Press Release

Military Vehicle Sustainment Market to Grow with a CAGR of 7.07% through 2030

The Global Military Vehicle Sustainment Market is experiencing significant growth due to increasing defense spending, modernization efforts, and demand for advanced maintenance solutions to ensure vehicle readiness and operational efficiency.


According to TechSci Research report, “Military Vehicle Sustainment Market - Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030F”, Global Military Vehicle Sustainment Market was valued at USD 17.22 Billion in 2024 and is expected to reach USD 25.85 Billion by 2030 with a CAGR of 7.07% during the forecast period. The Global Military Vehicle Sustainment Market has witnessed significant growth in recent years, driven by the increasing need for advanced maintenance and operational readiness of military fleets worldwide. As military forces continue to modernize and enhance their vehicle capabilities, sustainment services have become essential for ensuring these vehicles remain operational throughout their lifecycle. The demand for military vehicle sustainment is primarily driven by geopolitical tensions, rising defense budgets, and the growing complexity of modern military vehicles. These vehicles, which include tanks, armored personnel carriers, tactical trucks, and self-propelled artillery systems, require continuous maintenance, repairs, and upgrades to meet the evolving demands of modern warfare.

The market is significantly influenced by the ongoing efforts of governments and defense agencies to extend the operational lifespan of existing military vehicles. Rather than replacing aging fleets entirely, many nations are opting to enhance the capabilities of their current vehicles through retrofitting and upgrades. This trend is especially evident in countries facing budget constraints but still requiring high-performance military assets. These modernization efforts typically involve replacing obsolete components, enhancing vehicle armor, integrating advanced communication systems, and incorporating next-generation technologies such as artificial intelligence, autonomous systems, and hybrid propulsion. The growing focus on improving the operational efficiency and technological capabilities of military vehicles has spurred demand for specialized sustainment services to ensure these upgrades are successfully implemented and maintained.

Furthermore, technological advancements are playing a crucial role in the growth of the military vehicle sustainment market. Modern military vehicles are becoming increasingly sophisticated, incorporating complex systems like AI-based navigation, advanced sensors, and integrated communication networks. These technological innovations enhance vehicle performance and survivability but also introduce new challenges in terms of maintenance. Traditional maintenance methods are often insufficient to handle the intricacies of these advanced systems, necessitating the development of new sustainment strategies. Predictive maintenance, condition-based monitoring, and AI-driven diagnostics are becoming essential tools for military forces to maintain the readiness of their vehicle fleets. These advanced approaches allow for proactive maintenance, reducing downtime, and improving the overall efficiency of vehicle sustainment. The ability to deploy military forces quickly and effectively requires that military vehicles be in optimal working condition at all times. As global security concerns continue to evolve, nations are investing heavily in ensuring their fleets are always mission-ready.

The market is also benefiting from the growing trend of public-private partnerships (PPPs) in the defense sector. Governments are increasingly turning to private companies for the provision of sustainment services, leveraging the expertise and resources of defense contractors to enhance the efficiency and effectiveness of vehicle maintenance. These partnerships allow for the sharing of financial risks and responsibilities, making it easier for military forces to maintain their fleets without incurring the full cost of sustaining them internally. Additionally, private companies bring innovative technologies, streamlined processes, and specialized skills, ensuring that military vehicles receive the highest standard of care. This collaboration between the public and private sectors is driving the growth of the military vehicle sustainment market, as it allows for more cost-effective and efficient solutions.

 

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The global Military Vehicle Sustainment Market is segmented into vehicle type, service, end user and region.

Based on vehicle type, Armored Vehicle segment is the fastest-growing category in the Global Military Vehicle Sustainment Market. As global security threats evolve, the demand for advanced armored vehicles, including tanks, infantry fighting vehicles, and armored personnel carriers, has surged. These vehicles are critical for modern military operations, providing enhanced protection, mobility, and firepower. The increasing need for modernization and the extension of the operational lifespan of existing armored fleets are driving the demand for specialized sustainment services. As these vehicles become more technologically advanced, there is a greater need for sophisticated maintenance, upgrades, and repairs, further accelerating market growth in this segment.

Based on region, The Asia Pacific region is the fastest-growing segment in the Global Military Vehicle Sustainment Market due to increasing defense budgets and growing geopolitical tensions in the region. Countries like China, India, Japan, and South Korea are investing heavily in modernizing and expanding their military fleets, including armored vehicles, tactical trucks, and combat vehicles. As these fleets age and become more technologically advanced, there is a rising demand for sustainment services to ensure their operational readiness. Additionally, the growing focus on military modernization and strategic defense initiatives is further driving the demand for vehicle sustainment in the Asia Pacific region.

 

Major companies operating in Global Military Vehicle Sustainment Market are:

  • Rheinmetall AG
  • BAE Systesms
  • Gneral Dynamics Corporation
  • Elbit Systems Ltd.
  • Oshkosh Corporation 
  • Lockheed Martin Corporation
  • L3Harris Technologies Inc.
  • Thales Group
  • ManTech International Corporation
  • Honeywell International Inc.

 

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“The Global Military Vehicle Sustainment Market is experiencing robust growth, driven by rising defense budgets, increasing geopolitical tensions, and the need to modernize aging military fleets. Governments worldwide are focusing on enhancing the capabilities and operational readiness of their military vehicle fleets, which require advanced sustainment services for maintenance, repair, and upgrades. The integration of new technologies, such as AI, autonomous systems, and advanced armor, further fuels demand for specialized sustainment solutions. Additionally, the growing emphasis on cost-effective sustainment strategies, along with public-private partnerships, ensures long-term market growth as military forces strive to maintain efficient, capable fleets.” Said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

Military Vehicle Sustainment Market Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Armored Vehicles, Military Trucks), By Service (Maintenance, Repair, & Overhaul (MRO), Training and Support, Parts and Components Supply, Upgrades and Modernization), By End User (Army, Navy, Air Force), By Region, By Competition, 2020-2030F”, has evaluated the future growth potential of global Military Vehicle Sustainment Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the global Military Vehicle Sustainment Market.

 

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Military Vehicle Sustainment Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Armored Vehicles, Military Trucks), By Service (Maintenance, Repair, & Overhaul (MRO), Training and Support, Parts and Components Supply, Upgrades and Modernization), By End User (Army, Navy, Air Force), By Region, By Competition, 2020-2030F

Aerospace and Defense | Jan, 2025

The Global Military Vehicle Sustainment Market is experiencing significant growth due to increasing defense spending, modernization efforts, and demand for advanced maintenance solutions to ensure vehicle readiness and operational efficiency.

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