Global Information Inc. would like to present a new market research report, "The Global Armored Vehicles MRO Market 2012-2022" by ICD Research.
Defense budget cuts and the global economic crisis not expected to affect growth of the global armored vehicles MRO market
In 2012, the global armored vehicles MRO market valued US$4.1 billion and is expected to value US$7.1 billion by 2022, representing a CAGR of 5.68% during the forecast period. The demand for armored vehicles MRO services is anticipated to be driven by a worldwide ageing of military equipment, technological innovations in the industry, internal and external security threats, territorial disputes, and modernization initiatives undertaken by armed forces across the world. Cumulatively, the global market is expected to value US$57.6 billion during the forecast period and is expected to be dominated by North America, followed by Asia Pacific and Europe. Despite the economic crisis in Europe, Europes share of the global market is projected to increase during the forecast period, albeit marginally, due to the scheduled deployment of various modernization programs that had been initiated in previous years.
The global APC MRO market is expected to witness robust spending over the forecast period, primarily due to the sheer spending on the acquisition and development of various types of APCs around the world. APCs are in high demand as they can be used to perform multiple roles, such as troop transport, equipment transport, and attack. The majority of this expenditure is expected to be spent on maintenance, followed by upgrade/overhaul of existing fleet and repair services. Furthermore, countries have now realized the necessity of saving costs, and are cancelling a few of their APC acquisitions, and instead overhauling their existing fleet. The global defense industry is therefore investing significantly in R&D in an effort to increase its armored vehicles MRO capabilities. This segment is also seeing many companies, such as Industrial Vehicles Corporation (IVECO), that previously offered only commercial vehicles MRO work, leveraging their skills to branch out into military vehicles MRO and tap into a burgeoning market.
The global economic slowdown has reduced the defense budgets of most leading spenders in the world, including the US, France, Germany, and the UK. These countries have cutback spending on various defense sectors, such as space, aircraft, and military vehicles. However, these budget cuts have propelled the armored vehicles MRO industry as countries now prefer to maintain, repair and upgrade their existing fleets rather than buy new equipment. High growth markets, such as India and China, have been formulating continuous programs to enhance their armored vehicles MRO sector, and the US too, is focusing on the maintenance of its existing fleet. This trend is also evident from the fact that as small a market as Africa is expected to show positive growth during the forecast period.