Global armored vehicle market is projected to witness a CAGR of 4.90% during the forecast period 2025-2032, growing from USD 19.63 billion in 2024 to USD 28.78 billion in 2032F, owing to escalating defense expenditures, technological innovations, and the evolving nature of modern conflicts. The market encompasses a diverse range of platforms, including main battle tanks, infantry fighting vehicles, and mine-resistant ambush-protected (MRAP) vehicles, each tailored to specific operational needs. Advancements in modular design and the integration of sophisticated systems have enhanced the adaptability and effectiveness of these vehicles. Furthermore, the increasing involvement of law enforcement agencies in acquiring armored solutions fuels the market’s expansion beyond traditional military applications. As geopolitical tensions persist and security challenges become more complex, the demand for advanced armored vehicles is expected to continue its upward trajectory. Defense forces around the globe are launching new advanced armored vehicles for combat operations, driving the global armored vehicle market demand in the forecast period.
| Report Attributes | Details |
| Base Year | 2024 |
| Forecast Period | 2025-2032F |
| Historical Period | 2018-2023 |
| Projected Growth Rate | CAGR of 4.90% between 2025 and 2032 |
| Revenue Forecast in 2032 | USD 28.78 billion |
In May 2024, the United States Army launched a new Bradley armored fighting vehicle variant, the M2A4E1. This latest Bradley variant comes with an enhanced High-Definition Forward-Looking Infrared Gunner’s Sight and an Environmental Control Unit designed to mitigate heat stress. The M2A4E1 is promoted as the vehicle’s “most advanced and resilient variant.” It features an Iron Fist active protection system that identifies and neutralizes incoming missiles and rockets using radar and infrared sensors, as well as explosive projectiles.
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Rising Defense Expenditure to Fuel the Armored Vehicle Market
Global defense budgets are increasing, with nations prioritizing the modernization of their military fleets. This surge in spending is driven by the need to replace aging equipment and enhance operational capabilities. The procurement of advanced armored vehicles equipped with cutting-edge technologies is central to these modernization efforts, aiming to improve mobility, protection, and firepower on the battlefield. The rising threat of World War 3, along with joint army programs, is likely to increase the adoption of armored vehicles.
For instance, in April 2023, Sweden’s Defense Materiel Administration (FMV) ordered 20 6×6 new armored personnel carriers named Pansarterrängbil 300 under a joint European research-and-development effort, following Finland and Latvia. Intended for the transport of up to 12 soldiers, the vehicle is adaptable and can be set up for various roles, including command and control or medical assistance. Germany also made a significant advancement in this endeavor by officially signing the technical agreement for Common Armoured Vehicle System (CAVS) in April 2023, thus becoming a formal participant in the initiative that already involves European countries such as Finland, Latvia, and Sweden.
Innovations in materials science and engineering have also led to the development of lighter, more durable armored vehicles. The integration of advanced systems such as active protection mechanisms, autonomous navigation, and enhanced communication tools has significantly improved vehicle survivability and situational awareness. These technological strides are pivotal in meeting the evolving demands of modern warfare.
Asymmetric Warfare and Terrorism to Propel the Global Armored Vehicle Market
The global rise in asymmetric warfare tactics and terrorist activities has necessitated the deployment of versatile armored vehicles. These vehicles are essential for counter-insurgency operations, urban warfare, and peacekeeping missions, providing troops with the necessary protection and mobility in complex operational environments. Beyond military applications, there is a growing demand for armored vehicles among law enforcement and internal security agencies. These vehicles are utilized for riot control, border security, and the safe transport of personnel and assets, reflecting a broader scope of operational requirements and contributing to market growth.
For instance, in April 2024, SoFrame was selected to supply the VBMO, renamed to “Centaure”, to the French Gendarmerie. The gendarmerie has selected a model called “ARIVE,” which stands for Armored Infantry Vehicle. This sturdy 4×4 armored vehicle has a weight of 14.5 tons, making it two tons heavier than its predecessor, the VBRG. Its dimensions are 6.2 meters in length, 2.45 meters in width, and 2.5 meters in height.
Wheeled Segment Leads with Higher Flexibility and Maneuverability
The wheeled segment leads the global armored vehicle market due to its flexibility and maneuverability, making it ideal for diverse operational scenarios. These vehicles are particularly well-suited for urban settings and paved surfaces, providing enhanced mobility in comparison to tracked vehicles. Their lightweight construction improves both speed and maneuverability, facilitating quick deployment for special operations, troop transport, border patrols, and combat support tasks, including reconnaissance and medical assistance.
Furthermore, wheeled armored vehicles are economical regarding purchase, upkeep, and fuel consumption, rendering them more viable for long-term use. Their modular designs allow for tailored adaptations to meet specific mission needs, thereby increasing their effectiveness.
For instance, in February 2025, Tata Advanced Systems Limited (TASL) launched a new Light Armored Multirole Vehicle (LAMV) developed as per NATO requirements for international military customers. The 4×4 vehicle, launched at a defense industry convention in Abu Dhabi, was developed to support the Indian company’s effort to expand its global armored vehicle market by 2035.
North America Leads the Market with New Innovative Vehicles and Higher Expenditure
North America dominates the armored vehicles market, driven by substantial defense budgets and a focus on innovation. The region leads in integrating advanced technologies, such as autonomous systems, artificial intelligence, and enhanced protection mechanisms, into military vehicles. The United States plays a pivotal role, investing heavily in modernizing aging fleets and developing next-generation combat vehicles like the Joint Light Tactical Vehicle (JLTV) and Armored Multi-Purpose Vehicle (AMPV).
Geopolitical factors and rising asymmetric conflicts contribute to sustained demand for advanced armored vehicles. This emphasis on modernization and technological advancement ensures North America’s leadership in shaping the future of the global armored vehicles market. For instance, the United States delivers its defense supplies to its allies such as Ukraine and Israel. In March 2023, the United States delivered a total of eight armored vehicles, launched bridges for the first time to Ukraine as defense aid through the United States Department of Defense. The supply comprises the M60 AVLB Armored Vehicle Launched Bridges based on the M60A1 tanks after having the turret removed and a bridge launcher installed instead.
Future Market Scenario (2025 – 2032F)
- Integration of autonomous technologies is likely to fuel the development of unmanned armored vehicles for reconnaissance and combat roles.
- Adoption of hybrid and electric propulsion systems is projected to transition towards eco-friendly powertrains to reduce operational costs and emissions.
- Enhanced urban warfare capabilities are expected to design compact, agile vehicles optimized for urban combat scenarios.
- Expansion into non-military sectors is anticipated to increase the utilization of armored vehicles in sectors such as disaster response and critical infrastructure protection.
Report Scope
“Armored Vehicle Market Assessment, Opportunities and Forecast, 2018-2032F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of global armored vehicle Market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecasts between 2025 and 2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
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