The global military armoured vehicles, and maintenance, repair and overhaul (MRO) market is expected to witness a compound annual growth rate (CAGR) of 3.71% during 2016-2026, according to a report by Strategic Defence Intelligence (SDI).
Titled “The Global Armored Vehicles and MRO Market 2016-2026”, the report states that the market is anticipated to be valued at $22.5bn in 2016, and will reach $32.4bn by 2026.
Armoured vehicles are mainly categorised into segments, including main battle tanks (MBT), infantry fighting vehicles (IFV), armoured personnel carriers (APC), mine-resistant ambush protected (MRAP) vehicles, light multi-role vehicles (LMV), and tactical trucks.
The IFV segment is expected to attract the biggest investment share, accounting for 32.2% of the total market share, followed by MBTs and APCs respectively.
The global armoured vehicle market will reportedly be driven by cross-border conflicts and modernisation efforts undertaken by large military forces worldwide.
Asia Pacific region is anticipated to dominate the market with a share of 26.8% during the forecast period, closely followed by North America and Europe with 24.8% and 23.9%, respectively.
According to the report, an increase in asymmetric threats, peacekeeping and stabilisation operations are the major factors creating demand for light and medium-weight armoured vehicles.