Download Sample
Add to CartGlobal Armored Fighting Vehicles Market Growth, Share, Size, Trends and Forecast (2025 - 2031)
By Type;
Armored Personnel Carrier (APC), Infantry Fighting Vehicle (IFV), Mine-resistant Ambush Protected (MRAP), Main Battle Tank (MBT), and Other Types.By Propulsion;
IC Engine, and Electric.By Weight;
Light (less than 20 tons), Medium (20-40 tons), and Heavy (over 40 tons).By Drive Type;
Tracked, Wheeled, and Hybrid.By Geography;
North America, Europe, Asia Pacific, Middle East and Africa and Latin America - Report Timeline (2021 - 2031).Introduction
In the year 2024, the Global Armored Fighting Vehicles Market was valued at USD 25,827.65 million. The size of this market is expected to increase to USD 36,100.51 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 4.9%.
Internal combustion engines (IC engines) have long been the backbone of transportation and power generation, relying on the controlled explosion of fuel-air mixtures to drive pistons and produce mechanical work. These engines have powered automobiles, aircraft, ships, and various industrial applications for over a century, offering high energy density, rapid refueling capabilities, and widespread infrastructure support. However, the rise of electric propulsion systems marks a paradigm shift in the automotive and energy sectors. Electric vehicles (EVs) utilize rechargeable batteries or fuel cells to power electric motors, offering quiet operation, zero tailpipe emissions, and improved energy efficiency. With advancements in battery technology, charging infrastructure, and renewable energy integration, electric propulsion is poised to revolutionize transportation and energy systems, reducing reliance on fossil fuels and mitigating environmental impact.
As the automotive industry undergoes a profound transformation towards electrification, the coexistence and integration of IC engines and electric propulsion systems present both challenges and opportunities in shaping the future of mobility and sustainable energy.These engines have been instrumental in powering automobiles, aircraft, ships, and various industrial applications, offering notable advantages such as high energy density, quick refueling times, and extensive infrastructure support. However, the emergence of electric propulsion systems represents a significant shift in the automotive and energy industries.
Electric vehicles (EVs) employ rechargeable batteries or fuel cells to drive electric motors, providing benefits like silent operation, zero emissions, and enhanced energy efficiency. With continuous advancements in battery technology, charging infrastructure, and renewable energy integration, electric propulsion is poised to transform transportation and energy sectors, reducing reliance on fossil fuels and addressing environmental concerns. As the automotive sector embraces electrification, the coexistence and integration of IC engines and electric propulsion systems present a spectrum of challenges and opportunities in shaping the future of mobility and sustainable energy.
Global Armored Fighting Vehicles Market Recent Developments
-
In December 2023, Rheinmetall delivered the KF41 Lynx armored fighting vehicle to NATO members, featuring modular design and enhanced survivability in urban and conventional combat environments
-
In June 2022, BAE Systems announced upgrades to the CV90 series, integrating advanced situational awareness systems and improving mobility to meet modern battlefield requirements
Segment Analysis
The Global Armored Fighting Vehicles (AFV) Market is categorized by type into Armored Personnel Carrier (APC), Infantry Fighting Vehicle (IFV), Mine-Resistant Ambush Protected (MRAP), Main Battle Tank (MBT), and Other Types. Among these, MBTs remain dominant due to their superior firepower and protection capabilities, making them essential for modern warfare. IFVs and APCs are also witnessing significant demand as military forces prioritize mobility and troop protection. MRAPs have gained traction, especially in counter-insurgency operations, owing to their advanced blast-resistant designs. The increasing focus on modular vehicle platforms that can adapt to multiple combat roles further fuels the diversification of this segment.
By propulsion, the market is divided into Internal Combustion (IC) Engine and Electric-powered AFVs. While IC-engine-powered vehicles currently dominate due to their well-established infrastructure and proven battlefield performance, the shift toward electric and hybrid propulsion is gaining momentum. Nations are investing in electric AFVs to enhance fuel efficiency, reduce thermal and acoustic signatures, and meet stringent environmental regulations. Technological advancements in battery capacity and energy management systems are expected to facilitate the wider adoption of electric-powered AFVs in the coming years.
