Tanks Market Report 2025

This Tanks market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The tanks market size has grown strongly in recent years. It will grow from $1.75 billion in 2024 to $1.89 billion in 2025 at a compound annual growth rate (CAGR) of 8.2%. The growth in the historic period can be attributed to military conflicts, armor and firepower, soviet tank doctrine, tank modernization.

The tanks market size is expected to see strong growth in the next few years. It will grow to $2.45 billion in 2029 at a compound annual growth rate (CAGR) of 6.7%. The growth in the forecast period can be attributed to asymmetric threats, urban warfare, hybrid and electric propulsion, unmanned and autonomous tanks, cybersecurity and data protection. Major trends in the forecast period include modular armor and upgrades, crew safety and comfort, lighter weight materials, retrofitting and re-purposing, joint operations and collaboration.

The growth of the tank market is being driven by an increase in the defense budget allocated to the military. For example, in April 2022, the Stockholm International Peace Research Institute (SIPRI) reported that global military spending was expected to rise by 0.7% in real terms to reach $2.11 trillion in 2021. This marked the seventh consecutive year of increased military expenditure. Notably, China, the world's second-largest spender on defense, allocated an estimated $293 billion to its military in 2021, reflecting a 4.7% increase from the previous year. China's military spending has shown consistent growth over the past 27 years.

The tank market is expected to benefit from the escalating geopolitical tensions worldwide. Geopolitical tensions refer to conflicts, disputes, or strains arising from varying political, economic, strategic, or territorial interests among different countries or international entities. Tanks play a strategic role during such tensions by serving as a vital military asset for defense and deterrence. They help safeguard national interests and reinforce a nation's position in potential conflicts or disputes. As of August 2023, around 36% of businesses surveyed by Oxford Economics considered geopolitical tensions as their top concerns, with specific focus on issues related to regions such as Taiwan, South Korea, and Russia-NATO. Thus, increasing geopolitical tensions are a significant driver of the tank market's growth.

A notable trend in the tank market is the increasing adoption of robot tanks in the military to enhance security. Robot tanks are autonomous robots designed for military applications, including tasks such as transport and search and rescue operations. These tanks are equipped with weaponry, including guns, rocket arms, and missile arms. In September 2023, the U.S. Army selected four companies, namely McQ, Textron Systems, General Dynamics Land Systems, and Oshkosh Defense, to construct prototypes of robotic combat vehicles with a total value of nearly $25 million. These selected companies will work on maturing and delivering integrated system designs that align with the Army's requirements for lightweight, modular, and upgradable robotic combat vehicles. Meanwhile, Russia has tested its Uran-9 robot tank, equipped with both a gun and missile armament, in Syria. Such developments in military tanks represent an emerging trend in the tank market.

Major companies in the tank market are focusing on the modernization of battle tanks to enhance their capabilities. Tank modernization involves upgrading existing tanks to improve their performance, survivability, and effectiveness on the battlefield. In September 2023, the U.S. Army introduced the M1E3 Abrams main battle tank modernization program, aimed at enhancing combat capabilities to address future threats beyond 2040. The program incorporates features from the M1A2 SEPv4 and adheres to modular open systems architecture standards, facilitating faster technology upgrades with fewer resources. This modernization effort is intended to enhance the effectiveness of armored brigade combat teams, reduce logistical footprints, and enhance operational and tactical mobility, making them more efficient and effective in combat situations.

In July 2023, L3Harris Technologies completed its acquisition of Aerojet Rocketdyne, forming a fourth business segment at the company. This acquisition is expected to enhance L3Harris' capabilities in the defense industry, including the manufacture of tanks and tank ammunition components.

A tank is an armored fighting vehicle specially designed for front-line combat, characterized by its heavy firepower, robust armor, and enhanced battlefield mobility, typically powered by a potent engine.

The primary types of tanks include light, medium, and heavy tanks. Tanks are equipped with various technologies to enhance their capabilities, including active mine systems, active protection systems, modular ballistic armor, situational awareness systems, interoperable communication systems, vehicle information integration, and electric armor. Electric armor, a type of reactive armor, employs a powerful electric current to shield ships and armored fighting vehicles from shaped charges and, in some cases, kinetic weapons. It can either supplement or replace traditional explosive-reactive armor for added protection.

The tanks market research report is one of a series of new reports that provides tank market statistics, including global market size, regional shares, competitors with a tank market share, detailed tank market segments, market trends and opportunities, and any further data you may need to thrive in the tank industry. This tanks market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Major companies operating in the tanks market include Oshkosh Defense LLC, General Dynamics Corporation, BAE Systems PLC, Textron Inc., Navistar International Corporation, China North Industries Group Corporation Limited (NORINCO), Rheinmetall AG, Ukroboronprom, UralVagonZavod Corporation, Hyundai Rotem Company, Nexter Group, Krauss-Maffei Wegmann GmbH & Co. KG, IVECO S.p.A., Elbit Systems Ltd., INKAS Armored Vehicle Manufacturing, International Armored Group, Hanwha Defense, SABIEX International, Plasan Sasa Ltd., Panhard General Defense SAS, Mitsubishi Heavy Industries Ltd., Singapore Technologies Engineering Ltd., Singapore Technologies Kinetics Ltd., Leonardo S.p.A., Denel Land Systems (Pty) Ltd., Tata Motors Limited, KMW + Nexter Defense Systems, FNSS Savunma Sistemleri A.S., Avibras Indústria Aeroespacial S.A., Rostec State Corporation, ZTS - TEES Martin s.r.o.

Asia-Pacific was the largest region in the tanks market in 2024. Western Europe is expected to be the fastest-growing region in the tanks market during the forecast period. The regions covered in the tanks market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the tanks market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The tank market consists of sales of tanks such as infantry tank, cruiser tank, and flame tanks. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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