PUBLISHER: MarketsandMarkets | PRODUCT CODE: 2164987
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 2164987
The armored vehicles market is projected to grow from USD 39.67 billion in 2026 to USD 60.81 billion by 2031, at a CAGR of 11.3% during the forecast period. In terms of volume, the market is projected to grow from 87,159 units in 2026 to 130,039 units by 2031, at a CAGR of 10.8%. The market is expanding as defense forces increase investment in new armored platforms, fleet modernization, protected mobility, survivability, firepower, and battlefield connectivity.
| Scope of the Report | |
|---|---|
| Years Considered for the Study | 2021-2031 |
| Base Year | 2025 |
| Forecast Period | 2026-2031 |
| Units Considered | Value (USD Billion) |
| Segments | By Platform, Mobility and Region |
| Regions covered | North America, Europe, APAC, RoW |
Armored vehicles are being deployed for direct combat, troop transport, reconnaissance, fire support, engineering, recovery, logistics, air defense, and other battlefield missions. Advances in active protection systems, digital vehicle architectures, sensors, secure communications, power management, and networked command and control systems are improving vehicle protection, situational awareness, and mission effectiveness. Rheinmetall, for example, is integrating digital architectures, active protection technologies, and networked sensor-to-effector capabilities across modern land platforms.

"By technology, the electric segment is projected to register the highest CAGR during the forecast period."
The electric armored vehicle segment is expected to grow at the fastest rate as defense organizations increase investment in hybrid-electric and electrically driven vehicle architectures. These systems can provide higher onboard electrical power, lower acoustic signatures, improved energy management, and greater flexibility for sensors, communications, active protection, and other electronic systems. Rheinmetall's Lynx XM30, for example, incorporates a hybrid-electric powertrain designed to improve power generation and battlefield mobility while supporting future technology integration.
"By system, the vetronics & electrical power systems segment is projected to register the highest CAGR during the forecast period."
The vetronics & electrical power systems segment is expected to grow rapidly as armored vehicles integrate more sensors, communications, digital controls, protection systems, weapon electronics, and mission-computing capabilities. Greater electrical loads are increasing the need for improved power generation, distribution, energy storage, and digital vehicle architectures. New vehicle designs are therefore placing more emphasis on scalable electrical systems that can support future mission equipment and software-driven upgrades throughout the platform lifecycle.
"By region, Asia Pacific is projected to account for the second-largest market share during the forecast period."
The Asia Pacific armored vehicles market is expected to account for the second-largest share during the forecast period as countries continue investing in infantry fighting vehicles, protected mobility, artillery platforms, and localized vehicle production. Australia, for example, is procuring 129 locally built Redback infantry fighting vehicles, while also expanding its Bushmaster fleet through a 2026 order for 268 additional vehicles. These programs are supporting regional demand for new armored platforms, domestic manufacturing, and long-term sustainment.
This market study covers the armored vehicles market across various segments and subsegments. It aims to estimate the size and growth potential of this market across different parts and regions. This study also includes an in-depth competitive analysis of the key players in the market, their company profiles, key observations related to their products and business offerings, recent developments, and key market strategies they have adopted.
The report will help market leaders/new entrants with information on the closest approximations of the revenue numbers for the overall armored vehicles market. It will also help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report will also help stakeholders understand the market pulse and will provide information on key market drivers, restraints, challenges, and opportunities.