U.S. Armored Vehicle Market Size, Share & Trends Analysis Report By Product (Combat Vehicles), By Vehicle Type, By Mobility, By Mode of Operation, By Point of Sale, By System, And Segment- Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2024-2033

The U.S. armored vehicle market size was estimated at USD 8.70 billion in 2023 and is projected to hit around USD 14.87 billion by 2033, growing at a CAGR of 5.5% during the forecast period from 2024 to 2033.

Key Takeaways:

• The engines segment held the significant revenue share of over 20% in 2023
• The navigation systems segment is estimated to grow significantly over the forecast period.
• The combat vehicles segment led the market in 2023, accounting for over 35% share of the revenue.
• The cash in transit vehicles segment is predicted to foresee significant growth in the forecast period.
• The conventional armored vehicles segment led the market in 2023, accounting for over 96% share of the revenue.
• The electric armored vehicles segment is expected to showcase significant growth over the forecast period.
• The wheeled segment led the market in 2023, accounting for over 82% of revenue.
• The tracked segment will witness significant growth in the coming years.
• The manned armored vehicles segment led the market in 2023, accounting for over 86% of the revenue.
• The unmanned armored vehicles segment will witness significant growth in the coming years.
• The OEM segment led the market in 2023, accounting for over 83% of the revenue.
• The retrofit segment will witness significant growth in the coming years.

U.S. Armored Vehicle Market Overview

The U.S. armored vehicle market encompasses a wide array of vehicles designed for military applications, ranging from main battle tanks to armored personnel carriers. As a critical component of national defense, these vehicles are subject to continuous technological advancements, ensuring that they meet the ever-changing demands of modern warfare.

U.S. Armored Vehicle Market Growth

This growth is primarily driven by increased military spending by the U.S. government, driven by rising geopolitical tensions, and the need for armed forces modernization. Additionally, law enforcement and security agencies are increasingly investing in armored vehicles to address various threats, including terrorism and organized crime. Technological advancements, such as improved armor materials and advanced sensors, are enhancing the effectiveness and versatility of armored vehicles. For instance, in October 2022, the U.S. Army collaborated with BAE Systems to accelerate the production of the Armored Multi-Purpose Vehicle (AMPV). AMPV is a tracked vehicle derived from the Bradley Fighting Vehicle (BFV), engineered for increased survivability, mobility, and firepower compared to the aging M113. It offers versatility by adapting various mission configurations, such as troop transport, medical evacuation, and command and control, which depicts its adaptability to meet a range of military operational needs.

The U.S. armored vehicle market is experiencing significant growth owing to the increasing need to enhance Intelligence, Surveillance, Reconnaissance (ISR), and target acquisition capabilities in the defense sector. These capabilities are paramount for the growth of modern military operations and armored vehicles, which provide essential platforms for housing advanced ISR and target acquisition systems. The U.S. military is making substantial investments in the development of new armored vehicles equipped with state-of-the-art ISR and target acquisition technologies. Programs such as the Army's Next Generation Combat Vehicle (NGCV) and the U.S. Marine Corps Amphibious Combat Vehicle (ACV) are supporting the development of armored vehicles with a wide range of ISR and target acquisition systems, such as radar, electro-optical/infrared sensors, and electronic warfare systems.

U.S. Armored Vehicle Market Report Scope

U.S. Armored Vehicle Market Drivers:

• Military Modernization: The constant need to modernize military fleets drives substantial investments in armored vehicles. Upgrading existing fleets and incorporating cutting-edge technologies remain paramount to ensuring the nation's defense capabilities.
• Threat Landscape: Adapting to emerging threats on the global stage fuels the demand for technologically advanced and versatile armored vehicles. The ability to respond effectively to diverse and evolving threats remains a top priority.
• R&D and Innovation: Ongoing research and development initiatives within the defense industry contribute significantly to the innovation seen in armored vehicle design. The integration of artificial intelligence, advanced materials, and enhanced communication systems is at the forefront of these efforts.

System Insights

The engines segment held the significant revenue share of over 20% in 2023. The segment's growth can be attributed to the heightened demand for advanced, high-performance engines in armored vehicles, which can enhance their combat capabilities and maneuverability. Furthermore, environmental concerns are leading to a growing emphasis on the development and deployment of hybrid-electric and electric armored vehicles that offer better fuel efficiency and produce lower emissions.

Increased investments in research and development are also contributing to the development of new engine technologies for armored vehicles. For instance, in October 2023, Rolls-Royce Motor Cars Limited announced that its Aiken, South Carolina plant would manufacture engines for the U.S. Army's M10 Booker armored fighting vehicle program. The mtu 8V 199 PowerPack engine would power the M10 Booker, which is designed by General Dynamics Land Systems, delivering 800 horsepower and serving as a complete propulsion system for the vehicle, including the engine, transmission, and cooling system.

