Armored Personnel Carrier (APC) Market Report 2025

The armored personnel carrier (APC) market size has grown strongly in recent years. It will grow from $11.89 billion in 2024 to $12.61 billion in 2025 at a compound annual growth rate (CAGR) of 6%. The growth during the historic period can be credited to heightened cross-border military tensions, increased demand for troop mobility, expanding defense modernization initiatives, greater adoption of hybrid vehicles, and the rising incorporation of advanced sensors.

The armored personnel carrier (APC) market size is expected to see strong growth in the next few years. It will grow to $15.7 billion in 2029 at a compound annual growth rate (CAGR) of 5.6%. The growth in the forecast period can be attributed to a rise in combat activities, a growing need for advanced driving systems, heightened safety and security concerns, increased demand for durable and powerful diesel engines, and expanding global defense budgets. Key trends expected during this period include innovations in modular armor design, the integration of AI-powered navigation systems, the emergence of technology-driven remote weapon stations, advancements in hybrid-electric propulsion, and upgrades in technologies enhancing situational awareness.

The growing threat of terrorism is expected to drive the expansion of the armored personnel carrier (APC) market. Terrorist threats are indicators or warnings of planned violent acts intended to spread fear and promote extremist agendas. These threats are often fueled by political instability, which provides fertile ground for extremist groups to organize and launch attacks. Armored personnel carriers play a crucial role in addressing such threats by offering secure transportation for military personnel in dangerous environments. They enhance protection during high-risk missions by resisting small arms fire and explosive devices, thereby improving tactical response and mission success rates. For example, in March 2023, the Institute for Economics & Peace reported that the average number of deaths per terrorist attack increased to 1.7 in 2022, up from 1.3 in 2021. This trend underscores the growing demand for APCs in response to escalating security threats.

Leading companies in the APC market are concentrating on the development of advanced vehicles equipped with features like all-terrain wide-track systems to improve performance in difficult landscapes. These systems consist of broader tracks that help distribute the vehicle's weight more evenly, thereby enhancing traction and stability on soft or uneven ground such as snow, mud, and marshland. For instance, in June 2024, Patria Plc, a Finland-based armored vehicle manufacturer, introduced the FAMOUS armored personnel carrier. Designed for operations in extreme terrain, the FAMOUS features an all-terrain wide-track system, a front-mounted engine and transmission to optimize internal space, and a remotely controlled weapon station. Its modern design supports a variety of mission types, including troop movement, command and control tasks, and medical evacuations.

In November 2024, Nurol Holding, an industrial conglomerate based in Turkey, completed the acquisition of FNSS Savunma Sistemleri A.Ş. The acquisition, for an undisclosed sum, bolstered Nurol's presence in the defense industry by providing full ownership of FNSS’s capabilities in advanced armored vehicle production. FNSS Savunma Sistemleri A.Ş. is a Turkish defense company known for its expertise in manufacturing state-of-the-art armored personnel carriers, and the acquisition enhances Nurol's strategic reach in both local and international defense markets.

Major players in the armored personnel carrier (APC) market are Lockheed Martin Corporation, Rostec, BAE Systems plc, Thales Group, Iveco Group N.V., Textron Systems, ST Engineering Ltd., Rheinmetall AG, Elbit Systems Ltd., Ashok Leyland Ltd., Hyundai Rotem Company, Oshkosh Defense LLC, General Dynamics Land Systems, Krauss-Maffei Wegmann GmbH & Co. KG, AM General LLC, Tata Advanced Systems Limited, Roshel Inc., Hanwha Defense, Streit Group, and Navistar International.

North America was the largest region in the armored personnel carrier (APC) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in armored personnel carrier (APC) report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the armored personnel carrier (APC) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

The sharp hike in U.S. tariffs and the associated trade disputes in spring 2025 are notably impacting the aerospace and defense sector by raising costs for titanium, carbon fiber composites, and avionics materials largely sourced from global suppliers. Defense contractors, locked into fixed-price government contracts, absorb these added costs, while commercial aerospace firms face airline pushback on higher aircraft prices. Delays in component shipments due to customs bottlenecks further disrupt tight production schedules for jets and satellites. The industry is responding by stockpiling critical materials, seeking waivers for defense-related imports, and collaborating with allied nations to diversify supply chain.

An armored personnel carrier (APC) is a military vehicle designed to safely transport troops through combat zones. It is equipped with protective armor that shields occupants from gunfire, shrapnel, and other battlefield hazards. The primary function of an APC is to improve the mobility and safety of soldiers in hostile environments.

The primary types of armored personnel carriers (APCs) include infantry fighting vehicles and infantry mobility vehicles. An infantry fighting vehicle (IFV) is an armored combat vehicle that transports infantry while delivering direct fire support using advanced weaponry. It consists of multiple systems, including drive mechanisms, structural components, weapon and ammunition control systems, countermeasure units, command and control systems, navigation tools, and observation and display technologies. These systems are deployed across various platforms, such as combat vehicles, support vehicles, and unmanned armored ground vehicles. IFVs are used in diverse applications like military operations, civilian protection, peacekeeping missions, and counter-terrorism efforts, serving a range of end-users including defense forces, law enforcement agencies, and private security firms.

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

The armored personnel carrier (APC) market consists of sales of wheeled armored personnel carrier (APC), tracked armored personnel carrier (APC), amphibious armored personnel carrier (APC), and modular armored personnel carrier (APC) platforms. 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 organisations 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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