Military Vehicle Electrification Global Market Report 2024

Military vehicle electrification involves the conversion of military vehicles from traditional fossil fuel sources to electricity, powering light-duty vehicles, as well as medium and heavy-duty trucks. The primary objective of this electrification is to mitigate the emission of greenhouse gases.

The main technologies drive military vehicle electrification: hybrid and fully electric. A hybrid military vehicle can utilize both fuel and battery power. These vehicles capture and store energy through braking and deceleration, converting kinetic energy into electricity. Military vehicles can operate either with a manned crew or autonomously/semi-autonomously. Electrification systems play a crucial role in combat, support, and unmanned armored vehicles, contributing to power generation, cooling systems, energy storage, traction drive systems, and power conversion.

The military vehicle electrification market research report is one of a series of new reports that provides military vehicle electrification market statistics, including military vehicle electrification industry global market size, regional shares, competitors with a military vehicle electrification market share, detailed military vehicle electrification market segments, market trends and opportunities, and any further data you may need to thrive in the military vehicle electrification industry. This military vehicle electrification 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.

The military vehicle electrification market size has grown rapidly in recent years. It will grow from $5.87 billion in 2023 to $6.95 billion in 2024 at a compound annual growth rate (CAGR) of 18.3%. The increase during the historical period can be credited to factors such as improved fuel efficiency, adherence to environmental regulations, enhanced energy security, simplified logistics, and advancements in armor and mobility.

The military vehicle electrification market size is expected to see rapid growth in the next few years. It will grow to $12.78 billion in 2028 at a compound annual growth rate (CAGR) of 16.4%. The anticipated growth in the forecast period is linked to factors like interoperability, the development of adaptive charging infrastructure, expanding export opportunities, the integration of hydrogen fuel cells, and the incorporation of renewable energy. Noteworthy trends during this period comprise the adoption of hybrid and electric platforms, the advancement of next-generation batteries, the implementation of modular and adaptable systems, the integration of artificial intelligence (AI) and autonomous features, and increased adaptability for urban warfare.

The surge in demand for lithium-ion batteries in military vehicles is expected to drive the growth of the military vehicle electrification market. Lithium-ion batteries have been extensively utilized in various military applications, including tactical radios, thermal imagers, ECM, ESM, and portable computing. The adoption of lithium batteries is projected to expand further to heavy-duty platforms like military vehicles, boats, shelters, aircraft, and missiles in the coming years. An example is the U.S. Department of Defence's investment of $1.65 million in NanoGraf Corporation, a U.S.-based company specializing in lithium-ion batteries, in July 2021. This investment aims to enhance portable power for U.S. military troops by developing silicon anode-based lithium-ion technology, expecting a runtime increase of 50–100% over conventional graphite anode lithium-ion cells. Therefore, the growing demand for lithium-ion batteries for military vehicles is a driving force for the military vehicle electrification market.

The expected rise in fuel prices is set to propel the growth of the military vehicle electrification market. Increasing fuel prices, primarily for gasoline and diesel, make traditional military vehicles with internal combustion engines expensive to operate. Electrification provides an alternative to reduce fuel consumption and operating costs for military organizations. For instance, in January 2023, according to the Bureau of Labor Statistics, fuel prices increased by 19.4% from December 2021 to December 2022 in the U.S. Additionally, the Office for National Statistics reported a 48% increase in automotive fuel prices in the UK from 2021 to 2022. Therefore, the upward trend in fuel prices is driving the growth of the military vehicle electrification market.

A key trend gaining traction in the military vehicle electrification market is product innovation. Major companies in this market are prioritizing product innovations to provide better solutions and strengthen their market position. In June 2022, Textron Inc., a U.S.-based company in military vehicle electrification, introduced an advanced military electrification solution for existing armored vehicles. This solution aims to retain the advanced mobility of traditional drivelines by utilizing technologies to meet the pressing requirements of military users. Textron's solution allows for faster vehicle electrification than whole-vehicle design programs, enabling the export of electric power to charge other systems and running vehicles in full-electric silent mode on the battlefield.

Major companies in the military vehicle electrification market are concentrating on product innovation, exemplified by the Electric Military Concept Vehicle (eMCV). Electric Military Concept Vehicles are electric vehicles designed for various military applications within the Next Generation Light Tactical Wheeled Vehicle development. In November 2021, GM Defense, a U.S.-based automotive industry company, launched the Electric Military Concept Vehicle based on the GMC Hummer EV Pickup. The eMCV boasts a 300-mile combined driving range and a 100-mile charge in just 12 minutes, powered by a 24-module, double-stacked Ultium battery pack with over 200 kilowatt-hours.

In April 2022, Textron Inc., a U.S.-based aviation and aerospace component manufacturing company, acquired Pipistrel for $221.94 million (€218 million). This acquisition aims to enhance Textron Inc.'s product portfolio in the electrification of military vehicles and gain a competitive advantage in the aerospace and defense sector. Pipistrel Group, a Slovenia-based aircraft manufacturer specializing in electric aircraft, has become part of Textron's newest business division, Textron eAviation. This aligns with Textron's long-term goal of providing environmentally friendly aircraft for urban air mobility, general aviation, freight, and mission roles.

Major companies operating in the military vehicle electrification market include BAE Systems PLC, Arquus, Leonardo S.p.A., Textron Inc., General Motors Company, Oshkosh Corporation, Ballard Power Systems Inc., AM General LLC, Nikola Corporation, Alke S.r.l., Aselsan A.S., Epsilor Electric Fuel Ltd., Flensberg Fahrzeugbau Gesellschaft mbH, Kongsberg Gruppen, Lockheed Martin Corporation, Magna International Inc., Navistar International Corporation, Otokar Otomotiv ve Savunma Sanayi A.S., Rheinmetall AG, Ricardo PLC, Siemens AG, Tata Motors Limited, RTX Corporation, Thales Group, UQM Technologies Inc., Visedo Oy, Wrightspeed Inc., XALT Energy LLC

North America was the largest region in the military vehicle electrification market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in military vehicle electrification market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

The countries covered in the military vehicle electrification market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The military vehicle electrification market consists of sales of military vehicle electrification that are used to increase onboard power and extend range and persistence. 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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