The navigation systems segment is estimated to grow significantly over the forecast period. Navigation systems play a pivotal role in a range of developments in U.S. armored vehicle, ensuring safe and efficient maneuverability in various environments, including those with GPS disruption or jamming. These systems are indispensable for armored vehicles as they allow them to navigate swiftly and accurately, which is a critical aspect of combat effectiveness. In addition, navigation systems provide improved situational awareness by offering real-time location and environmental data to operators, aiding in hazard avoidance and decision-making during combat.

Product Insights

The combat vehicles segment led the market in 2023, accounting for over 35% share of the revenue. The segment is anticipated to retain its dominance throughout the forecast period. The constantly evolving threat environment has made the use of these vehicles more critical in security and military operations. The scenario draws attention to the need to develop new technologies and capabilities, such as weapon systems, advanced armor, and electronic warfare capabilities. As an increasing number of market players focus on designing products that offer these capabilities, combat vehicles are becoming increasingly versatile, with the ability to perform various missions and tasks. This includes the development of vehicles that can operate in multiple environments, such as amphibious vehicles that can operate on land and in water.

The cash in transit vehicles segment is predicted to foresee significant growth in the forecast perioddriven by the vital role these vehicles play in the security and financial sectors. The continued popularity of cash transactions, despite the growth of digital payments, continues to necessitate the secure and efficient transportation of physical currency. Furthermore, the rising concerns over security and the need to protect valuable assets have prompted financial institutions and CIT service providers to invest in technologically advanced and fortified vehicles. These vehicles are equipped with state-of-the-art security systems, including advanced surveillance and tracking mechanisms, tamper-evident compartments, and communication systems, to ensure the safeguarding of cash and precious cargo against various threats, such as robbery and theft.

Vehicle Type Insights

The conventional armored vehicles segment led the market in 2023, accounting for over 96% share of the revenue. Conventional armored vehicles have proven their worth in a wide range of military and security applications owing to the stability and reliability offered. These vehicles are trusted for their battle-hardened design, robust construction, and proven track record in protecting military personnel and crucial assets in high-threat environments. Moreover, while there is a growing interest in technologically advanced armored vehicles, the conventional segment remains appealing due to its cost-effectiveness. Upgrading and modernizing existing fleets of conventional armored vehicles is often more budget-friendly than procuring entirely new, cutting-edge platforms. This makes them a suitable option for military forces and security agencies looking to maintain operational readiness without incurring excessive expenses.

The electric armored vehicles segment is expected to showcase significant growth over the forecast period. As concerns over climate change and air pollution continue to grow, there is an increasing demand for environmentally friendly solutions such as Electric Vehicles (EVs) across various industries, including the military and security sectors. Advances in battery technology have made it possible to develop armored electric vehicles with sufficient power and range to meet the needs of military and security applications. Over the long term, armored electric vehicles offer cost savings over their conventional counterparts due to lower operating costs and maintenance requirements. Electric armored vehicles also offer advantages such as quieter operation and immediate torque, making them increasingly attractive for security and military applications.

Mobility Insights

The wheeled segment led the market in 2023, accounting for over 82% of revenue. Wheeled armored vehicles offer superior mobility compared to tracked vehicles, particularly on highways and roads, making them well-suited for swift deployment in a wide range of environments, including urban areas. These vehicles are known for their relatively lower maintenance requirements, resulting in reduced long-term operating costs. With ongoing advancements in technology and design, wheeled armored vehicles are expected to become increasingly advanced and capable, thereby becoming a more critical asset in military and security operations across various landscapes.

The tracked segment will witness significant growth in the coming years. Tracked vehicles are typically used for military or security applications such as armored reconnaissance, combat operations, and logistical support. These vehicles are often developed to offer robust heavy armor protection, which makes them particularly well-suited for high-risk conditions and combat operations. Their tracked configuration offers a low center of gravity, enhancing stability and diminishing the risk of tipping over, a crucial advantage in challenging terrains. Moreover, the heavy armor plating on tracked vehicles serves as a formidable shield, safeguarding both the vehicle and its occupants against threats such as small arms fire, shrapnel, and other hazards commonly encountered on the battlefield.

