Global Military Vehicle Sustainment Market Size study & Forecast, by Vehicle Type and Service and Regional Forecasts 2025-2035

The Global Military Vehicle Sustainment Market is valued at approximately USD 16.8 billion in 2024 and is projected to grow at a CAGR of 7.00% throughout the forecast period 2025-2035. Military vehicle sustainment refers to a wide spectrum of services, processes, and systems designed to preserve, enhance, and extend the operational capability of defense fleets. From combat-ready armored vehicles to mission-critical military transport trucks, sustainment ensures fleets remain deployable, reliable, and technologically relevant across rapidly evolving security landscapes. As nations continue to strengthen their defense preparedness amid escalating geopolitical tensions, they are doubling down on sustainment programs that help phase out performance bottlenecks, optimize lifecycle costs, modernize legacy fleets, and uphold mission continuity. The heightened focus on active fleet readiness, paired with the rising complexity of modern vehicles, has propelled a significant surge in demand for sophisticated sustainment solutions.

Global defense agencies are ramping up investments in maintenance, modernization, and capability upgrades as they navigate aging inventories and shifting warfare doctrines. The growing dependence on armored platforms for border security, peacekeeping missions, and rapid deployment assignments has intensified the requirement for enhanced diagnostics, predictive maintenance tools, and integrated support systems. According to multiple defense expenditure trackers, military spending continues to rise steadily, with procurement and sustainment representing a growing share of total budgets. Additionally, the introduction of digital twins, AI-driven predictive maintenance technologies, and modular upgrade frameworks creates new avenues for contractors seeking to deliver advanced sustainment programs. Despite this optimistic outlook, the market is restrained in part by extended procurement cycles, rising component costs, and the long lead times associated with high-grade military parts manufacturing.

The detailed segments and sub-segments included in the report are:

By Vehicle Type:

• Armored Vehicles
• Military Trucks

By Service:

• Maintenance, Repair & Overhaul (MRO)
• Training & Support
• Parts & Components Supply
• Upgrades & Modernization

By Region:

North America

• U.S.
• Canada

Europe

• UK
• Germany
• France
• Spain
• Italy
• ROE

Asia Pacific

• China
• India
• Japan
• Australia
• South Korea
• RoAPAC

Latin America

• Brazil
• Mexico

Middle East & Africa

• UAE
• Saudi Arabia
• South Africa
• Rest of Middle East & Africa

Armored Vehicles Segment is Expected to Dominate the Market

Among vehicle categories, armored vehicles are poised to retain the lion's share of the global sustainment demand. These platforms-ranging from infantry fighting vehicles to armored personnel carriers-require continuous upkeep due to rigorous field usage, exposure to extreme terrains, and the rapid pace of battlefield technology upgrades. The growing adoption of next-generation armor solutions, electronics-integrated systems, and modular weapon stations has further amplified the need for structured lifecycle support. While military trucks contribute meaningfully to overall sustainment requirements, armored fleets remain the cornerstone of defense modernization agendas, thereby anchoring their dominance in the market.

Maintenance, Repair & Overhaul (MRO) Leads in Revenue Contribution

On the basis of service type, Maintenance, Repair & Overhaul (MRO) currently stands as the leading revenue-generating segment. MRO operations form the backbone of fleet readiness, ensuring mission-critical vehicles maintain peak performance while addressing wear, system failures, and structural fatigue. Meanwhile, the Upgrades & Modernization segment is emerging as one of the fastest-growing domains. Defense forces worldwide are actively revitalizing decades-old fleets with advanced communication suites, improved mobility systems, anti-mine protection packages, and enhanced situational awareness tools. Thus, while MRO dominates due to indispensable operational relevance, modernization services are accelerating quickly as militaries shift towards future-ready platforms.

The key regions considered for the Global Military Vehicle Sustainment Market study include Asia Pacific, North America, Europe, Latin America, and the Middle East & Africa. North America led the market in 2025, buoyed by its large defense budget, continuous fleet modernization cycles, vast inventories of tactical and armored vehicles, and a robust ecosystem of sustainment contractors. Europe's market remains strong as nations intensify military readiness programs and collaborate on cross-border vehicle upgrade initiatives. Asia Pacific is projected to expand at the fastest pace during 2025-2035, driven by escalating defense expenditure in China, India, and South Korea, as well as heightened focus on border security, domestic manufacturing initiatives, and advancement of localized sustainment capabilities. Meanwhile, the Middle East continues to invest in capability enhancement programs aligned with long-term fleet performance and mission resilience.

Major market players included in this report are:

• BAE Systems
• General Dynamics Corporation
• Oshkosh Defense
• Rheinmetall AG
• Leonardo S.p.A.
• Lockheed Martin Corporation
• Thales Group
• Hanwha Defense
• ST Engineering
• Navistar Defense
• Textron Systems
• Elbit Systems
• AM General
• Patria Group
• KNDS (KMW + Nexter Defense Systems)

Global Military Vehicle Sustainment Market Report Scope:

• Historical Data - 2023, 2024
• Base Year for Estimation - 2024
• Forecast period - 2025-2035
• Report Coverage - Revenue forecast, Company Ranking, Competitive Landscape, Growth factors, and Trends
• Regional Scope - North America; Europe; Asia Pacific; Latin America; Middle East & Africa
• Customization Scope - Free report customization (equivalent to up to 8 analysts' working hours) with purchase. Addition or alteration to country, regional & segment scope*

The objective of the study is to define market sizes of different segments & countries in recent years and to forecast the values for the coming years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within the countries involved in the study. The report also provides detailed information about crucial aspects, such as driving factors and challenges, which will define the future growth of the market. Additionally, it incorporates potential opportunities in micro-markets for stakeholders to invest, along with a detailed analysis of the competitive landscape and product offerings of key players. The detailed segments and sub-segments of the market are explained above:

Key Takeaways:

• Market Estimates & Forecast for 10 years from 2025 to 2035.
• Annualized revenues and regional-level analysis for each market segment.
• Detailed analysis of the geographical landscape with country-level analysis of major regions.
• Competitive landscape with information on major players in the market.
• Analysis of key business strategies and recommendations on future market approach.
• Analysis of the competitive structure of the market.
• Demand side and supply side analysis of the market.