Armored Vehicles MRO Market - Forecasts from 2022 to 2027
The armored vehicles MRO market is projected to witness a compound annual growth rate of 6.32% to grow to US$9.005 billion by 2027, from US$5.864 billion in 2020.
Armored vehicles are high-security vehicles with uranium and stainless steel for better protection against external threats. Furthermore, these vehicles are equipped with weapons for fighting back. They are used for security industries to protect the user and in the military for a better combat opponent. Owing to their importance, armored vehicles have high maintenance, repair, and operational cost. the prime factor driving the market demand is the rising adoption of armored vehicles across security and military industries, which has created notable demand for armored vehicles MRO. Furthermore, cost-cutting measures involve overhauling of existing APC, which further supports the market growth. Moreover, a surge in investment in research and development coupled with innovation of better MRO technology is expected to provide a remarkable opportunity for the market. The armored vehicle MRO market is segmented based on vehicle type and geography.
The North American armored vehicle market is expected to hold a large share of the market owing to high military investment and wider adoption.
Based on geography, the armored vehicles MRO market is segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The North American armored vehicle MRO market is expected to dominate the global market owing to the surge in investment in the military and defense industry coupled with the early adoption of advanced technology. The US is one of the largest military and defense industries globally. Data from the World Bank shows that the country's military expenditure has been surging at a notable rate. In 2015, the US expanded 3.478% of its GDP on the military. By 2020, the country spend 3.741% of its GDP in the sector. The surge in military and defense expenditure is expected to create noticeable demand for the armed vehicle MRO market.
Armed Personal Carrier is expected to hold a notable share of the market during the forecasted period.
By vehicle type, the Armored vehicles MRO market can be segmented into Infantry Fighting vehicles, main battle tanks, armed personal carriers, multi-role armed carriers, and others. The armed personal carrier is anticipated to hold a substantial share of the market owing to a surge in demand by the government sector for better protection of VIPs. Furthermore, the leap in the standard of living and the increasing number of millionaires and billionaires is also forecasted to escalate the sector demand owing to the generation of necessity for personal security equipment.
One of the prime reasons supporting the growth in the armored vehicles MRO market is the rising global military expenditure with economic development and notable GDP growth. Data from the World Bank organization shows that global military expenditure, as a percentage of GDP, has surged from 2.254% in 2015 to 2.361% in 2020. Growing complexities and competition to emerge as a superpower coupled with a rise in threat and security concerns have resulted in robust expenditure in the military industry, which is expected to create significant demand for armored vehicles and MRO.
Another key factor that supports the market for armored vehicles MRO is a surge in investment and innovation, which has resulted in product launches and expansion of market dynamics. With an increase in demand and notable growth in the military and defense industry, market leaders have invested in armored vehicles to come up with innovative and more secure solutions. Numerous product launches are expected to provide new growth opportunities for the market for armored vehicle MRO.
The coronavirus pandemic hampered the growth of armored vehicle MRO globally. A halt in the production sector owing to the nationwide lockdown implemented to contain the spread of the virus led to lower production of armored vehicles and hence the demand for armored vehicles MRO. Furthermore, a shift of all economic operations on virtual channels reduced official meetings offline and further reduced the demand for armored vehicles, especially personal armed carriers, impacting the demand for armored MRO.
Infantry Fighting Vehicle
Main Battle Tank
Armored Personnel Carrier
Multirole Armored carrier
Middle East and Africa