Combat Vehicles Market to Reach $32 Billion by 2029, Trends And Regional Analysis

The Combat vehicles market is estimated to be valued at USD 25.25 billion in 2024, with projections to reach USD 32.21 billion by 2029, growing at a CAGR of 4.99%. Despite the challenges posed by the COVID-19 pandemic, the market has remained resilient, driven by ongoing procurement projects and increasing defense budgets.

Combat Vehicles Industry Trends

• Dominance of Infantry Fighting Vehicles (IFVs)

The IFV segment is expected to dominate the Combat Vehicles Industry, driven by increasing procurement and rising defense expenditure. These vehicles play a crucial role in carrying mechanized infantry units into battle and providing direct-fire support. The US Army and Australian Army, among others, are investing in large-scale procurements of IFVs.

• Large-Scale Procurements

Countries like India, China, and Australia are significantly investing in new armored vehicles to replace aging fleets. The Indian Army, for example, is procuring Futuristic Infantry Combat Vehicles, while Australia plans to acquire 450 tracked IFVs under Project LAND 400 Phase 3. Such procurements are expected to propel market growth.

Regional Analysis In Combat Vehicles Sector

Asia-Pacific Region

The Asia-Pacific region is witnessing robust growth in military spending, driven by increasing geopolitical tensions. Countries like China, India, and Japan are investing in new armored vehicles, with a focus on developing local manufacturing capabilities. Companies like NORINCO in China are expanding production to meet regional demand.

Middle East and Africa

In the Middle East and Africa, local players are emerging as significant competitors in the Combat Vehicles Sector. Companies like Saudi Arabian Military Industries (SAMI) and STREIT Group are signing long-term contracts to supply vehicles to regional armed forces. International players are also focusing on partnerships to enhance their presence in these regions.

Combat Vehicles Market Major Players

Combat Vehicles Sector

combat vehicles market major players include Rheinmetall-

• General Dynamics Corporation (US): A leading aerospace and defense company, General Dynamics is well-known for its Abrams main battle tank, the M1 Bradley Fighting Vehicle, and the Stryker armored personnel carrier.

• Oshkosh Corporation (US): Another major US defense contractor, Oshkosh is a specialist in producing tactical trucks and military vehicles. They are known for the Joint Light Tactical Vehicle (JLTV) and the Mine-Resistant Ambush Protected (MRAP) vehicle.

• BAE Systems (UK): A British multinational defense, aerospace and security company, BAE Systems is a global leader in combat vehicles. They produce the Challenger 2 main battle tank, the Warrior infantry fighting vehicle, and the Amphibious Combat Vehicle (ACV).

• Rheinmetall AG (Germany): A German multinational company that specializes in armaments, automotive components, and defense equipment, Rheinmetall is a key player in the European combat vehicles market. They are known for the Leopard 2 main battle tank and the Puma infantry fighting vehicle.

• Nexter Group (France): A French state-owned company specializing in land defense systems and ammunition, Nexter Group is a leading manufacturer of combat vehicles in Europe. They are known for the Leclerc main battle tank and the VBCI infantry fighting vehicle.

These companies are investing in research and development to develop innovative solutions to meet evolving military requirements.

Recent Market News

• In March 2023: Australian and German officials signed an agreement to cooperate on the procurement of new combat reconnaissance vehicles.

• In December 2022: Japan selected Patria-built armored modular vehicles to replace existing wheeled armored personnel carriers.

Read Also:- Combat Vehicles Market Insights: A Comprehensive Analysis

Conclusion

The combat vehicles market presents significant opportunities for both established players and new entrants. With increasing defense budgets, geopolitical tensions, and technological advancements, the market is poised for continued growth. However, stakeholders must stay abreast of evolving trends and challenges to capitalize on these opportunities.

FAQs

Q.1 What is the current size of the combat vehicles market?

Ans. The combat vehicles market is estimated to be valued at USD 25.25 billion in 2024, with projections to reach USD 32.21 billion by 2029, growing at a CAGR of 4.99%.

Q.2 Which segment is expected to dominate the market in the coming years?

Ans. The Infantry Fighting Vehicle (IFV) segment is expected to dominate the market due to increasing procurement and rising defense expenditure.

Q.3 Which regions are witnessing the highest growth in military spending?

Ans. The Asia-Pacific region, including countries like China, India, and Japan, is witnessing robust growth in military spending due to increasing geopolitical tensions.

Q.4 How are local players impacting the competitive landscape?

Ans. Local players are emerging as significant competitors in the combat vehicles market, especially in regions like the Middle East and Africa. They are signing long-term contracts and focusing on indigenous manufacturing to meet regional demand.

Q.5 What are the key challenges facing the combat vehicles market?

Ans. Some key challenges facing the combat vehicles market include supply chain disruptions, geopolitical tensions, and the need for technological advancements to meet evolving military requirements.