Armored Vehicle Upgrade And Retrofit Market Size (2024 - 2029)

The armored vehicle upgrade and retrofit market is experiencing growth driven by increasing global defense budgets and the demand for cost-effective armor solutions. This market expansion is fueled by the need to modernize aging armored fleets to enhance efficiency, lethality, and connectivity, amidst rising global terrorism and conflicts. Despite challenges such as high research and development costs and rapid advancements in weaponry that could impact armored systems' effectiveness, the focus on upgrading military capabilities is expected to sustain market growth.

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Market Size of Armored Vehicle Upgrade And Retrofit Industry

Armored Vehicle Upgrade And Retrofit Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 6.54 Billion
Market Size (2029) USD 7.96 Billion
CAGR (2024 - 2029) 4.01 %
Fastest Growing Market North America
Largest Market Asia Pacific

Major Players

Armored Vehicle Upgrade And Retrofit Market Major Players

*Disclaimer: Major Players sorted in no particular order

Armored Vehicle Upgrade And Retrofit Market Analysis

The Armored Vehicle Upgrade And Retrofit Market size is estimated at USD 6.54 billion in 2024, and is expected to reach USD 7.96 billion by 2029, growing at a CAGR of 4.01% during the forecast period (2024-2029).

Armored vehicles, pivotal in land combat, play dual roles in military operations, supporting offense and defense. These vehicles transport military personnel and cargo and engage in active combat, boasting weapons and armor to deflect various projectiles. They are the cornerstone of a nation's military might and are widely utilized across defense forces worldwide.

The armored vehicle upgrade and retrofit market is predominantly driven by the escalating defense budgets globally, leading to frequent upgrades to match evolving battlefield scenarios. Moreover, there is a rising appetite for cost-efficient armor solutions. In 2023, global defense spending, as highlighted by the Stockholm International Peace Research Institute (SIPRI), hit a record high of USD 2,443 billion.

Mounting global terrorism and conflicts are driving a surge in demand for cutting-edge technologies in land vehicles. With many nations facing aging armored fleets, they are increasingly turning to upgrade programs to boost efficiency, lethality, and connectivity.

However, challenges persist, especially with the high R&D costs and the swift advancements in weaponry, such as high explosive anti-tank (HEAT) warheads, which can potentially reduce the effectiveness and lifespan of armored systems. While these hurdles pose a threat to market expansion, the ongoing global efforts to modernize aging armored vehicles are poised to propel the market in the coming years.

Armored Vehicle Upgrade And Retrofit Industry Segmentation

Armored vehicles are land combat vehicles used for the transportation of different offensive and defensive operations. They are usually employed for the transportation of military personnel and cargo as well as operations in active combat.

The armored vehicle upgrade and retrofit market is segmented by vehicle type and geography. By vehicle type, the market is segmented into armored personnel carrier [APC], infantry fighting vehicle [IFV], mine-resistant ambush protected [MRAP], main battle tank [MBT], and other vehicle types. The report also covers the market sizes and forecasts in major countries across different regions. For each segment, the market size is provided in terms of value (USD).

By Vehicle Type
Armored Personnel Carrier (APC)
Infantry Fighting Vehicle (IFV)
Mine-resistant Ambush Protected (MRAP)
Main Battle Tank (MBT)
Other Vehicle Types
By Geography
North America
United States
Canada
Europe
United Kingdom
France
Germany
Russia
Rest of Europe
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
Latin America
Brazil
Rest of Latin America
Middle East and Africa
United Arab Emirates
Saudi Arabia
Egypt
Turkey
Rest of Middle East and Africa
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Armored Vehicle Upgrade And Retrofit Market Size Summary

The armored vehicle upgrade and retrofit market is experiencing a significant expansion, driven by increasing global defense budgets and the need to modernize aging fleets. Armored vehicles, essential for military operations, serve both offensive and defensive roles, transporting personnel and engaging in combat. The market's growth is fueled by the demand for cost-effective armor solutions and advanced technologies to counter global terrorism and conflicts. Despite challenges such as high research and development costs and rapid advancements in weaponry, the ongoing efforts to enhance the efficiency, lethality, and connectivity of armored vehicles are expected to propel the market forward. The focus on upgrading infantry fighting vehicles (IFVs) and other armored systems is particularly pronounced, with nations investing in new vehicles and extensive upgrades to meet modern battlefield demands.

North America is anticipated to lead the market, supported by robust defense spending and significant investments in military modernization, particularly from the United States and Canada. The diverse fleet of armored vehicles in the region, coupled with heightened military modernization efforts, is driving market growth. Key players in the semi-consolidated market, such as General Dynamics Corporation, Rheinmetall AG, and BAE Systems PLC, are intensifying their research and development investments to introduce state-of-the-art solutions. Notable contracts and collaborations, like those involving FNSS Defence Systems and Rheinmetall AG, highlight the ongoing commitment to enhancing armored vehicle capabilities. These developments, alongside strategic upgrades and retrofits, are set to shape the market landscape in the coming years.

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Armored Vehicle Upgrade And Retrofit Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Vehicle Type

      1. 2.1.1 Armored Personnel Carrier (APC)

      2. 2.1.2 Infantry Fighting Vehicle (IFV)

      3. 2.1.3 Mine-resistant Ambush Protected (MRAP)

      4. 2.1.4 Main Battle Tank (MBT)

      5. 2.1.5 Other Vehicle Types

    2. 2.2 By Geography

      1. 2.2.1 North America

        1. 2.2.1.1 United States

        2. 2.2.1.2 Canada

      2. 2.2.2 Europe

        1. 2.2.2.1 United Kingdom

        2. 2.2.2.2 France

        3. 2.2.2.3 Germany

        4. 2.2.2.4 Russia

        5. 2.2.2.5 Rest of Europe

      3. 2.2.3 Asia-Pacific

        1. 2.2.3.1 China

        2. 2.2.3.2 India

        3. 2.2.3.3 Japan

        4. 2.2.3.4 South Korea

        5. 2.2.3.5 Rest of Asia-Pacific

      4. 2.2.4 Latin America

        1. 2.2.4.1 Brazil

        2. 2.2.4.2 Rest of Latin America

      5. 2.2.5 Middle East and Africa

        1. 2.2.5.1 United Arab Emirates

        2. 2.2.5.2 Saudi Arabia

        3. 2.2.5.3 Egypt

        4. 2.2.5.4 Turkey

        5. 2.2.5.5 Rest of Middle East and Africa

Armored Vehicle Upgrade And Retrofit Market Size FAQs

The Armored Vehicle Upgrade And Retrofit Market size is expected to reach USD 6.54 billion in 2024 and grow at a CAGR of 4.01% to reach USD 7.96 billion by 2029.

In 2024, the Armored Vehicle Upgrade And Retrofit Market size is expected to reach USD 6.54 billion.

Armored Vehicle Upgrade and Retrofit Market Report Snapshots

Armored Vehicle Upgrade and Retrofit Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)