Global Military Truck Market 2023 to 2028: Driven by Technological Advancements

Dublin, Nov. 06, 2023 (GLOBE NEWSWIRE) -- The "Global Military Truck Market: Analysis By Type, By Application, By Propulsion, By Transmission, By Region Size and Trends with Impact of COVID-19 and Forecast up to 2028" report has been added to ResearchAndMarkets.com's offering.

The global military truck market, valued at $22.87 billion in 2022, is expected to grow at a compound annual growth rate (CAGR) of 3.79% over the years 2023-2028, reaching a market valuation of $28.59 billion by 2028.

Overview

Military trucks are essential components of a nation's defense infrastructure, serving the critical role of transporting personnel and heavy cargo to remote and challenging locations. These purpose-built vehicles are designed exclusively for military use, built to withstand adverse terrains, extreme weather conditions, and combat environments.

Key Roles of Military Trucks

Within the armed forces, military trucks play a multifaceted role, including:

1. Transportation of Troops: Military trucks are instrumental in safely and efficiently moving troops to their designated locations.
2. Cargo Transport: They are used to transport equipment, supplies, ammunition, and heavy weaponry, contributing significantly to logistical operations.
3. Operational Support: Military trucks provide operational support, enhancing military preparedness during peace, training exercises, and conflict situations.

Market Growth Drivers

Several factors are driving the growth of the global military truck market:

1. Increased Defense Expenditure: Rising defense expenditures by nations worldwide have bolstered the demand for modern and adaptable military trucks. Geopolitical tensions and conflicts have underscored the importance of enhancing military capabilities.
2. Technological Advancements: Advancements in technology have led to the development of highly advanced military trucks equipped with state-of-the-art communication, navigation, and armor systems, making them attractive to defense agencies globally.
3. Rapid Mobilization: The ability to rapidly mobilize troops and resources in response to emergencies and humanitarian crises has further fueled the demand for military trucks.

Market Segmentation Analysis:

• By Type: The report identifies three segments on the basis of military truck types: Light Truck, Medium Truck, and Heavy Truck. In 2022, the heavy military truck segment led the market as these trucks play a crucial role in logistics, troop transport, and equipment deployment due to their strength, carrying capacity, and off-road capabilities. Additionally, the market is witnessing an increasing demand for armored military trucks, addressing security concerns and specific operational needs. While the heavy truck segment commands the highest market share, the medium truck segment is poised to be the fastest-growing type in the coming years.
• By Application: On the basis of application, the global military truck market can be divided into three segments namely, Troop, Cargo/Logistics, and Others. In 2022, the troop military truck segment dominated the market due to its reliability, durability, and off-road capabilities, ensuring the swift deployment and resupply of troops, thus enhancing operational readiness. As armed forces modernize and expand their capabilities, the demand for versatile and efficient military truck segments remains constant. The Cargo/Logistics military truck segment is expected to experience the highest CAGR. This is due to the fact that these trucks are equipped with specialized features, such as off-road capabilities, enhanced suspension systems, and ample cargo-carrying capacity, which ensure the safe and timely delivery of essential resources.
• By Propulsion: On the basis of propulsion, the global military truck market can be divided into three segments namely, Diesel, Gasoline, and Electric/Hybrid. In 2022, the diesel segment dominated the market, primarily because diesel plays a pivotal role in military trucks, serving as the primary fuel source for their powerful engines. Diesel engines provide the high torque and fuel efficiency necessary for heavy-duty military operations, ensuring reliable performance in various terrains and conditions. The Electric/Hybrid military truck segment is expected to experience the highest CAGR, primarily because electric/hybrid military trucks offer silent operation, lower fuel consumption, and reduced emissions, making them ideal for stealth missions and sustainability objectives.
• By Transmission: On the basis of transmission, the global military truck market is divided into two segments namely, Automatic and Manual. In 2022, the automatic segment emerged as the dominant segment in the market. These vehicles are equipped with advanced technologies that empower them to function without human intervention. They utilize artificial intelligence, sensors, and GPS systems to autonomously carry out tasks, including convoy operations, resupply missions, and logistics support. Additionally, the automatic military truck segment is also poised to exhibit the highest CAGR. The surging demand for automatic military trucks stems from their potential to heighten operational efficiency, mitigate risks to personnel in hazardous settings, and enhance the overall efficacy of military logistics.
• By Region: In the report, the global military truck market is divided into five regions: North America, Europe, Asia Pacific, Middle East and Africa and Latin America. North America dominated the market in 2022. With substantial defense budgets and an evolving security landscape, the US and Canada are expected to increase their investments in advanced military transport solutions. In particular, ongoing modernization efforts within the US military are driving demand for technologically advanced military trucks. These trucks come equipped with features such as improved communications, autonomous capabilities, and enhanced durability, enabling them to adapt to various combat scenarios. Over the past decade, the Asia Pacific region has witnessed a significant evolution in the military truck industry. Notably, China, Japan, and India have emerged as key players shaping the trajectory of the military trucks market in the region. This growth is driven not only by domestic demand but also by increasing exports, as China aims to establish itself as a global supplier of military trucks. Strategic partnerships and collaborations with international defense giants are facilitating technology transfers and expanding China's global footprint in this sector. The Indian military truck market is experiencing substantial investments aimed at enhancing mobility, logistics, and troop transport capabilities.