Segmentation by weight classifies AFVs into Light (less than 20 tons), Medium (20–40 tons), and Heavy (over 40 tons). Light AFVs, including some APCs and MRAPs, are in high demand for rapid deployment and reconnaissance missions. Medium-weight vehicles, such as IFVs, strike a balance between mobility, firepower, and protection, making them suitable for diverse combat scenarios. Heavy AFVs, mainly MBTs, remain critical for high-intensity warfare, particularly in conventional military engagements. The ongoing evolution in armor technology, including the use of composite materials, is helping reduce vehicle weight without compromising protection.
Geographically, the market spans North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. North America, led by the U.S., holds a dominant share due to its high defense spending and ongoing modernization programs. Europe follows closely, driven by rising security concerns and NATO member countries upgrading their AFV fleets. The Asia-Pacific region is experiencing significant growth, fueled by increasing defense budgets in China, India, and South Korea. The Middle East & Africa also present notable opportunities, with many nations investing in armored vehicles to address regional conflicts and border security challenges. Latin America, though a smaller market, is witnessing steady demand, particularly for counterinsurgency and peacekeeping operations.
Global Armored Fighting Vehicles Market Analysis
In this report, the Global Armored Fighting Vehicles Market has been segmented by Type, Propulsion and Geography.
Global Armored Fighting Vehicles Market, Segmentation by Type
The Global Armored Fighting Vehicles Market has been segmented by Type into Armored Personnel Carrier (APC), Infantry Fighting Vehicle (IFV), Mine-resistant Ambush Protected (MRAP), Main Battle Tank (MBT), and Other Types.
In the global armored fighting vehicles (AFV) market, segmentation by type provides a comprehensive understanding of the diverse array of platforms employed in modern warfare. Armored Personnel Carriers (APCs) serve as versatile transport vehicles, capable of transporting troops safely across hostile environments while providing limited combat support. Infantry Fighting Vehicles (IFVs) are specialized platforms equipped with heavy firepower and protection, designed to support infantry units in direct combat engagements. Mine-resistant Ambush Protected (MRAP) vehicles offer heightened protection against improvised explosive devices (IEDs) and ambush attacks, prioritizing survivability for troops operating in asymmetric warfare environments. Main Battle Tanks (MBTs) are the backbone of armored warfare, boasting formidable firepower, heavy armor, and advanced mobility capabilities, making them essential for frontline combat operations.
The category of "Other Types" encompasses a variety of specialized AFVs, including armored reconnaissance vehicles, self-propelled artillery, and engineering vehicles, each tailored to specific mission requirements. Understanding the segmentation by type enables stakeholders to tailor their product offerings to meet the diverse operational needs of military forces, homeland security agencies, and law enforcement entities worldwide, driving growth and competitiveness in the global AFV market.Segmentation by type in the global armored fighting vehicles (AFV) market provides a nuanced understanding of the various platforms essential for modern warfare. Armored Personnel Carriers (APCs) play a pivotal role as versatile transport vehicles, safeguarding troops while facilitating their movement across challenging terrains. These vehicles offer a balance between mobility and protection, enabling troops to deploy quickly and effectively in combat zones while providing limited fire support when needed.
Infantry Fighting Vehicles (IFVs) are specialized platforms designed to provide close support to infantry units during direct combat engagements. Equipped with heavy firepower such as cannons, machine guns, and anti-tank missiles, IFVs offer enhanced protection for infantry troops while delivering firepower to suppress enemy positions and engage armored threats.
Mine-Resistant Ambush Protected (MRAP) vehicles represent a critical component in asymmetric warfare environments, where the threat of improvised explosive devices (IEDs) and ambush attacks is prevalent. These vehicles are specifically engineered to withstand blasts and provide enhanced survivability for troops operating in hostile environments. With reinforced hulls, V-shaped bottoms, and advanced armor materials, MRAPs offer unparalleled protection against explosive threats, reducing casualties and enhancing troop safety in high-risk areas.
