Armored Vehicles Market Size, Share & Trends

Based on mobility, the wheeled segment is projected to account for the largest market share during the forecast period.

Based on mobility, wheeled armored vehicles are projected to hold the largest market share during the forecast period due to their flexibility, affordability, and growing tactical value in both military and internal security operations. Ranging from 4x4 MRAPs to 8x8 infantry combat vehicles, these provide greater mobility on highways and semi-urban environments, enabling fast strategic deployment as well as lower maintenance compared to tracked platforms.

Modern armies are turning increasingly to wheeled platforms for peacekeeping, reconnaissance, quick response, and border patrol missions, especially in theater areas of low- to medium-intensity. They weigh less, facilitating airlift and amphibious transportability, a big plus in expeditionary forces and multinational operations. Several wheeled platforms are also equipped with advanced armor kits, remote weapon stations, and digital command systems, closing the performance gap with tracked platforms.

Several countries are investing in new wheeled vehicle programs—such as the Boxer 8x8 (UK and Germany), Stryker (US), Lazar (Serbia), and Patria AMV (Finland)—driven by the need for fast mobility and modularity in configuration. The urban and hybrid warfare phenomenon is similarly well-fitted to wheeled systems with their operational flexibility and simplicity of operation in crowded terrain.

Based on the platform, the combat vehicles segment is projected to lead the market during the forecast period.

Based platform, the combat vehicles segment is expected to hold the largest market share as they are increasingly being used in conventional warfare as well as hybrid warfare missions. With the militaries adopting more dynamic and multi-role ground forces, platforms are needed that can provide support not only for direct fire but also for combined operations with unmanned systems, drones, and networked battlefield resources. Combat vehicles provide the ability to traverse diverse terrain—urban, desert, and mountain—and can be rapidly adapted for mission requirements, ranging from troop assault to reconnaissance and fire support.

Increased defense expenditures amid rising threats have further spurred plans for procurement, especially in areas facing border tensions or regional power rivalry. Defense strategy is also shifting to high-readiness forces with quick deployability, raising the importance of state-of-the-art, mobile, and survivable combat vehicles. Unlike transport or support-oriented armored vehicles, combat vehicles are being targeted by the majority of research and development spending, as well as new programs aimed at improving lethality, crew survivability, and integration with electronic warfare systems. Such platforms are also a key area of multinational interoperability objectives, particularly with NATO and allied forces.

Based on mode of operation, the manned armored vehicles segment is projected to dominate the market during the forecast period.

Manned armored vehicles are projected to dominate the market during the forecast period due to their operational maturity, demonstrated battlefield performance, and ongoing relevance in high-intensity and combined-arms warfare. Even with the advances in unmanned systems, manned platforms like main battle tanks, infantry fighting vehicles, and armored personnel carriers are still the pillars of contemporary land forces. These vehicles offer the prime advantage of real-time human judgment, specifically in rapidly evolving combat situations where decision-making in situations encompassing complex rules of engagement is of prime importance.

Military forces globally continue to concentrate on manned platform acquisition and modernization, outfitting them with advanced capabilities such as active protection systems, digital battle management, greater sensors, and precision munitions. These modernizations greatly enhance survivability and capabilities, extending the life of existing fleets and reducing the need for total replacement of platforms.

Platforms like the US Army's M1A2 SEPv3, the UK Challenger 3, Germany's Puma, and South Korea's Redback IFV demonstrate ongoing investment in manned combat vehicles. Additionally, few countries possess the infrastructure, doctrine, and belief in autonomy to be entirely reliant on unmanned systems, so manned systems are more likely in the near term. These vehicles offer the most important advantage of live human judgment, especially in rapidly evolving combat environments where decision-making in situations involving complex rules of engagement is necessary.