Combat Vehicles Market Insights: A Comprehensive Analysis

ByMukul
Combat Vehicles Market

The Armored Fighting Vehicles Market, with a projected growth from USD 24.05 billion in 2023 to USD 30.68 billion by 2028, demonstrates resilience despite the challenges posed by the COVID-19 pandemic. This analysis delves into key trends, market players, and growth drivers in the combat vehicles sector.

Industry Overview

  • Market Fragmentation

The market has shifted from being highly consolidated to moderately fragmented. Local players in the Asia-Pacific and Middle Eastern regions are entering the market, contributing to increased competitiveness.

  • Key Players in the Market

Major players like Rheinmetall AG, General Dynamics Corporation, Nexter Group, BAE Systems plc, and Oshkosh Corporation play pivotal roles. Local players in the Middle East, including Saudi Arabian Military Industries (SAMI) and STREIT Group, are expanding through strategic partnerships.

Market Size and Growth Projection

The market’s robustness is evident in its projected CAGR of 4.99% during 2023-2028. Despite the global economic impact of the pandemic, procurement projects remained on track, resulting in a steady increase in sales and revenues.

Global Trends in Armored Fighting Vehicles

  • Infantry Fighting Vehicle (IFV) Dominance

The IFV segment is poised to dominate the market, driven by increased procurement and rising defense expenditure globally. IFVs play a crucial role in carrying mechanized infantry units into battle, offering direct-fire support. Noteworthy projects, such as the US Army’s ground combat vehicles and Australia’s Project LAND 400 Phase 3, underscore the significance of IFVs.

  • Asia-Pacific Growth Surge

The Asia-Pacific region is anticipated to witness the highest growth, fueled by escalating military spending. Countries like China, India, Australia, South Korea, Singapore, and Japan are investing significantly to replace aging fleets. Initiatives like Japan’s plan to replace light armored vehicles and India’s acceptance of necessity for Futuristic Infantry Combat Vehicles contribute to regional growth.

Leading Market Players

  • Rheinmetall AG A leading player with a focus on next-gen armored vehicles market  with autonomous capabilities and advanced weaponry.
  • General Dynamics Corporation Known for remanufactured and upgraded versions of existing vehicles, contributing to the US Army’s ground combat vehicles.
  • Nexter Group A key player in the market, emphasizing efficiency, lethality, and surveillance capabilities in new-generation armored vehicles.
  • BAE Systems plc A major contributor to the market, providing solutions like the Stryker armored personnel carrier.
  • Oshkosh Corporation Acknowledged for advancements in armored vehicles, enhancing situational awareness and survivability.

Recent Developments and Contracts

  • March 2023: Australian and German officials signed an agreement for new combat reconnaissance vehicles.
  • December 2022: Japan selected Patria-built armored modular vehicles to replace wheeled armored personnel carriers.

Armored Fighting Vehicles Market News

Explore the latest agreements and developments shaping the armored fighting vehicles market.

Conclusion

In conclusion, the Armored Fighting Vehicles Market’s trajectory remains positive, with key trends such as IFV dominance and the Asia-Pacific growth surge driving substantial growth. The shift from a consolidated market to a moderately fragmented one introduces healthy competition, and collaborations further enhance the market’s dynamics.

FAQs

  1. What factors contribute to the dominance of Infantry Fighting Vehicles (IFVs)?

IFVs dominate due to their role in carrying mechanized infantry units into battle, providing direct-fire support, and their adaptability with modular add-ons for enhanced protection.

  1. Why is the Asia-Pacific region expected to witness the highest growth?

The region’s growth is attributed to escalating military spending, geopolitical tensions, and initiatives by countries like China, India, and Japan to replace aging armored vehicle fleets.

  1. Who are the major players in the Armored Fighting Vehicles Market?

Key players include Rheinmetall AG, General Dynamics Corporation, Nexter Group, BAE Systems plc, and Oshkosh Corporation, contributing to advancements in next-gen armored vehicles.

  1. How has the market dynamics changed with the entry of local players?

The market has shifted from being highly consolidated to moderately fragmented, with local players in regions like the Middle East expanding through strategic partnerships.

  1. What recent developments highlight the market’s resilience?

Recent agreements, such as the Australian-German collaboration for combat reconnaissance vehicles and Japan’s selection of Patria-built armored modular vehicles, showcase the market’s resilience and adaptability.