Main Battle Tanks (MBTs) are the cornerstone of armored warfare, boasting unparalleled firepower, heavy armor, and advanced mobility capabilities. These formidable vehicles are designed for frontline combat operations, capable of engaging enemy armor, fortifications, and infantry with devastating firepower. With powerful main guns, secondary armaments, and advanced fire control systems, MBTs dominate the battlefield, providing essential firepower and maneuverability to ground forces.
Global Armored Fighting Vehicles Market, Segmentation by Propulsion
The Global Armored Fighting Vehicles Market has been segmented by Propulsion into IC Engine, and Electric.
Traditionally, armored vehicles have been powered by IC engines, typically diesel engines, which combust fuel to generate mechanical energy. These engines offer high torque, reliability, and proven performance in a wide range of operational conditions. IC engine-powered AFVs are known for their robustness and ability to operate in challenging terrains, making them suitable for a variety of military applications. Despite advancements in electric propulsion, IC engines continue to dominate the market due to their established
infrastructure, familiarity, and proven track record in military operations. However, concerns regarding fuel efficiency, emissions, and reliance on fossil fuels have prompted a shift towards alternative propulsion technologies.
Electric propulsion systems are gaining traction in the armored vehicles market, driven by advancements in battery technology, electric motors, and power electronics. Electric AFVs utilize rechargeable batteries or fuel cells to power electric motors, offering several advantages over IC engine counterparts. These advantages include quieter operation, reduced emissions, improved fuel efficiency, and enhanced maneuverability. Electric propulsion also facilitates the integration of advanced digital technologies such as autonomous driving systems, energy management systems, and networked communication systems, enhancing the overall capabilities of armored vehicles. While electric AFVs are still in the early stages of adoption compared to IC engine vehicles, ongoing research and development efforts aim to overcome challenges related to range, battery life, and infrastructure support, paving the way for broader adoption in the future.
The segmentation of the global armored fighting vehicles market by propulsion highlights the coexistence of traditional IC engine-powered vehicles and emerging electric propulsion systems. While IC engines continue to dominate the market due to their reliability and established infrastructure, electric propulsion offers several advantages in terms of performance, efficiency, and technological innovation. As the industry continues to evolve, manufacturers are expected to invest in both propulsion technologies, catering to diverse customer needs and driving innovation in the global AFV market.
Global Armored Fighting Vehicles Market, Segmentation by Weight
The Global Armored Fighting Vehicles Market has been segmented by Weight into Light (less than 20 tons), Medium (20-40 tons), and Heavy (over 40 tons).
The global armored fighting vehicles market is categorized based on weight into three primary segments: Light (less than 20 tons), Medium (20–40 tons), and Heavy (over 40 tons). Each segment serves distinct operational needs, catering to different military and defense requirements worldwide. Light armored fighting vehicles (AFVs) are designed for high mobility, rapid deployment, and reconnaissance missions. Their lightweight construction allows for easier transportation and maneuverability in urban and rugged terrains. These vehicles are often equipped with essential armor and weaponry, making them suitable for modern asymmetric warfare scenarios.
The medium-weight AFV segment, ranging from 20 to 40 tons, represents a balance between mobility, firepower, and protection. These vehicles are widely used for frontline combat and support roles, offering enhanced armor protection while maintaining reasonable speed and agility. Medium AFVs often include infantry fighting vehicles (IFVs) and wheeled combat vehicles, which can operate efficiently in various combat environments. Their adaptability makes them a preferred choice for many military forces, as they can be customized with modular armor and advanced weapon systems to enhance operational effectiveness.
