Global Military Vehicle Market Assessment, By Platform [Armored Fighting Vehicles, Tactical Trucks, Unmanned Ground Vehicles, Self-Propelled Artillery, Combat Support Vehicles], By Mobility [Wheeled, Tracked], By Type [Electric Military Vehicles, Conventional Military Vehicles], Region, Opportunities and Forecast, 2018-2032F

Military vehicle market is projected to witness a CAGR of 6.14% during the forecast period 2025-2032, growing from USD 23.64 billion in 2024 to USD 38.07 billion in 2032F, owing to factors such as increased defense spending, technological advancements, and the need for fleet modernization. 

Military Vehicle Market Size, Share & trends Forecast 2032

Military vehicle market is projected to witness a CAGR of 6.14% during the forecast period 2025-2032, growing from USD 23.64 billion in 2024 to USD 38.07 billion in 2032F, owing to&nbsp;factors such as increased defense spending, technological advancements, and the need for fleet modernization. Key trends comprise the adoption of electric and hybrid propulsion systems, the integration of unmanned and autonomous capabilities, and the development of modular and multi-role platforms, which further drive global market growth in the forecast period. Additionally, there is a heightened focus on enhancing survivability through advanced armor and active protection systems. These trends reflect a concerted effort by military forces worldwide to equip themselves with versatile, efficient, and resilient vehicles capable of addressing contemporary and future security challenges.
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Report Attributes
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Details
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Base Year
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2024
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Forecast Period
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2025-2032F
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Historical Period
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2018-2023
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Projected Growth Rate
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CAGR of 6.14% between 2025 and 2032
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Revenue Forecast in 2032
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USD 38.07 billion
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In March 2025,&nbsp;an all-terrain stealth vehicle, Veer, developed by Bengaluru-based electric vehicle startup Pravaig Dynamics Private Limited, completed military trials and was honored with the esteemed iDEX award from the Ministry of Defence. The VEER Electric Tactical All-Terrain Vehicle (E-TATV) represents a state-of-the-art, highly discreet vehicle tailored for forward patrolling, reconnaissance, and intelligence, surveillance, and reconnaissance (ISR) missions.
<h2>Military Modernization to Fuel the Military Vehicle Market</h2>
Military forces globally are actively modernizing their vehicle fleets to cater to the evolving security challenges and technological advancements. This includes upgrading existing platforms and procuring new vehicles equipped with advanced capabilities. Increased defense budgets, driven by geopolitical tensions and the need for enhanced operational readiness, are facilitating these modernization efforts. For instance, countries are investing in next-generation armored vehicles and combat systems to maintain strategic superiority. Superpowers are also adding new layers to their combat fleet with the launch of new-generation combat vehicles.
For instance, in November 2024, the United States Army launched fifth-generation combat vehicles through its M1E3 Abrams tank modernization program. The M1E3 Abrams main battle tank is set to become the United States Army's inaugural hybrid-electric combat vehicle. This prototype highlights several advanced features, including a hybrid-electric diesel engine, a lighter design, an unmanned turret, and systems powered by artificial intelligence.
The incorporation of such cutting-edge technologies is transforming military vehicles into more effective and versatile assets. Key features include the adoption of electric and hybrid propulsion systems for improved fuel efficiency and reduced logistical burdens. Additionally, the integration of unmanned systems, modular armor, and sophisticated communication tools enhances situational awareness and battlefield effectiveness. These technological innovations are pivotal in developing vehicles that can operate seamlessly in complex combat environments.
<h2>Multi-Role Vehicles to Shape the&nbsp;Global Military Vehicle Market</h2>
There is a growing trend towards designing military vehicles with multi-role capabilities and modular configurations. This approach allows for rapid adaptation to various mission requirements, from direct combat to reconnaissance and logistics support. Modular designs enable the customization of vehicles with different weapon systems, armor levels, and communication suites, providing armed forces with flexible and cost-effective solutions to meet diverse operational requirements.
For instance, in February 2025, Tata Advanced Systems Limited (TASL) showcased its Made in India Nato-compliant armored vehicle for the global market. The company introduced a domestically designed Light Armoured Multi-role Vehicle (LAMV) that meets NATO standards for the armed forces during the current IDEX 2025 event in Abu Dhabi.
Enhancing the survivability of military personnel plays a critical role in vehicle development. This involves incorporating advanced armor materials, active protection systems, and countermeasure technologies to defend against emerging threats such as improvised explosive devices (IEDs) and anti-tank guided missiles.
<h2>Wheeled Segment Leads with Higher Flexibility and Maneuverability</h2>
The wheeled segment leads the global military vehicle market due to its flexibility and maneuverability, making it ideal for diverse operational scenarios. These vehicles excel in urban environments and paved roads, offering superior mobility compared to their tracked counterparts. Their lightweight design enhances speed and agility, allowing rapid deployment in special operations, troop transport, border patrols, and combat support missions such as reconnaissance and medical aid.
Additionally, wheeled military vehicles are cost-effective in terms of acquisition, maintenance, and fuel efficiency, making them more practical for sustained use. Their modular configurations enable customization for specific mission requirements, further boosting their utility.&nbsp;For instance, in October 2024, GM Defense (General Motors Company) launched a &ldquo;Next Gen&rdquo; tactical vehicle prototype at the Association of the United States Army (AUSA) 2024. The tough and resilient Next Gen truck, which is based on the Chevrolet Silverado 3500HD ZR2 truck, has a 2.8L Duramax turbo-diesel engine from GM, a 12-module battery pack, and drive motors for the front and rear axles that enable Silent Drive and Silent Watch.
