Armoured vehicles market to reach USD 7.22 billion by 2028

The rising incidence of asymmetric warfare is expected to drive the growth, according to Technavio

Based on the findings of a new report from technology research and advisory firm Technavio, the armoured vehicles market is expected to reach USD 7.22 billion (roughly €6.59 billion) by 2028. The growth momentum is expected to progress at a CAGR of 6.32% and in 2024 alone, the market is expected to observe a year-on-year growth of 5.2%.

A surge in asymmetric warfare

According to Technavio, asymmetric warfare, or irregular warfare as it is also called, will be a key factor driving the expansion of the armoured vehicles market in coming years. The military capabilities and strategies used by belligerent forces in this kind of warfare differ significantly from conventional warfare scenarios and militant groups involved employ attack tactics, such as ambush and terrorism. Thus, the report claims, the demand for armoured vehicles is set to increase.

Armoured vehicles market to reach USD 7.22 billion by 2028
Credit: Unsplash

Unmanned combat vehicles on the rise

Beyond the tendency towards asymmetric warfare, the report identifies another major trend that will impact the armoured vehicles market in the near future: the increased adoption of unmanned combat ground vehicles.

Due to the rising use of unmanned systems by military forces throughout the world across their  intelligence, surveillance, and reconnaissance capabilities, as well as in combat operations, the need for unmanned systems has grown globally in recent years.

Additionally, as defence budgets in developed countries such as the UK, Italy, Spain, Germany, and France have steadily decreased, the purchase of unmanned systems has been on the rise as these systems take the place of defence personnel.

Budget cuts to have an impact

The report also pinpoints one of the key challenges for the armoured vehicles market in coming years: the foreseen cuts to defence budgets. In Technavio’s view, defence cutbacks that are expected to affect procurement patterns are set to be a significant challenge, and will restrict market growth.

Because of increased budgetary constraints, the world’s armed forces are progressively focusing more on long-term military preparedness than on modernisation, says the report. In addition, defence modernisation has been delayed in a number of countries in Europe, including UK, France, Germany, and Spain, in order for these nations to cope with their fiscal expenditures.

Moreover, several of these countries are also studying the possibility of pooling together their efforts and adopting common procurement and equipment development strategies, a factor that also stands to hinder growth.

Wheeled vehicles to see significant growth

The report examines different types of vehicles and world regions, segmenting the armoured vehicle market by mobility (wheeled and tracked), type (conventional and electric), and geography (North America, Europe, APAC, South America, and Middle East and Africa).

Within armoured vehicle mobility types, the wheeled vehicle segment is estimated to witness significant growth during the forecast period, says Technavio. Compared to tracked cars, wheeled vehicles benefit from a wide range of advantages such as better road performance, increased fuel efficiency, and reduced maintenance costs, factors Technavio expects to drive the expansion of the segment.

Key armoured vehicle players

The report identifies some of the key players in the armoured vehicles market including AB Volvo, Alpine Armoring Inc., Armormax, BAE Systems Plc, Denel SOC Ltd., General Dynamics Corp., International Armored Group, Iveco Group N.V, KNDS N.V., Lockheed Martin Corp., Mahindra and Mahindra Ltd., Milkor Pty Ltd., Oshkosh Corp., Otokar Otomotiv ve Savunma Sanayi AS, Rheinmetall AG, Rostec, STREIT Group, SVI ENGINEERING, Textron Inc., and Traton SE.

Counter-IED vehicles market also expected to develop

In a related report, Technavio estimated that the military armoured vehicles and counter-IED vehicles market size will grow at a CAGR of 3.71% by 2028 and that the overall market size will increase by USD 6.86 billion (roughly €6.25 billion).

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