The heavy armored fighting vehicles category, which includes vehicles weighing over 40 tons, is primarily composed of main battle tanks (MBTs) and heavily fortified combat vehicles. These AFVs offer superior protection, high-caliber firepower, and advanced defensive systems, making them essential in high-intensity conflicts. Due to their weight, heavy AFVs require robust logistical support and are less maneuverable compared to lighter counterparts. However, they provide unmatched battlefield dominance with thick composite armor and state-of-the-art targeting systems, making them a crucial component of modern armored forces.
Global Armored Fighting Vehicles Market, Segmentation by Drive Type
The Global Armored Fighting Vehicles Market has been segmented by Drive Type into Tracked, Wheeled, and Hybrid.
The Global Armored Fighting Vehicles Market is segmented by drive type into Tracked, Wheeled, and Hybrid, each offering unique advantages based on operational requirements. Tracked armored fighting vehicles (AFVs) are widely used for their superior mobility on rough terrains, making them the preferred choice for frontline combat. These vehicles provide enhanced stability, better weight distribution, and superior traction, enabling them to navigate through mud, snow, and uneven landscapes. Tanks and infantry fighting vehicles (IFVs) primarily use tracked systems due to their ability to withstand harsh battlefield conditions and carry heavy armor without compromising mobility.
Wheeled armored fighting vehicles, on the other hand, offer greater speed, lower maintenance costs, and improved fuel efficiency compared to their tracked counterparts. These vehicles are ideal for urban warfare, reconnaissance, and rapid deployment missions, as they can maneuver effectively on paved roads and open terrains. Armored personnel carriers (APCs) and light armored vehicles (LAVs) commonly feature wheeled configurations, providing strategic mobility and operational flexibility. Additionally, wheeled AFVs require less logistical support and are easier to transport, making them a cost-effective solution for military forces focused on expeditionary operations.
Hybrid armored fighting vehicles integrate both tracked and wheeled capabilities, combining the advantages of both systems to enhance versatility on the battlefield. These vehicles utilize advanced drivetrain technologies, allowing for dynamic adaptation based on terrain and mission requirements. Hybrid drive systems also offer improved fuel efficiency and reduced thermal signatures, which are crucial for stealth operations. As modern warfare evolves, the demand for hybrid AFVs is increasing, particularly in regions prioritizing technological advancements and multi-role combat platforms. The development of these vehicles aligns with the global shift toward next-generation military capabilities, emphasizing adaptability and sustainability.
Global Armored Fighting Vehicles Market, Segmentation by Geography
The North American region, particularly the United States, dominates the global AFV market due to its significant defense budget, technological advancements, and robust defense industry. The U.S. military maintains one of the world's largest fleets of armored vehicles, including main battle tanks, infantry fighting vehicles, and armored personnel carriers. Defense modernization programs, aimed at enhancing combat capabilities and readiness, drive procurement of advanced AFVs equipped with state-of-the-art technologies such as active protection systems and networked communication systems. Additionally, North American defense contractors play a key role in supplying armored vehicles to allied nations and international customers, further contributing to the region's dominance in the global AFV market.
Europe is a major market for armored fighting vehicles, driven by security concerns, NATO commitments, and defense modernization efforts. European countries, including Germany, France, and the United Kingdom, maintain large armored vehicle fleets and invest in upgrading existing platforms to meet evolving threats. Additionally, collaborative defense initiatives such as the European Defence Fund and the European Defence Agency facilitate joint development and procurement of armored vehicles among EU member states. The region's focus on interoperability, mobility, and protection drives demand for advanced AFVs equipped with enhanced armor, firepower, and digital capabilities.
The Asia Pacific region represents a significant growth opportunity for the global AFV market, fueled by rising defense spending, territorial disputes, and geopolitical tensions. Countries such as China, India, South Korea, and Japan invest heavily in modernizing their armored vehicle fleets to maintain regional superiority and address security challenges. Rapid industrialization and technological advancements in countries like South Korea contribute to the development of indigenous armored vehicle programs, while defense cooperation agreements and foreign military sales support the procurement of AFVs from international suppliers. Additionally, emerging economies in Southeast Asia, including Indonesia and Vietnam, are investing in armored vehicles to bolster their defense capabilities and address maritime security concerns.
