Global Armored Vehicle Market was valued at USD 25.5 billion in 2018 and is estimated to reach USD 26.87 billion by the year 2019.
It is expected to grow at the CAGR of 5.4% within the time horizon of 2019-2024 because of rising criminal activities and growing commercial security market.
It will reach USD 34.96 billion by the year 2024.
- Definition / Scope
- Market Overview
- Market Risks
- Market Trends
- Industry Challenges
- Technology Trends
- Market Size and Forecast
- Market Outlook
- Technology Roadmap
- Competitive Factors
- Key Market Players
- Strategic Conclusion
Definition / Scope
Armored vehicles are a type of vehicles either wheeled or tracked, which ride on land and are protected by tough metal layer of by layers of depleted uranium or stainless steel. They have the capacity of mobility and defensive qualities.
They are used for the defense and commercial purpose. Here, armored personal carrier, infantry fighting vehicle, light protected vehicle, main battle tank, mine-resistant ambush protected and tactical vehicles are used for the defense purpose while van, limousine, sedan and sport utility vehicle are used for the commercial purpose (VIP protection, armed convoys, patrols).
On the basis of type of platform and application, armored vehicle market is segmented into following:
Globally, the market size of armored vehicle was valued at USD 25.5 billion in 2018 is estimated to reach USD 26.87 billion by the year 2019. It is expected to grow at the CAGR of 5.4% within the forecasted time period of 2019-2024.
Europe is leading the armored vehicle market on the basis of geographical distribution of regions with the market share of about 31.7% of the total global armored vehicle market. It is followed by Asia-Pacific, African, American and middle eastern region.
On the basis of the application, the defense sector is leading the market with the market value of USD 20.5 billion in 2018 because of the increasing concern for safeguarding the soldiers life during wars, riots and terrorism attacks while the commercial sector is expected to grow at the highest CAGR of 5.8% within the time horizon of 2019-2025 because of the increasing concern for the personal safety, rising crime rate and wide adoption by banks to transfer money in the countries.
On the basis of the platform, infantry fighting vehicles segment is leading the market with the share of 25.3% of total global armored vehicle market while main battle tanks segment is expected to grow at the highest CAGR of 5.9% within the forecasted time period of 2019-2024.
The key market players engaged in this market are BAE systems, BMW AG, Daimler AG, and Elbit Systems.
- Inadequate regulatory standards and risk of fraudulence
The regulatory standards featuring the level of protection from armored vehicles is inadequate in most of the Asian pacific and other countries such as China, India, Brazil, etc.
Because of this, several unauthorized armored vehicle manufacturing companies are emerging, which can lead to increased risk of fraudulence in the vehicles platform. Along with this, it might create high prices for the vehicles and risk the growth and development of the armored vehicle market.
Top Market Opportunities
- Terrorists threats and military battles
Globally, the number of deaths from terrorists’ attacks is declining since 2014. It has been decreased by 22% in four countries (Syria, Pakistan, Afghanistan and Nigeria) among all the five countries mostly affected by terrorism attacks. However, the terrorist attacks deaths by ISIL are on an increasing trend.
It has been almost increased by 49% in 2016 and Iraq is the mostly affected country, which contribute to 40% of increase in the terrorists attack deaths. ISIL is the fourth most deadly group and accounts for almost 4.7% in OECD countries.
Along with this, in terms of the number of the countries being affected is also increased from 65 countries to 77 countries within a year. It is projected that before 2050, the probability of occurrence of deaths from terrorists attack will reach more than 100,000 people.
Although this increasing number of terrorists’ attacks is causing the loss of lives, property destruction, and internally displaced people, it will further increase the demand for the use of the armored vehicles in defense sector. It would ultimately promote the growth and development of the global armored vehicle market.
- Multinational collaboration to counter-terrorism
The number of countries are collaborating their efforts to counterattack the threats and impact of the terrorist attacks worldwide. For instance, North Atlantic Organization and the African Union has collaborated to maintain and counter terrorism.
INTERPOL and counter-terrorism entities of United Nations (Office of counter-terrorism, counter-terrorism center, counter-terrorism committee) are working collaboratively to combat with the emerging transnational crime and terrorists’ attacks.
This form of joint effort to combat the terrorism will promote the demand for the technologically advanced armored vehicles and would favor the growth of its market.
- Growing commercial security sector
Globally, the commercial security market is expected to grow at the CAGR of 10% within the time horizon of 2019-2024. It is estimated to reach USD 187 billion by the year 2023.
Commercial security segment is one of the major application sectors of the armored vehicles market, which accounts for the market value of about 19.61% of total global armored vehicle market.
The armored vehicles are utilized for the commercial sectors such as protection of the VIPs, patrols, monetary transfer, etc. This increasing trend of commercial security market is creating the demand for the armored vehicles as the means of the protection and safety, which is ultimately driving the growth of the armored vehicles market.
