The military vehicle electrification market is estimated at USD 3.47 billion in 2025 and is projected to reach USD 6.82 billion by 2030 at a CAGR of 14.5% from 2025 to 2030. The military vehicle electrification market is driven by technological advancements, strategic imperatives, and an emphasis on sustainability. Over the past few years, there has been a shift toward integrating electric propulsion systems in military vehicles to enhance operational efficiency, reduce dependence on traditional fuel sources, and address environmental concerns. Advancements in battery technology, such as the development of high-energy-density solutions and improved safety features, are pivotal in extending the range and endurance of electric military vehicles.
The power generation systems segment is the second-largest segment of the market by system. Based on system, the military vehicle electrification market has been segmented into power generation systems, cooling systems, energy storage systems, traction drive systems/propulsion systems, power conversion systems, and transmission systems. The power generation systems segment is expected to experience significant growth in the military vehicle electrification market due to a combination of factors that include technological advancements, operational advantages, and strategic imperatives. The integration of electric power generation systems with military trucks makes them more versatile and efficient as a whole. The systems involve sophisticated generators and onboard energy storage systems, which allow vehicles to generate and store electricity onboard. They provide increased responsiveness and power delivery flexibility to military mission-critical equipment and systems, making military trucks operationally capable.
The command and control vehicles segment is the fastest-growing segment of the market by support vehicles. The command and control (C2) vehicles segment is expected to grow at the fastest rate in the military vehicle electrification market by support vehicles. C2 vehicles are key enablers of contemporary military operations as mobile command centers that support communication, coordination, and decision-making. Electrification of these vehicles has some inherent benefits like less noise, more stealth, and better mobility, which are imperative for efficient command and control in varied operating environments. Electric C2 vehicles support better operational effectiveness and responsiveness. Electric drive systems facilitate rapid acceleration, deceleration, and agile maneuvering, enabling rapid redeployment and repositioning within the battlefield. Also, the lower maintenance needs of electric drivetrains support greater vehicle availability, as C2 vehicles are available to be deployed upon demand.
Europe is the fastest-growing military vehicle electrification market.
Europe is projected to grow at the fastest rate in the military vehicle electrification market. The need for modernizing capabilities has compelled the countries in this region to invest significantly in the adoption of military vehicle electrification technologies such as hybrid electric drives, fuel cells, batteries, and fully electric vehicles. Leonardo S.p.A. (Italy) and BAE Systems (UK) are among the key players operating in the military vehicle electrification market in the region.
Break-up of profiles of primary participants in the military vehicle electrification market: By Company Type: Tier 1- 35%, Tier 2- 45%, and Tier 3- 20% By Designation: C-Level Executives- 35%, Director Level- 25%, and Others- 40% By Region: North America- 25%, Europe- 15%, Asia Pacific- 40%, Middle East- 15%, Rest of the World – 15%
Prominent companies in the military vehicle electrification market are Oshkosh Corporation (US), GM Defense LLC (US), General Dynamics Corporation (US), BAE Systems (UK), and Leonardo S.p.A. (Italy), among others.
Research coverage: The market study covers the military vehicle electrification market across segments. It aims to estimate the market size and the growth potential of this market across different segments, such as system, platform, technology, mode of operation, voltage, and region. The study also includes an in-depth competitive analysis of the key players in the market, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies. Key benefits of buying this report: This report will help the leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall military vehicle electrification market and its subsegments. The report covers the entire ecosystem of the military vehicle electrification industry and will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and plan suitable go-to-market strategies. The report will also help stakeholders understand the pulse of the market and provide them with information on key market drivers, restraints, challenges, and opportunities.
The report provides insights into the following points:
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook