The military truck market size is projected to reach US$ 25,008.05 million by 2031 from US$ 19,138.83 million in 2023. The market is expected to register a CAGR of 3.4% in 2023–2031. Governments of various countries are working on expanding their military troops to enhance their capabilities. In January 2021, the government of China announced that it would start conducting recruitment drives twice a year from 2021 onward. This proposal was approved by the State Council and the Central Military Commission. The first phase of recruitment will take place from February to March, and the second phase will take place from August to September. Similarly, the Indian government is also working on expanding its military troops to protect its borders from China and Pakistan's invasion. Thus, such growing recruitments in the military forces indicate the need for military trucks to transfer troops, fuel, and equipment along asphalted roads and unpaved dirt roads, thereby driving the growth of the military truck market.
Military Truck Market Analysis
Using the fueled military vehicle can be expensive for the armed forces. The US military has been one of the largest consumers of petroleum, using ~4.2 billion gallons of fuel each year. The Defense Logistics Agencies had to spend over US$ 9 billion on fuel in 2019. Thus, to lessen the spending on fuel, the US Army is leading the way and investing in pilot programs for electric and hybrid vehicles. The new Climate Strategy by the US Army has set a 2027 target to deploy an all-electric, light-duty, nontactical fleet. In addition, they have also set a 2035 target for the deployment of a full all-electric nontactical fleet and hybrid tactical vehicles.
Military Truck Market Overview
Military and defense sectors are heavily investing in advanced technologies to strengthen their capabilities with advanced war machineries and transportation equipment. The countries such as Russia, US, France and others developing advanced military truck for global market. Military trucks manufacturers such as Volvo Defense AB; Tata Motors Ltd; Rheinmetall AG; Oshkosh Corporation; and General Dynamics European Land Systems SLU are leading the market growth. Developing nations such as India, China, Indonesia and others are strengthening their military strength due to rising border clash with neighboring countries. The military trucks are important parts of the military transportation and demand is growing with rising military troops and equipment procurement. The huge investment from the governments and the technological developments from the truck manufacturer is augmenting the market growth. For instance, as per the Oshkosh company, the US Army released its draft requirements for the Common Tactical truck (CTT) in 2021 for the procurement of the 7,000 to 10,000 vehicles worth of US$ 5.1 billion. Such procurement from the governments for the ground vehicles is ultimately supporting the market growth and enhancing the product offering in the market. In addition, the US-based Oshkosh Defense is focusing more on such contract or requirement with the development of advanced propulsion system. For instance, the company has introduced the ProPulse Hybrid Diesel-Electric System for the HEMTT A3 and Medium Tactical Vehicles to improve fuel economy.
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Military Truck Market: Strategic Insights
Market Size Value in US$ 19,052.77 million in 2023 Market Size Value by US$ 22,537.79 million by 2028 Growth rate CAGR of 3.4% from 2023 to 2028 Forecast Period 2023-2028 Base Year 2023
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Military Truck Market: Strategic Insights
| Market Size Value in | US$ 19,052.77 million in 2023 |
| Market Size Value by | US$ 22,537.79 million by 2028 |
| Growth rate | CAGR of 3.4% from 2023 to 2028 |
| Forecast Period | 2023-2028 |
| Base Year | 2023 |
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Military Truck Market Drivers and Opportunities
Efforts by Companies to Provide High-Mobility and Multipurpose Solutions for Transportation
Modern forces play various roles ranging from providing mission support in battlegrounds to carrying out logistical tasks in the homeland. Military trucks are also used to carry troops, staff, (mounted) weapons, supplies, evacuate wounded soldiers, etc. Furthermore, they are required to deploy military units at different locations to enhance national protection. Thus, the demand for military trucks is rising with the growing number of military missions as they are deployed to move military personnel, equipment, and goods, as well as to carry vehicles and weapons recovered from mission sites. Considering these needs, military truck manufacturers are continuously working on bringing advanced trucks to the market. In November 2019, ARQUUS introduced its new 8×8 carrier at the Forum Entreprise Défense. The new Arquus 8×8 carrier truck is equipped with an Automatic Traction Control (ATC) electronic power train management, providing optimum mobility on all types of terrain. It also helps troupes save on fuel consumption and confers protection against tire and axle wear. In May 2021, Rheinmetall AG launched the latest generation of its HX family of heavy-duty tactical trucks for military use. The truck is fully redesigned with new technologies and military-off-the-shelf (MOTS) products. It features an autonomous driving capability, which can serve as the basis for several artillery systems. Moreover, the truck offers improved protection, reliability and mobility, driving comfort, and digital interface architecture. Owing to these features, this truck can be used to carry out tactical and technical missions. Thus, efforts made by military truck manufacturers to provide high-mobility and multipurpose solutions for transportation boost the growth of the military truck market.
