Top 7 U.S. Armored Vehicles Manufacturers - Annual Strategy Dossier - 2019 - BAE Systems, GDLS, Navistar Defense, Oshkosh Corporation, Textron Systems, AM General, Lockheed Martin

Global Defense Spending has been on a steady upswing since the past couple of years with the same reaching the $1.8 trillion mark for 2018, the highest level since the post cold war low of 1998, while registering a 2.6% year on year growth driven by the radical transformation of geopolitical dynamics and equations with the dismantling of traditional rule based world order and the transition away from the typical unipolar world, which had prevailed since the end of Cold war. The same has been further exacerbated by the Trump led U.S. administration’s squandering of the traditional global leadership role under the “America First” policy which has led to realignment of relationships with the key NATO & other allies with the mandate to increase defense spending to the 2% level of GDP.

The Global Defense Spending is led by the U.S. & China which collectively accounted for over 50% of the total for 2018 with the U.S. registering its first major increase in defense spending since 2010. The continued development of military capabilities by China & the resurgence of Russia as a key regional power over the years have already induced a shift in the overall U.S. strategy towards competition with near peer adversaries as against counter-terrorism operations, which had been the focus earlier. This shift in strategic focus entails fast tracked procurement of systems & hardware to maintain numerical superiority, rapid development & deployment of next generation capabilities to plug existing & potential capabilities gaps and to retain the traditional, long standing strategic capabilities overmatch against adversaries along with continued R&D pursuits to maintain technological edge.

The modernization & upgrade of existing armor and replacement of existing vehicle platforms with proven technologies and current, off the shelf solutions; while avoiding expensive scratch up solutions entaling multiple risks & long development horizons; is providing significant growth opportunities to the U.S. based defense industrial base as showcased by the initiation of a number of new, large ticket defense procurement programs over the recent years, in the land systems domain, which include, JLTV for replacement of ageing & obsolete HMMWVs, Capabilities upgrades for the in-service M1 Abrams MBTs, M2 Bradley & Strykers fleets along with New contract Awards for AMPV, MPF & ACV 1.1  programs.

The modernization, upgrade & replacement of legacy land systems hardware continues unabated across most parts of the world and is providing significant growth avenues for most leading manufacturers of armored vehicles, as showcased by the Rheinmetall’s win in Australia’s hotly contested Land 400 Phase 2 program, worth up to $5 billion, with its Boxer platform in 2018 and a strong contention in the upcoming Phase 3 of the program. In Europe, the U.K.’s modernization drive for its armored vehicles continues amid budgetary constraints & uncertainties with the country handing out contracts to GDELS for supplying it with over 500 AJAX tracked vehicles earlier worth over £3.5 billion, likely to downselect amongst the final 2 contenders for the Challenger 2 MBT update in 2019 and is looking to tap Rheinmetall’s Boxer platform with a requirement for over 500 vehicles worth £4.4 billion. Similar comprehensive modernization drives are underway across France, under its Project Scorpion, and Germany which is procuring Puma IFVs & looking towards a successor for its Leopard 2 MBTs under the joint Franco-German Main Ground Combat System (MGCS).

Thus, with acknowledgement of strong external threat perceptions & evolution of the threat spectrum for armor in form of IEDs, RPGs & ATGMs, there is political consensus on fast tracked modernization, upgrade & replacements, which have been further corroborated by technological developments by the industry which are promising next generation capabilities at an affordable TCO. The U.S. based defense industrial base, thus, is readily gearing up with a spurt in activity and is looking forward to a long & much anticipated activity boom with most OEMs reinvigorating their industrial bases, in line with the age of disruptive technologies, led by digitalization, additive manufacturing, unmanned & optionally manned operating capabilities & artificial intelligence, for making the most of this current phase of demand upswing.

Against this dynamic & rapidly evolving market & industry landscape, the report provides comprehensive analysis and key insights into the Strategies & Plans being conceptualized & implemented by the North America’s Top 7 Armored Vehicle manufacturers for the near to medium term horizon as the industry braces up for a significant growth phase. The report is unique with reference to its core focus on and deep qualitative analysis of strategies & plans for the industry OEMs. The report also provides a comprehensive SWOT framework analysis on all 7 industry players covered in the report providing useful insights into each player’s respective strengths and weaknesses. The report concludes with analysis of key trends, market conditions, potential growth opportunities and outlook for the global armored vehicles market.

Report Excerpts:

• Analysis of GDLS’ Growth Strategy focused on Targeted Acquisitions, Vehicle Platform based Variants & Industrial Partnerships as Key Pivots
• BAE Systems looking to Initiate & be Part of New Defense Acquisition Programs across Key Global Markets Leveraging JVs, Alliances & Teaming-up Arrangements
• Analysis of Oshkosh’s Strategy of creating strong market positions across high growth specialty vehicles & vehicle body markets internationally as part of its overall MOVE strategy.
• MBTs likely to remain a Mainstay of the Armor Fleets at the Core over medium term despite growing preference for Lighter Protected Mobility Systems
• Strong focus on proven, off the shelf solutions offering capabilities upgrade at a workable TCO while avoiding expensive scratch up solutions entailing long development horizons & substantial risks
• Significant, projected Growth in utilization & role of Active Protection Systems in battlespace of future with development of lighter, accurate, more affordable, & workable systems
• Analysis of Emerging Technologies, Systems & Evolution of Threat Landscape, including:-  Directed Energy Systems, UGVs, Artificial Intelligence, Drone Swarms & Development of Electric Drivetrains led by advances in Li-Ion battery technology 

Relevance & Usefulness: The report will be useful for:- 

• Strategic Planning, Assessment & Decision-Making Processes
• Competitor Analysis & Comparative Analysis of covered Industry Players
• Identification of & Insights into Potential Growth Opportunities & Avenues
• Analysis of Near to Medium Term Strategy Focus and Key Strategies & Plans for all Armored Vehicle Manufacturers
• Analysis of Emerging Industry, Market & Technology Trends  
• Medium Term Strategic Outlook, Inputs on Market Evolution & Growth Projections
• For Whom: Business Leaders & Key Decision-Makers across Industry Value Chain

The report will be essential for Key Decision-Makers & Senior Industry Executives. The report will be especially useful for Program & Procurement Managers, Defense Procurement Departments & Executives, Top Management of Industry Players & Other Companies, Industry OEMs, Suppliers, Vendors, Land Vehicle MRO Services Providers, Technology & Other Services Solutions Providers and other Key Players in the Industry Value Chain. The report will also be useful for existing & potential Investors, Industry & Company Analysts, M&A Advisory Firms, Strategy & Management Consulting Firms, Researchers and all those associated with the industry or any of the European Armored Vehicle Manufacturers covered in the report.

The report is comprehensive yet concise & compact at the same time; is custom-built for meetings & presentations, being built on the Microsoft PowerPoint platform; in addition, to being a ready self-reckoner as well as a quick reference guide driving, enabling & ensuring prompt and informed decision making.