Armored Vehicles Market

Market Overview:

The global armored vehicles market size reached USD 18.8 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 29.4 Billion by 2033, exhibiting a growth rate (CAGR) of 5.06% during 2025-2033. The rising military modernization programs to replace aging fleets with more advanced and efficient models, increasing emphasis on enhancing the survivability and mobility, and the expansion in emerging markets are various factors impelling the market growth.

Armored vehicles are automobiles specially designed with partial or complete armor plating to withstand explosions and attacks. Armored personal carriers, infantry fighting vehicles, main battle tanks, tactical trucks, buses, limousines, and sedans are common product variants. These vehicles provide high protection against basaltic threats, including missiles, bullets, and improvised explosives devices (IEDs). They are also used to transport military personnel and valuable items, such as money and jewelry. Armored vehicles are often fitted with weapons and a protective shell manufactured from multiple plates of corrosion-resistant steel, steel alloys, or special composite materials. Besides this, they offer better performance and higher reliability and durability to withstand attacks. 

Armored Vehicles Market Trends:

Rising Defense Expenditures

As global geopolitical tensions are rising, many countries are significantly increasing their defense budgets. Nations, such as the United States, China, India, and Russia, are leading this trend by prioritizing the acquisition of advanced military assets including armored vehicles. Governing agencies of these countries are focusing on modernizing their armed forces to deal with both external threats and internal security challenges such as terrorism and insurgencies. Defense budget allocations are often aimed at upgrading existing fleets, which benefits in increasing armored vehicles market share. Governing authorities are also investing in next-generation armored vehicles with enhanced capabilities like improved protection, mobility, and firepower. Furthermore, rising defense spending is often accompanied by government defense procurement policies that prioritize local manufacturing, spurring growth in domestic armored vehicle production. These factors create a strong and sustained demand for armored vehicles, ensuring market expansion over the coming years.

Growing Threats of Terrorism and Internal Conflicts

Increasing global instability, characterized by the rise of terrorism, cross-border conflicts, and internal unrest is influencing the market. Countries facing persistent threats from terrorist organizations or insurgencies, particularly in regions like the Middle East, Africa, and South Asia, are investing in armored vehicles for military, paramilitary, and law enforcement purposes. These vehicles are vital for ensuring operational success in hostile environments, offering protection to troops and civilians alike. In line with this, these vehicles play a critical role in border patrol and internal security operations in countries experiencing civil unrest. Governing authorities are prioritizing the procurement of versatile armored vehicles that can perform across various terrains, ranging from urban centers to remote conflict zones.

Technological Advancements

Innovations aid in enhanced the capabilities and attractiveness of modern vehicles. Modular armor systems, advanced weaponry, integrated communication platforms, and autonomous navigation systems are presently changing the use of these devices. Lightweight materials are being increasingly used to improve vehicle mobility without compromising protection, allowing vehicles to be more agile in diverse operational environments. Automation and artificial intelligence (AI) are also revolutionizing vehicle operations, enabling semi-autonomous or fully autonomous capabilities for tasks such as surveillance, logistics support, and battlefield engagement. These advancements are encouraging both new acquisitions and the retrofitting of existing armored fleets, making them more efficient, safer, and capable of handling modern-day military challenges.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market report, along with armored vehicle market forecast at the global, regional and country levels from 2025-2033. Our report has categorized the market based on product, system and drive type.

Breakup by Product:

• Defense
  • Armored Personnel Carrier (APC)
  • Infantry Fighting Vehicles (IFVs)
  • Light Protected Vehicles (LPVs)
  • Main Battle Tanks (MBTs)
  • Mine-resistant Ambush Protected (MRAP)
  • Tactical Vehicle
  • Others
• Commercial
  • Bus/Van
  • Limousine
  • Sedan
  • SUV
  • Others
     

Breakup by System:

• Engine
• Drive System
• Ballistic Armor
• Turret Drives
• Ammunition Handling System
• Fire Control Systems (FCS)
• Armaments
• Countermeasure System
• Command and Control (C2) System
• Power System
• Navigation System
• Observation and Display System
• Hulls/Frames
   

Breakup by Drive Type:

• Wheeled
• Tracked
   

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Competitive Landscape:

The report has also provided a comprehensive armored vehicles market analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the companies covered include:

• BAE Systems plc
• Elbit Systems Ltd.
• General Dynamics Corporation
• INKAS Armored Vehicle Manufacturing
• International Armored Group
• IVECO
• Krauss-Maffei Wegmann GmbH & Co. KG (KMW+Nexter Defense Systems N.V.)
• Lenco Armored Vehicles Inc
• Lockheed Martin Corporation
• Oshkosh Defense, LLC (Oshkosh Corporation)
• Rheinmetall AG
• Textron Inc.
   

Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report.

Armored Vehicles Market Recent Developments:

• 7 December 2023: Hanwha Aerospace announced that its subsidiary, Hanwha Defence Australia (HDA), signed a USD 2.4 billion contract with the Australian government for the delivery of 129 Redback Infantry Fighting Vehicles (IFVs) including the development and delivery of the training system components and support system components.

Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, armored vehicles market forecasts, and dynamics of the market from 2019-2033.
• The armored vehicles market research report provides the latest information on the market drivers, challenges, and opportunities in the global market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the armored vehicles industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.