Armored Vehicles Market Size, Share, and Industry Forecast
Valued at USD 49.96 billion in 2023, the armored vehicles market is projected to reach USD 51.54 billion in 2024 and USD 66.62 billion by 2032, growing at a CAGR of 3.3% during the forecast period 2024–2032. North America was the largest regional market in 2023. This analysis examines platform, mobility and regional dynamics that B2B stakeholders should track across the armored vehicles market. Combat platforms led revenue in 2023, tracked vehicles are expected to post the higher CAGR, and unmanned armored vehicles are projected to expand fastest.
Report Segmentation Overview
Polaris Market Research segments the armored vehicles market by platform (combat vehicles, combat support vehicles and unmanned armored vehicles), mobility (wheeled and tracked), system, mode of operation (manned and unmanned), type (electric and conventional), point of sale (OEM and retrofit) and region.
Platform Insights: Combat Platforms Lead, Unmanned Accelerates
The combat vehicles segment held the largest revenue share in 2023 because of widespread use by military forces in defensive and offensive operations. In April 2024, under the fourth order for full-rate production, USD 25 million was awarded for new Amphibious Combat Vehicle-Personnel units from BAE Systems, which had earlier received a USD 181 million contract. Meanwhile, unmanned armored vehicles are projected to register the highest CAGR during the forecast period, supported by technological advancements, operational efficiency and worldwide adoption. Tactical advantages such as surveillance and target acquisition without risking human lives also facilitate growth. In April 2024, Japan selected Milrem Robotics to supply three THeMIS unmanned ground vehicles equipped with the Intelligent Functions Kit for autonomous on-road and off-road operation.
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Mobility Insights: Tracked Versus Wheeled
The tracked vehicles segment is projected to register the higher CAGR during the forecast period, mainly because of technological advancements, military modernization programs and emerging defense strategies. Rough terrain in combat situations demands excellent off-road capability, which supports growth for tracked vehicles. The wheeled segment held the larger revenue share in 2023, with advantages in speed, mobility and cost-effectiveness for troop transport, reconnaissance and logistics support, as well as urban environments and peacekeeping missions.
Regional Insights: North America and Asia-Pacific
North America dominated the market in 2023 as geopolitical tensions, increasing defense expenditure and technological advancements propelled demand. In April 2024, General Dynamics was awarded a potential five-year, USD 518.8 million US Army contract for system technical support services for Stryker armored vehicles. Asia-Pacific is expected to grow rapidly, owing to rising defense expenditure, border escalations among neighboring countries, the presence of key players and expanded partnerships that help market players stay competitive. In February 2024, the Indian Army floated a tender for 155 mm towed howitzers, which the Indian Defense Ministry described as crucial equipment for the Indian Artillery Force. In India, military modernization programs include a planned request for proposal for a USD 6.87 billion project for future ready combat vehicles.
Key Players and Recent Developments
The market is fragmented, with defense expenditure driven by geopolitical conflict and collaboration among key and local players influencing competition. Major players include BAE Systems plc, General Dynamics Corporation, Rheinmetall AG, Oshkosh Corporation, Lockheed Martin Corporation, Thales Group, Navistar International Corporation, ST Engineering, Textron Inc. and Leonardo S.p.A. In May 2024, Armor Kovico of South Korea presented models of its KMPV armored personnel carrier at the DSA 2024 expo in Malaysia, reflecting how partnerships and expansion initiatives intensify competition. In May 2025, Arquus finalized an agreement to deliver 12 Sherpa vehicles to the Cypriot National Guard, following successful 2022 trials; the 11-ton Sherpa accommodates up to 10 personnel and offers a 900 km range. In April 2025, Axon Vision and CZECHOSLOVAK GROUP began a strategic partnership to modernize European armored vehicle fleets, including the PANDUR 8×8 EVO and TADEAS 6×6. Stakeholders tracking the armored vehicles market should monitor how unmanned platforms and demand for tracked vehicles evolve alongside military modernization programs.
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