Global Military Vehicle Electrification Market Size study & Forecast, by Platform (Combat Vehicles, Support Vehicles, Unmanned Armored Vehicles) by System (Power Generation, Cooling Systems, Energy Storage) and Regional Forecasts 2025-2035

Description

The Global Military Vehicle Electrification Market is valued at approximately USD 4.7 billion in 2024 and is projected to witness exponential growth with a CAGR of 26.7% during the forecast period 2025-2035. Military vehicle electrification encompasses the integration of advanced electric propulsion systems, energy storage solutions, and power management technologies within defense platforms. This shift is driven by the necessity to enhance operational efficiency, reduce logistical dependence on fossil fuels, and improve the stealth and endurance of combat and support vehicles. The market expansion is underpinned by increasing investments in modernizing armed forces, adoption of hybrid-electric and fully electric vehicles, and the global emphasis on sustainable defense technologies.

Rising geopolitical tensions and the pursuit of technological superiority have accelerated the adoption of electrified military platforms. Governments and defense agencies are increasingly investing in electrification solutions to reduce operational costs, enhance mission flexibility, and strengthen tactical advantages. According to recent defense expenditure reports, militaries worldwide are prioritizing energy-efficient and modular electric propulsion systems. Furthermore, advancements in battery density, thermal management systems, and power electronics present lucrative avenues for market growth. Nonetheless, high initial investments, complex integration requirements, and stringent regulatory frameworks may temper growth to some extent during the forecast period of 2025-2035.

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

By Platform:

Combat Vehicles
Support Vehicles
Unmanned Armored Vehicles

By System:

Power Generation
Cooling Systems
Energy Storage

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

Combat Vehicles Expected to Dominate the Market

Within platforms, combat vehicles are anticipated to dominate the market due to their critical role in frontline operations and high energy demands for mobility and onboard systems. The electrification of these vehicles enables enhanced tactical performance, reduced acoustic and thermal signatures, and improved mission endurance. Support vehicles and unmanned armored platforms are emerging as significant contributors, driven by their logistical and surveillance applications. While combat vehicles remain the principal revenue driver, unmanned and support platforms represent key opportunities for future adoption as militaries embrace modular and energy-efficient vehicle designs.

Power Generation Systems Lead in Revenue Contribution

Analyzing the market by system type, power generation units currently account for the largest revenue share, reflecting their centrality in ensuring reliable energy supply to all onboard subsystems. Energy storage solutions and cooling systems are gaining traction due to technological innovations in battery management, thermal regulation, and hybrid-electric configurations. This delineates a nuanced market landscape: power generation remains dominant from a revenue perspective, while energy storage and cooling systems are accelerating, driven by efficiency improvements, operational reliability, and increasing electrification across military vehicle fleets.

The key regions considered for the Global Military Vehicle Electrification Market study include North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America led the market in 2025 owing to the presence of advanced defense R&D infrastructure, substantial defense budgets, and ongoing modernization programs. Europe reflects steady adoption driven by NATO-aligned initiatives and sustainable defense technology mandates. Asia Pacific is expected to witness the fastest growth during the forecast period due to rising defense expenditures in China, India, and Japan, alongside increasing investments in hybrid-electric and fully electric military platforms. Latin America and the Middle East & Africa are gradually expanding as regional defense agencies explore energy-efficient and next-generation military vehicles.

Major market players included in this report are:

Lockheed Martin Corporation
General Dynamics Corporation
BAE Systems
Rheinmetall AG
Northrop Grumman Corporation
Boeing Defense, Space & Security
Leonardo S.p.A.
Hanwha Defense
Navistar Defense LLC
Oshkosh Defense
Thales Group
L3Harris Technologies
Tata Advanced Systems Limited
Elbit Systems Ltd.
Iveco Defence Vehicles

Global Military Vehicle Electrification 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.

