Global Armored Vehicle Market Analysis/Forecast 2024-2029: Increasing Emphasis on Fostering Local Manufacturing Capabilities, Rising Defense Budget from Developing Countries Boosts Growth

Dublin, June 04, 2024 (GLOBE NEWSWIRE) — The “Armored Vehicle Market – Forecast 2024 to 2029” report has been added to ResearchAndMarkets.com’s The offer of

The armored vehicle market is projected to grow at a compound annual growth rate (CAGR) of 3.22% to reach a market valuation of $23.094 billion by 2029, from $18.495 billion in 2022.

The growing defense budget plays a major role in driving the market for armored vehicles by driving increased spending on military modernization and equipment acquisition programs. As governments allocate more funding to defense, they prioritize increasing the capabilities of their armed forces, including the procurement of advanced armored vehicles to address evolving security threats. This increased investment enables defense organizations to upgrade their armored vehicle fleets with the latest technology, such as advanced ballistic protection systems, integrated communications systems and enhanced mobility features.

Additionally, escalating geopolitical tensions and increasing emphasis on border security around the world contribute to the growing demand for armored vehicles as nations seek to strengthen their defense capabilities to protect their territorial integrity and national interests. Consequently, the increase in the defense budget serves as a key catalyst for driving the growth of the armored vehicle market, stimulating investment in research, development and procurement initiatives aimed at strengthening military capabilities and ensuring operational readiness in an increasingly security complex.

The Union Budget for the fiscal year 2023-24 proposes a total expenditure of Rs 45,03,097 crore. Within this budget, a total of 5,93,537.64 crores have been allocated to the Ministry of Defense, which is 13.18% of the total budget. This allocation marks an increase of Rs 68,371.49 crore (13%) over the 2022-2023 budget

Increasing emphasis on fostering local manufacturing capabilities is expected to drive market growth.

Additionally, there is a growing emphasis on fostering domestic manufacturing capabilities, particularly in the Asia-Pacific, Middle East and Africa regions. This change aims to encourage the development of new models of armored vehicles by local manufacturers, thereby expanding their presence in regional markets. According to a 2021 report, total costs for the acquisition of Army ground combat assets are estimated to average about $5 billion per year (in 2020 currency) through 2050. This includes $4.5 billion allocated for procurement and 0.5 billion for research, development, testing and evaluation (RDT&E) purposes.

Increasing defense budget from various developing countries is anticipated to boost the market

Countries such as China, India, Australia, South Korea, Singapore and Japan are spending heavily on new armored vehicles to replace their aging fleets that have existed for more than 30 years due to rising geopolitical tensions. in the area. The industry is expected to expand as a result of the increased emphasis on protecting soldiers from potential hazards.

The need for individual armored vehicles is also projected to expand as company awareness of security grows, leading to new market introductions and advancements. For example, the first hybrid-electric JLTV (Joint Light Tactical Vehicle) was unveiled in January 2022 by Oshkosh Defense, LLC, a company that develops military vehicles, mobility systems and technology solutions. The electric JLTV that the business unveiled improved fuel economy, protected soldiers from injury and had a 30 kWh battery.

Various developing countries are investing a significant amount of their GDP in upgrading and making their military more powerful. Increasing the use of armored vehicles is also important as it can protect the country’s soldiers, protecting them from attacks. The Government of India set aside 5.94 lakh crores in the 2023-2024 budget for the defense segment, an increase of 13% in value from the previous year. An amount of Rs 1,62,600 crore will be allocated only for the modernization and development of infrastructure in the defense industry, which includes the use of higher quality weapons, tanks and various armored vehicles. Similarly, various other governments are also allocating a large portion of their budget for their defense development.

Moreover, various companies see these developing countries of Asia Pacific as they have great market potential and expanding their presence in the region. For example, Otokar, a Turkish company based in Sakarya that manufactures military vehicles, launched in March 2022 to increase its market share in the Asia Pacific region. At the Asia Defense Services exhibition in Kuala Lumpur, Malaysia, the company showed COBRA II tactical armored vehicles, as well as ARMA 66-wheel armored vehicles. Increasing spending in the defense segment and growing need for armored vehicles by politicians and various company officials will drive the armored vehicle market in the coming years.

