MILITARY ARMORED VEHICLE MARKET

KEY FINDINGS

• India to procure more than 2,600 Infantry Combat Vehicles along with 1,700 Future Ready Combat Vehicle. 
• BAE Systems to deliver 2,936 multipurpose combat vehicles to U.S. Army worth $15 Billion contract awarded in 2014 and to be delivered by August,2020. 
• U.S. Army orders 416 new JLTV (Joint Light Tactical Vehicle) from Oshkosh Defense LLC worth $106.3 Million to replace old Light Tactical Vehicles, previously, in 2018, Oshkosh started building 6,107 JLTV for U.S. Army under $1.7 Billion deal.  
• U.S. DoD to invest $52.2 Billion to buy 54,599 JLTV for U.S. Army and US Marine corps. 
• Australia to spend $187 Billion in military modernization, long–range air strike weapons, among other things in the next ten years. 
• U.S. Army to procure 228 fast and upgraded 155mm self-propelled howitzer artillery vehicle and 30 ammunition carrier tracked Armoured Combat Vehicle from Digital Vetronics and Modern Power systems worth $227.9 Million. 
• KMW, Germany to deliver 44 Leopard-2 tanks to Hungary. 
• UAE signed a deal worth $300 Million with local companies to upgrade and maintain Armored vehicles. 

INTRODUCTION TO MILITARY ARMORED VEHICLE MARKET

Armored Vehicle is an integral part of the military since long-time. They are equipped with weapons ranging from light to heavy, depending on the type of Vehicle.

They are used on the battlefield to carry troops to the desired position, to engage in direct fires whenever required, to assist the military forces and also used to counter riots inside the country.

MILITARY ARMORED VEHICLE MARKET DYNAMICS

MILITARY ARMORED VEHICLE  MARKET SEGMENTATION

Military Armored Vehicle Market can be segmented on the basis of type, mobility, engine and geography

BY TYPE

Tanks

Armored Personnel Carrier (APC)

APC is used to carry troops quickly and safely to the position where they need to be deployed.

M113 (Food Machinery Corp) is the most popular APC and was used in the Iraq war.

Infantry Fighting Vehicle (IFV)

They are capable of carrying infantry to the battlefield and can provide direct fire support. IFVs are typically armed with 20-40mm calibre autocannon, 7.62mm machine guns, tank missiles and surface to air missiles.

CV-9035 (Hägglunds and Bofors) is an example of IFV in from the Swedish Army.

Infantry Mobility Vehicle (IMV)

 It is a wheeled APC which can be used for patrolling and can act as a security vehicle. They are suitable during ambush protection and are mine-resistant.

ATF Dingo (KMW,Germany) of the Germany army is an example of IMV.

Armoured Recovery Vehicle (ARV)

 It is a type of AFV (Armoured Fighting Vehicle). These vehicles are used to either repair any damaged armoured vehicle in a battle or to tow them out from the danger zone for extensive repairs.

Armoured Amphibious Vehicle (AAV)

Most of the track designed armoured vehicles have amphibious capabilities. They can be used as APC powered by water jets and are laced with adequate armour.

BTR-80 (Arzamas machinery) is an example of AAV.

Unmanned Fighting Vehicle (UFV)

These vehicles don’t need a human operator and can be remotely controlled, which makes them a viable option for carrying intelligence and surveillance operations. These types of Vehicle consist of a set of sensors to observe the nearby conditions and then could act on their own or send data to the remote operator.

Sooran is India’s first Unmanned Armour Vehicle.

BY MOBILITY

 Wheeled type can be broadly classified into 4X4 (4WD, 4X2), 6X6 (6WD, 6X4), 8X8, 8X12.

BY ENGINE

•  GASOLINE:Gasoline engine trucks were being used before the 1960s, very few are still in theMilitary Armored Vehicle market.
• DIESEL: Diesel engine has Inline 6-cylinder (I6) engines, which are water colled. They are rugged and can adapt in any physical condition.
• ELECTRIC/HYBRID: Electric motor engine is more competent. With time Batteries are getting cheaper and better with more energy density and are easier to charge.
• RST-V (Reconnaissance Surveillance Targeting Vehicle) is an example of an electric military vehicle which is in the Military Armored Vehicle Market.

