Global Armored Fighting Vehicles Market - Trends, Growth, Shares and Forecast (2018 - 2023)
The market is expected to grow at a CAGR of over 6% to reach a market value of USD 50 billion by the year 2023. This growth can be connected to the increasing incidences of armed conflicts, violence, and terrorism, which are driving the demand for armored vehicles, among defense and commercial end users, globally.
Based on technology, active mine protection system is expected to be the largest segment of the global armored vehicles market during the forecast period. Defense sector emerges as the largest demand in the global armored vehicles market while commercial sector is expected to witness the fastest growth during the forecast period (2018 - 2023). Infantry fighting vehicles are the largest segment in the global defense armored vehicles market, by product. The segment is expected to follow the same trend during the forecast period (2018 - 2023).
The US and the European nations were the biggest consumers of armored vehicles for a considerable period. However, in the past few years both the US and European governments decided to cut down their defense budgets. This significantly affected the demand for armored vehicles, however, the growing security concerns in the Asia-Pacific region and the peace initiative missions undertaken by the Middle East nations have helped in reducing the impact to a considerable level. Additionally, the multilateral collaboration between North Atlantic Treaty Organization (NATO) and the African Union to counter terrorism is expected to further propel the growth of global armored vehicles market during the forecast period.
Some of the key players in the Armored Fighting Vehicles Market are GENERAL DYNAMICS, RAYTHEON, URALVAGONZAVOD, BAE SYSTEMS, MBDA amongst others.
Growing Demand for Armored Fighting Vehicles Market
Increasing internal & external security threats which led to the increase of violence in countries such as Syria, Iraq and other countries in the world are driving global armored vehicles market. Increasing military expenditure especially in emerging economies and increasing popularity of rental & leasing of armored cars among civilians also supports the growth of the market. The major factor hindering the growth of the overall market includes the lack of regulatory standards across the globe. Additionally, the withdrawal of troops from Afghanistan and Iraq by the U.S. and their allies have hindered the North American market at a considerable level thereby resulting in a steady decline in the region. Moreover, the U.S. and European nations witnessed a decline in the defense budgets in the recent years, which is expected to further hamper the growth of global armored vehicles market during the forecast period (2018 - 2023).
Key developments in the market
March 2018 - The Israeli Defense Ministry announced the approval of a major upgrade of the army’s ground forces. The announcement focused on the purchase of hundreds of Eitan armored fighting vehicles and the development of a new cannon.
February 2017 - NIMR Automotive on Thursday bagged a contract to supply more than 1,765 armored vehicles to the UAE Armed Forces in a huge boost to the domestic defense industry.
Reasons to purchase this report