Global Armored Vehicle Procurement And Upgrade Market Growth, Share, Size, Trends and Forecast (2024 - 2030)

These vehicles serve critical roles in modern military operations, providing mobility, protection, and firepower to ground forces across the globe. Armored vehicle procurement involves the acquisition of new vehicles to augment military fleets, while upgrade programs focus on enhancing the capabilities and survivability of existing vehicles through the integration of advanced technologies and equipment.

APCs play a vital role in providing protected mobility for infantry troops, enabling them to maneuver safely in hostile environments while under fire. IFVs, on the other hand, offer a balance of offensive firepower and troop-carrying capacity, making them versatile assets for infantry support and combat operations. MRAP vehicles are specifically designed to withstand mine blasts and ambush attacks, providing enhanced protection for personnel against improvised explosive devices (IEDs) and other asymmetric threats. MBTs serve as the backbone of armored forces, delivering heavy firepower and armored protection for armored warfare and ground combat engagements. The procurement and upgrade of these vehicle types are driven by evolving security threats, technological advancements, and modernization initiatives undertaken by defense forces worldwide.

There has been a growing emphasis on the procurement and upgrade of armored vehicles to address emerging security challenges and modernize military capabilities. With increasing geopolitical tensions, rising terrorism threats, and evolving warfare tactics, nations are investing in the acquisition of new armored vehicles and the modernization of existing fleets to maintain strategic superiority and enhance operational readiness. Furthermore, technological advancements, such as advancements in armor protection, weapon systems, communication networks, and unmanned vehicle technologies, are driving the demand for upgrades to ensure that armored vehicles remain effective and resilient on the battlefield. The global armored vehicle procurement and upgrade market are expected to witness sustained growth as defense budgets continue to prioritize investments in modernization programs and the enhancement of military capabilities to meet the challenges of the security landscape.

Global Armored Vehicle Procurement And Upgrade Segment Analysis

In this report, the Global Armored Vehicle Procurement And Upgrade Market has been segmented by Vehicle Type and Geography.

Global Armored Vehicle Procurement And Upgrade Market, Segmentation by Geography

In this report, the Global Armored Vehicle Procurement And Upgrade Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Armored Vehicle Procurement And Upgrade Market Share (%), by Geographical Region, 2023

The Asia-Pacific region emerged as the dominant market for armored vehicles in 2023, boasting the highest market share and projected to witness the highest compound annual growth rate (CAGR) during the forecast period. This growth is largely attributed to the increasing demand from key countries such as China and India. China, in particular, has been significantly advancing its production capacity across various categories of ground systems, including armored personnel carriers, assault vehicles, artillery systems, and tanks. China North Industries Corporation (Norinco) has been actively focusing on increasing the production and sales of domestically manufactured armored vehicles to meet the evolving defense needs of the country. However, with the aging of existing armored vehicle fleets, there is a pressing need for updates and modernization efforts to extend their operational lifespan.

India, facing challenges with land-border-sharing countries, has also been ramping up its armored vehicle capabilities. A significant emphasis has been placed on the modernization of its aging armored vehicle fleet, with initiatives aimed at enhancing operational readiness and combat effectiveness. For instance, Mahindra Defence Systems (MDS) secured a substantial contract from the Indian Ministry of Defence (MoD) to deliver Armoured Tactical Vehicles (LSVs) for the Indian Army, highlighting the country's commitment to strengthening its armored vehicle capabilities. These modernized vehicles equipped with advanced weaponry and communication systems play a crucial role in addressing India's security challenges and bolstering its defense posture.

Other countries in the Asia-Pacific region, such as Australia, have also been actively investing in armored vehicle procurement and modernization programs to meet their defense requirements. Australia's contracts with Hanwha Defense for the delivery of self-propelled howitzers, armored ammunition resupply vehicles, and military vehicles underscore the country's commitment to enhancing its military capabilities. Additionally, the selection of Hanwha's "Redback" Infantry Fighting Vehicle (IFV) for the Australian Army over competitors further illustrates the region's focus on acquiring advanced and versatile armored vehicles to meet evolving security threats and operational needs. Overall, the Asia-Pacific region remains a key growth market for armored vehicle procurement and upgrades, driven by increasing defense expenditures and security challenges across the region.

This report provides an in depth analysis of various factors that impact the dynamics of Global Armored Vehicle Procurement And Upgrade Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers:

• Increasing the Need for Incorporating the Latest Technologies into Land Vehicles
• Growing Popularity
• Increasing Demand from Countries
• Refocusing Efforts on Border Security - Border security is a paramount concern for nations worldwide, prompting governments to prioritize the procurement and upgrade of armored vehicles. These vehicles are integral components of border security strategies, facilitating effective patrolling and surveillance along national borders. Equipped with advanced technology and weaponry, armored vehicles enable border enforcement agencies to deter and respond to various threats, including illegal border crossings, smuggling activities, and terrorist infiltration attempts. Additionally, armored vehicles serve as a visible deterrent, signaling a nation's commitment to safeguarding its borders and preserving territorial integrity.
  
