Armored Vehicle Upgrade & Retrofit Market By Vehicle Type (Armored Personnel Carrier, Infantry Fighting Vehicle, Main Battle Tank, Light Armored Vehicle, Tactical Trucks), By Upgrade Type (Armor & Protection Systems, Communication Systems, Mobility & Drive Systems, Firepower Systems, Surveillance & Electronics), By End-User Industry (Military & Defense, Law Enforcement, Homeland Security, Commercial & Industrial Sectors), and By Region; Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Armored Vehicle Upgrade & Retrofit Market was valued at USD 6.5 billion in 2023 and will surpass USD 9.5 billion by 2030; growing at a CAGR of 5.5% during 2024 - 2030.

The armored vehicle upgrade and retrofit market is evolving rapidly as defense forces worldwide seek to enhance the operational effectiveness and survivability of their fleets. The growing need for modernized vehicles with advanced capabilities is a direct response to the increasingly sophisticated threats in both combat and peacekeeping operations. Armored vehicles, such as the Armored Personnel Carrier (APC) and Infantry Fighting Vehicle (IFV), are being upgraded with cutting-edge armor, mobility systems, and communication technologies to ensure operational superiority and force protection in complex and hostile environments. This trend is being fueled by both military modernization programs and the need to adapt to emerging threats in defense strategies globally.

Armored Personnel Carrier (APC) Segment Is Largest Owing to Widespread Military Use

Among the various vehicle types in the armored vehicle upgrade market, the Armored Personnel Carrier (APC) segment holds the largest market share. APCs are extensively used by military forces worldwide for troop transport in high-risk zones. These vehicles offer crucial protection and mobility for soldiers, making them a key asset in ground operations. As defense budgets increase, there is a significant emphasis on enhancing APCs to withstand modern-day threats, including improvised explosive devices (IEDs) and anti-tank weapons. The APC market's large share is driven by its versatile role in a wide range of military operations, from peacekeeping to direct combat engagements.

Modern APCs are being upgraded with advanced armor, improved communications systems, and enhanced mobility solutions, ensuring they can operate in the harshest conditions. The growing need to increase the safety of personnel and the versatility of these vehicles for both combat and non-combat missions is a significant factor contributing to the dominance of the APC segment.

Armor & Protection Systems Segment Is Fastest Growing Due to Evolving Threats

The Armor & Protection Systems segment is the fastest growing within the armored vehicle upgrade and retrofit market. As military forces face increasingly complex threats, including anti-tank missiles, IEDs, and RPGs, there is a high demand for more advanced and effective armor solutions. Reactive armor, composite armor, and modular armor systems are becoming standard features on upgraded armored vehicles. The evolution of armor technologies, particularly in terms of survivability and weight efficiency, is making it an area of rapid development.

This growing need for advanced armor and protection systems is driven by the requirement to protect personnel and vehicles from diverse and sophisticated threats. In addition, governments are focusing on strengthening their armored vehicle fleets with upgrades to ensure that their forces are better equipped to handle emerging battle scenarios. The continued innovation and demand for protective technologies are propelling the growth of this segment in the global market.

Military & Defense Sector Is Largest End-User Industry Due to Continued Investment

The Military & Defense sector remains the largest end-user industry in the armored vehicle upgrade and retrofit market. This sector benefits from continuous investment in defense programs and modernization efforts, particularly in countries with large military budgets such as the United States, China, and Russia. The demand for armored vehicles equipped with advanced upgrades, including enhanced mobility, firepower, and protection, is substantial as defense forces aim to maintain technological superiority and readiness.

Military forces are actively investing in upgrading existing armored vehicles to meet modern warfare demands, including counter-insurgency, border patrol, and urban warfare. As security concerns grow globally, the military sector’s dominance is expected to continue driving the armored vehicle upgrade market, ensuring a stable demand for retrofitting armored fleets.

North America Is Largest Region Owing to Strong Defense Budgets

North America, particularly the United States, is the largest region in the armored vehicle upgrade and retrofit market. The U.S. military has one of the highest defense budgets globally, and a significant portion of that budget is dedicated to modernizing existing armored vehicle fleets. The U.S. is at the forefront of implementing new technologies in its military vehicles, including active protection systems, improved communication technologies, and enhanced mobility features.

In addition to large-scale defense spending, North America's extensive defense infrastructure and strategic military objectives also contribute to the region’s dominance in the global armored vehicle upgrade market. The growing focus on upgrading existing fleets of APCs, tanks, and other armored vehicles further strengthens North America's position as a key market for vehicle upgrades.

Competitive Landscape: Key Players and Strategic Developments

The armored vehicle upgrade and retrofit market is highly competitive, with several global players leading the market through innovation, technological advancements, and strong government relationships. Key companies such as BAE Systems, General Dynamics, Rheinmetall AG, Lockheed Martin, and Oshkosh Defense are at the forefront of providing advanced armored vehicle solutions, including upgrades to existing platforms. These companies are focused on enhancing the performance, protection, and survivability of armored vehicles with the latest technologies in armor, mobility, and electronics.

In addition to the established players, niche companies specializing in specific vehicle upgrades are also making an impact in the market. Textron Systems and Nexter Systems are examples of companies focusing on specialized vehicle types and upgrade solutions. Mergers, acquisitions, and partnerships are also common in the industry, as companies look to expand their capabilities and strengthen their positions in the competitive landscape

List of Leading Companies:

• BAE Systems
• General Dynamics
• Rheinmetall AG
• Lockheed Martin
• Oshkosh Defense
• Leonardo S.p.A.
• Nexter Systems
• Textron Inc.
• Hanwha Group
• Elbit Systems
• AM General LLC
• Navistar Defense LLC
• Tata Motors
• IVECO Defence Vehicles
• ST Engineering

Recent Developments:

• BAE Systems recently announced the development of a new upgraded protection system for armored personnel carriers, enhancing protection against modern-day threats like RPGs and IEDs.
• General Dynamics has expanded its retrofit services for military vehicles with the launch of its advanced surveillance system for tactical trucks used by defense forces globally.
• Rheinmetall AG unveiled a new hybrid mobility system for armored vehicles, aimed at reducing fuel consumption and improving the operational range for military applications.
• Lockheed Martin secured a contract for vehicle modernization from a NATO member country, focusing on enhancing the firepower and communication systems of older military vehicles.
• Oshkosh Defense entered a strategic partnership with AM General to jointly offer vehicle upgrade solutions that combine both companies' expertise in vehicle manufacturing and retrofitting technologies for military applications

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