- Increasing cross-border criminal activities and communal violence
The criminal activities across the trans-national boarders are the burning issues because of its increasing extend and impact worldwide. The major criminal activities are human trafficking, wildlife and timber trafficking, smuggling of migrants, smuggling of drugs and precursor chemicals, counterfeit goods and falsified medicines are taking placing in the boarders.
For instance, the illegal methamphetamine market between Southeast Asia, and neighboring east Asia, Australia, etc is valued at USD 30.3-USD 61.4 billion on the annual basis.
Along with this, the communal violence within the different communities of the country is also in rising trend. For instance, In the context of India, the communal clashes has raised between some BJP-governed state and Hindu nationalist state leaders, which is allowing the expansion of influence of Islamist terrorist groups.
These instances of the organized criminal and violence activities are creating the demand to increase and develop the strong cross-national and intra-national security and defense system. As armored vehicles are one of the component of the defense system, the increasing trends of crimes is driving the growth and development of the armored vehicle market.
- Rising prices of raw materials and its assembly
For the production of the armored vehicles, the steel is required as the major raw material. Besides this, chromium and nickel are also used to increase the bullet resistance, as they are very hard and dense metal respectively. Globally, the demand for the steel is expected to increase by 1.6% in 2018. T
he price of the steel is expected to increase at the rate of 2.2% annually over the next three years’ time period. Along with this, the price of the chromium is also increased by 5.6% and reached USD 7,000 to 7,400 per ton. It might restrain the growth and development of the armored vehicles market.
- Limited budget for military spending
The proportion of the governmental budget allocation on military activities is in decreasing trend. The military expenditure has decreased from 2.41% of GDP in 2010 to 2.41% of GDP in 2018.
Among all countries, central Europe and Baltics has allocated just the lowest amount of budget i.e. 1.6% of total GDP while the Arab world has allocated the highest amount i.e. 5.6% of total GDP.
This declining amount of budget for the military expenditure is quite challenge for the market players for the development of the armored vehicle market.
In the context of armored vehicles, the advancement in science and technology is promoting the development and incorporation of the innovative ideas such as Information based weaponry system, advanced electronic warfare operations system in its market. The key technological changes in this market are as follows:
- Active protection system: It is a defense system using the combination of sensors, radar, weapons, and countermeasure munitions to detect and defeat anti-tank guided missiles and rocket propelled grenades.
- Artificial intelligence based smart object recognition: It is concerned with the use of the robots and other AI devices with a view to identify variety of things and entities in the armored vehicles.
- Armored multi-purpose vehicle: It is widely used for protection against improvised explosive devices equipped with mine roller systems. It was developed by BAE systems in 2018.
- Tracking technology: This technology is incorporated in the armored vehicle for surveillance of the people as well as organized groups involved in criminal, terrorism, and other offensive activities.
- Virtual training: It is the training program provided to the armed police force to increase the level of preparedness against the violence and warfare related activities by creating the virtual and simulated environment.
- Survivability equipment: It enables the armored vehicles to work in normal condition during and after any form of natural and man-made disturbances.
- Unmanned vehicles: This vehicles are run without person the board. They are remote controlled and autonomous with the capacity to navigate in accordance with the environmental conditions.
The price of the products of this market depends upon the platform type, technology, brand name, and price of the raw materials used for production of it. Generally, the new condition armored vehicle costs about USD 90,000 to USD 200,000 per unit.
The cost of the explost transport truck armored vehicle is USD 90,000 to USD 140,000 per unit while the cost of the light military armored vehicle is USD 129,800 to USD 259,800 per unit. The price of the armored vehicle differs from country to country.
For instance, the price of the Rezvani Tank of V6 engine is about USD 155,000 in US. In the context of India, the price of Maxworth Communication Armored Vehicle is about USD 140 per unit while the price of the bulletproof armored vehicle is USD 8,000 to USD 50,000 per unit in China.
The regulations and standards related to the armored vehicle market is quite limited. In the context of US, the private security advisory council has developed standards for armored car and armed courier services with a view to increase the efficiency of these vehicles.
This standards includes the information and acts about the identity of private security personnel, use of distinctive uniform by armed car personnel, the use of personal protective equipment, weapons insurance, weapons size, vehicles warning devices, vehicle locking devices, vehicle communication equipment, and safety. In the context of India, the regulation related to armored vehicle is inadequate.
The Ministry of Road Transport and Highways is responsible for the regulations of its market. In 2019, it has granted the exception for armored vehicles from the pollutants emission norms. In most of the south Asian and other countries, the regulatory framework for the development and maintenance of the armored vehicles market is inadequate.
Market Size and Forecast
The total market size of Global armored vehicle market was valued at USD 25.5 billion in 2018. It is estimated to reach USD 26.87 billion by the year 2019.
It is expected to grow at the CAGR of 5.4% within the forecasted time period of 2019-2024 to reach USD 34.96 billion by the end of the year 2024.
