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

This report extensively covers different segments of Global Armored Vehicles Upgrade And Retrofit Market and provides an in depth analysis (including revenue analysis for both historic and forecast periods) for all the market segments. In this report, the analysis for every market segment is substantiated with relevant data points and, insights that are generated from analysis of these data points (data trends and patterns).

The global armored vehicle upgrade and retrofit market is segmented based on vehicle types such as Armored Personnel Carriers (APC), Infantry Fighting Vehicles (IFV), Mine-resistant Ambush Protected (MRAP) vehicles, Main Battle Tanks (MBT), and others. The IFV segment is expected to witness the highest growth rate during the forecast period due to modernization initiatives by various nations.

Notable contracts, such as the one awarded to PSM GmbH for upgrading Puma IFVs for the German Bundeswehr, highlight the trend of modernizing outdated infantry fighting vehicles. Similar efforts, like the local upgrading of BMP-2/2K Sarath ICVs by the Indian government, further drive the growth of the segment.

Regionally, North America is poised to dominate the market, primarily driven by increased defense expenditure in countries like the United States and significant investments in military R&D. Major players in the industry include General Dynamics Corporation, Bae Systems Plc, Oshkosh Corporation, Textron Inc., and Navistar International Corp. Additionally, the US defense ministry's focus on deploying armored electric vehicles contributes to market growth.

In the Middle East and Africa, the market is expected to witness the highest growth rate during the forecast period due to increased investments by armed forces in modernizing existing land platforms. Rising insecurity, violent conflicts, and threats from insurgent groups like Boko Haram and al-Shabab have prompted governments in the region to bolster their armed forces, further driving market growth.

Global Armored Vehicles Upgrade And Retrofit Segment Analysis

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

Global Armored Vehicles Upgrade And Retrofit Market, Segmentation by Geography

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

Global Armored Vehicles Upgrade And Retrofit Market Share (%), by Geographical Region, 2023

North America is expected to demonstrate robust growth in the armored vehicle upgrade and retrofit market during the forecast period. This growth can be attributed to several factors, including the region's substantial defense expenditure, possessing the largest fleet of armored vehicles, and ongoing military modernization initiatives in the United States and Canada. The United States, in particular, allocates significant resources to defense, as evidenced by its substantial defense budget. The presence of various types of armored vehicles within the US Army, ranging from main battle tanks to specialized tactical vehicles, highlights the extensive scope of military vehicle modernization efforts in the region.

Recent developments such as the awarding of contracts for the development of new mechanized infantry combat vehicle prototypes underscore the ongoing modernization initiatives within the US Army. These initiatives aim to replace aging vehicle platforms with advanced alternatives that offer enhanced protection, mobility, and firepower capabilities. Similarly, the Canadian Army's utilization of Heavy Logistics Vehicle Wheeled (HLVW) vehicles further emphasizes the region's focus on bolstering military capabilities through modernization programs. The HLVW fleet plays a crucial role in transporting combat supplies, troops, and cargo, reflecting the region's commitment to enhancing logistical support and operational effectiveness. Overall, the combination of increased defense spending and sustained modernization efforts is expected to drive significant market growth across North America.

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

Drivers, Restraints and Opportunities

Drivers:

• Modernization Initiatives
• Extended Service Life
• Enhanced Survivability

• Technological Advancements: Upgrading and retrofitting armored vehicles offers a cost-effective alternative to procuring new vehicles due to several key factors. Firstly, the process eliminates the need for extensive training of personnel on new platforms, as existing crew members are already familiar with the operational procedures and functionalities of the vehicles being upgraded. This reduces training costs and minimizes the time required to achieve operational readiness, allowing defense organizations to maintain continuity in their operations seamlessly.

  Secondly, upgrading and retrofitting armored vehicles typically entail lower acquisition costs compared to purchasing new vehicles. By leveraging existing vehicle platforms and infrastructure, defense organizations can allocate resources more efficiently, maximizing the value of their investments. Additionally, retrofitting enables the integration of advanced technologies and capabilities into existing vehicles, enhancing their operational effectiveness and extending their service life without the significant upfront costs associated with acquiring new platforms. Overall, the cost-effectiveness of upgrading and retrofitting armored vehicles makes it a preferred option for defense organizations seeking to enhance their military capabilities within budgetary constraints.

Restraints:

• Cost Savings
• Technical Complexity
• Budget Constraints

• Regulatory Challenges: Compliance with stringent regulatory and certification requirements poses significant challenges for both manufacturers and end-users in the context of upgraded and retrofitted vehicles. Meeting these requirements often involves extensive testing, documentation, and validation processes to ensure that the modified vehicles adhere to safety, performance, and environmental standards. Manufacturers must invest resources in research, development, and testing to ensure that their upgraded vehicles meet regulatory specifications, which can increase production costs and lead times.

  For end-users, navigating the complex regulatory landscape can be daunting, requiring meticulous attention to detail and adherence to strict procedures to obtain necessary certifications and approvals. Failure to comply with regulatory requirements can result in delays, fines, or even the rejection of vehicles for operational use. Therefore, manufacturers and end-users must collaborate closely to ensure that upgraded and retrofitted vehicles meet all regulatory and certification standards, thereby guaranteeing their safety, reliability, and legal compliance.

Opportunities:

• Maintenance and Logistics
• Emerging Markets
• Collaboration and Partnerships

• Aftermarket Services: The provision of aftermarket services, encompassing maintenance, repair, and training support, represents a lucrative opportunity for companies specializing in armored vehicle upgrades and retrofits. These services are essential for ensuring the optimal performance, longevity, and safety of upgraded and retrofitted vehicles throughout their operational lifecycle. By offering comprehensive aftermarket solutions, companies can establish long-term relationships with customers, enhance customer satisfaction, and generate recurring revenue streams.

  Moreover, aftermarket services play a vital role in building trust and credibility with customers by demonstrating a commitment to supporting their investments in armored vehicle modernization. Through regular maintenance, timely repairs, and tailored training programs, companies can help customers maximize the operational readiness and effectiveness of their armored vehicle fleets. Additionally, aftermarket services enable companies to differentiate themselves in the competitive marketplace, positioning them as trusted partners capable of delivering end-to-end solutions to meet customer needs and requirements.

Key players in Global Armored Vehicles Upgrade And Retrofit Market include

• BAE Systems PLC
• CMI Group
• Textron Inc.
• Elbit Systems Ltd
• General Dynamics Corporation
• Rheinmetall AG
• RUAG Group
• Thales Group
• Krauss-Maffei Wegmann
• AM General

The armored vehicle upgrade and retrofit market exhibits moderate fragmentation, with numerous global and local players holding significant shares. These companies are heavily investing in research and development to introduce advanced solutions for armored vehicles. For example, BMC Otomotive recently announced the transfer of pre-production samples of the Altay MBT to the military. These samples will undergo field testing before mass production commences. Serial production of tanks is expected to begin in the near future.