Global Military Vehicle Electrification Market Size study & Forecast, by Platform (Combat Vehicles, Support Vehicles, Unmanned Armored Vehicles) by System (Power Generation, Cooling Systems, Energy Storage) and Regional Forecasts 2025-2035

The Global Military Vehicle Electrification Market is valued at approximately USD 4.7 billion in 2024 and is projected to witness exponential growth with a CAGR of 26.7% during the forecast period 2025-2035. Military vehicle electrification encompasses the integration of advanced electric propulsion systems, energy storage solutions, and power management technologies within defense platforms. This shift is driven by the necessity to enhance operational efficiency, reduce logistical dependence on fossil fuels, and improve the stealth and endurance of combat and support vehicles. The market expansion is underpinned by increasing investments in modernizing armed forces, adoption of hybrid-electric and fully electric vehicles, and the global emphasis on sustainable defense technologies.

Rising geopolitical tensions and the pursuit of technological superiority have accelerated the adoption of electrified military platforms. Governments and defense agencies are increasingly investing in electrification solutions to reduce operational costs, enhance mission flexibility, and strengthen tactical advantages. According to recent defense expenditure reports, militaries worldwide are prioritizing energy-efficient and modular electric propulsion systems. Furthermore, advancements in battery density, thermal management systems, and power electronics present lucrative avenues for market growth. Nonetheless, high initial investments, complex integration requirements, and stringent regulatory frameworks may temper growth to some extent during the forecast period of 2025-2035.

The detailed segments and sub-segments included in the report are:

By Platform:
• Combat Vehicles
• Support Vehicles
• Unmanned Armored Vehicles

By System:
• Power Generation
• Cooling Systems
• Energy Storage

By Region:

North America
• U.S.
• Canada

Europe
• UK
• Germany
• France
• Spain
• Italy
• ROE

Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• RoAPAC

Latin America
• Brazil
• Mexico

Middle East & Africa
• UAE
• Saudi Arabia
• South Africa
• Rest of Middle East & Africa

Combat Vehicles Expected to Dominate the Market

Within platforms, combat vehicles are anticipated to dominate the market due to their critical role in frontline operations and high energy demands for mobility and onboard systems. The electrification of these vehicles enables enhanced tactical performance, reduced acoustic and thermal signatures, and improved mission endurance. Support vehicles and unmanned armored platforms are emerging as significant contributors, driven by their logistical and surveillance applications. While combat vehicles remain the principal revenue driver, unmanned and support platforms represent key opportunities for future adoption as militaries embrace modular and energy-efficient vehicle designs.

Power Generation Systems Lead in Revenue Contribution

Analyzing the market by system type, power generation units currently account for the largest revenue share, reflecting their centrality in ensuring reliable energy supply to all onboard subsystems. Energy storage solutions and cooling systems are gaining traction due to technological innovations in battery management, thermal regulation, and hybrid-electric configurations. This delineates a nuanced market landscape: power generation remains dominant from a revenue perspective, while energy storage and cooling systems are accelerating, driven by efficiency improvements, operational reliability, and increasing electrification across military vehicle fleets.

The key regions considered for the Global Military Vehicle Electrification Market study include North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America led the market in 2025 owing to the presence of advanced defense R&D infrastructure, substantial defense budgets, and ongoing modernization programs. Europe reflects steady adoption driven by NATO-aligned initiatives and sustainable defense technology mandates. Asia Pacific is expected to witness the fastest growth during the forecast period due to rising defense expenditures in China, India, and Japan, alongside increasing investments in hybrid-electric and fully electric military platforms. Latin America and the Middle East & Africa are gradually expanding as regional defense agencies explore energy-efficient and next-generation military vehicles.

Major market players included in this report are:
• Lockheed Martin Corporation
• General Dynamics Corporation
• BAE Systems
• Rheinmetall AG
• Northrop Grumman Corporation
• Boeing Defense, Space & Security
• Leonardo S.p.A.
• Hanwha Defense
• Navistar Defense LLC
• Oshkosh Defense
• Thales Group
• L3Harris Technologies
• Tata Advanced Systems Limited
• Elbit Systems Ltd.
• Iveco Defence Vehicles

Global Military Vehicle Electrification Market Report Scope:
• Historical Data – 2023, 2024
• Base Year for Estimation – 2024
• Forecast period - 2025-2035
• Report Coverage - Revenue forecast, Company Ranking, Competitive Landscape, Growth factors, and Trends
• Regional Scope - North America; Europe; Asia Pacific; Latin America; Middle East & Africa

The objective of the study is to define market sizes of different segments & countries in recent years and to forecast the values for the coming years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within the countries involved in the study. The report also provides detailed information about crucial aspects, such as driving factors and challenges, which will define the future growth of the market. Additionally, it incorporates potential opportunities in micro-markets for stakeholders to invest, along with a detailed analysis of the competitive landscape and product offerings of key players. The detailed segments and sub-segments of the market are explained above:

Key Takeaways:
• Market Estimates & Forecast for 10 years from 2025 to 2035.
• Annualized revenues and regional-level analysis for each market segment.
• Detailed analysis of the geographical landscape with country-level analysis of major regions.
• Competitive landscape with information on major players in the market.
• Analysis of key business strategies and recommendations on future market approach.
• Analysis of the competitive structure of the market.
• Demand side and supply side analysis of the market. Show more