Armored Vehicles Market Report 2025

This Armored Vehicles 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 armored vehicles market size has grown strongly in recent years. It will grow from $9.94 billion in 2024 to $10.68 billion in 2025 at a compound annual growth rate (CAGR) of 7.5%. The growth in the historic period can be attributed to military conflicts, peacekeeping missions, terrorism and insurgency, border security, law enforcement.

The armored vehicles market size is expected to see strong growth in the next few years. It will grow to $13.47 billion in 2029 at a compound annual growth rate (CAGR) of 6%. The growth in the forecast period can be attributed to urban warfare, asymmetric threats, cybersecurity and data protection, hybrid and electric propulsion, unmanned and autonomous features. Major trends in the forecast period include modular armor and upgrades, crew safety and comfort, lighter weight materials, riot control and crowd management, multi-role armored vehicles.

The expected growth of the armored vehicle market in the forecast period is strongly influenced by the rise in military spending. Countries worldwide are directing significant resources towards their military forces due to ongoing conflicts and geopolitical rivalries. This military expenditure encompasses various aspects, including operational costs, maintenance, arms procurement, investments in armored vehicles, and advancements in military research and development. For instance, in April 2024, the Stockholm International Peace Research Institute (SIPRI), a Sweden-based non-governmental organization, reported that global military spending reached $2.44 trillion in 2023, marking a 6.8% increase in real terms compared to 2022. This rise in military spending is driving the growth of the armored vehicle market.

The anticipated growth of the armored vehicle market in the coming years is closely tied to the escalating threat of terrorist attacks. Terrorist attacks represent acts of violence perpetrated by individuals, groups, or organizations with the aim of instilling fear, chaos, and disruption to further a range of political, ideological, religious, or social agendas. Armored vehicles are sought-after for their capacity to provide protection against terrorist attacks, theft, violent crimes, and to enhance security in high-risk areas. They are especially valuable in safeguarding against snipers, small arms fire, and rocket-propelled grenades (RPGs). For example, in March 2023, data from the Global Terrorism Index, a report released by the Institute for Economics and Peace, a global think tank based in Australia, revealed an increase in the average number of deaths per terrorist attack. In 2021, there was an average of 1.3 deaths per attack, and this figure rose to an average of 1.7 individuals per attack in 2022. Consequently, the growing frequency and impact of terrorist attacks are serving as a catalyst for the expansion of the armored vehicle market.

Prominent companies within the armored vehicle market are placing a strong emphasis on product innovation, including the development of specialized vehicles such as armored light specialist vehicles, aimed at providing dependable solutions to their customers. A light specialist vehicle typically refers to a type of vehicle tailored and equipped for specific, specialized tasks or roles, often within military or emergency services domains. For instance, in June 2023, Mahindra Defence Systems Limited, an India-based provider of cutting-edge armored solutions for military and paramilitary forces, introduced the Armoured Light Specialist Vehicle (ALSV). The ALSV is a lightweight, four-wheel-drive, air-transportable tactical armored specialist vehicle designed to fulfill various roles, including reconnaissance, patrol, and convoy escort. It is powered by a Steyr 3.2-liter, 6-cylinder turbo diesel engine, providing 215 hp at 3600 rpm and boasting a peak torque of 500Nm. The ALSV offers multiple variants, including the 6 to 8-seater Armored Protection Vehicle for Security, Light Armored Ambulance, Command and Control Vehicle, Light Mortar 81/82mm Vehicle, and Ammunition Carrier for Light Weapons. This focus on innovation and specialized vehicle offerings enables companies to cater to the diverse needs of their customers in the armored vehicle market.

Prominent companies in the armored vehicle market are actively leveraging the latest technology to maintain their competitive edge. Advanced technological solutions encompass innovative and cutting-edge technologies that hold significant promise, offering substantial value and future benefits. As an example, in June 2022, Texelis SAS, a France-based manufacturing company, introduced a groundbreaking technological solution aimed at electrifying wheeled armored vehicles for military operators looking to transition toward a more environmentally friendly battlefield. This solution integrates proven electric vehicle components, offering a more rapid path to vehicle electrification compared to whole-vehicle electric design programs. It can be retrofitted onto existing wheeled military vehicles, allowing them to maintain advanced mobility capabilities while harnessing technology to export electric power for charging soldier systems and operating in a full-electric silent mode for limited durations. This commitment to advanced technology empowers companies to meet the evolving needs of the armored vehicle market and adapt to greener and more sustainable solutions.

In September 2022, Parker Hannifin Corporation, a prominent US-based manufacturer specializing in motion and control technology, completed the acquisition of Meggitt PLC for a total of $6.79 billion. This strategic acquisition allowed Parker Hannifin Corporation to significantly broaden its product portfolio, providing an extended range of solutions for aircraft and aeroengine systems, while also fostering advancements in electrification and low-carbon technologies. Meggitt PLC, a reputable UK-based aerospace company, is known for its expertise in manufacturing components and sub-systems, particularly for advanced light armored vehicles (LAV). This acquisition not only enhances Parker Hannifin Corporation's capabilities in the aerospace sector but also strengthens its presence in the field of armored vehicle technologies, showcasing the company's commitment to diversification and innovation.

An armored vehicle is a self-propelled, militarized vehicle equipped for combat operations. These vehicles blend operational agility with offensive and defensive capabilities.

The primary categories of armored vehicles include armored personnel carriers, infantry fighting vehicles, main battle tanks, tactical trucks, buses, and other specialized variants. Armored personnel carriers, for instance, serve as military vehicles designed for transporting personnel and equipment in hostile environments. This diverse range of platforms encompasses combat vehicles, combat support vehicles, unmanned armored ground vehicles. Key components encompass the engine, drive system, ballistic armor, fire control system (FCS), armaments, ammunition handling system, countermeasure system, command and control system, and other relevant elements. In terms of mobility, armored vehicles are categorized into tracked, wheeled, 4x4, 6x6, 8x8, and other configurations.

The armored vehicles market research report is one of a series of new reports that provides armored vehicle market statistics, including global market size, regional shares, competitors with an armored vehicle market share, detailed armored vehicle market segments, market trends and opportunities, and any further data you may need to thrive in the armored vehicle industry. This armored vehicle 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 armored vehicles market include BAE Systems, Oshkosh Corporation, International Armored Group, General Dynamics Land Systems, Textron Inc., Rheinmetall AG, Lockheed Martin Corporation, Krauss-Maffei Wegmann GmbH & Co. KG, INKAS Armored Vehicle Manufacturing, Elbit Systems Ltd., IVECO S.p.A., Lenco Armored Vehicles Inc., Navistar - Navistar International Corporation, Thales Group, STREIT Group, UralVagonZavod Corporation, Ukroboronprom, NORINCO - China North Industries Group Corporation Limited (NORINCO), Bayerische Motoren Werke AG, Ford Motor Company, Raytheon Technologies Corporation, Mitsubishi Heavy Industries Ltd., Hyundai Motor Company, Nexter Group, Panhard General Defense SAS, Plasan Sasa Ltd., SABIEX International, Hanwha Defense Co.Ltd.

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

The armored vehicle market consists of sales of armored vehicles such as tanks, tank destroyers, infantry fighting vehicles, armored personnel carriers, and self-propelled guns. 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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