Ground Defense System Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Application (Combat, Logistics & Transportation, Surveillance and Reconnaissance, Intelligence & Data Warfare, Training, and Others), By Operation (Manned and Unmanned), By End User (Defense Intelligence, Military, and Law Enforcement), By Region & Competition, 2020-2030F

Market Overview

The Global Ground Defense System Market, valued at USD 45.20 Billion in 2024, is projected to experience a CAGR of 5.82% to reach USD 63.45 Billion by 2030. The Global Ground Defense System Market encompasses land-based weaponry, armored vehicles, surveillance and reconnaissance platforms, and associated command and control infrastructure designed to protect against diverse threats, including conventional warfare, ballistic missiles, and unmanned aerial systems. Key drivers supporting market expansion include escalating global geopolitical tensions, driving nations to enhance their security capabilities, and persistent military modernization initiatives aimed at replacing obsolete equipment with advanced systems. Furthermore, rising defense budgets globally contribute significantly to market growth; according to the Stockholm International Peace Research Institute (SIPRI), world military expenditure rose by 9.4 percent in real terms to $2718 billion in 2024.

However, a significant impediment to sustained market expansion is the substantial financial outlay associated with the development, acquisition, and complex integration of advanced ground defense platforms. This challenge is compounded by varying national budget constraints, which can limit the widespread adoption of next-generation systems across different operational environments.

Key Market Drivers

The persistent escalation of geopolitical tensions and regional conflicts constitutes a primary catalyst for growth within the global ground defense system market. Nations are actively bolstering their land-based military capabilities in response to perceived and actual threats, driving urgent procurement cycles and a focus on enhanced operational readiness. This heightened threat perception translates directly into demand for advanced armored vehicles, ground-based air defense systems, and sophisticated surveillance platforms to secure borders and protect critical infrastructure. For instance, according to Army Recognition, in October 2025, German Company Rheinmetall announced a contract to deliver Skyranger 35 air defense systems to Ukraine, valued in the high hundreds of millions of euros, directly addressing the requirements of an ongoing conflict. This global trend of increased defense spending to mitigate geopolitical instability is evident in broader market data.

Simultaneously, military modernization initiatives across various global forces significantly influence market expansion. Obsolete ground defense equipment is systematically being replaced with next-generation systems that incorporate advanced technologies such as artificial intelligence, enhanced survivability features, and improved networked capabilities. These modernization efforts are not merely about replacement but also about achieving interoperability and integrating ground systems into multi-domain operations. An illustrative example of this trend is seen in the United States, where according to BAE Systems, in October 2024, the company received a $184 million contract modification to produce an additional 48 Armored Multi-Purpose Vehicles for the U. S. Army. This investment underscores the continuous imperative to upgrade existing fleets with more capable ground platforms. The cumulative effect of these drivers is substantial; according to Rheinmetall AG, in August 2024, the company's sales for the first half of 2024 rose to EUR3.8 billion, a 33 percent increase from sales of EUR2.9 billion in the first half of 2023, reflecting robust demand in the ground defense sector.

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Key Market Challenges

The substantial financial outlay involved in the development, acquisition, and complex integration of advanced ground defense platforms, compounded by varying national budget constraints, directly impedes the sustained expansion of the Global Ground Defense System Market. The high costs associated with next-generation systems necessitate significant upfront investment, which many nations find difficult to accommodate within their existing defense budgets. Consequently, procurement cycles are often extended, and the widespread adoption of modern ground defense technologies is limited, particularly across diverse operational environments with differing fiscal capacities.

Even as geopolitical tensions drive a need for enhanced security, the prohibitive expense of these systems often leads to delayed modernization efforts or the acquisition of fewer units than strategically required. According to the Aerospace and Defence Industries Association of Europe (ASD), despite a 17.7 percent growth in the land defense sector turnover in 2023, the substantial financial burden continues to constrain broader market penetration and the swift replacement of obsolete equipment. This financial barrier limits the market's organic growth potential, as nations prioritize maintaining existing capabilities over investing in new, costly, albeit more effective, solutions.

Key Market Trends

Here are two significant trends in the Global Ground Defense System Market:

**AI-Powered Decision Support Systems for Battlefield Management**
Integrating artificial intelligence into systems assisting ground commanders is a significant trend. AI-powered decision support enhances situational awareness through sensor data processing, pattern identification, and predictive analytics, optimizing response strategies and driving demand for advanced software and integrated hardware. This capability improves overall operational effectiveness on ground platforms. According to the Defense Systems Information Analysis Center (DSIAC), the AI in the military market is projected to achieve a Compound Annual Growth Rate of 33.3% from 2023 to 2028. For example, RTX's Raytheon business announced on February 24, 2025, the successful flight testing of the first artificial intelligence/machine learning-powered radar warning receiver system for a fourth-generation aircraft, enabling cognitive threat identification.