The Middle East and Africa region witness significant demand for armored fighting vehicles driven by ongoing conflicts, regional instability, and counterterrorism operations. Countries such as Saudi Arabia, Israel, and the United Arab Emirates maintain modernized armored vehicle fleets and invest in acquiring advanced platforms to enhance their military capabilities. Additionally, rising terrorism threats and internal security challenges drive demand for MRAP vehicles and other specialized armored vehicles designed for asymmetric warfare environments. The region's strategic location and geopolitical tensions further contribute to the demand for armored vehicles for border security and defense preparedness.
Latin America represents a smaller yet emerging market for armored fighting vehicles, characterized by diverse defense priorities, budget constraints, and security challenges. Countries such as Brazil, Mexico, and Colombia maintain armored vehicle fleets primarily for internal security, counterinsurgency, and peacekeeping operations. Limited defense budgets and economic constraints often restrict large-scale procurement programs, leading to reliance on surplus or second-hand armored vehicles from international suppliers. However, growing concerns about transnational organized crime, border security, and territorial disputes drive investments in modernizing armored vehicle fleets and enhancing military capabilities in the region.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Armored Fighting Vehicles Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers:
- Defense Modernization Programs
- Threats from Asymmetric Warfare
- Export Opportunities
- Counterinsurgency Operations
-
Technological Advancements- Ongoing advancements in vehicle protection, firepower, and mobility technologies drive innovation in the AFV market. Manufacturers continually develop new materials, armor configurations, active protection systems, and integrated digital technologies to enhance the survivability, lethality, and operational effectiveness of armored vehicles.Continuous advancements in vehicle protection, firepower, and mobility technologies serve as catalysts for innovation within the armored fighting vehicle (AFV) market.
Manufacturers consistently strive to push the boundaries of engineering and design, introducing novel materials, innovative armor configurations, and cutting-edge active protection systems. These advancements aim to bolster the survivability, lethality, and operational capabilities of AFVs in diverse combat scenarios. The integration of digital technologies plays a pivotal role in enhancing situational awareness, command and control functionalities, and overall battlefield effectiveness. Through ongoing research and development efforts, the AFV industry remains at the forefront of technological innovation, ensuring that armored vehicles remain adaptable, resilient, and capable of meeting the evolving demands of modern warfare
Through relentless research and development endeavors, the AFV industry continues to remain at the forefront of technological innovation, ensuring that armored vehicles maintain their adaptability, resilience, and capability to address the ever-evolving demands of modern warfare. This commitment to innovation underscores the industry's dedication to providing military forces worldwide with the most advanced and effective armored solutions to meet the challenges of today and tomorrow's battlefields.
Restraints:
- Budget Constraints
- Technological Challenges
- Environmental Concerns
- Long Procurement Cycles
-
Logistical Challenges- AFVs are complex and heavy assets that require specialized maintenance, logistics, and infrastructure support. Inadequate maintenance facilities, limited spare parts availability, and transportation constraints can hamper the operational readiness and effectiveness of armored vehicle fleets.
Armored fighting vehicles (AFVs) represent complex and heavy assets within military fleets, requiring specialized maintenance, logistics, and infrastructure support to ensure operational readiness and effectiveness. These vehicles undergo rigorous usage in demanding environments, subjecting them to wear and tear that necessitates regular maintenance and servicing to sustain peak performance levels.
One of the primary challenges in maintaining AFVs is the need for specialized maintenance facilities equipped with tools, equipment, and trained personnel capable of handling the intricacies of armored vehicle systems. These facilities must have the capacity to conduct routine inspections, repairs, and overhauls to address mechanical issues, electrical malfunctions, and armor integrity concerns. Inadequate maintenance facilities, lacking essential resources or expertise, can lead to delays in servicing and repairs, resulting in prolonged downtime and reduced availability of armored vehicles for operational deployment.
