The armored personnel carrier market is estimated to be valued at USD 11.29 Bn in 2024 and is expected to reach USD 19.23 Bn by 2031. It is expected to grow at a compound annual growth rate (CAGR) of 7.90% from 2024 to 2031.
Emerging Armored Personnel Carrier Market will grow at highest pace owing to rising threat of cross-border terrorism
Armored personnel carriers (APCs) provide protected mobility for infantry units across various types of terrain and tactical conditions. APCs transport soldiers and increase their survival rate against enemy fire by providing ballistic and mine protection. Key features of APCs include heavy armor plating, ability to mount heavy weaponry such as machine guns and grenade launchers, and capacities to transport 6-15 soldiers with their combat equipment. They play an important combat support role during military operations and counter insurgency missions.
The armored personnel carrier market is estimated to be valued at USD 11.29 Bn in 2024 and is expected to reach USD 19.23 Bn by 2031. It is expected to grow at a compound annual growth rate (CAGR) of 7.90% from 2024 to 2031.
Key Takeaways
Key players: Key players operating in the armored personnel carrier market include General Dynamics Corporation, BAE Systems, Rheinmetall AG, Textron Inc., Krauss-Maffei Wegmann GmbH & Co. KG. These companies are focusing on developing advanced APC variants with improved survivability, mobility, and networking capabilities.
Growing demand: Increasing spending on internal security, modernization of aging land systems, and rising incidences of cross-border conflicts are fueling the demand for APCs among armed forces globally. Additionally, growing investments in replacing or upgrading existing APC fleets is expected to propel market revenues.
Technological advancements: Leading Armored Personnel Carrier Market manufacturers are leveraging technologies such as active protection systems, advanced armor composites, advanced drive-trains, C4ISR integration, and modular architecture to develop the next generation of APCs. This is improving firepower, mobility, and situational awareness of vehicles.
Market Trends
Electric & Hybrid APCs: Development of electric and hybrid-electric drive trains for APCs can help improve their fuel efficiency by nearly 30% without compromising payload or protection. Key players are investing in electric vehicle technologies for defense applications.
Modular & Scalable Design: Demand is growing for modular and scalable APC designs that offer flexibility to reconfigure and upgrade vehicles as per operational needs. Modular components improve service life and facilitate technology insertions.
Market Opportunities
Export Market: Major armor producers are strengthening their global distribution networks and service support capabilities to tap emerging opportunities in Asia Pacific and Middle East regions. This will be a major growth lever for revenues.
Upgrades of in-Service Fleets: Existing fleets of APCs across nations require periodic upgrades to avoid obsolescence and enhance capabilities against evolving threats. This presents a lucrative opportunity for upgrades, refurbishment, and long-term support services.
Impact of COVID-19 on Armored Personnel Carrier Market Growth
The COVID-19 pandemic has significantly impacted the global armored personnel carrier market. During the pandemic, many countries imposed strict lockdown measures which halted manufacturing activities across industries. This led to supply chain disruptions and delays in new orders for armored vehicles. The demand from military & defense also reduced temporarily as countries focused more on healthcare infrastructure and tackling the virus spread.
However, post lockdowns some recovery was witnessed as manufacturing units gradually reopened with safety protocols. Many countries fast-tracked defense modernization plans to boost their economies. New contracts were signed for upgradation of existing fleets as well as procurement of new platforms. Ongoing geopolitical tensions also supported demand. But supply chain issues, high production costs due to safety measures and postponed defense exhibitions impacted complete recovery.
Fastest Growth Region
The Asia Pacific region is expected to witness fastest growth owing to rising defense expenditure of emerging economies. Countries like India, China, South Korea are aggressively procuring new generation wheeled and tracked carriers. Growing indigenous production capabilities are helping APAC become an export hub as well. Ongoing territorial conflicts and threats of terrorism are other factors supporting market expansion.
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