The armoured vehicle market is expected to grow by USD 7.22 billion from 2023 to 2028, according to London-based market research company Technavio.
The market is expected to maintain a steady growth rate, with a compound annual growth rate (CAGR) of 6.32% during the forecast period.
The market’s growth is influenced by various factors, including the increase in asymmetric warfare globally, advancements in defence capabilities to counter emerging security threats, and the integration of hybrid drivetrains in Mine-Resistant Ambush Protected (MRAP) vehicles.
The market is classified into two types of mobility, wheeled and tracked, and two types of power, conventional and electric. The market is also segmented geographically into North America, Europe, APAC, South America, and the Middle East and Africa.
Asymmetric warfare, also known as irregular warfare, is a key factor driving the growth according to Technavio. In this type of warfare, belligerent forces adopt significantly different military capabilities and strategies. Guerrilla warfare, which involves militant groups and a conventional army, is a form of asymmetric warfare. These groups usually do not occupy large, well-established bases and employ attack tactics such as ambush and terrorist attacks, avoiding open battles. The increasing incidence of asymmetric warfare globally is leading to a rise in demand for armoured vehicles.