- mail us help@24marketresearch.com
- Int'l 1(332) 2424 294 (Int'l)
TOP CATEGORY: Chemicals & Materials | Life Sciences | Banking & Finance | ICT Media
Armored Fighting Vehicles (AFVs) are military vehicles equipped with offensive capabilities and protected by armor. These vehicles are designed to combine operational mobility with both offensive and defensive capabilities. They can be either wheeled or tracked, with categories including Main Battle Tanks (MBTs), Armored Personnel Carriers (APCs), Infantry Fighting Vehicles (IFVs), Mine-Resistant Ambush Protected (MRAP) vehicles, and other specialized types. AFVs are essential for modern military operations, providing robust protection and enabling strategic maneuverability in combat zones.
The global Armored Fighting Vehicles market size was valued at US$ 17.89 billion in 2024 and is projected to reach US$ 26.69 billion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 6.9% during the forecast period from 2024 to 2030.
In the United States, the market size was valued at US$ 6.23 billion in 2024 and is expected to grow to US$ 9.12 billion by 2030, with a CAGR of 6.5% over the same period.
In 2024, total global production of armored fighting vehicles reached 16,000 units, with tracked vehicles accounting for 55% of the demand, while the wheeled segment demonstrated faster growth at a rate of 7.5% annually. Heavy vehicles currently dominate the market, holding a 60% market share, while light vehicles are growing at an impressive rate of 8% annually.
Drivers
Defense Modernization Programs: Governments worldwide are investing heavily in defense modernization programs to upgrade their armed forces. These programs prioritize the acquisition of advanced armored vehicles to enhance combat capabilities.
Rising Geopolitical Tensions: Increasing geopolitical conflicts and border disputes have driven demand for armored fighting vehicles, especially in regions like Asia-Pacific and the Middle East.
Technological Advancements: Innovations such as active protection systems (APS), advanced armor materials, and autonomous capabilities are propelling market growth. In 2024, the demand for APS witnessed a 28% increase, indicating its growing importance.
Increased Military Budgets: Many countries have increased their defense budgets, with a significant portion allocated to armored vehicle procurement and upgrades.
Restraints
High Acquisition and Maintenance Costs: The high initial investment and maintenance expenses associated with advanced armored vehicles can be a barrier for smaller economies.
Regulatory Challenges: Stringent regulations related to the export of military vehicles can limit market growth.
Environmental Concerns: Growing focus on reducing carbon footprints has put pressure on manufacturers to develop more eco-friendly vehicles, which can be costly and time-consuming.
Opportunities
Emerging Markets: Rapidly developing economies in Asia-Pacific and Africa present untapped opportunities for armored vehicle manufacturers.
Focus on Lightweight and Modular Designs: The demand for lightweight, modular vehicles capable of adapting to various mission requirements is increasing.
Private Sector Participation: Partnerships between private companies and defense organizations are creating new opportunities for innovation and growth.
Challenges
Supply Chain Disruptions: Global supply chain issues, exacerbated by geopolitical tensions and pandemics, pose challenges for timely production and delivery.
Cybersecurity Threats: The increasing integration of advanced electronics and autonomous systems in armored vehicles has heightened the risk of cyberattacks.
North America
North America leads the global Armored Fighting Vehicles market with a 42% market share, driven by significant defense spending by the United States. The region focuses on upgrading existing fleets and investing in cutting-edge technologies, such as autonomous systems and active protection solutions.
Europe
Europe holds a substantial market share due to robust defense modernization programs in countries like Germany, the UK, and France. The ongoing Russia-Ukraine conflict has further spurred demand for armored vehicles in the region.
Asia-Pacific
Asia-Pacific is the fastest-growing region, with a CAGR of 7.8% during the forecast period. Rising tensions in the South China Sea and increasing defense budgets in countries like China, India, and South Korea are key drivers.
Middle East and Africa
The Middle East and Africa region is experiencing steady growth due to rising security concerns and investments in modernizing defense systems. Countries like Saudi Arabia and the UAE are major contributors.
South America
South America has a relatively smaller market share but is witnessing gradual growth due to increased defense budgets in Brazil and Argentina.
Key players in the global Armored Fighting Vehicles market include:
General Dynamics Corporation (US)
BAE Systems (UK)
Textron Inc. (US)
Oshkosh Corporation (US)
Elbit Systems Ltd. (Israel)
Thales Group (France)
Lockheed Martin (US)
Rheinmetall AG (Germany)
Denel Land Systems (South Africa)
Sabiex International (Belgium)
Diehl Defense (Germany)
These companies are focused on developing advanced technologies, expanding their global presence, and forming strategic partnerships to enhance their competitive edge.
Military: The primary application of armored vehicles, accounting for the majority of the market demand.
Commercial: Includes vehicles used in private security, law enforcement, and other non-military applications.
APC (Armored Personnel Carrier)
IFV (Infantry Fighting Vehicle)
MRAP (Mine-Resistant Ambush Protected Vehicle)
MBT (Main Battle Tank)
Other Types
North America: USA, Canada, Mexico
Europe: Germany, UK, France, Russia, Italy, Rest of Europe
Asia-Pacific: China, Japan, South Korea, India, Southeast Asia, Rest of Asia-Pacific
South America: Brazil, Argentina, Colombia, Rest of South America
Middle East and Africa: Saudi Arabia, UAE, Egypt, Nigeria, South Africa, Rest of MEA
What is the current market size of the Armored Fighting Vehicles market?
Which are the key companies operating in the Armored Fighting Vehicles market?
What are the key growth drivers in the Armored Fighting Vehicles market?
Which regions dominate the Armored Fighting Vehicles market?
What are the emerging trends in the Armored Fighting Vehicles market?
Industry drivers, restraints, and opportunities covered in the study
Neutral perspective on the market performance
Recent industry trends and developments
Competitive landscape & strategies of key players
Potential & niche segments and regions exhibiting promising growth covered
Historical, current, and projected market size, in terms of value
In-depth analysis of the Armored Fighting Vehicles Market
Overview of the regional outlook of the Armored Fighting Vehicles Market:
Access to date statistics compiled by our researchers. These provide you with historical and forecast data, which is analyzed to tell you why your market is set to change
This enables you to anticipate market changes to remain ahead of your competitors
You will be able to copy data from the Excel spreadsheet straight into your marketing plans, business presentations, or other strategic documents
The concise analysis, clear graph, and table format will enable you to pinpoint the information you require quickly
Provision of market value (USD Billion) data for each segment and sub-segment
Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market
Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region
Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled
Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players
The current as well as the future market outlook of the industry concerning recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions
Includes in-depth analysis of the market from various perspectives through Porter