The global armoured vehicles market, currently worth $19. 5 billion, is set to grow to $27.5 billion with a compound annual growth rate (CAGR) of 2.76%, according to GlobalData, a worldwide data and analytics company.
In GlobalData’s report, “The Global Armoured Vehicle Market 2019-2029” it is predicted that the demand for armoured vehicles is expected to be primarily driven by the need for modernisation and new force structuring with the capability to address any threat in the entire spectrum of warfare.
Land Systems Market Lead at GlobalData, Stelios Kanavakis, stated, “The wide range of threats that military forces face worldwide, which include military and homeland security risks, will increase the demand for new or used armoured vehicle platforms to tackle threats in a cost-effective and operationally viable way, with an increased number of planners putting emphasis on wheeled vehicles as opposed to tracked ones.”
The global armoured vehicle market includes nine types of armoured vehicles (AVs), with Infantry Fighting Vehicles (IFV) and Heavy Armament Combat Vehicles (HACV) currently possessing a 21.6% share of sales each, followed by Light Multirole Vehicles (LMV) and Main Battle Tanks with a 19.7% and a 14.6% share.
GlobalData states that in addition to modernisation and new force structuring being the main drivers behind the global armoured vehicle market growth, cross border disputes as well as the initiative to curb terrorist activities and eradicate insurgent groups is expected to drive the demand for armoured vehicles over the next decade.
As well as the major defence spenders in every region, GlobalData states that smaller countries are also implementing new acquisition plans or programmes for the development of improved armoured vehicles.
Europe is predicted to lead the armoured vehicles market over the 2019-2029 period with a total value of $79.3 billion (31.7% share) of the worldwide market, followed by the Asia-Pacific region with an expenditure of $65.6 billion and 26.2% share of the global market.
GlobalData states that the Middle East will grow with a CAGR of 14.8% ($37 billion), Africa with a CAGR of 5.5% ($13.8 billion) and Latin America with 2.9% ($7.3 billion).
Kanavakis added by saying, “The transition of many large military forces towards lighter, expeditionary forces has led them to acquire wheeled vehicles that can be mobilised within a shorter period of time, and also offer improved protection and increased firepower capabilities.”