BY GEOGRAPHY

• ASIA PACIFIC:With the increase in various political issues and tension at the border and Indo-Pacific region, countries like India, China, Australia and Japan have increased their defense budget to procure more advance weapon and technology to strengthen their military.
• India stands third in the world with a defense budget of $70 Billion. Due to the low domestic production of armoured vehicles in the region and huge demand in recent years to carry out surveillance and combat operations, Asia Pacific remains the biggest importer of these vehicles in the world.

RECENT CONTRACTS AWARDED IN MILITARY ARMORED VEHICLE MARKET

• Elbit Systems, Australia will supply tracked light tanks and wheeled fire-support vehicles to an army in the Asia-Pacific region under an approximately $172 million deal.
• South African defence and aerospace company Paramount and India-based engineering and technology conglomerate Bharat Forge have formed a cooperation agreement. The partnership will see the two companies combine their technologies, capabilities and expertise to produce armoured vehicles in India.
• Bharat Forge of Kalyani group has received an order of ~$24.9M from Indian Ministry of Defence (MoD) for the procurement of M4 armoured vehicles.
• A proposal worth ~$117M has been given the Acceptance of Necessity by the Defence Acquisition Council (DAC) of India for the procurement of around 118 main battle tanks and modernisation of armoured fighting vehicle.

MIDDLE EAST

Egypt’s strategic engagements against Islamic militants in north Sinai, the participation of Saudi Arabia and UAE’s in Yemeni war and countries in the Middle East trying to secure their borders have led the Middle East countries to procure more armoured Vehicle, and the number is expected to increase amid recent tensions in the region. However, the Middle East is also trying to be self-reliant as local companies like NIMR Automotive are in trade with big players from the U.S. and Europe dealing in Technology transfer and more. However, still, it’s a long way to go.

• NIMR and SAMI to explore opportunities for JAIS 4×4 vehicle in Saudi Arabia.
• UK donates 100 armoured patrol vehicles to Lebanon to enhance its surveillance capabilities across the Syrian border.

NORTH AMERICA 

U.S. DoD to procure 54,599 Armoured Vehicle for U.S. Army and Marine corps. With increasing border disputes with Mexico, the need for armoured Vehicle and advanced surveillance technology has improved. The US remains the net exporter of Armoured Vehicles worldwide. It exports more than 80% of armoured Vehicle to the Middle East.

• General motors have been awarded contract worth $214.3M to manufacture 649 Infantry Squad Vehicles (ISV) but the contract will allow US Army to purchase 1079 ISV over the next eight years.

EUROPE

European countries have increased their Defence budget and a huge chunk of this budget, which is around 23% of the total defence budget, will be used in the procurement of Armoured Vehicle.

• ARTEC, Germany has landed a contract worth ~$2.8B to manufacture more than 500 Boxer armoured vehicle. ARTEC is a joint venture between Rheinmetall and Krauss-Maffei Wegman. The deal is to be completed within the next ten years.
• General Dynamics European Land Systems (GDELS) has been awarded a contract from Elbit Systems for ASCOD tracked armoured vehicles. The vehicles will be and delivered to an Asian-Pacific customer over a period of three years.
• GDELS awarded a contract for the delivery of 30 PANDUR 6x6 Evolution wheeled armoured vehicle to Austria.
• General Dynamics European Land Systems awarded USD $870M contract for 348 Spanish 8x8 wheeled combat vehicles.
• A $3.8M investment from the MOD United Kingdom will see new hybrid powertrain technology tested on armoured vehicles operated by the British Army.
• Thales UK has secured a contract of $251M to supply surveillance and protection systems for the British Army’s new Boxer 8×8 armoured vehicles.
• BAE Systems to deliver 20 additional (total 164) CV90 vehicles worth $50M to Norwegian Army.

RECENT LAUNCHES IN MILITARY ARMORED VEHICLE MARKET

MILITARY ARMORED VEHICLE MARKET COMPETITIVE LANDSCAPE

KEY PLAYERS IN MILITARY ARMORED VEHICLE MARKET

• OSHKOSH DEFENSE, U.S.
• BAE SYSTEMS, U.K.
• GENERAL DYNAMICS, U.S.
• RHEINMETALL GROUP, GERMANY
• KMW, GERMANY
• HYUNDAI ROTEM, SOUTH KOREA
• NEXTER SYSTEMS, FRANCE
• NORINCO, CHINA