Market Dynamics:

• Growth Drivers: The global military truck market has exhibited consistent growth, driven by various factors, including increased defense spending, military expansion, ongoing modernization initiatives, a substantial need for transportation, and escalating geopolitical tensions. The expanding military forces have amplified the demand for military trucks, essential for logistics, troop transport, and equipment mobility. This heightened demand could propel market growth, motivating manufacturers to increase production, invest in advanced technologies, and diversify their product portfolios to meet evolving military needs. Geopolitical tensions significantly influence the industry, prompting nations to fortify their defense capabilities, which, in turn, boosts the demand for military trucks to facilitate various military operations.
• Challenges: Despite robust growth in the military truck market, challenges like substantial initial investments and the increasing use of military robots pose hindrances. The adoption of advanced technologies, such as automatic transmissions and satellite navigation, escalates acquisition costs, diverting resources from other defense priorities like cybersecurity and advanced weaponry development. High initial investments can deter smaller companies and emerging economies from entering the market, potentially fueling regional tensions and destabilizing international relations.
• Trends: The market is projected to grow at a fast pace during the forecast period, due to various latest trends such as the adoption of modern military trucks, government initiatives for vehicle replacement, adaptability to challenging environments, a focus on light and mini trucks, the development of advanced military trucks with superior payload capacity, and the introduction of electric military trucks. Light and mini trucks excel in maneuverability and versatility, making them crucial for diverse military missions. Their agility allows them to navigate urban areas, narrow roads, and off-road terrains, ensuring rapid deployment and strategic mobility in modern warfare, which is essential for responding quickly to emerging threats or crisis. Additionally, military trucks with enhanced payload capacity offer operational flexibility by transporting larger quantities of troops, equipment, and supplies in a single trip, reducing the need for multiple convoys. This minimizes exposure to potential threats and streamlines logistics, while also increasing efficiency and cost-effectiveness.

Impact Analysis of COVID-19 and Way Forward:

The global military truck market experienced significant changes due to the COVID-19 pandemic. Supply chain disruptions, caused by lockdowns and restrictions, delayed military truck production. Governments redirected resources away from defense budgets, leading to delays and reductions in military truck procurement. Pandemic-related quarantines and restrictions impacted military operations and reduced the immediate demand for new military trucks. The crisis exposed supply chain vulnerabilities, prompting a shift towards more self-reliance in critical military truck components. Environmental concerns have driven a focus on sustainable military trucks, including hybrid and electric systems. The post-COVID market is more resilient, adaptable, and technologically advanced, emphasizing modularity, digital solutions, and expanding roles beyond traditional military functions.

Competitive Landscape:

The global military truck market is fragmented. However, the market share of organized players has increased significantly over the last few years and is expected to continue given the wide product offerings, better service, and higher brand visibility. The key players in the global military truck market are:

• Iveco Group N.V.
• Rheinmetall AG
• Oshkosh Corporation
• Mercedes-Benz Group AG
• Tata Motors Group
• Mitsubishi Heavy Industries, Ltd.
• Volvo Group (Arquus)
• DAF Trucks N.V.
• Kia Corporation
• Navistar Defense LLC

For more information about this report visit https://www.researchandmarkets.com/r/pq2fjo

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