North America Dominates the Military Vehicle Market
North America dominates the global military vehicle market due to its substantial defense spending and active participation of private defense companies. The region prioritizes modernizing its military fleets and integrating advanced technologies into armored vehicles, such as enhanced protection systems and network-based combat capabilities. Major defense contractors drive innovation through investments in next-generation designs, including robotic and unmanned platforms. Geopolitical tensions and government support further sustain demand for cutting-edge military vehicles, solidifying North America&rsquo;s leadership in both procurement and technological advancements within this sector.
For instance, in April 2024, the United States Army formally christened the M10 Booker during a ceremony at Aberdeen Proving Ground, officially introducing the service&rsquo;s newest combat vehicle. This event highlighted the platform&rsquo;s importance in modernizing light maneuver forces and providing them with a decisive battlefield advantage. Furthermore, the army granted GDLS a contract valued at around USD 1.14 billion for the manufacturing and delivery of the M10 Booker as part of the Mobile Protected Firepower (MPF) initiative. This agreement includes plans to produce a total of 504 vehicles, with production set to increase following the successful conclusion of Low-Rate Initial Production (LRIP).
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Future Market Scenario (2025 &ndash; 2032F)
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<li>The shift towards electric and hybrid propulsion systems is expected to continue, driven by the need for improved fuel efficiency, reduced logistical footprints, and environmental considerations.</li>
<li>The deployment of unmanned ground vehicles (UGVs) and autonomous systems is likely to expand, enhancing operational capabilities while reducing risks to personnel.</li>
<li>Military vehicles are anticipated to increasingly be equipped with advanced communication and data-sharing technologies, facilitating seamless integration into network-centric warfare environments.</li>
<li>Ongoing developments in armor materials and active protection systems are projected to focus on countering emerging threats, ensuring higher levels of crew and vehicle survivability.</li>
</ul>
Report Scope
&ldquo;Military Vehicle Market Assessment, Opportunities and Forecast, 2018-2032F&rdquo;,&nbsp;is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of global military vehicle market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecasts between 2025 and 2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
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Report Attribute
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Details
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Segments Covered
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Platform, Mobility, Type
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Regions Covered
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North America, Europe, Asia-Pacific, Rest of the World
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Key Companies Profile
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General Dynamics Corporation, BAE Systems plc, Rheinmetall AG, Lockheed Martin Corporation, Oshkosh Corporation, Northrop Grumman, Elbit Systems Ltd., Hanwha Corporation, Mitsubishi Heavy Industries Ltd., Textron Systems Corporation
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Customization Scope
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15% free report customization with purchase
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Pricing and Purchase Options
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Avail the customized purchase options to fulfill your precise research needs
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Delivery Format
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PDF and Excel through email (subject to the license purchased)
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In the report,&nbsp;the military vehicle market&nbsp;has been segmented into the following categories:&nbsp;
<ul>
<li>By Platform
<ul>
<li>Armored Fighting Vehicles</li>
<li>Tactical Trucks</li>
<li>Unmanned Ground Vehicles</li>
<li>Self-Propelled Artillery</li>
<li>Combat Support Vehicles</li>
</ul>
</li>
<li>By Mobility
<ul>
<li>Wheeled</li>
<li>Tracked</li>
</ul>
</li>
<li>By Type
<ul>
<li>Electric Military Vehicles</li>
<li>Conventional Military Vehicles</li>
</ul>
</li>
<li>By Region
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<li>North America</li>
<li>Europe</li>
<li>Asia-Pacific</li>
<li>Rest of the World</li>
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</li>
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Key Players Landscape and Outlook
Key players in the military vehicle market are focusing on innovation, strategic partnerships, and global expansion to maintain competitiveness. They prioritize the integration of advanced technologies such as artificial intelligence, autonomous driving systems, and electric propulsion to enhance operational efficiency and sustainability. Modular designs are emphasized to allow quick reconfiguration for diverse missions, while investments in lightweight materials improve mobility and protection. Collaborations with defense organizations and governments help secure long-term contracts and align with modernization programs. Additionally, manufacturers are targeting emerging markets with tailored solutions to address regional security needs, leveraging geopolitical tensions to drive demand.&nbsp;
For instance, in February 2025, Lockheed Martin Corporation unveiled the Common Multi-Mission Truck (CMMT), a subsonic, long-range cruise missile engineered for affordability, versatility, and scalability, making it a viable candidate for potential engagements with China. The Common Multi-Mission Truck (CMMT) is a component of Lockheed Martin's Skunk Works division, associated with Project Carrera. This initiative aims to create a versatile autonomy framework that facilitates the integration of both crewed and uncrewed aircraft in cooperative missions.
Key Players Operating in the Global Military Vehicle Market are:
<ul>
<li>General Dynamics Corporation</li>
<li>BAE Systems plc</li>
<li>Rheinmetall AG</li>
<li>Lockheed Martin Corporation</li>
<li>Oshkosh Corporation</li>
<li>Northrop Grumman</li>
<li>Elbit Systems Ltd.</li>
<li>Hanwha Corporation</li>
<li>Mitsubishi Heavy Industries Ltd</li>
<li>Textron Systems Corporation</li>
</ul>
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Global Military Vehicle Market Assessment, Opportunities and Forecast, 2018-2032F

The military vehicle market focuses on electrification, autonomous systems, and modular designs to enhance efficiency and adaptability. Strategic partnerships and advanced materials drive innovation, addressing evolving defense needs and global security demands.

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