Armored Vehicle Upgrade and Retrofit Global Market Report 2024

The armored vehicle upgrade and retrofit market size has grown steadily in recent years. It will grow from $6.07 billion in 2023 to $6.36 billion in 2024 at a compound annual growth rate (CAGR) of 4.7%. The growth observed in the historical period can be attributed to factors such as the arms race during the Cold War era, the continuous evolution of threats and tactics, a focus on logistics and maintenance, budget allocations for defense spending, and the dynamic nature of the threat landscape.

The armored vehicle upgrade and retrofit market size is expected to see steady growth in the next few years. It will grow to $7.52 billion in 2028 at a compound annual growth rate (CAGR) of 4.3%. The anticipated growth in the forecast period can be attributed to a rising emphasis on hybrid and electric propulsion, the adoption of unmanned ground vehicles (UGVs), a growing demand for modular and scalable upgrades, a focus on lightweight and survivable designs, and global geopolitical tensions. Major trends expected in the forecast period include the integration of artificial intelligence in vehicle systems, improved survivability through active protection systems, a shift towards digitalization and connectivity, increased utilization of additive manufacturing in upgrades, and the development of sustainable and eco-friendly armored vehicle solutions.

The escalation in terrorism and hostile activities is anticipated to be a driving force behind the growth of the armored vehicle upgrade and retrofit market. Terrorism and hostile activities encompass violent or threatening actions perpetrated by individuals or groups to instigate fear, harm, or disruption. Armored vehicles play a crucial role in countering such threats by offering security forces and military units enhanced protection, mobility, and firepower. These vehicles are employed across various scenarios to mitigate the risks associated with terrorist attacks and hostile activities. Notably, the Global Terrorism Index 2022 report from the Institute for Economics and Peace reported a 17% increase in terrorism attacks to 5,226 in 2021, with Afghanistan at the forefront of these attacks. The tragic incident at Kabul International Airport in August 2021, where a suicide bomber claimed numerous lives and left hundreds wounded, exemplifies the significance of armored vehicles in such contexts, thus propelling the future demand for upgrades and retrofits in this market segment.

The augmented budget allocation for the military and law enforcement sectors is poised to drive the growth trajectory of the armored vehicle upgrade and retrofit market. Budget allocation within these sectors involves the allocation of financial resources to support the operations, activities, and requisites of armed forces and law enforcement agencies within a governmental framework. This allocation significantly shapes the armored vehicle upgrade and retrofit market by ensuring vehicle effectiveness, security, and alignment with evolving security needs. As observed in data from the US Department of Defense in April 2022, the Department's discretionary budget authority for the military reached approximately $705.39 billion in FY2021, with a projected budget request of $773.0 billion for FY2023. This increase reflects a strategic emphasis on addressing challenges highlighted in the National Defense Strategy, particularly focusing on China's emerging security concerns. Hence, the augmented budget allocation for the military and law enforcement sectors acts as a catalyst driving the expansion of the armored vehicle upgrade and retrofit market.

The armored vehicle upgrade and retrofit market are witnessing a surge in technological advancements as a prominent trend. Major entities operating within this market segment are prioritizing the integration of cutting-edge technology to maintain their competitive standing. In June 2022, Texelis SAS, a French manufacturing company, unveiled an innovative solution for the electrification of wheeled armored vehicles tailored for military applications seeking environmentally sustainable battlefield options. This pioneering solution incorporates established electric vehicle components, providing a swifter pathway to vehicle electrification compared to comprehensive whole-vehicle electric design programs. It facilitates implementation on existing wheeled military vehicles, preserving advanced mobility capabilities while leveraging technologies to furnish electric power for soldier system charging and enabling periods of silent, full-electric operation.

Prominent companies engaged in the armored vehicle upgrades and retrofit market are dedicatedly focusing on the development of innovative products aimed at enhancing market profitability. Specifically, the focus lies in crafting protection vehicles, specialized vehicles meticulously designed and equipped for defense, security, or law enforcement purposes. In August 2023, Bayerische Motoren Werke AG (BMW), a German luxury vehicle manufacturer, launched the groundbreaking BMW i7 Protection - an unprecedented electric sedan fortified with a self-sustaining frame constructed from reinforced armored steel. This vehicle includes additional armoring for the undercarriage and roof, accompanied by fortified armored glass. The BMW i7 Protection, propelled by two robust electric motors, represents a significant milestone as the world's first electric protection sedan. It offers uncompromising VR9-class protection, establishing new benchmarks in the realm of electric security vehicles.

In April 2023, INKAS Armored Vehicle Manufacturing, a Canadian-based manufacturing company, entered into a partnership with Force Development Services (FDS) to integrate a high-grip surface into their vehicle platform. The platform is constructed with a glass fiber-reinforced plastic (GFRP) cover. Through this collaboration, FDS's vehicle-borne intervention systems, which have demonstrated operational effectiveness for over two decades, will enhance the ability of tactical teams to efficiently and discreetly access aircraft, buses, trains, buildings, or ships in port. Force Development Services (FDS) is a UK-based engineering equipment manufacturing company specializing in customized tactical systems, entry tools, body shields, and military tactical gear.

Major companies operating in the armored vehicle upgrade and retrofit market report are Hyundai Motor Group, SAIC Motor Corporation Limited., Hanwha Group, Tata Motors Limited, General Dynamics Corporation, Northrop Grumman Corporation, Mitsubishi Heavy Industries Ltd., Rostec State Corporation, BAE Systems PLC, Lockheed Martin Corporation, Thales Group, L3Harris Technologies Inc., Leonardo S.p.A., Iveco S.p.A, Textron Inc., Navistar Inc., ST Engineering, Oshkosh Corporation, Rheinmetall AG, Elbit Systems Ltd., Nexter Systems, Krauss-Maffei Wegmann GmbH and Co. KG, Ukroboronprom, RUAG Holding, AM General LLC, Patria Plc., CMI Group Inc., FNSS Savunma Sistemleri AS., Denel Land Systems, MKU Limited.

North America was the largest region in the armored vehicle upgrade and retrofit market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the armored vehicle upgrade and retrofit market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the armored vehicle upgrade and retrofit market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Armored vehicle upgrades and retrofits encompass various designs, with wheeled and tracked armored vehicles being the main types. Wheeled armored vehicles rely on wheels for mobility and may be equipped with tires or tracks. These vehicles can undergo upgrades and retrofits to improve performance, protection, and capabilities. They find application in diverse vehicle types, including tactical trucks, main battle tanks (MBT), assault amphibious vehicles (AAV), armored personnel carriers (APC), armored recovery vehicles, armored fighting vehicles, among others. The armor levels involved range from rifle-resistant to mine-resistant. These upgrades and retrofits are available through different distribution channels, including original equipment manufacturers (OEM) and retrofit providers.

The armored vehicle upgrade and retrofit market research report is one of a series of new reports that provides armored vehicle upgrade and retrofit market statistics, including armored vehicle upgrade and retrofit industry global market size, regional shares, competitors with a armored vehicle upgrade and retrofit market share, detailed armored vehicle upgrade and retrofit market segments, market trends and opportunities, and any further data you may need to thrive in the armored vehicle upgrade and retrofit industry. This armored vehicle upgrade and retrofit 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.

The armored vehicle upgrade and retrofit market includes revenues earned by entities by central tire inflation systems (CTIS), remotely operated weapon stations (ROWS), and integration of explosive reactive armor (ERA) modules. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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.