Mode of Operation Insights

The manned armored vehicles segment led the market in 2023, accounting for over 86% of the revenue. The high share can be attributed to their effectiveness in protecting the occupants against a wide range of threats, including small arms fire and Improvised Explosive Devices (IEDs), which make them essential for personnel safety in high-risk environments. Armored vehicle manufacturers provide customization options, making them ideal for military forces, government agencies, and private security firms, thus driving segment growth. These vehicles are designed to transport personnel safely in high-threat environments. They are equipped to handle missions that span reconnaissance, troop transport, fire support, and command and control, making them essential assets in today's dynamic security landscape.

The unmanned armored vehicles segment will witness significant growth in the coming years. Unmanned armored vehicles, also known as Unmanned Ground Vehicles (UGVs), are a type of armored vehicle that can operate without a human operator on board. These vehicles are remotely controlled or can operate autonomously. They are equipped with various sensors and other advanced technology that allow them to perform various tasks, including logistics, surveillance, and combat operations. Unmanned armored vehicles are designed to operate in a wide range of environments and conditions and can be customized to meet specific mission requirements. They offer several advantages, including reduced risk to personnel, increased efficiency & cost savings, and improved performance & capabilities.

Point of Sale Insights

The OEM segment led the market in 2023, accounting for over 83% of the revenue. The growth can be attributed to OEMs serving as the primary manufacturers and suppliers of armored vehicles to governments and militaries worldwide. Their product portfolios include a diverse range of armored vehicles, encompassing main battle tanks, infantry fighting vehicles, armored personnel carriers, and mine-resistant ambush-protected vehicles. With the increasing demand for armored vehicles, OEMs are capitalizing on opportunities to expand their offerings and cater to clients in the military, security, and law enforcement sectors. These companies are actively investing in cutting-edge technologies and capabilities to develop more advanced and effective armored vehicles, ensuring they remain at the forefront of the market's growth and innovation.

The retrofit segment will witness significant growth in the coming years. This growth is driven by the aging armored vehicle fleet within the U.S. military, where upgrading and retrofitting these vehicles proves to be a more cost-effective option compared to procuring new ones. In addition, continuous technological advancements, such as active protection systems, enhanced situational awareness systems, and new weaponry, provide opportunities to improve the performance and survivability of existing armored vehicles. Furthermore, the evolving threat landscape necessitates constant upgrades to armored vehicles to ensure their effectiveness and adaptability to emerging challenges and risks, making the retrofit segment a key driver of market expansion.

Key Companies & Market Share Insights

The major players are aiming to expand their market presence, seeking opportunities in both domestic and international markets. They establish partnerships, joint ventures, or subsidiaries in untapped regional markets to serve local customers with improved channel reach and enhance their market position. They continue to invest heavily in innovation, which enables them to stay at the forefront of the market. For instance, in May 2023, the Richmond Police Department introduced its new armored vehicle. This new vehicle, the Pit-Bull VX Special Edition, was created by Alpine Armoring, Inc., a company headquartered in Chantilly, Virginia. The acquisition of this vehicle focused on enhancing the safety of both police officers and innocent members of the community during emergency responses to various tragic and unfortunate events occurring across THE COUNTRY.

Key U.S. Armored Vehicles Companies:

• BAE Systems
• BMW AG
• Mercedes-Benz Group AG
• Elbit Systems Ltd.
• Ford Motor Company
• General Dynamics Corporation
• INKAS Armored Vehicle Manufacturing
• International Armored Group
• Iveco Group N. V
• Krauss-Maffei Wegmann GmbH & Co. (KMW)
• Lenco Industries, Inc.
• Lockheed Martin Corporation
• Navistar, Inc.
• Oshkosh Defense, LLC
• Rheinmetall AG
• STAT, Inc.
• Textron, Inc.
• Thales Group.

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the U.S. Armored Vehicle market.

By Product 

• Combat Vehicles
• Armored Personnel Carrier (APC)
• Infantry Fighting Vehicles (IFV)
• Light Protected Vehicles (LPV)
• Main Battle Tanks (MBT)
• Mine-resistant Ambush Protected (MRAP)
• Tactical Vehicle
• Others
• Combat Support Vehicles
• Armored Supply Trucks
• Armored Command & Control Vehicles
• Repair & Recovery Vehicles
• Unmanned Armored Ground Vehicles
• Cash in Transit Vehicles
• Law Enforcement Vehicles
• Others

By Vehicle Type 

• Electric Armored Vehicles
• Conventional Armored Vehicles

By Mobility 

• Wheeled
• Tracked

By Mode of Operation 

• Manned Armored Vehicles
• Unmanned Armored Vehicles

By Point of Sale 

• OEM
• Retrofit

By System 

• Engines
• Drive Systems
• Ballistic Armor
• Fire Control Systems (FCS)
• Navigation Systems
• Others