Limited spare parts availability poses another significant constraint in maintaining AFVs. Armored vehicles comprise numerous components and subsystems, each susceptible to wear, damage, or failure over time. Ensuring an adequate supply of spare parts, including critical components such as engine parts, transmission systems, and armor modules, is essential to promptly address maintenance needs and minimize vehicle downtime. However, challenges such as supply chain disruptions, lead times for procurement, and inventory management issues can impede the timely availability of spare parts, hindering maintenance efforts and affecting fleet readiness.
Opportunities:
- Emerging Markets
- Modernization Programs
- Export Market Growth
- International Collaborations
-
Technology Integration- Advances in armor protection, firepower, and digital technologies offer opportunities for innovation and differentiation within the AFV market. Manufacturers can capitalize on technological advancements by incorporating cutting-edge materials, active protection systems, and networked communication systems into their armored vehicle designs, providing enhanced capabilities to meet the needs of modern warfare.
Advancements in armor protection, firepower, and digital technologies present significant opportunities for innovation and differentiation within the armored fighting vehicle (AFV) market. Manufacturers can leverage these technological advancements to enhance the capabilities and performance of their armored vehicle offerings, catering to the evolving needs of modern warfare scenarios.
One area of opportunity lies in the integration of cutting-edge materials into armored vehicle designs. Advanced composite materials, ceramics, and lightweight alloys offer superior strength-to-weight ratios, providing enhanced protection against ballistic threats while reducing overall vehicle weight. By incorporating these materials into armor plating and vehicle structures, manufacturers can improve survivability without sacrificing mobility or maneuverability.
Armor protection enhancements, advancements in firepower technologies offer opportunities for innovation within the AFV market. Manufacturers can incorporate state-of-the-art weapon systems, such as high-velocity cannons, precision-guided missiles, and remote weapon stations, to bolster the offensive capabilities of armored vehicles. These firepower upgrades enable armored vehicles to engage enemy targets with increased accuracy, range, and lethality, thereby enhancing their combat effectiveness in various operational scenarios.
Competitive Landscape Analysis
Key players in Global Armored Fighting Vehicles Market include:
- General Dynamics Corporation
- Rheinmetall AG
- BAE Systems PLC
- Textron Inc.
- Elbit Systems Ltd.
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Type
- Market Snapshot, By Propulsion
- Market Snapshot, By Weight
- Market Snapshot, By Drive Type
- Market Snapshot, By Region
- Global Armored Fighting Vehicles Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Defense Modernization Programs
- Threats from Asymmetric Warfare
- Export Opportunities
- Counterinsurgency Operations
- Technological Advancements
- Restraints
- Budget Constraints
- Technological Challenges
- Environmental Concerns
- Long Procurement Cycles
- Logistical Challenges
- Opportunities
- Emerging Markets
- Modernization Programs
- Export Market Growth
- International Collaborations
- Technology Integration
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Global Armored Fighting Vehicles Market, By Type, 2021 - 2031 (USD Million)
- Armored Personnel Carrier (APC)
- Infantry Fighting Vehicle (IFV)
- Mine-resistant Ambush Protected (MRAP)
- Main Battle Tank (MBT)
- Other Types
- Global Armored Fighting Vehicles Market, By Propulsion, 2021 - 2031 (USD Million)
- IC engine
- Electric
- Global Armored Fighting Vehicles Market, By Weight, 2021 - 2031 (USD Million)
- Light (less than 20 tons)
- Medium (20-40 tons)
- Heavy (over 40 tons)
- Global Armored Fighting Vehicles Market, By Drive Type, 2021 - 2031 (USD Million)
- Tracked
- Wheeled
- Hybrid
- Global Armored Fighting Vehicles Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Global Armored Fighting Vehicles Market, By Type, 2021 - 2031 (USD Million)
- Competitive Landscape
- General Dynamics Corporation
- Rheinmetall AG
- BAE Systems PLC
- Textron Inc.
- Elbit Systems Ltd
- Analyst Views
- Future Outlook of the Market