27th March 2020 – The global
armored vehicle market
is projected to reach USD 26.79 billion by 2022. Armored vehicles are
protected by very strong armor and generally armed with robust weapons
which combine defensive, tactical offensive and operation mobility
capabilities which can be tracked easily. The key drivers for global
armor vehicle market are rapid demand of armored vehicles in developing
nation, viable conflicts in global scenario, preeminent importance given
to homeland securities and growing conflicts within several nations.
This market was at its peak during 2007-2012 when US government was
battling terrorism against Iraq and Afghanistan. The top-notch priority
at this point of time is given to the soldiers guarding our country and
to protect them from the severe mine attacks, special kind of vehicles
were introduced such as Mine Resistant Ambush Protected Vehicles
(MRAPs). Till 2012, over 42000 vehicles were produced.
Defense sector is contributing towards
the major market share in this industry. Two regions i.e. Europe and US
contributes majorly towards the armored vehicle market as they are
developed nations. The key players in the global armored vehicle market
are Oshkosh Defense, BAE Systems, Rheinmetall and Navistar, and most of
them are from Europe and US. The major challenge for this industry is
that it is majorly dependent on the defense sector. The demand for
armored vehicle is increasing in Asia Pacific, Africa and Middle East
region due to the continuous tension with their neighboring countries,
recent economic booms and internal threat from rebels in this region. In
April 2015, BAE Systems enforced Active Damping system upgrade to CV90
combat automobile which expanded its agility by condensing the
automobile’s pitch acceleration by approximately 40.0 %. In December
2014, the company also declared that U.S. army has awarded armored
multi-purpose vehicle contract of worth up to USD 1.2 billion.
The armor vehicle from post-world war
till date are tanks, flame tank, infantry tank, cruiser tank, armored
car, aerosani, scout car, reconnaissance vehicle, mortrar carrier,
multiple rocket launcher, internal security vehicle, improvised fighting
vehicle, troop carriers, armored personnel carrier, infantry fighting
vehicle, infantry mobility vehicle, main battle tank, tankette,
super-heavy tank, air defense vehicles, self-propelled artillery,
amphibious vehicle, armoured engineering vehicle, assault breacher
vehicle, assault gun, tank destroyer and armoured train.
The key product for this market is
expected to be Main Battle Tanks (MBT) which is accounting for over 25%
of the overall revenue share in 2014. Ascending concern to safeguard
military personnel is foreseen to drive unmanned ground military carrier
demand over the forecast period.
The global armored vehicle market is
expected to increase continuously as it is not only concentrated towards
the defense sector but also in the commercial sector. The MRAP market
has reached saturation in U.S. region, but there is a substantial amount
of growth in demand in the Asia Pacific and Middle East region, as the
investment in defense in these regions increased significantly in the
recent times. Furthermore, these countries are taking precautionary
measures to hinder various threats from cross border terrorists,
civilian unrest due to contrast in ideas and rebellious groups.
North America armored vehicle market is
expected to show stagnant growth over the forecast period owing to
finite defense budget. The U.S. is expected to hold over 80% of the
overall North American revenue share in 2014. Armored vehicle market of
Asia Pacific is expected to show momentous growth owing to government
initiative to enhance its military power to counter internal or external
terrorism and this region accounted for over 25% of the global share in
2014. MEA is expected to witness boost in demand owing to terrorism
activity and rising dissension in Iraq.
The acquisition of armored vehicle for
homeland security is also expected to increase in future. “The Beast” is
the armored vehicle used by the president of America weighs over 10,000
lbs due to the thickness of the material used in it can withstand a
missile attack and even has the capability to protect the occupants
against any chemical weapons. Growing need to protect the military
personnel’s from mine attacks is expected to drive mine-resistant ambush
protected automobile requirement over the next seven years. Tactical
military carriers are constructed primarily for use by the military
personnel’s in the field in direct contact with combat. Armored
Personnel Carrier (APC) are initially used for safer deployment of
infantry to battle fields or high threat range and it can be
distinguished from Infantry Fighting Vehicle (IFV) based on the weapons
it bears.
From the modernization programs, ample
amount of investment is expected in the armored vehicle market. Although
there is a significant reduction in the investment in defense sector by
the US government and the western countries, countries like China has
drastically increased its expenditure in defense sector which has caused
relentless turbulence among Asian countries.
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