Armored Vehicle Market Growth Drivers and Challenges:
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
Armored Vehicle Market Size and Forecast:
|
Base Year |
2025 |
|
Forecast Period |
2026-2035 |
|
CAGR |
5.1% |
|
Base Year Market Size (2025) |
USD 36.43 billion |
|
Forecast Year Market Size (2035) |
USD 59.91 billion |
|
Regional Scope |
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Browse key industry insights with market data tables & charts from the report:
Frequently Asked Questions (FAQ)
In the year 2026, the industry size of armored vehicle is estimated at USD 38.1 billion.
The global armored vehicle market size was over USD 36.43 billion in 2025 and is anticipated to witness a CAGR of over 5.1%, crossing USD 59.91 billion revenue by 2035.
North America armored vehicle market holds the largest share by 2035, driven by high U.S. defense spending, modernization of fighting vehicles, and advanced tank capabilities.
Key players in the market include General Dynamics Corporation, BAE Systems plc, Oshkosh Defense, LLC, Rheinmetall Group, Krauss-Maffei Wegmann GmbH & Co. KG, Hyundai Rotem Co., Ltd., Nexter group KNDS, Craft Machine Inc., Lenco Industries, Inc., Lockheed Martin Corporation.
