Dublin, June 04, 2024 (GLOBE NEWSWIRE) -- The "Armored Vehicles Market - Forecasts from 2024 to 2029" report has been added to ResearchAndMarkets.com's offering.
The armored vehicles market is projected to rise at a compound annual growth rate (CAGR) of 3.22% to reach a market valuation of US$23.094 billion by 2029, from US$18.495 billion in 2022.
The rising defence budget plays a pivotal role in driving the market for armored vehicles by fueling increased spending on military modernization and equipment acquisition programs. As governments allocate more funds towards defense, they prioritize the enhancement of their armed forces' capabilities, including the procurement of advanced armored vehicles to address evolving security threats. This heightened investment enables defense organizations to upgrade their armored vehicle fleets with state-of-the-art technologies, such as advanced ballistic protection systems, integrated communication systems, and enhanced mobility features.
Furthermore, the escalating geopolitical tensions and the growing emphasis on border security worldwide contribute to the growing demand for armored vehicles as nations seek to bolster their defence capabilities to safeguard their territorial integrity and national interests. Consequently, the rising defence budget serves as a key catalyst for driving the armored vehicles market growth, stimulating investments in research, development, and procurement initiatives aimed at strengthening military capabilities and ensuring operational readiness in an increasingly complex security landscape.
The Union Budget for the Fiscal Year 2023-24 proposes a total expenditure amounting to Rs 45,03,097 crore. Within this budget, the Ministry of Defence has been allocated a total of Rs 5,93,537.64 crore, constituting 13.18% of the overall budget. This allocation marks an increase of Rs 68,371.49 crore (13%) compared to the budget for 2022-23
Growing emphasis on fostering local manufacturing capabilities is anticipated to propel market growth.
Moreover, there's a growing emphasis on fostering local manufacturing capabilities, particularly in the Asia-Pacific, Middle East, and African regions. This shift aims to encourage the development of new armored vehicle models by domestic manufacturers, thereby expanding their presence in regional markets. According to a 2021 report, the total costs for acquiring the Army's ground combat vehicles are estimated to average approximately $5 billion annually (in 2020 currency) until 2050. This comprises $4.5 billion allocated for procurement and $0.5 billion for research, development, testing, and evaluation (RDT&E) purposes .
Increasing defence budget by various developing countries is anticipated to boost the market
Countries like China, India, Australia, South Korea, Singapore, and Japan are spending heavily on the purchase of new armored vehicles to replace their aging fleets that have been in existence for more than 30 years due to the rising geopolitical tensions in the area. It is projected that the industry will expand as a result of the increased emphasis on protecting soldiers from potential dangers.
The need for individual armored vehicles is also predicted to expand as company security awareness rises, leading to new introductions and advancements in the market. For instance, the first hybrid-electric JLTV (Joint Light Tactical Vehicle) was unveiled in January 2022 by Oshkosh Defence, LLC, a company that develops military vehicles, mobility systems, and technological solutions. The electric JLTV that the business unveiled touted increased fuel economy, shielded soldiers from injury, and had a battery with a 30kWh capacity.
Various developing countries are investing a significant sum of their GDP in the upgrade and making their military more powerful. The increasing use of armored vehicles is also important as it can protect soldiers of the country, safeguarding them from attacks. The government of India set aside 5.94 lakh crores in the budget of 2023-24 for the defence segment, a jump of 13% in value from the previous year. A sum of Rs 1,62,600 crore will be allocated to just modernization & infrastructure development in the defence industry, which includes the use of higher-quality guns, tanks, and various armored vehicles. Similarly, various other governments are also allocating a major share of their budget for developing their defence.
Additionally, various companies see these developing countries of Asia Pacific as they have huge potential in the market and expanding their presence in the region. For instance, Otokar, a Turkish company situated in Sakarya that produces military vehicles, set out in March 2022 to increase its market share in the Asia Pacific region. At the Defence Services Asia exhibition in Kuala Lumpur, Malaysia, the company showed COBRA II tactical armored vehicles as well as ARMA 66-wheeled armored vehicles. The increasing expenditure on the defence segment and the surging need for armored vehicles by various politicians and company officials will boost the armored vehicle market in the coming years.