The defense segment is expected to grow

Increased geopolitical tensions across regions have resulted in an increased focus on national defense and security. As countries seek to protect their interests, there is a growing demand for armored vehicles that can operate effectively in various challenging environments and provide superior protection to military personnel. For example, the Russia-Ukraine war is one of the major conflicts of the 21st century, marked by Russia’s annexation of Crimea and the subsequent armed conflict in eastern Ukraine, resulting in significant casualties, displacement and geopolitical tensions.

Additionally, many countries possess aging fleets of armored vehicles that require modernization or replacement to maintain operational readiness. Upgrading to technologically advanced and more capable armor ensures that defense forces can effectively respond to evolving threats and challenges.

For example, the US government’s FY2024 budget request of $24.1 billion for Research, Development, Test and Evaluation, Navy (RDTE, N) focuses on developing future capabilities, including TACAMO recapitalization, the Columbia-class submarine, the attack submarine SSN(X). DDG(X) surface combatant, F-35 Joint Strike Fighter, CH-53E helicopter, unmanned vehicles, hypersonic weapons and Marine Corps programs. These investments increase the survivability leg of the nuclear triad and enhance stealth, offensive capabilities and technological superiority, ensuring growth in the defense segment of the armored vehicle market.

Additionally, border security and counter-terrorism operations have gained importance 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 fueled the growth of the defense segment in the armored vehicle market.

The US President’s 2023 Department of Defense (DoD) budget request of $773 billion represents a significant investment in the defense sector. This increased appropriation of 4.1 percent above the FY 2022 baseline and 8.1 percent above the FY 2022 requested level reflects a significant growth opportunity for the defense segment of the armored vehicle market.

With sustained and strengthened investments in integrated deterrence and sustained advantages, the budget supports the development and acquisition of advanced armor, enhancing the defense sector’s capabilities, protection and technological edge. This increased funding recognizes the importance of maintaining strong defense capabilities in response to evolving security challenges, including the Russian occupation of Ukraine and the need to maintain technological superiority.

The market is projected to grow in the Asia Pacific region, particularly in India

Armored vehicles are a type of vehicle that is equipped with full stainless steel or uranium armor plating and is used for security purposes by military personnel, VIPs, celebrities, and law enforcement. The increasing VIP movements, along with the increase in defense expenditure of the Indian government, have provided a positive outlook for the market demand for armored vehicles in India. For example, according to police data, in 2022, the number of VVIPs who visited Visakhapatnam was 1,143 which means an increase of 83.5% compared to 623 VVIPs visited in 2021.

According to the Ministry of Defence, the Defense budget for 2023-2024 witnessed an increase of 13% compared to 2022. Moreover, the increasing rate of terrorist attacks has led the Indian government to increase its military strength, which is expected to grow further. strengthen the demand for armored vehicles in India, thus boosting the overall market growth.

Main attributes:

The report attribute	The details
No. of Pages	132
Forecast period	2022 – 2029
Estimated market value (USD) in 2022	18.5 billion dollars
Estimated market value (USD) by 2029	23.09 billion dollars
Compound Annual Growth Rate	3.2%
Regions covered	global

Featured companies

• International Armored Group
• Lockheed Martin Corporation
• Thales Group
• General Dynamics Corporation
• BAE Systems
• Denel Vehicle Systems
• Oshkosh Defense, LLC
• Rheinmetall AG
• Barley Systems Ltd.
• Production of INKAS armored vehicles

Segmentation:

By application

• PROTECTION
• Armored personnel carriers
• Infantry fighting vehicle
• Vehicle protected from light
• Others
• Commercial
• SUV
• luxury
• Others

According to Geography

• North America
• US
• Canada
• Mexico
• South America
• Brazil
• Argentinian
• Others
• Europe
• uk
• Germany
• France
• Ital
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• Indian
• South Korea
• Taiwan
• Thailand
• Indonesia
• Others

For more information about this report, visit https://www.researchandmarkets.com/r/5jnk18

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