Chapter 1. Global Military Vehicle Electrification Market Report Scope & Methodology

1.1. Research Objective
1.2. Research Methodology
- 1.2.1. Forecast Model
- 1.2.2. Desk Research
- 1.2.3. Top Down and Bottom-Up Approach
1.3. Research Attributes
1.4. Scope of the Study
- 1.4.1. Market Definition
- 1.4.2. Market Segmentation
1.5. Research Assumption
- 1.5.1. Inclusion & Exclusion
- 1.5.2. Limitations
- 1.5.3. Years Considered for the Study

Chapter 2. Executive Summary

2.1. CEO/CXO Standpoint
2.2. Strategic Insights
2.3. ESG Analysis
2.4. key Findings

Chapter 3. Global Military Vehicle Electrification Market Forces Analysis

3.1. Market Forces Shaping The Global Military Vehicle Electrification Market (2024-2035)
3.2. Drivers
- 3.2.1. increasing investments in modernizing armed forces
- 3.2.2. adoption of hybrid-electric and fully electric vehicles
3.3. Restraints
- 3.3.1. high initial investments
3.4. Opportunities
- 3.4.1. global emphasis on sustainable defense technologies

Chapter 4. Global Military Vehicle Electrification Industry Analysis

4.1. Porter's 5 Forces Model
- 4.1.1. Bargaining Power of Buyer
- 4.1.2. Bargaining Power of Supplier
- 4.1.3. Threat of New Entrants
- 4.1.4. Threat of Substitutes
- 4.1.5. Competitive Rivalry
4.2. Porter's 5 Force Forecast Model (2024-2035)
4.3. PESTEL Analysis
- 4.3.1. Political
- 4.3.2. Economical
- 4.3.3. Social
- 4.3.4. Technological
- 4.3.5. Environmental
- 4.3.6. Legal
4.4. Top Investment Opportunities
4.5. Top Winning Strategies (2025)
4.6. Market Share Analysis (2024-2025)
4.7. Global Pricing Analysis And Trends 2025
4.8. Analyst Recommendation & Conclusion

Chapter 5. Global Military Vehicle Electrification Market Size & Forecasts by Platform 2025-2035

5.1. Market Overview
5.2. Global Military Vehicle Electrification Market Performance - Potential Analysis (2025)
5.3. Combat Vehicles
- 5.3.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 5.3.2. Market size analysis, by region, 2025-2035
5.4. Support Vehicles
- 5.4.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 5.4.2. Market size analysis, by region, 2025-2035
5.5. Unmanned Armored Vehicles
- 5.5.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 5.5.2. Market size analysis, by region, 2025-2035

Chapter 6. Global Military Vehicle Electrification Market Size & Forecasts by System 2025-2035

6.1. Market Overview
6.2. Global Military Vehicle Electrification Market Performance - Potential Analysis (2025)
6.3. Power Generation
- 6.3.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 6.3.2. Market size analysis, by region, 2025-2035
6.4. Cooling Systems
- 6.4.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 6.4.2. Market size analysis, by region, 2025-2035
6.5. Energy Storage
- 6.5.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 6.5.2. Market size analysis, by region, 2025-2035

Chapter 7. Global Military Vehicle Electrification Market Size & Forecasts by Region 2025-2035

