The military vehicle market is projected to reach US$ 65.53 billion by 2031 from US$ 32.47 billion in 2024. The market is expected to register a CAGR of 10.8% during 2025–2031. The rising electrification of military vehicles is likely to bring new key trends in the market in the coming years.
Heavy-armored, mobile, and versatile vehicles are widely preferred for warfare. The growing emphasis on procuring multi-role vehicles that can accomplish various functions such as reconnaissance, troop transport, and combat support is on the rise. In addition, the surging focus on the versatility of military vehicles is critical for adapting to varied operational circumstances, contributing to the military vehicle market growth.
The proliferation of autonomous ground vehicles to meet complex military operations is having a positive impact on the market. Autonomous military vehicles offer substantial advantages in terms of operational efficiency. These vehicles can perform missions in hazardous environments without harming human lives, which makes them important for surveillance, reconnaissance, and logistics. The ability to deploy unmanned ground vehicles (UGVs) for tasks such as supply transport and bomb disposal can lead to substantial cost savings and improved mission outcomes.
Military vehicles demonstrate an essential role in modern warfare, aiding various functions such as logistics, transportation, reconnaissance, and combat. Several factors, including geopolitical unease, technological advancements in the defense sector, and rising defense budgets, impact the demand for these vehicles. As the scenario of modern warfare evolves, the requirement for military vehicles is also witnessing an upsurge.
The military vehicle market is projected to continue growing during the forecast period, with a rising focus on efficiency and sustainability. As various countries strive to address their operational requirements while administering expenditures, there is an expanding interest in military vehicles that offer minimal lifecycle costs and lower environmental impact. Additionally, the ongoing trend toward joint operations among allied forces tends to induce advanced vehicle design and procurement strategies, encouraging the incorporation of advanced technologies in the defense and military sectors.
The changing modern warfare scenario has compelled governments of various countries across the globe to allocate substantial funds and financial aid toward respective defense and military forces. The defense budget allocation supports the army and military forces to acquire enhanced technologies and equipment from native or international developers. Alternatively, military and army vehicle modernization is on the rise due to the growing defense budget allocation. Furthermore, the growing governmental expenditure showcases the government's attention on improving national security forces. There is an augmented need to reinforce military and border security forces with cutting-edge surveillance, communication, artillery, navigation equipment, armaments, and vehicles, among others; hence, military forces across the globe are focusing on investing significant amounts in procuring advanced technologies. Defense forces' constant inclination to acquire new technologies for noncombat and combat operations further boosts military expenditure across the globe.
As per the Stockholm International Peace Research Institute (SIPRI), global military spending increased to US$ 2,443 billion in 2023 from US$ 2,148 billion in 2022, representing approximately a 6.8% increase from 2022. The US and China continued to be the top two leading spenders in the world, and both increased their military spending in 2023. US spending was US$ 916 billion, while China's spending was ~US$ 296 billion. In 2023, India was the world's fourth-largest military spender, with a total expenditure of US$ 83.6 billion, marking a ~4.2% increase from 2022. Increasing Number of Contracts for Supply of Military Vehicles
Manufacturers operating in the military vehicle market strongly emphasized collaborating with different governments and armed forces to comprehend their respective demands and offer suitable solutions. The military forces of various countries are granting numerous contracts to military vehicle manufacturers to procure advanced military vehicles equipped with high-end communication, surveillance, and navigation systems. Moreover, the defense forces of different nations are investing substantially in obtaining military vehicles such as tanks, military trucks, amphibious military vehicles, armored vehicles, reconnaissance, and special-purpose vehicles. Military vehicles are essential to comprehensive logistics, combat, transporting, communication, surveillance, and navigation purposes. They enable armed forces to facilitate enhanced major military operations.
In the changing panorama of modern warfare, the global military vehicles market is observing a surge in demand for multi-role military vehicles. This demand is generated from the requirement for efficient, flexible, cost-effective solutions that address varied operational requisites. Multi-role vehicles, designed to accomplish various tasks such as troop transportation, reconnaissance, combat support, and medical evacuation, correspond to a substantial opportunity for market development. With the growing evolutions in integrated designs, hybrid propulsion technologies, and autonomous systems, multi-role vehicles are well-placed to govern future military vehicle procurement strategies. Defense vehicle manufacturing companies that capitalize on the growing trend of procuring multi-role military vehicles by offering innovative, customizable platforms are anticipated to experience substantial growth over the forecast period. Countries such as the US, China, India, and Russia are vigorously upgrading their military fleets to replace single-purpose, aging vehicles with flexible, technologically developed platforms.
Key segments that contributed to the derivation of the military vehicle market analysis are type, application, and technology.
The geographic scope of the military vehicle market report offers detailed regional and country analysis. North America, Europe, and Asia Pacific are major regions witnessing significant growth in the military vehicle market. North America dominated the military vehicle market in 2024 with a significant share; it will continue to dominate the market during the forecast period. Military vehicles play a major role in the defense sector for transportation, logistics, surveillance, and communication. The growing need for advanced technologies to cater to modern battlefield requirements boosts the demand for advanced military vehicles in North America. In 2022, North America spent US$ 886.3 billion on defense activities; in 2023, it reached ~US$ 903.7 billion. The US is leading the market for military vehicles in North America, followed by Canada and Mexico. The growing number of military vehicle orders is boosting the market's growth in North America. For instance, in February 2025, The US Army is sealing a contract with BAE Systems to purchase 309 additional AMPVs. The new armored personnel carriers will be ordered for fiscal years 2025, 2026, and 2027, with an increase in production from 81 vehicles in 2025 to 122 in 2026 and 2027. In August 2024, The US Army gave General Dynamics Land Systems another low-rate initial production contract for the M10 Booker Combat Vehicle.
The regional trends and factors influencing the Military Vehicle Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Military Vehicle Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2024 | US$ 32.47 Billion |
| Market Size by 2031 | US$ 65.53 Billion |
| Global CAGR (2025 - 2031) | 10.8% |
| Historical Data | 2021-2023 |
| Forecast period | 2025-2031 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Military Vehicle Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Military Vehicle Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The global military vehicle market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the military vehicle market are listed below:
The "Military Vehicle Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
The List of Companies - Military Vehicle Market
The military vehicle market was valued at US$ 32.47 million in 2024; it is expected to register a CAGR of 10.8% during 2024–2031.
Rising Defence Expenditure
Electrification of Military Vehicles
The key players operating in the military vehicle market include ASHOK LEYLAND; BAE Systems Plc; General Dynamics Corporation; NORINCO Group; Oshkosh Defense, LLC; Patria; Rheinmetall AG; Soframe; Tata Motors; Thales Group; Lockheed Martin Corporation; and KNDS France.
The military vehicle market is expected to reach US$ 65.53 million by 2031.