The armored personnel carrier market has been growing significantly over the past few years owing to the increasing geopolitical tensions and rising threats of insurgencies across various nations. Armored personnel carriers are highly protected military transport vehicles that provide troop mobility and operational deployment of infantry in high threat areas. Some of the key advantages of armored personnel carriers include ballistic protection, enhanced mobility, and the ability to transport infantry units. They provide vital support in military operations such as border patrol, law enforcement, peacekeeping missions, and counterinsurgency operations.
The armored personnel carrier market is estimated to be valued at USD 11.29 Bn in 2024 and is expected to reach USD 19.23 Bn by 2031. It is expected to grow at a compound annual growth rate (CAGR) of 7.90% from 2024 to 2031.
Key Takeaways
Key players operating in the armored personnel carrier market are General Dynamics Corporation, BAE Systems, Rheinmetall, KMW+, and FNSS Savunma Sistemleri.
The key opportunities in the Armored Personnel Carrier Market include demand for amphibious armored vehicles, driverless capabilities, and hybrid-electric drivetrains. Also, the growing defense budgets across Asia Pacific and Middle East countries will drive the demand for armored personnel carriers during the forecast period.
Major armored personnel carrier manufacturers are focusing on global expansion through partnerships, mergers, and acquisitions to strengthen their presence across high potential markets such as India, Africa, and Latin America.
Market Drivers
Rising geopolitical tensions between nations owing to territorial conflicts and increasing threats of insurgencies and militant attacks are some of the key factors augmenting the demand for armored personnel carriers. The growing defense spending of developing nations to modernize their armed forces with advanced military vehicles is also propelling the armored personnel carrier market growth. According to Stockholm International Peace Research Institute (SIPRI), the global military expenditure rose to $2.1 trillion in 2021. This increasing defense spending will certainly drive the procurement of technologically advanced armored personnel carriers during the forecast period.
PEST Analysis
Political: Armored personnel carrier markets are affected by political decisions around defense budgets and military priorities. Changes in governments could impact military procurement decisions.
Economic: Economic conditions influence the amount individual countries are able to spend on defense vehicles. Recessions may prompt cuts to military budgets for armored carriers.
Social: There is some social debate around the use of military force and levels of defense spending in certain nations. However, overall demand remains relatively stable due to ongoing security concerns.
Technological: New technological innovations, such as improved armor plating or networked communication systems, allow manufacturers to develop advanced models with greater protection capabilities. This drives growth as militaries upgrade their fleets.
Geographical regions with high market value
North America and Western Europe currently account for the largest shares of the global armored personnel carrier market value. Major customers including the U.S., UK, France and Germany have sizable carrier fleets and regularly invest in upgrades and replacements. Their status as leading defense spenders worldwide translates to substantial regional market size.
Fastest growing regions
The Asia Pacific region is expected to experience the fastest gains in the armored personnel carrier market over the coming years. Several large nations like India and China have been greatly increasing their defense budgets amid territorial disputes, fueling demand for new vehicles. Other areas seeing elevated strategic competition and threats, such as the Middle East, are also likely to grow purchasing of armored carriers at an above-average pace.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc.
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