, four-wheel-drive, air-transportable armored tactical vehicle used for missions such as reconnaissance, patrol, and convoy escort. It is powered by a Steyr 3.2-liter, 6-cylinder turbo diesel engine delivering 215 hp at 3600 rpm with 500 Nm of peak torque. Variants of the ALSV include a 6- to 8-seater Armored Protection Vehicle for Security, a Light Armored Ambulance, a Command and Control Vehicle, a Light Mortar 81/82mm Vehicle, and an Ammunition Carrier for Light Weapons.

In September 2025, BAE Systems plc, a UK-based defense, security, and aerospace company, partnered with Forterra Inc. to develop an autonomous Armored Multi-Purpose Vehicle (AMPV) prototype. Through this collaboration, BAE Systems and Forterra aim to rapidly produce a highly survivable, autonomous AMPV for the U.S. Army by integrating Forterra’s AutoDrive system onto the modular chassis, accelerating development to demonstrate capability in 2026, and delivering a cost-effective, interoperable solution that enhances operational flexibility, survivability, and mission readiness. Forterra Inc. is a U.S.-based manufacturing company specializing in autonomous vehicle technology and mission-capable systems.

Major companies operating in the armored vehicles market are BAE Systems, Oshkosh Corporation, International Armored Group, General Dynamics Land Systems, Textron Inc., Rheinmetall AG, Lockheed Martin Corporation, Krauss-Maffei Wegmann GmbH & Co. KG, INKAS Armored Vehicle Manufacturing, Elbit Systems Ltd., IVECO S.p.A., Lenco Armored Vehicles Inc., Navistar - Navistar International Corporation, Thales Group, STREIT Group, UralVagonZavod Corporation, Ukroboronprom, NORINCO - China North Industries Group Corporation Limited (NORINCO), Raytheon Technologies Corporation, Mitsubishi Heavy Industries Ltd., Nexter Group, Panhard General Defense SAS, Plasan Sasa Ltd., SABIEX International, Hanwha Defense Co.Ltd.

Asia-Pacific was the largest region in the armored vehicles market in 2025. Western Europe is expected to be the fastest-growing region in the armored vehicles market during the forecast period. The regions covered in the armored vehicles market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are impacting the armored vehicle market by increasing costs of imported armor-grade steel, advanced electronics, and propulsion systems, particularly affecting manufacturing hubs in North America and Europe that rely on global supply chains. Defense procurement delays and rising production costs are most noticeable in tracked and wheeled vehicle segments. However, tariffs are also encouraging local sourcing, industrial expansion, and strategic national defense manufacturing programs, helping strengthen domestic supply resilience and innovation.

The armored vehicles market research report is one of a series of new reports that provides armored vehicle market statistics, including global market size, regional shares, competitors with an armored vehicle market share, detailed armored vehicle market segments, market trends and opportunities, and any further data you may need to thrive in the armored vehicle industry. This armored vehicle market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

An armored vehicle is a self-propelled, militarized vehicle equipped for combat operations. These vehicles blend operational agility with offensive and defensive capabilities.

The primary categories of armored vehicles include armored personnel carriers, infantry fighting vehicles, main battle tanks, tactical trucks, buses, and other specialized variants. Armored personnel carriers, for instance, serve as military vehicles designed for transporting personnel and equipment in hostile environments. This diverse range of platforms encompasses combat vehicles, combat support vehicles, unmanned armored ground vehicles. Key components encompass the engine, drive system, ballistic armor, fire control system (FCS), armaments, ammunition handling system, countermeasure system, command and control system, and other relevant elements. In terms of mobility, armored vehicles are categorized into tracked, wheeled, 4x4, 6x6, 8x8, and other configurations.

The countries covered in the armored vehicles market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The armored vehicle market consists of sales of armored vehicles such as tanks, tank destroyers, infantry fighting vehicles, armored personnel carriers, and self-propelled guns. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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