Armored Vehicles Market Size, Share, Growth, Trends, and Global Industry Analysis: By Vehicle Type (Main Battle Tanks, Armored Personnel Carriers, Infantry Fighting Vehicles, Mine-Resistant Ambush Protected Vehicles, Light Armored Vehicles, Tactical & Utility Armored Vehicles), Mobility (Wheeled, Tracked), Application (Defense & Military, Homeland Security, Border Patrol, Peacekeeping Operations, Law Enforcement), System (Armor & Protection Systems, Weapon Systems, Powertrain Systems, Command & Control Systems, Navigation & Surveillance Systems), End User (Army, Navy, Air Force, Paramilitary & Internal Security Forces), and Region Forecast 2020-2031

Armored Vehicles Market size was valued at US$ 52,150.2 million in 2024 and is projected to reach US$ 66,349.6 million by 2031 at a CAGR of 3.5% form 2025-2031. Moreover, the U.S. Armored Vehicles Market is projected to grow at 3.5% over the forecast period.

The market refers to the global industry dedicated to the design, development, production, and deployment of military and commercial vehicles equipped with protective armor. These vehicles are engineered to offer enhanced security against ballistic threats, explosives, and hostile environments, and they include main battle tanks, infantry fighting vehicles, armored personnel carriers, mine-resistant vehicles, and tactical vehicles. The market also covers associated technologies such as active protection systems, communication tools, mobility enhancements, and advanced weapon systems.

The market is witnessing steady growth driven by rising geopolitical tensions, increased defense modernization programs, and the growing need to protect military personnel in conflict-prone regions. Governments are investing heavily in next-generation armored platforms with advanced survivability, improved mobility, and digital battlefield capabilities. Additionally, the integration of technologies such as AI-based situational awareness, hybrid propulsion, and unmanned turrets is shaping the market’s evolution. Expanding demand from law enforcement agencies and homeland security forces further supports market expansion across the world.

Key Developments 

• In December 2025, The German Bundestag approved €50 billion in military acquisitions—including armored vehicles and supporting systems—boosting procurement and modernization efforts amid heightened regional security concerns.
• In November 2025, Indonesia’s PT SSE introduced the P2 Tiger 4×4 Armoured Personnel Carrier for international markets at Defense & Security 2025, marking growth in competitive global APC offerings and export readiness.
• In September 2025, Finnish defense firm Patria unveiled an all-terrain armored vehicle designed for extreme Arctic conditions at the DSEI UK trade show, reflecting innovation in specialized military mobility and protection systems.

Armored Vehicles Market Segmemtation

Based on the vehicle type

• Main Battle Tanks (MBTs)
• Armored Personnel Carriers (APCs)
• Infantry Fighting Vehicles (IFVs)
• Mine-Resistant Ambush Protected (MRAP) Vehicles
• Light Armored Vehicles
• Tactical & Utility Armored Vehicles

The leading driver of the Armored Vehicles Market, particularly in the Vegetable Oil-Based Lubricants segment, is the growing emphasis on environmental sustainability. Vegetable oil-based lubricants are derived from renewable sources and are fully biodegradable, offering a significant reduction in ecological impact compared to conventional petroleum-based oils. Industries, especially automotive and manufacturing, are increasingly adopting these lubricants to comply with stringent environmental regulations and reduce carbon footprints. Their superior lubricity, low toxicity, and compatibility with existing machinery make them a preferred choice for businesses aiming to meet green initiatives. Consequently, sustainability concerns are the primary catalyst propelling the growth of vegetable oil-based lubricants.

Based on the mobility

• Wheeled
• Tracked

The wheeled armored vehicles are anticipated to lead the global armored vehicles market, driven primarily by their superior operational flexibility and cost efficiency. The single most influential driver behind this dominance is their ability to deliver high mobility across varied terrains while offering lower acquisition, maintenance, and lifecycle costs compared to tracked platforms. Wheeled armored vehicles are widely used for troop transport, reconnaissance, border patrol, and internal security missions, where speed, range, and ease of deployment are critical. Their compatibility with road networks enables rapid deployment and reduced logistical burden, making them especially suitable for peacekeeping and urban operations. Additionally, advancements in suspension systems and run-flat tire technologies have enhanced off-road performance, narrowing the capability gap with tracked vehicles. As modern military and security operations increasingly emphasize rapid response and operational efficiency, mobility-driven preference continues to position wheeled platforms as the leading mobility segment in the global armored vehicles market.

Based on the application

• Defense & Military
• Homeland Security
• Border Patrol
• Peacekeeping Operations
• Law Enforcement

The defense and military segment is anticipated to dominate the global armored vehicles market, driven primarily by sustained government investment in national defense capabilities. The single most influential driver behind this dominance is the growing need for advanced land combat platforms to address evolving security threats and geopolitical tensions. Armored vehicles are essential for military operations, including frontline combat, troop transport, reconnaissance, and force protection in both conventional and asymmetric warfare scenarios. Continuous modernization programs, replacement of aging fleets, and the integration of advanced technologies such as active protection systems, enhanced mobility, and network-centric warfare capabilities further reinforce demand within the defense and military segment. Compared to homeland security, border patrol, and law enforcement applications, military operations require larger fleets and more sophisticated armored platforms. As nations continue to prioritize defense readiness and strategic deterrence, the scale and criticality of military requirements remain the key driver positioning defense and military as the leading application segment in the global armored vehicles market.

Based on the system

• Armor & Protection Systems
• Weapon Systems
• Powertrain Systems
• Command & Control Systems
• Navigation & Surveillance Systems

The armor and protection systems are anticipated to lead the global armored vehicles market, driven primarily by the increasing emphasis on crew survivability in modern combat environments. The single most influential driver behind this dominance is the rising threat from advanced weapons such as improvised explosive devices (IEDs), anti-tank guided missiles, and kinetic energy projectiles. To counter these risks, defense forces are prioritizing advanced armor solutions, including modular composite armor, reactive armor, and active protection systems that can detect and neutralize incoming threats. Continuous upgrades to existing vehicle fleets to enhance protection levels further sustain demand for armor and protection systems. Compared to other subsystems, survivability upgrades are often the first requirement in modernization programs, even before firepower or digital enhancements. As asymmetric warfare and high-intensity conflicts continue to evolve, the need to protect personnel and critical assets remains paramount, positioning armor and protection systems as the leading system segment within the global armored vehicles market.

Based on the end user

• Army
• Navy
• Air Force
• Paramilitary & Internal Security Forces

The army segment is anticipated to dominate the global armored vehicles market, driven primarily by its extensive operational requirements and large-scale force deployment. The single most influential driver behind this dominance is the army’s continuous need for ground-based combat, troop mobility, and battlefield protection across diverse terrains and conflict scenarios. Armies worldwide operate the largest fleets of armored platforms, including main battle tanks, infantry fighting vehicles, armored personnel carriers, and MRAPs, resulting in sustained procurement and upgrade demand. Ongoing modernization programs aimed at enhancing survivability, firepower, and mobility further reinforce investment in armored vehicles for land forces. Additionally, rising geopolitical tensions, border security challenges, and asymmetric warfare threats have increased reliance on heavily protected ground platforms. Compared to naval and air forces, which use armored systems more selectively, the army’s central role in frontline operations ensures consistent demand. As nations continue to prioritize land force readiness and modernization, operational scale remains the key driver positioning the army as the leading end-user segment in the global armored vehicles market.