This publication has been discontinued on November 13, 2012.
Introduction
Description
Product Synopsis
This report is the result of ICD Research / Strategic Defence Intelligence's extensive market and company research covering the global armored vehicles MRO industry. It provides detailed analysis of both historic and forecast global industry values, factors influencing demand, the challenges faced by industry participants, analysis of the leading companies in the industry, and key news.
Introduction and Landscape
Why was the report written?
"The Global Armored Vehicles MRO Market 2012-2022" offers the reader detailed analysis of the global armored vehicle MRO market over the next ten years, alongside potential market opportunities to enter the industry, using detailed market size forecasts.
What is the current market landscape and what is changing?
The demand for armored vehicles MRO services is anticipated to be driven by ageing military equipment globally, technological innovations in the industry, internal and external security threats, territorial disputes and modernization initiatives undertaken by armed forces across the world. The expenditure in this segment during the forecast period is expected to be dominated by North America, followed by Asia Pacific and Europe. Despite the economic crisis in Europe, Europe's share of the global market is projected to increase during the forecast period, albeit marginally due to the scheduled deployment of various modernization programs which had been initiated in previous years
What are the key drivers behind recent market changes?
Technological innovations in the field of armored vehicles MRO have garnered significant interest over the last decade. With global defense budgets shrinking or glowing at a marginal pace, countries are now looking to maintain, repair and upgrade their defense equipment instead of developing new programs. Moreover, the recent nuclear proliferation being carried out by Iran has heightened military tensions between Iran, the US and Israel. The possible conflict has resulted in the US spending heavily on getting its existing military equipment ready for battle, which in turn is driving the armored vehicles MRO industry.
What makes this report unique and essential to read?
"The Global Armored Vehicle MRO Market 2012-2022" provides detailed analysis of the current industry size and growth expectations from 2012 to 2022, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides detailed understanding of emerging opportunities in specific areas.
Key Features and Benefits
Detailed market analysis.
The report provides detailed analysis of the market for armoured vehicles MRO during 2012-2022, including the factors that influence why countries are investing or cutting defense expenditure. It provides detailed expectations of growth rates and projected total expenditure.
The armored vehicles MRO market is currently characterized by a focus on survivability and adaptability. Traditional threats such as enemy tanks or sophisticated antitank missiles have assumed less importance in recent years; while large improvised explosive devices (IED) and rocket propelled grenades (RPG) that are used to attack the more vulnerable flanks and rear of the armored vehicles, pose the maximum threat. Military operations in former Yugoslavia, Somalia, Israel and Iraq have shown the need for all-round protection particularly when operating in urban environments. Companies operating in the military armored vehicles MRO domain are now aware that solutions must be oriented towards protection against a range of threats including medium and large-calibre kinetic energy rounds, shaped-charge warheads, explosively formed projectiles, high explosive squash head, shell fragments and small arms.
Key Market Issues
Increased emphasis on technological innovations.
Technological innovations in the field of armored vehicles MRO have garnered significant interest over the last decade. With global defense budgets shrinking or glowing at a marginal pace, countries are now looking to maintain, repair and upgrade their defense equipment instead of developing new programs. Moreover, the recent nuclear proliferation being carried out by Iran has heightened military tensions between Iran, the US and Israel. The possible conflict has resulted in the US spending heavily on getting its existing military equipment ready for battle, which in turn is driving the armored vehicles MRO industry. Technological innovations in this domain are oriented towards developing stealth capabilities, enhancing armor protection and other counter insurgency measures.
Focus on survivability and adaptability.
The armored vehicles MRO market is currently characterized by a focus on survivability and adaptability. Traditional threats such as enemy tanks or sophisticated antitank missiles have assumed less importance in recent years; while large improvised explosive devices (IED) and rocket propelled grenades (RPG) that are used to attack the more vulnerable flanks and rear of the armored vehicles, pose the maximum threat. Military operations in former Yugoslavia, Somalia, Israel and Iraq have shown the need for all-round protection particularly when operating in urban environments. Companies operating in the military armored vehicles MRO domain are now aware that solutions must be oriented towards protection against a range of threats including medium and large-calibre kinetic energy rounds, shaped-charge warheads, explosively formed projectiles, high explosive squash head, shell fragments and small arms.
Balancing increased protection with reduced weight.
One of the major challenges being faced by the global armored vehicles MRO industry is balancing the ever increasing weight of the armored vehicles with the need for increased protection. Moreover, manufacturers are also facing a problem of achieving high mobility for heavily protected vehicles. To combat this problem, the US Army is investing in technologies to develop composite armors that are lighter than the all-metal equivalent, occupying a larger volume for the same resistance to penetration. However, these currently are expensive and governments are looking for ways to develop this material affordably.
Threat from IEDs.
The impact of IEDs upon armored vehicle units has been one of the major threats to the survivability of the US Army soldiers. The threat from IEDs has evolved considerably owing to the fact that from 60mm and 81mm mortar rounds in 2006-2009, current armored vehicle units face munitions like single 122 to 155mm artillery shells, daisy-chained series of shells, triple stacked mines, shape charge weapons and even suicide car bombs. This has lead to significant investment in the armored vehicle MRO market by compelling governments to incorporate heavier armor for vehicles and upgrading older vehicles to blast resistant levels.
Key Highlights
North America to continue to dominate the market.
Despite budget cuts, North America is expected to account for the largest share of the total global expenditure on military aviation MRO, with 43% share during the forecast period. High demand in the region is primarily driven by the region's modernization programs and the overseas war against global terrorism.
Growth in performance based logistics (PBL) contracts.
Performance-based logistics contracts are rising in both civilian and military aviation MRO as they enable operators to offload investments in spares and other MRO capabilities. As a result, the company can focus on its core competencies thereby reducing costs and maximizing efficiencies. PBL contracts consist of an operator contracting with a supplier on a long-term basis to deliver a particular kind of service-related performance and sometimes take the form of a per-hour maintenance cost or a specific reliability guarantee. PBL contracts focus primarily on performance or output, rather than tasks or inputs by the service provider.
Joint programs expected to increase over the forecast period.
A significant number of countries are investing in the development of their domestic military armored vehicles MRO capabilities by establishing strategic alliances and technology transfer agreements with established global manufacturers. In addition to improving the indigenous capabilities of a domestic firm, this provides the foreign company with an opportunity to cater to a new market. This is especially true in today's economic scenario when companies are looking to maximize efficiencies and cut costs.
Table of Contents
Table of Contents
1 Introduction
1.1 What is this Report About?
1.2 Definitions
1.3 Summary Methodology
1.4 About Strategic Defence Intelligence (www.strategicdefenceintelligence.com)
2 Executive Summary
3 Global Armored Vehicles MRO Market Size and Drivers
3.1 Armored Vehicles MRO Market Size and Forecast 2012-2022
3.1.1 Global armored vehicles MRO market to show positive growth during the forecast period
3.2 Global Armored Vehicles MRO Market - Regional Analysis
3.2.1 North America dominates the global armored vehicles MRO market
3.2.2 Demand for APC MRO in the US to support the global armored vehicles MRO market
3.2.3 Armored vehicles MRO market to be robust in Europe due to planned budget cuts
3.2.4 The armored vehicles MRO market in the Asia-Pacific to be witness robust spending over the forecast period
3.2.5 Armored vehicles MRO market in the Middle East to increase during the forecast period
3.2.6 Brazil and Colombia expected to be the highest spenders in the armored vehicles MRO sector in the Latin American region
3.2.7 Markets in Africa expected to increase over the forecast period
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.
