Press Releases Details
The Military Vehicle Sustainment Market was at USD 14.3 billion in 2023-e, and is projected to grow at a CAGR of 7.8% through 2030 to reach USD 24.7 billion. Military vehicle sustainment is a critical function of military services. The rising burden of sustainment of aging military vehicles globally is one of the key factors driving the military vehicle sustainment market. There is a growing need for efficient sustainment services of military vehicles to keep military spending in check and increase the lifespan of costly military vehicles. Military vehicle sustainment services are utilized by all the divisions of the armed forces including the Army, Air Force, Navy, and others.
High Wear & Tear of Military Vehicles is Driving the Demand for Parts & Components Supply Services
The military vehicles operational in the fleet go through wear & tear and constantly need parts and components replacements. In addition, technology has been evolving much faster than automotive components and the aging vehicle fleet demands for upgradation to be fit for operation. Efficient operations necessitate sustained access to military vehicle parts & components for extended durations.
A consistent procurement strategy for parts & components is crucial for effective lifecycle management, aiming to minimize maintenance costs and mitigate losses in an aging fleet. Consequently, the parts & components supply segment is expected to experience significant growth in the military vehicle sustainment market.
Increasing Number of Companies in Tactical Vehicle Manufacturing is Driving the Demand for Tactical Vehicle Segment
Tactical vehicles are a crucial part of military logistics that are used for general resupply, ammunition resupply, maintenance and recovery, where engineer support missions along asphalted roads and unpaved dirt roads. In general, these tactical vehicles are composed of a chassis, a motor, a transmission, a cabin, an area for the placement of the load and the equipment, axles of transmission, suspensions, direction, tires, electrical, pneumatic, hydraulic, engine cooling systems, and brakes.
The tactical vehicle segment is further segmented into light tactical vehicles, medium tactical vehicles, and heavy tactical vehicles. A large fleet of tactical vehicles are operated by the military. An increasing number of companies in tactical vehicle manufacturing is driving the demand for military vehicle sustainment services for tactical vehicles.
High Military Spending Drives the Market Growth in North America
North America holds a significant market share in military vehicle sustainment owing to the high government spending on the defense industry. The US holds a prominent position in defense expenditure, with the Department of Defense (DoD) budget exceeding USD 816.7 billion for the fiscal year 2023. In March 2023, the US Government presented a proposed Fiscal Year (FY) 2024 Budget request amounting to USD 842 billion for the DoD. This signifies a USD 26 billion increase over FY 2023 levels and a USD 100 billion rise compared to FY 2022. Moreover, the presence of key players such as BAE Systems, Cummins, Thomas Global Systems, and Oshkosh, among others is also driving the market growth in the region.
The Key Players are Highly Competitive to Capture the Market Share
The key companies in the military sustainment market are continuously striving to strengthen their portfolio to meet the growing demand. The companies plan and execute projects with a high degree of accuracy, reducing the risk of costly errors, safety hazards, and project delays. The companies often sign long-term contracts with government bodies across the world for military vehicle sustainment. Some of the key companies in the market are BAE Systems, Cummins, Elbit Systems, Kratos Defense & Security Solutions, Oshkosh, Rheinmetall, SAIC, Siemens, Thomas Global Systems, and VSE, among others.
TRENDING REPORTS