**Autonomous Ground Vehicle and Swarm Robotics Deployment**
The deployment of autonomous ground vehicles and swarm robotics represents a fundamental operational shift in ground defense. These unmanned systems are increasingly utilized for reconnaissance, logistics, and combat support, mitigating human risk and extending operational capabilities. Their ability to deliver force multiplication through coordinated robotic units significantly drives market demand for flexible solutions. The U. S. Department of Defense's Replicator initiative aims to deploy thousands of AI-enabled autonomous vehicles by 2026. Additionally, Rheinmetall secured a multimillion-dollar contract awarded on behalf of the Japanese Ministry of Defence on April 8, 2024, for Mission Master SP Unmanned Ground Vehicles, with deliveries for testing planned in January 2025.

Segmental Insights

The Unmanned Systems segment, particularly Unmanned Ground Vehicles, represents the fastest-growing area within the Global Ground Defense System Market. This rapid expansion is primarily driven by the critical need to reduce human exposure to dangerous environments during operations such as reconnaissance, surveillance, and explosive ordnance disposal. Concurrent advancements in artificial intelligence, sensor technology, and autonomous navigation capabilities are significantly enhancing the operational effectiveness and reliability of these systems. Additionally, increasing global defense budgets and ongoing military modernization initiatives worldwide are fueling substantial investment in these versatile platforms, enabling greater operational efficiency and superior intelligence gathering in complex scenarios.

Regional Insights

North America stands as a leading region within the Global Ground Defense System Market, primarily attributable to substantial defense expenditure and persistent modernization initiatives. The United States Department of Defense (DoD) allocates considerable financial resources towards the procurement and advancement of sophisticated ground defense technologies, addressing evolving threat landscapes. This market leadership is further solidified by a strong research and development ecosystem and the significant presence of major defense contractors possessing extensive technological expertise in areas such as integrated air and missile defense systems and autonomous platforms. The region's strategic emphasis on national security and maintaining technological superiority underpins its prominent market position.

Recent Developments

• In October 2025, Oshkosh Defense introduced its new X-MAV (Extreme Multi-mission Autonomous Vehicle), a self-propelled ground-based launcher designed for a wide array of missile weapons, including Tomahawk cruise missiles. The X-MAV, built on a 5x5 chassis, features an armored two-seater cabin and a hydraulically lifted launcher capable of accommodating four cruise missile launch modules. This combat vehicle represents an advancement in ground defense capabilities, offering a compact design with improved mobility and ease of camouflage compared to larger systems. The public demonstration of the X-MAV presented an option for nations seeking modern ground-based missile deployment solutions.

• In October 2025, General Atomics Electromagnetic Systems (GA-EMS) showcased its Fencepost™ acoustic surveillance system, following successful field demonstrations during the Technology Readiness Experimentation 2025 (T-REX 25) exercise. The system effectively detected low-signature aerial threats in challenging terrain and congested radio frequency environments. This breakthrough research highlights the increasing interest in passive sensor technologies that enhance situational awareness for ground forces. Fencepost's capabilities align with broader efforts to accelerate the development and integration of autonomous systems for addressing urgent threats, contributing to multi-domain operations and layered defense strategies within the global ground defense system market.

• In October 2025, AeroVironment (AV) unveiled new iterations of its Switchblade® loitering munitions, expanding its combat-proven family of precision strike systems. The company introduced the Switchblade 400, a man-portable anti-armor loitering munition designed for medium-range engagements. Additionally, AV released the Switchblade 600 Block 2, featuring extended endurance and a greater handoff and relay range, alongside an updated Switchblade 300 Block 20 with a modular explosively formed penetrator warhead. These developments provide ground forces with enhanced flexibility and scalability for engaging various threats, from light armor to heavily armored targets, reducing risk and expanding mission sets.

• In July 2024, Leonardo and Rheinmetall formed a new equal partnership aimed at advancing European ground defense systems. This collaboration focused on developing a Main Battle Tank and a Lynx platform for an Armored Infantry Combat System, primarily for the Italian Army with potential international export. The joint venture, based in Italy, was established to act as the lead system integrator and prime contractor for these Italian programs. Leonardo was to handle the development of mission systems, electronic suites, and weapon integration, while Rheinmetall provided core technology, including its Panther main battle tank and Lynx infantry fighting vehicle designs. This strategic alliance sought to develop a new generation of combat vehicles.

Key Market Players

• Lockheed Martin
• Raytheon
• BAE Systems
• Northrop Grumman
• General Dynamics
• Rheinmetall
• Elbit Systems
• Thales
• Leonardo
• L3Harris

Report Scope:

In this report, the Global Ground Defense System Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Ground Defense System Market, By Application:

o   Combat

o   Logistics & Transportation

o   Surveillance and Reconnaissance

o   Intelligence & Data Warfare

o   Training

o   Others

• Ground Defense System Market, By Operation:

o   Manned

o   Unmanned

• Ground Defense System Market, By End User:

o   Defense Intelligence

o   Military

o   Law Enforcement

• Ground Defense System Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Ground Defense System Market.

Available Customizations:

Global Ground Defense System Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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