According to the new report, the Global Armored Vehicle Market is projected to reach $28.62 billion by 2019, the GAGR for the global armored vehicle market is expected to register a growth rate of 4.93% from 2014 to 2019.

The North American armored vehicle market under the defense segment is estimated at $8,325 million in 2014,and is expected to reach $8,586 million by 2019. The market is expected to grow at a CAGR of 0.62% in the specified period. The emergence of sequestration is shrinking the military budget enormously, which was visible in the current U.S. budget. The U.S. is expected to continue to downsize their forces and procure less armored vehicles, as they just got done with the thirteen-year Afghan war, but there will be a considerable level of expenditure on existing forces. There are three major armored vehicle programs that are expected to continue in the next five years: light armored vehicles, unmanned ground vehicles, and amphibious armored vehicles. This investment would help the U.S. sustain its position in the global armored vehicle market. Though its growth rate as well as share in the market would fall, it would continue to hold the highest share in the armored vehicle market.

 

The Asia-Pacific armored vehicle market under the defense segment is estimated at $4,050 million in 2014, and is expected to reach $6,582.60 million by 2019. The market is expected to grow at a CAGR of 10.20% in the specified period.The role of APAC in this diverse and fluctuating market would be of immense importance over the next five years, as it is expected that most countries from these regions would spend significantly on armored vehicle procurement. With the U.S. and Europe spending less on armored vehicles capabilities, emerging markets,such as APAC,are expected to drive the growth in this sector in the upcoming years. Viewing the market in a macro-economic perspective, the continuous boom and bust in this sector will show the U.S. and European markets to suffer due to the withdrawal of troops from Afghanistan and Iraq, while territorial disputes have come to prominence in the shadows of China’s rise, resulting in increased tension in APAC. With the latest U.S. foreign policy of pivoting towards the East to offset China’s presence, the demand for armored vehicles is expected to grow exponentially due to an increase in defense spending.

 

The European armored vehicle market under the defense segment is estimated at $6,300 million in 2014, and is expected to reach $6,582.60 million by 2019. The market is expected to grow at a CAGR of 0.88% in the specified period.The global economic downturn was obviously resonant in Europe and it was clearly visible from the continuous defense budget cut. However it was observed that a lot of expenditure was made on land force assets during the Afghanistan war, and a whole range of new vehicles were introduced through Urgent Operational Requirements with heavily-protected solutions focused mainly on survival strategies.

 

IEDs are predominantly posing the biggest threat to the security of most countries, and as protection from IED and CBRN threats, a significant amount would be invested on armored vehicles. Even though Europe does not have a chance to get back to that intensity of procurement in land warfare like the early 20th century, there remains a chance in investing in a high intensity military force as a part of coercive diplomacy.

The Middle East armored vehicle market under the defense segment is estimated at $1,144.64 million in 2014, and is expected to reach $1,798.42 million by 2019. The market is expected to grow at a CAGR of 16.87% in the specified period. Countries in the Middle East are currently modernizing their armored vehicles, and hence, along with the APAC region the Middle East is expected to procure a significant amount of armored vehicles in the coming years. The Middle East region is an oil-rich zone and the money from oil exports constitutes a major share of their GDP; as oil exports are increasing, it is expected that Middle East will increase their defense budget significantly; hence the armored vehicles market is also expected to increase exponentially.

 

Countries such as the UAE are geographically well located, having access to most regions of the world, ensuring that trade happens very easily. Saudi Arabia, on the other hand, continues to be one of the highest defense spending nations, and according to secondary sources, it is the seventh-highest spending nation in the world. Qatar is expected to procure a significant number of armored vehicles to enhance their homeland security before the 2022 football world cup.