Global Armoured Vehicles Upgrade and Retrofit Market - Segmented by Vehicle Type (Armoured Fighting Vehicle, Armored Recovery Vehicle and Armoured Personnel Carrier), Armour Level (Light, Armoured, Mine Resistant, Rifle and Armour Piercing Rifle) and Geography - Market forecast and Analysis (2018-2023)
Government Regulations to Limit Market Entry
The armoured vehicle upgrade and retro fit market is expected to register a CAGR of 3.45%, during 2017-2022 (the forecast period). The military armored vehicles upgrade and retrofit market is estimated to be a fairly profitable business, however, the government restrictions and regulations limit the number of operators and participants in the military field. Furthermore, the military business is a highly risky, owing to the constant demand and high capital requirements, with a lot of uncertainty, tough technological competition and the need to lobby for contracts. The forecast period (2017-2023) is crucial as many military activities are scheduled to end in this time-period, along with the rise of the new next generation heavy armoured vehicle made for connected warfare by Russia.
Russian Armata, the Fourth Generation MBT
The Russian army developed the Armata series of MBT, which qualifies as the fourth generation of armoured vehicles. In 2016, Russia is the only country that tested the fourth generation MBT vehicle, capable of warfare. The Armata series of tank is designed for connected battlefield management, which allows it to coordinate attacks, acquire targets and manage resources on the field.
Russia owns 1900 T-72, 450 T-80 and 350 T-90, all of which are pending upgrades and improvements. The T-90 is being upgraded into the T-90MS variant, to run side by side with the 4th Generation T-14 7T-15 Armata tanks. The T72 tanks are pending an upgrade to ERA 6 armour package, while the United States entered the M829A4 anti-ERA 6 ammunition into full production beginning 2016.
Upgrade of Armoured MBT Fleet a Cheaper Solution
A typical 3rd generation armoured MBT costs USD 5 million each, while a second generation MBT costs about USD 1 million per piece. The cost of such 3rd generation, 100 units of MBTs would cost nearly USD 400-500 million and for 100 - 2nd generation MBTs the cost would be around USD 100 million for procurement alone. The maintenance cost per tank on a yearly basis is estimated to be around USD 20,000-50,000, accounting to a total of USD 2-5 million for 100 tanks, equal to the price of a new updated third generation tank. Upgrading MBT fleet of 100 to the latest version with the best armour would account to an approximate USD 500 million, which is a considerable amount of budget allocated to the land-based vehicle procurement.
As per trend statistics and cost effectiveness prediction, the army will choose to upgrade their fleet and buy a limited number of new armoured vehicles, as observed from the Malaysian army, where it bought about 258 new locally made AFVs and upgraded the existing fleet of 600 AFVs and APCs.
Multi-scale modeling of armour materials
Source: High Rate Mechanics and Failure Branch, Army Research Laboratory
The Asia-Pacific accounts for about 42% of the overall main battle tanks (MBTs), serving worldwide. Geographically, the armoured vehicles upgrade and retrofit market is expected to be led by the United States, Canada in the west, the United Kingdom, Germany, France in Europe, India, Russia, Malaysia, UAE, China, Israel, Japan and Korea in Asia-Pacific. The United States is expected to remain a major consumer of upgrade and retro fit of armoured vehicles. Excluding Russia and the CIA countries, Europe has around 7500 equivalent to 14% of the main battle tanks (MBTs). Moreover, Europe operates about 35,500 of the light armored vehicles, which make up for 24 % of the total number. In addition, 23 European countries have procurement of armoured vehicles underway or planned in the near future. Most of these new vehicles are expected to be launched by the European manufacturing companies. The armored vehicles upgrade and retrofit market of other countries in Europe (Turkey, Kazakhstan, Afghanistan etc.) is expected to register a CAGR of 2.11% and reach USD 0.53 billion by 2022.
The Big Four Dominate the Armoured Vehicles Upgrade and Retrofit Market
Source: Mordor Intelligence Analysis
General Dynamics held the largest share in the armoured vehicles upgrade and retrofit market revenue in 2016. Rheinmettal, Thales and BAE Systems had almost similar revenue figures at USD XX billion, XX billion and XX billion, respectively, contributing to about XX% of the market value. Rheinmetall was awarded contracts for the Life Extension Programme Assessment for UK’s fleet of Challenger 2 vehicles and, further, for Bundeswehr’s Fuchs armoured vehicles and few other contracts. Thales received an order for the procurement of 1100 light armoured vehicles from Australia.
Our Global Armoured vehicles upgrade and Retrofit market Report covers:
Armoured vehicles upgrade and retrofit market trends and dynamics
Latest News & armoured vehicles upgrade market developments
Porter’s five force analysis
Manufacturer & OEM market share analysis
Market Forecast for armoured vehicles upgrade & retrofit
Key player profiles and recent development