7.1. Growth Military Vehicle Electrification Market, Regional Market Snapshot
7.2. Top Leading & Emerging Countries
7.3. North America Military Vehicle Electrification Market
- 7.3.1. U.S. Military Vehicle Electrification Market
  - 7.3.1.1. Platform breakdown size & forecasts, 2025-2035
  - 7.3.1.2. System breakdown size & forecasts, 2025-2035
- 7.3.2. Canada Military Vehicle Electrification Market
  - 7.3.2.1. Platform breakdown size & forecasts, 2025-2035
  - 7.3.2.2. System breakdown size & forecasts, 2025-2035
7.4. Europe Military Vehicle Electrification Market
- 7.4.1. UK Military Vehicle Electrification Market
  - 7.4.1.1. Platform breakdown size & forecasts, 2025-2035
  - 7.4.1.2. System breakdown size & forecasts, 2025-2035
- 7.4.2. Germany Military Vehicle Electrification Market
  - 7.4.2.1. Platform breakdown size & forecasts, 2025-2035
  - 7.4.2.2. System breakdown size & forecasts, 2025-2035
- 7.4.3. France Military Vehicle Electrification Market
  - 7.4.3.1. Platform breakdown size & forecasts, 2025-2035
  - 7.4.3.2. System breakdown size & forecasts, 2025-2035
- 7.4.4. Spain Military Vehicle Electrification Market
  - 7.4.4.1. Platform breakdown size & forecasts, 2025-2035
  - 7.4.4.2. System breakdown size & forecasts, 2025-2035
- 7.4.5. Italy Military Vehicle Electrification Market
  - 7.4.5.1. Platform breakdown size & forecasts, 2025-2035
  - 7.4.5.2. System breakdown size & forecasts, 2025-2035
- 7.4.6. Rest of Europe Military Vehicle Electrification Market
  - 7.4.6.1. Platform breakdown size & forecasts, 2025-2035
  - 7.4.6.2. System breakdown size & forecasts, 2025-2035
7.5. Asia Pacific Military Vehicle Electrification Market
- 7.5.1. China Military Vehicle Electrification Market
  - 7.5.1.1. Platform breakdown size & forecasts, 2025-2035
  - 7.5.1.2. System breakdown size & forecasts, 2025-2035
- 7.5.2. India Military Vehicle Electrification Market
  - 7.5.2.1. Platform breakdown size & forecasts, 2025-2035
  - 7.5.2.2. System breakdown size & forecasts, 2025-2035
- 7.5.3. Japan Military Vehicle Electrification Market
  - 7.5.3.1. Platform breakdown size & forecasts, 2025-2035
  - 7.5.3.2. System breakdown size & forecasts, 2025-2035
- 7.5.4. Australia Military Vehicle Electrification Market
  - 7.5.4.1. Platform breakdown size & forecasts, 2025-2035
  - 7.5.4.2. System breakdown size & forecasts, 2025-2035
- 7.5.5. South Korea Military Vehicle Electrification Market
  - 7.5.5.1. Platform breakdown size & forecasts, 2025-2035
  - 7.5.5.2. System breakdown size & forecasts, 2025-2035
- 7.5.6. Rest of APAC Military Vehicle Electrification Market
  - 7.5.6.1. Platform breakdown size & forecasts, 2025-2035
  - 7.5.6.2. System breakdown size & forecasts, 2025-2035
7.6. Latin America Military Vehicle Electrification Market
- 7.6.1. Brazil Military Vehicle Electrification Market
  - 7.6.1.1. Platform breakdown size & forecasts, 2025-2035
  - 7.6.1.2. System breakdown size & forecasts, 2025-2035
- 7.6.2. Mexico Military Vehicle Electrification Market
  - 7.6.2.1. Platform breakdown size & forecasts, 2025-2035
  - 7.6.2.2. System breakdown size & forecasts, 2025-2035
7.7. Middle East and Africa Military Vehicle Electrification Market
- 7.7.1. UAE Military Vehicle Electrification Market
  - 7.7.1.1. Platform breakdown size & forecasts, 2025-2035
  - 7.7.1.2. System breakdown size & forecasts, 2025-2035
- 7.7.2. Saudi Arabia (KSA) Military Vehicle Electrification Market
  - 7.7.2.1. Platform breakdown size & forecasts, 2025-2035
  - 7.7.2.2. System breakdown size & forecasts, 2025-2035
- 7.7.3. South Africa Military Vehicle Electrification Market
  - 7.7.3.1. Platform breakdown size & forecasts, 2025-2035
  - 7.7.3.2. System breakdown size & forecasts, 2025-2035

Chapter 8. Competitive Intelligence

8.1. Top Market Strategies
8.2. Lockheed Martin Corporation
- 8.2.1. Company Overview
- 8.2.2. Key Executives
- 8.2.3. Company Snapshot
- 8.2.4. Financial Performance (Subject to Data Availability)
- 8.2.5. Product/Services Port
- 8.2.6. Recent Development
- 8.2.7. Market Strategies
- 8.2.8. SWOT Analysis
8.3. General Dynamics Corporation
8.4. BAE Systems
8.5. Rheinmetall AG
8.6. Northrop Grumman Corporation
8.7. Boeing Defense, Space & Security
8.8. Leonardo S.p.A.
8.9. Hanwha Defense
8.10. Navistar Defense LLC
8.11. Oshkosh Defense
8.12. Thales Group
8.13. L3Harris Technologies
8.14. Tata Advanced Systems Limited
8.15. Elbit Systems Ltd.
8.16. Iveco Defence Vehicles