  The procurement and upgrade of armored vehicles for border security purposes are driven by evolving security threats and operational requirements. As border regions become increasingly vulnerable to transnational crime, terrorism, and border conflicts, governments invest in armored vehicles to enhance their border surveillance and response capabilities. Modern armored vehicles are equipped with state-of-the-art sensors, communication systems, and surveillance technologies, enabling border security forces to monitor remote and rugged terrain effectively. Moreover, the incorporation of advanced armor protection and vehicle mobility features ensures the safety and effectiveness of border patrol personnel operating in challenging environments.
  
  The ongoing development of border security infrastructure and the implementation of comprehensive border control strategies contribute to the demand for armored vehicles. Governments worldwide are investing in the construction of border walls, fences, and surveillance towers, complemented by the deployment of armored vehicles for rapid response and interception. Additionally, international cooperation and border security partnerships drive the procurement of armored vehicles, as nations collaborate to address cross-border threats and enhance regional security. Overall, the procurement and upgrade of armored vehicles for border security reflect the commitment of nations to protect their borders, uphold sovereignty, and maintain stability in the face of evolving security challenges.

Restraints:

• High Inital Cost
• Lengthy Procurement Process
• Regulatory Challenges - Export controls, licensing requirements, and compliance with international regulations present significant challenges for companies engaged in the procurement and upgrade of armored vehicles. Governments around the world impose strict regulations on the export of military equipment, including armored vehicles, to prevent the proliferation of weapons and technologies that could pose security risks or contribute to regional conflicts. Companies involved in the production and trade of armored vehicles must navigate complex export control regimes, obtain necessary licenses, and ensure compliance with export regulations to legally export their products to international markets. Failure to comply with these regulations can result in severe penalties, including fines, sanctions, and legal repercussions, which can adversely affect business operations and market prospects.
  
  licensing requirements and regulatory hurdles can create barriers to entry for companies seeking to enter new markets or expand their international presence in the armored vehicle industry. Obtaining the requisite licenses and permits to export armored vehicles to certain countries can be a time-consuming and costly process, requiring extensive documentation, approvals, and compliance with specific export control criteria. Additionally, companies may encounter challenges related to export restrictions imposed by importing countries, such as embargoes, trade sanctions, and political considerations, which can further complicate the export process and limit market access. These regulatory barriers not only hinder market growth but also pose logistical and administrative challenges for companies operating in the global armored vehicle market.
  
  compliance with international regulations is essential for maintaining the reputation and credibility of companies involved in the procurement and upgrade of armored vehicles. Adherence to export controls, licensing requirements, and international regulations demonstrates a commitment to ethical business practices, responsible arms trade, and global security objectives. Companies must implement robust compliance programs, conduct due diligence on business partners and customers, and stay abreast of changes in export control laws and regulations to mitigate legal and reputational risks. By prioritizing compliance with regulatory requirements, companies can build trust with customers, suppliers, and regulatory authorities, enhance their competitive position in the market, and ensure sustainable growth and success in the global armored vehicle industry.

Opportunities:

• Hybrid/Electric Armored Vehicles
• Unmanned Armored Vehicles
• Integrated Networked Systems - The integration of armored vehicles into networked systems represents a significant advancement in military technology, facilitating enhanced communication, information sharing, and coordination among vehicles and other military assets. By leveraging networked systems, armored vehicles can communicate seamlessly with each other, as well as with command centers, intelligence units, and other elements of the military ecosystem. This real-time connectivity enables commanders to maintain situational awareness and make informed decisions based on up-to-date information, enhancing the overall effectiveness and efficiency of military operations. Networked armored vehicles can share critical data such as enemy positions, terrain information, and mission objectives, enabling synchronized actions and coordinated maneuvers on the battlefield.
  
  For companies offering advanced communication and networking solutions, the integration of armored vehicles into networked systems presents lucrative opportunities for growth and innovation. These companies play a crucial role in developing and implementing cutting-edge technologies that enable secure and reliable communication between armored vehicles and other military assets. Advanced communication systems, such as secure radios, satellite links, and data networks, are essential components of networked armored vehicle systems, enabling seamless information exchange in dynamic and challenging operational environments. Companies specializing in cybersecurity solutions are increasingly in demand to ensure the integrity and confidentiality of communications within networked armored vehicle systems, protecting against cyber threats and unauthorized access.
  
  The integration of armored vehicles into networked systems aligns with broader trends in military modernization, as defense forces seek to harness the power of digitalization and connectivity to enhance combat capabilities. As nations continue to invest in upgrading their military fleets and developing next-generation armored vehicles, the demand for advanced communication and networking solutions is expected to grow. Companies that can offer innovative and reliable technologies to support the integration of armored vehicles into networked systems stand to benefit from this trend, positioning themselves as key players in the evolving landscape of modern warfare. Overall, the integration of armored vehicles into networked systems represents a significant opportunity for companies to contribute to the advancement of military technology and support the mission success of defense forces worldwide.

Key players in Global Armored Vehicle Procurement And Upgrade Market include:

• General Dynamics Corporation
• Rheinmetall AG
• BAE Systems PLC
• Textron Inc.
• Elbit Systems Ltd
• RUAG Group
• Nexter KNDS Group
• Oshkosh Corp
• Thales Group
• CMI Group

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis