Armored Vehicle Market Trends

Growth Drivers

• Growing Threat of Terrorism - It is estimated that over 20,000 people died owing to the terrorist-related activities in 2019.
• With the increasing audacity of terrorist groups, the use of armored vehicles is bound to increase and is expected to boost the armored vehicles market in the forecasted period. When a country owns a huge number of armored vehicles, it shows the power owned by the country to the world and escalates its reputation on a global scale.
• Rising Spending on Global Military Across the Globe – There has been rising spending on military through installation of various equipment in armored vehicles, such as handheld imagers, that is further expected to drive the market’s growth over the forecast period. Furthermore, the high military spending across the globe in relation to different countries in order to provide more security to the citizens of those countries.  As per the estimated data, 62% of the world's military spending was made by the top 5 defense spenders—the United States, China, India, Russia, and the United Kingdom. The United States allotted USD 780 billion for the defense industry in 2020, a 4% increase from 2019.
• Increment in Organized and Riot Crime – There has been an increase in the riot crime cases across the globe, and it is anticipated to boost the growth of the global armored vehicle market. For instance, it was observed that in India, 51,500 cases of riots were registered in 2020, an increase of 5,000 cases from 2019.
• Growing Advancement and Advent of Unmanned Vehicles - According to data, over the course of the missions, more than 130 US Air Force, Army, Navy, and Marine Corps EOD soldiers were killed in Iraq.
• Increased Use in Private Security – According to statistics, over 1 million people were employed in private security in the U.S.

Challenges

• High Costs of Acquisition and Maintenance – The most of the estimated acquisition costs are spent on remanufactured and upgraded versions of current vehicles, and it is expected to restrain the market’s growth. For instance, it is projected that the total acquisition costs for the Army’s ground combat vehicles in the United States will reach nearly 5 billion per year till 2050.
• Delays in Production and Delivery
• Geopolitical Restraints and Factors