The defence segment is projected to grow
Heightened geopolitical tensions across regions have resulted in a growing focus on defence and national security. As countries seek to protect their interests, there is an increased demand for armored vehicles that can effectively operate in various challenging environments and provide superior protection to military personnel. For instance, the Russia-Ukraine war is one of the major conflicts of the 21st century, marked by Russia's annexation of Crimea and subsequent armed conflict in eastern Ukraine, resulting in significant casualties, displacement, and geopolitical tensions.
Moreover, many nations possess aging armored vehicle fleets that require modernization or replacement to maintain operational readiness. Upgrading to technologically advanced and more capable armored vehicles ensures that defence forces can effectively respond to evolving threats and challenges.
For instance, the $24.1 billion budget request by the US government for FY2024 for Research, Development, Test and Evaluation, Navy (RDTE, N) focuses on developing future capabilities, including TACAMO recapitalization, Columbia class submarine, SSN(X) attack submarine, DDG(X) surface combatant, F-35 Joint Strike Fighter, CH-53E helicopter, unmanned vehicles, hypersonic weapons, and Marine Corps programs. These investments enhance the survivable leg of the nuclear triad, and increase stealth, offensive capabilities, and technological superiority, ensuring growth in the defence segment of the armored vehicle market.
Additionally, border security and counter-terrorism operations have gained prominence globally. Armored vehicles play a crucial role in securing borders, conducting surveillance, and supporting operations against terrorist threats. The need for specialized vehicles capable of operating in challenging terrains and providing enhanced protection in these contexts has spurred the growth of the defence segment in the armored vehicle market.
The US President's FY 2023 budget request for the Department of Defence (DoD) amounting to $773 billion signifies a substantial investment in the defence sector. This increased budget allocation of 4.1 percent over the FY 2022 base level and 8.1 percent over the FY 2022 requested level reflects a significant growth opportunity for the defence segment in the armored vehicle market.
With sustained and strengthened investments in integrated deterrence and enduring advantages, the budget supports the development and acquisition of advanced armored vehicles, enhancing the capabilities, protection, and technological edge of the defence sector. This increased funding recognizes the importance of maintaining strong defence capabilities in response to evolving security challenges, including Russia's invasion of Ukraine and the need to preserve technological superiority.
The market is projected to grow in the Asia Pacific region especially India
Armored vehicles are a type of vehicle that is fitted with complete stainless steel or uranium armored plating and are used for security purposes by military personnel, VIPs, celebrities, and law enforcement. The growing VIP movements, coupled with the increase in defence spending of the Indian government have provided a positive outlook to the market demand for armored vehicles in India. For instance, according to the police records, in 2022, the number of VVIPs who visited Visakhapatnam stood at 1,143 which signified an increase of 83.5% in comparison to 623 VVIPs visited in 2021.
According to the Ministry of Defence, the Defence budget for the year 2023-2024 witnessed a 13% increase in comparison to 2022. Furthermore, the growing scale of terrorist attacks has also made the Indian government boost its military strength, which is expected to further bolster the demand for armored vehicles in India, thereby augmenting the overall market growth.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 132 |
| Forecast Period | 2022 - 2029 |
| Estimated Market Value (USD) in 2022 | $18.5 Billion |
| Forecasted Market Value (USD) by 2029 | $23.09 Billion |
| Compound Annual Growth Rate | 3.2% |
| Regions Covered | Global |
Companies Featured
- International Armored Group
- Lockheed Martin Corporation
- Thales Group
- General Dynamics Corporation
- BAE Systems
- Denel Vehicle Systems
- Oshkosh Defence, LLC
- Rheinmetall AG
- Elbit Systems Ltd.
- INKAS Armored Vehicle Manufacturing
Segmentation:
By Application
- Defence
- Armored Personnel Carriers
- Infantry fighting vehicle
- Light protected vehicle
- Others
- Commercial
- SUV
- Luxury
- Others
By Geography
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- UK
- Germany
- France
- Italy
- Others
- Middle East and Africa
- Saudi Arabia
- UAE
- Others
- Asia Pacific
- China
- Japan
- India
- South Korea
- Taiwan
- Thailand
- Indonesia
- Others
For more information about this report visit https://www.researchandmarkets.com/r/5jnk18
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