Northbrook, IL -- (SBWIRE) -- 03/07/2021 -- The global armored vehicles market size is projected to grow from USD 11.6 billion in 2020 to USD 15.4 billion by 2025, at a CAGR of 5.8% from 2020 to 2025. Increasing demand for armored vehicles due to the rise in the instances of cross-border conflicts and rising incidences of asymmetric warfare across the globe are major factors driving the growth of the armored vehicles market. However, the absence of major OEMs of armored vehicles in the Middle East and Asia Pacific region and the occurrence of mechanical, electrical, and other kinds of failure in armored vehicles are projected to hinder the growth of the market.
The combat vehicle segment is projected to lead the armored vehicles market from 2018 to 2023.
Based on the platform, the armored vehicles market has been segmented into combat vehicles, combat support vehicles, and unmanned armored ground vehicles. The combat vehicle segment is projected to lead the armored vehicles market during the forecast period. Increasing demand for Armored Personnel Carriers (APCs) and Light Armored Vehicles (LAVs) across the globe is leading to the growth of the combat vehicle segment of the market.
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The armaments segment is projected to lead the armored vehicles market during the forecast period.
Based on system, the armored vehicles market has been segmented into engines, drive systems, ballistic armor, turret drives, fire control systems, armaments, countermeasure systems, Command & Control (C2) systems, power systems, navigation systems, ammunition handling systems, observation & display systems, and hulls/frames. The armaments segment is estimated to lead the armored vehicles market from 2018 to 2023. The growth of this segment can be attributed to the increased demand for remote weapon stations, Anti-tank Guided Missile (ATGM) launchers, and other armaments across the globe.
The Asia Pacific armored vehicle market is projected to grow at the highest CAGR during the forecast period.
The Asia Pacific armored vehicles market is projected to grow at the highest CAGR from 2018 to 2023. The growth of the market in this region can be attributed to the rising number of terrorist activities in this region and the increasing spending of emerging economies on defense operations. Countries such as India and China have increased their defense budgets and are procuring advanced armored vehicles for their military operations. This, in turn, is expected to drive the growth of the Asia Pacific armored vehicles market during the forecast period.
The recent COVID-19 pandemic is expected to impact the global automotive industry, including the military armored vehicles industry. The entire supply chain is disrupted due to a limited supply of parts. Chinese suppliers around the globe have placed production lines on halt or shut them down completely. Also, legal and trade restrictions, such as sealed borders, increase the shortage of required parts. Such disruptions in the supply chain is expected to affect the assembly of OEMs in Europe and North America.
Key Market Players
Key players profiled in this report on the armored vehicles market include Oshkosh Corporation (US), UralVagonZavod (Russia), Ukroboronprom (Ukraine), General Dynamics Corporation (US), BAE Systems plc (UK), NORINCO (China), Rheinmetall AG (Germany), and Textron Inc. (US). Contracts and new product launches were key strategies adopted by the leading players to achieve growth in the armored vehicles market.