Armored Vehicle Market Summary

The global armored vehicle market size was estimated at USD 32.41 billion in 2024 and is projected to reach USD 44.56 billion by 2030, growing at a CAGR of 5.4% from 2025 to 2030. Increasing geopolitical tensions and ongoing conflicts across various regions lead countries to allocate substantial budgets to defense, focusing on upgrading and expanding armored vehicle fleets to enhance border security and strengthen military capabilities. Governments are prioritizing the modernization of land forces to respond effectively to rising security challenges and ensure preparedness for both conventional and unconventional threats.

The rise in terrorism, insurgency, and asymmetric warfare further drives demand for armored vehicles that provide protection in hostile environments. These threats require vehicles equipped with advanced armor, mobility, and defensive systems to safeguard personnel during high-risk missions. In addition, technological advancements such as composite armors, active protection systems, and improved weaponry contribute to market growth by enhancing vehicle survivability and operational effectiveness, allowing military forces to operate more efficiently in diverse terrains and combat conditions.

The market growth is further supported by evolving defense strategies and emerging technological trends. Increasing investments in urban warfare capabilities, counter-terrorism operations, and peacekeeping missions sustain demand for versatile, multi-role armored vehicles capable of performing reconnaissance, personnel transport, and battlefield support. Innovations in modular armor, lighter materials, autonomous and unmanned vehicle features, and hybrid propulsion systems are anticipated to expand the market by improving crew safety, vehicle performance, and operational flexibility. The growing emphasis on cybersecurity and data protection in military vehicles also shapes future market dynamics as modern platforms integrate advanced electronics and communication systems.

Key Market Trends & Insights

• Asia Pacific dominated with a revenue share of 33.2% in 2024, driven by rising defense budgets, modernization programs, and regional security concerns.
• Based on product, combat vehicles dominated the market with the highest revenue share of over 63% in 2024, reflecting their critical role in frontline missions and strategic military operations.
• Based on type, the conventional armored vehicles segment witnessed the highest market share in 2024 due to their broad deployment across global defense forces.
• Based on mode of operation, the manned armored vehicles segment held the largest revenue share in 2024, supported by the continued reliance on crew-controlled platforms for tactical missions.
• Based on point of sale, the OEM segment held the largest revenue share in 2024, reflecting strong demand for newly manufactured, technologically upgraded armored systems.

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Market Size & Forecast

• 2024 Market Size: USD 32.41 Billion
• 2030 Projected Market Size: USD 44.56 Billion
• CAGR (2025-2030): 5.4%
• Asia Pacific: Largest market in 2024

Key Companies & Market Share Insights

Some key players in the armored vehicle industry, such as BAE Systems, BMW AG, and Daimler AG, are actively working to expand their customer base and gain a competitive advantage.

• BAE Systems is a defense company specializing in designing, manufacturing, and supporting armored combat vehicles, including tracked, wheeled, and amphibious platforms. The U.S. Army's Armored Multi-Purpose Vehicle (AMPV) program replaces legacy vehicles like the M113. It complements the Bradley Fighting Vehicle, offering enhanced protection, mobility, and versatility across multiple mission roles. The AMPV family includes variants such as general purpose, mortar carrier, medical evacuation, and command vehicles, all designed to operate seamlessly within armored brigade combat teams.
• Daimler AG develops and produces military commercial vehicles tailored for logistics and defense applications. Its portfolio includes rugged off-road vehicles like the Unimog and Zetros, designed to operate in challenging terrains with options for protected cabs and various configurations. Daimler emphasizes expanding its defense sector presence by broadening product offerings, enhancing sales and service networks, and forming strategic partnerships to meet diverse military requirements.

Key Players

• AE Systems
• BMW AG
• Daimler AG (Mercedes Benz)
• Elbit Systems
• Ford Motor Company
• General Dynamics Corporation
• INKAS Armored Vehicle OEM
• International Armored Group
• IVECO
• Krauss-Maffei Wegmann GmbH & Co. (KMW)
• Lenco Industries, Inc.
• Lockheed Martin Corporation
• Navistar, Inc.
• Oshkosh Defense, LLC
• Rheinmetall AG
• STAT, Inc.
• Textron, Inc.
• Thales Group.

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Conclusion

The global armored vehicle market is positioned for continued growth as nations strengthen defense capabilities amid rising geopolitical tensions and evolving security threats. Increasing investments in modernization programs, counter-terrorism efforts, and border protection are driving the adoption of advanced armored platforms worldwide. With Asia Pacific leading the market and technologies such as active protection systems, hybrid propulsion, and autonomous features gaining momentum, the industry is rapidly advancing. The dominance of combat vehicles, conventional platforms, and OEM sales underscores the importance of robust, high-performance systems. As military operations become more technology-driven, armored vehicles will remain essential for ensuring mobility, protection, and strategic superiority.