On the basis of the application
- The defense segment is leading the market with the market value of USD 20.5 billion in 2018 because of the increasing concern for safeguarding the soldiers life during wars, riots and terrorism attacks. It accounts for 80.39% of total global armored vehicle market value.
- The commercial segment accounts for 19.61% of total market share with market value of USD 5 billion in 2018. It is expected at the highest CAGR of 5.8% within the time horizon of 2019-2025 because of the increasing concern for the personal safety, rising crime rate and wide adoption by banks to transfer money in the countries.
On the basis of the platform type
- Infantry Fighting vehicles segment is dominating the market with the market share of about 25.3% of total global armored vehicle market. Its market size was valued at USD 6.45 billion in 2018.
- Armored personal carriers segment accounts for almost 23.1% of total market share with the market value of USD 5.89 billion in 2018.
- Main battle Tanks segment holds the market share of about 18.3% of total global market share. Its market size was valued at USD 4.66 billion in 2018.
- Light Multirole vehicles segment is holding the market share of nearly 15.4% with the market size of USD 3.92 billion in 2018.
- The rest of the global armored vehicle market share is accounted by Tactical truck (6.6%), Heavy Armament Combat (4.4%), Armored Engineering (2.9%), Armored Support (2.3%), and Light utility vehicles market (1.6%).
On the basis of geography
- Europe is leading the armored vehicle market on the basis of geographical distribution of regions with the market share of about 31.7% of the total global armored vehicle market. Its market size was valued at USD 8.08 billion in 2018.
- Asia-pacific region holds the second largest market, which accounts for 26.2% of total global armored vehicles market share because of the increasing investment of countries such as India, South Korea, China for the research, development and procurement of the armored vehicles in this region. Its market size was valued at USD 6.68 billion in 2018.
- Then the global armored vehicle market share is followed by North America (19%), Middle East (14.8%), Africa (5.5%), and Latin America (2.9%).
The global armored vehicle market is expected to grow at the CAGR of 5.4% within the forecasted time period of 2019-2024 because of the rising criminal activities, terrorism, and increasing commercial security market. It will reach USD 34.96 billion by the year 2024.
The technological changes such as increased efficiency in fuel consumption, introduction of high tech sensors, electronic warfare operational systems, information based weaponry systems, digitalized network technologies, etc are positively impacting the growth of the armored vehicle market.
Along with this, active protection systems is creating the defense system for detecting and defeating anti-tank guided missiles and rocket-propelled grenades, which is replacing the conventional Robust, compact and lightweight armored vehicles being used for the purpose of the defense and protection is widening the future prospects for the growth of its market.
Distribution Chain Analysis
The key stakeholders involved in the operation of the global armored vehicle market are raw materials manufacturers and suppliers, parts manufacturers, product assembling and distributing companies, and consumers.
Firstly, the raw materials such as steel, nickel, and chromium are produced and supplied to the parts manufacturing company. After the production of the different equipment of the armored vehicles, they are supplied to the product assembling companies.
The final assembled product (vehicle) is made available through different distribution channels such as vehicle showroom, online portal, etc to the consumers.
The key market players engaged in the global armored vehicle market are competing for the production of the more advanced system incorporating the artificial intelligence, tracking and information based system and autonomous vehicles for better performance, security, and combat capabilities.
Along with this, they are competing to deal with the challenges faced by the inadequate regulatory frameworks.
Key Market Players
Short profile of the key market players engaged in the global armored vehicles market are discussed as below:
|BAE systems||It is a multinational company engaged in the production of wide range of the advanced technologies for commercial and military electronic markets. It develops armored vehicles, aircraft and ships||UK|
|Oshkosh Corporation||It manufacturers the toughest specialty trucks, military vehicles, truck bodies, airport fire apparatus and access equipment.||US|
|Elbit System Ltd||It is an international company specialized in the production of defense electronics with its focus on enhancing military platforms, defense technologies, training and simulation||Israel|
|Thales Group||It provide the services and technology for defense, transportation, security and aerospace.||France|
|Rheinmetall AG||It is a German based defense contractor With the market revenue of USD 6.77 billion in 2018||Germany|
|Denel Land||It is specialized in the design and manufacture of systems foe defense system. Its product are armored car, turret, battle riffle, etc.||South Africa|
|Sabiex International||It distributes the military vehicles, platforms, armored combat vehicles, and spare parts worldwide.||Belgium|
|Nammo AS||It is the leading distributor of rocket motors for military and civilian customers.||Norway|
The global armored vehicles market is growing at the rate of 5.4% because of the rising criminal activities, terrorists’ attacks and growing commercial security market.
However, inadequate regulatory framework and declining budget allocation for military expenditure might restrain the growth of its market. The market players should be focused on the use of the technological innovation to improve the efficiency and strength of the armored vehicles.
- OECD= The Organization for Economic Co-operation and Development
- INTERPOL= The International Criminal Police organization
- USD= United States Dollar
- CAGR= Compound Annual Growth Rate