Global Armored Vehicle Market Report, published by Variant Market Research, forecast that the global market is expected to reach $39 billion by 2024 from $26 billion in 2016; growing at a CAGR of 4.7% from 2016 to 2024. By geography, Asia Pacific and RoW are expected to grow at a CAGR of 5.3% and 5.1%, respectively, during the forecast period.
The global armored vehicle market is majorly driven by high internal and external security threats coupled with increased violence in countries such as Syria, Iraq and other regions in the world. Additionally, rise in defense expenditure especially in emerging economies and increase in number of rental & leasing of armored cars by civilians would boost the growth of the market. Though, lack of regulatory standards and decreasing defense budgets in developed economies may hamper the growth of the market. Light weight armored vehicles and increasing demand from commercial sector would provide market opportunities during the forecast period.
The global armored vehicle market has been bifurcated on the basis of type, technology, application and geography. Type segment includes armored amphibious vehicles, light protected vehicles, main battle tanks, armored personnel carriers, infantry fighting vehicles, mine-resistant ambush protected and others. Armored personal carriers dominated the type segment of the market and accounted for about 21% in the year 2016. Moreover, the market by technology is further categorized into active protection systems, inter operable communication, modular ballistic armor, electric armor, situational awareness, active mine protection and vehicle information integration. By application, the market is segmented as military, law enforcement and commercial. In 2016, military accounted for the highest market share, whereas commercial segment is likely to dominate the market in the application segment with highest CAGR during the forecast period 2016-2024, owing to increasing popularity of armored vehicles among VIPs and celebrities and availability of armored cars on rentals.
Geographically, the global armored vehicle market has been segmented into North America, Europe, Asia-Pacific and RoW. In 2016, North America accounted for the largest market share of 36% owing to high adoption of latest technologies and modernization in defense force, followed by Europe accounting for about 28%. However, Asia Pacific is likely to dominate the market with fastest CAGR during the forecast period; owing to the high investment on modernization of military and increasing border conflicts.
Market players have used various strategies to increase their market share and global presence. With the ever-increasing demand, manufacturers should closely monitor and grow their operations in the new markets. The key players in the armored vehicle market include International Armored Group, Lockheed Martin, Thales Group, General Dynamics Corporation, BAE Systems, Denel Land Systems, Oshkosh Defense, Rheinmetall Landsysteme GmbH, Elbit Systems Ltd. and INKAS Armored Vehicle Manufacturing, among others.