Upsurge in Defense Budget
Governments of various countries continuously focus on strengthening their military capabilities by spending more on the modernization of their operations. According to Global Firepower, the US, China, Russia, India, and Germany are the top 5 nations with the largest defense budget in 2023. In March 2023, the US Department of Defense proposed a request to provide US$ 842 billion to the Department of Defense (DoD) in the defense budget for the fiscal year 2024, which is higher by US$ 26 billion from FY 2023 and US$ 100 billion from FY 2022. Out of this, the US government has allotted US$ 13.9 billion for the modernization of combat equipment used by the US Army and Marine Corps, which include armored multipurpose vehicles, amphibious combat vehicles, and optionally manned fighting vehicles. In addition, US$ 271 million is allotted for the Army to modernize next-generation combat vehicles with silent watch and mobility features, increased operational duration, and more onboard electrical power.
In February 2023, the Government of India announced the allocation of a total budget of US$ 72.64 billion (INR 593,537.64 crore) to the Ministry of Defence, with an increase of 13.0% compared to the amount allocated in 2022. Out of this, capital allocations of US$ 19.9 billion (Rs 162,600 crore) are for the modernization and infrastructure development of defense services, which indicates a rise of 6.7% compared to 2022. Out of this total budget allotted to MoD, ~57% will be for Army. Furthermore, in 2023, the Indian Army received 23% of the total modernization funds among the defense services. Moreover, in March 2023, the government of China announced its official defense budget of ~US$ 224.8 billion for FY 2023, marking a 7.2% increase compared to 2022. According to the defense ministry of the country, the increased defense expenditure helps provide Chinese forces with better training and more advanced equipment. Thus, the growing defense expenditure by governments of different countries would create significant opportunities for the growth of the military truck market during the forecasted period.
Military Truck Market Report Segmentation Analysis
Key segments that contributed to the derivation of the military truck market analysis are application, vehicle type, propulsion type, and transmission type.
- Based on application, the military trucks market categorized into cargo/logistics carrier, and troop carrier. The troop carrier segment held a larger market share in 2023.
- Based on vehicle type, the military trucks market categorized into light truck, medium truck, and heavy truck. Furthermore, the increasing inclination towards heavy truck is accelerating segment growth at highest CAGR rate.
- Based on propulsion type, the military trucks market can be bifurcated into electric/hybrid and diesel. The electric/hybrid segment held a larger market share in 2023.
- Based on level of transmission type, the military trucks market categorized into automatic transmission and manual transmission. The automatic segment held a larger market share in 2023.
Military Truck Market Share Analysis by Geography
The military truck market has been segmented into five major regions—North America, Europe, APAC, MEA, and SAM.
According to the Global Firepower ranking, the US ranks 1st out of 145 countries in terms of military strength in 2023. The country is continuously investing in upgrading its military capabilities and adopting new technology. Along with the US, other North American countries are also investing in expanding the fleet of their military vehicles. For instance, in April 2020, the government of Canada received 1,587 trucks and 322 trailers from Mack Defense as the last part of the Medium Support Vehicle System (MSVS) Standard Military Pattern (SMP) program. These new trucks were procured to replace the trucks that were in service since the 1980s.
A large number of market players, including Arquus SAS, Rheinmetall AG, TATRA TRUCKS AS, General Dynamics European Land Systems SLU, AB Volvo, and Iveco Group NV, have presence in Europe. These market players are continuously working on advancing the military trucks based on the requirement of the armed forces of different countries. For instance, in January 2023, Rheinmetall AG, in collaboration with GM Defense, received the prototype contracts from the US Army. Thus, the increasing expansion efforts by military truck vendors in Europe favor the market growth in the region.
Military Truck Market Report Scope
Military Truck Market News and Recent Developments
The military truck market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for innovations, business expansion, and strategies:
- In February 2023, Tatra Trucks, the Czech-based truckmaker, exceeded its expected sales for 2022, with 1,326 vehicles produced and sold. It achieved sales of CZK7.12bn ($325.6m), up 10% on what was planned. Most of the production went to the domestic market, with less than half made for civilian sectors such as construction, mining and agriculture, as well as for fire and rescue customers. Tatra also produced vehicles for the defence sector, which slightly prevailed due to international security concerns and the needs of the Czech army. Tatra is planning a further increase in production for 2023. (Source: Tatra Trucks, Press Release)
- In November 2022, Oshkosh Corporation announced the acquisition of Hinowa S.p.A. This privately held international company produces track-based aerial work platforms, mini dumpers, lift trucks, and undercarriages. Hinowa is known for its advanced track designs and electrification expertise, making it an ideal addition to Oshkosh's Access Equipment segment. The acquisition is expected to accelerate Oshkosh's electrification capabilities and provide growth opportunities in core and adjacent markets. (Source: Oshkosh Corporation, Press Release)
Military Truck Market Report Coverage and Deliverables
The “Military Truck Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering the following areas:
- Military truck market size and forecast at global, regional, and country levels for all the key market segments covered under the scope.
- Market dynamics such as drivers, restraints, and key opportunities
- Military truck market trends
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Military truck market analysis covering key market trends, Global and regional framework, major players, regulations, and recent market developments
- Military truck market landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments.
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Application, Truck Type, Propulsion Type, and Transmission Type
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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