Military Land Vehicles Market Report 2025

The military land vehicles market size has grown strongly in recent years. It will grow from $22.92 billion in 2024 to $24.23 billion in 2025 at a compound annual growth rate (CAGR) of 5.7%. The growth in the historic period can be attributed to budget allocations and defense spending, logistical challenges and mobility needs, industrialization and mass production, military modernization programs, threat assessment and defense strategy.

The military land vehicles market size is expected to see strong growth in the next few years. It will grow to $29.81 billion in 2029 at a compound annual growth rate (CAGR) of 5.3%. The growth in the forecast period can be attributed to global geopolitical shifts, logistics efficiency, interoperability and networking, enhanced survivability and protection, cybersecurity and digitalization, urban warfare capabilities. Major trends in the forecast period include military modernization programs, adaptation to hybrid warfare, urban warfare capabilities, shift towards unmanned and autonomous systems, enhanced survivability and protection.

Rising geopolitical tensions are anticipated to drive the growth of the military land vehicles market in the coming years. Geopolitical tensions refer to political issues that create friction or conflict between countries, often stemming from factors such as power dynamics, trade disputes, military actions, climate challenges, or significant global events. Military land vehicles, designed for high performance in challenging terrains, are essential for transporting personnel, combat equipment, resupplying combat vehicles, and supporting weapons systems in potential conflicts arising from such tensions. For example, in June 2024, Global Finance, a U.S.-based financial magazine, reported that conflict-related deaths reached 162,000 in 2023, marking the second-highest number in the past three decades. The wars in Ukraine and Gaza accounted for nearly 75% of these fatalities, with Ukraine alone responsible for over 83,000 deaths and Gaza seeing at least 33,000 deaths by April 2024. Furthermore, the number of internationalized conflicts is rising, with 92 countries engaged in external conflicts, compared to just 33 in 2008, reflecting the increasing complexity and global scope of modern warfare.

The increasing allocation to the military budget is expected to fuel the expansion of the military land vehicle market. The military budget, also known as defense expenditure, represents the financial commitment made by a government to fund its military and defense-related activities. A growing military budget provides the financial resources needed for governments to invest in, upgrade, and maintain their fleets of military land vehicles, thereby contributing to the growth of the market. For instance, a report by the Stockholm International Peace Research Institute highlighted a 3.7% real-term increase in global military spending in 2022, reaching a record-high of $2.24 trillion. Notably, Europe experienced a substantial 13% growth in military expenditure during the same period. The United States and China remained the top two spenders, contributing 39% and 13%, respectively, to the global military spending. This underscores the significance of increasing military budgets in driving the growth of the military land vehicle market.

Product innovations are emerging as a major trend in the military land vehicle market. Leading companies in this sector are increasingly focusing on developing advanced military vehicles to strengthen their competitive position. For example, in June 2024, Defenture, a Europe-based manufacturer of specialized military vehicles, introduced the Mammoth, a cutting-edge tactical mobility platform. The Mammoth offers superior agility, stability, and combat performance, making it ideal for modern military operations. Its powerful and versatile design enhances operational efficiency and safety, enabling it to navigate the most challenging environments and mission requirements. This innovative approach highlights the growing importance of advanced technology in the military land vehicle market.

Major companies in the military land vehicle market are developing innovative products such as armored personnel carriers (APCs) to expand their customer base, increase sales, and boost revenue. APCs are military vehicles designed to transport troops while providing protection from enemy fire and battlefield threats. For instance, in October 2024, GM Defense, a U.S.-based military subsidiary of General Motors, unveiled a prototype military vehicle called the Next Gen, based on the Chevy Silverado platform. The Next Gen incorporates the robust chassis of the Chevrolet Silverado 2500HD ZR2 and features advanced military technologies, including a 2.8L Duramax turbo-diesel engine and a 12-module battery pack. Designed for high maneuverability across tough terrains, it offers silent operation modes, enhanced safety systems, and support for high-energy sensors and armaments. Additionally, its low acoustic and thermal signatures make it ideal for covert operations, and its configuration can accommodate two, four, or six passengers, depending on mission requirements. The Next Gen showcases GM Defense's commitment to integrating commercial technology with military applications to improve operational effectiveness.

In February 2024, John Cockerill, a Belgium-based mechanical engineering company, acquired Arquus for $329 million. This acquisition strengthens John Cockerill's position as a key player in the European defense industry by integrating Arquus's expertise in military vehicle design and production with its own capabilities. Arquus, a France-based manufacturer of land vehicles, is known for its specialization in creating advanced military vehicles, further enhancing John Cockerill's offerings and competitiveness in the defense sector. This strategic move positions John Cockerill to play a larger role in meeting the defense needs of European nations and beyond.

Major companies operating in the military land vehicles market include Oshkosh Defense LLC, BAE Systems plc, Ashok Leyland Limited, General Dynamics Corporation, ST Engineering Ltd., Rheinmetall AG, Krauss-Maffei Wegmann GmbH & Co. KG, Iveco S.p.A., Achleitner Fahrzeugbau, Otokar Otomotiv ve Savunma Sanayi A.S., Hyundai Rotem Company, Lockheed Martin Corporation, Thales Group, Artec GmbH, Navistar Defense, Textron Systems, Nexter Group, Hanwha Defense, FNSS Savunma Sistemleri A.Ş. Defense Systems, Tata Motors Limited, Kurganmashzavod, Uralvagonzavod, Rosoboronexport, China North Industries Corporation, Rostec, Ukroboronprom, Paramount Group, Denel Land Systems (Pty) Ltd., Plasan Sasa Ltd., Mitsubishi Heavy Industries Ltd.

North America was the largest region in the military land vehicles market in 2024. The regions covered in the military land vehicles market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the military land vehicles market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Military land vehicles are advanced vehicles designed to deliver superior performance, ensuring mobility and adaptability in challenging terrains. These vehicles are characterized by a high power-to-weight ratio, elevated ground clearance, and a substantial weight capacity. Their primary purpose is the transportation of personnel, combat equipment, resupplying combat vehicles, and deploying weapons systems.

The key product categories within military land vehicles include infantry fighting vehicles, armored personnel carriers, main battle tanks, light multi-role vehicles, tactical trucks, and others. Tactical trucks encompass any vehicle specifically crafted to meet the field requirements of combat and tactical operations or to train personnel for such endeavors. The offerings include a range of services and platforms designed for defense and transportation applications.

The military land vehicles market research report is one of a series of new reports that provides military land vehicles market statistics, including global market size, regional shares, competitors with a military land vehicles market share, detailed military land vehicles market segments, market trends and opportunities, and any further data you may need to thrive in the military land vehicles industry. This military land vehicles 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 land vehicles market consists of revenues earned by entities by providing military land vehicle services for mobile military operations. The market value includes the value of related goods sold by the service provider or included within the service offering. The military land vehicles market also includes sales of military vehicles with parts such as bar armor, mine-protected chassis, sub-frames, fuel tanks, general fabricated assemblies, machined components, and weapon mounts wiring looms which are used in providing military land vehicle services. 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.

This product will be delivered within 3-5 business days.