Infantry Fighting Vehicle Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Wheeled and Tracked), By Configuration (Amphibious and Non-Amphibious), By Application (Combat, Armored Reconnaissance, Others), By Region, Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 10.17 Billion
CAGR (2026-2031)	5.75%
Fastest Growing Segment	Amphibious
Largest Market	North America
Market Size (2031)	USD 14.22 Billion

Market Overview

The Global Infantry Fighting Vehicle Market will grow from USD 10.17 Billion in 2025 to USD 14.22 Billion by 2031 at a 5.75% CAGR. The Infantry Fighting Vehicle is a specialized armored platform engineered to transport infantry personnel into combat zones while providing direct fire support and maneuvering capabilities. The expansion of this global market is primarily propelled by escalating geopolitical tensions and the urgent requirement for military modernization programs to replace aging fleets with modular and survivable systems. This heightened demand is substantiated by significant budgetary allocations toward defense capabilities across major powers. According to the North Atlantic Treaty Organization, in 2024, collective defense expenditure among member nations was estimated to reach 1.47 trillion US dollars as nations prioritized readiness and equipment renewal.

Despite the positive growth trajectory, the market faces a significant impediment regarding the substantial lifecycle costs associated with procurement and maintenance. The integration of advanced electronics and active protection systems increases the unit price, creating affordability issues for nations with constrained defense budgets which may delay acquisition timelines.

Key Market Drivers

The modernization and replacement of aging legacy armored fleets is a primary catalyst for market growth, as nations urgently retire obsolete Cold War-era platforms in favor of modular, high-survivability systems. Defense forces are prioritizing vehicles that integrate advanced kinetic protection and digital architecture to ensure overmatch against peer adversaries. This recapitalization drive is evident in large-scale procurement programs designed to replace Soviet-designed hardware with indigenous or NATO-standard platforms. For instance, according to Defense News, March 2025, in the article 'Poland signs $1.7 billion deal for infantry fighting vehicles', the Polish Ministry of National Defence signed a contract worth approximately 1.7 billion US dollars to acquire 111 Borsuk tracked infantry fighting vehicles to replace its legacy BWP-1 fleet. Such initiatives reflect a broader trend where modularity and crew protection dictate procurement strategies.

Heightened geopolitical tensions and regional cross-border conflicts are further accelerating demand, compelling governments to replenish depleted stocks and enhance collective deterrence capabilities. The resurgence of high-intensity land warfare threats has necessitated immediate investments in combat-proven platforms capable of rapid deployment and interoperability within alliance frameworks. According to BAE Systems, December 2024, in the 'BAE Systems awarded $2.5 billion in contracts with Denmark and Sweden' report, the company secured agreements totaling 2.5 billion US dollars to deliver new CV90 combat vehicles, reinforcing the heavy brigade capabilities of Nordic allies. This strategic urgency is driving substantial revenue growth for major industry players. According to Rheinmetall, in 2025, its Vehicle Systems division generated sales of 3.79 billion euros in the 2024 fiscal year, underscoring the financial impact of these escalating security requirements on the global market.

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Key Market Challenges

The substantial lifecycle costs associated with procurement and maintenance constitute a critical barrier to the expansion of the Global Infantry Fighting Vehicle Market. As manufacturers integrate advanced electronics, active protection systems, and digitized battle management suites to meet modern lethality and survivability standards, the unit price of these platforms has risen exponentially. This financial escalation forces defense ministries to make difficult trade-offs, often resulting in reduced procurement quantities or stretched acquisition timelines to manage annual expenditures. Consequently, the high capital requirement limits the ability of nations with constrained budgets to fully modernize their armored fleets, stalling potential market growth despite the urgent operational demand for upgraded capabilities.

These affordability and process challenges are further exacerbated by administrative friction that delays the deployment of new systems. According to the National Defense Industrial Association, in 2025, 64 percent of private sector respondents identified complex and protracted procurement processes as a primary impediment facing the defense industrial base. For the Infantry Fighting Vehicle sector, such structural delays and budgetary instability directly hamper the transition from development to mass production. This environment creates significant uncertainty for manufacturers and supply chains, preventing the realization of economies of scale and leaving armed forces reliant on legacy platforms for longer periods than strategically intended.

Key Market Trends

The Global Infantry Fighting Vehicle Market is undergoing a fundamental structural transformation driven by the Shift Toward Optionally Manned Fighting Platforms. As high-intensity conflict zones become increasingly lethal for crewed systems, military requirements are pivoting toward vehicles designed with digital backbones that support remote or autonomous operation without compromising combat effectiveness. This trend allows commanders to deploy unmanned assets in high-risk reconnaissance or breaching maneuvers while retaining the option for human control in complex scenarios. Validating this technological leap, the U.S. Army has advanced its flagship modernization effort to replace the Bradley fleet with such capabilities. According to Defense News, June 2025, in the 'Two industry teams to begin bending metal for Bradley replacement' article, General Dynamics Land Systems and American Rheinmetall Vehicles moved into the prototyping phase of the XM30 program under contracts valued at approximately 1.6 billion US dollars, underscoring the massive investment in these next-generation optionally manned systems.

Concurrently, there is a distinct market Escalation to High-Caliber Programmable Cannons, necessitated by the improved armor protection of peer-adversary vehicles. Armies are systematically moving away from standard 25mm armaments to 30mm, 35mm, and 50mm main guns capable of firing airburst munitions to defeat entrenched infantry and unmanned aerial threats. This up-gunning ensures that new platforms maintain lethality overmatch against modern threats that are impervious to smaller caliber fire. A prime example of this capitalization on enhanced firepower is Italy's aggressive fleet renewal. According to Army Recognition, January 2025, in the 'Italy to purchase 1,050 German-made Rheinmetall Lynx armored vehicles under €16 billion A2CS program' report, the Italian government initiated a 16 billion euro procurement of new combat vehicles, prioritizing platforms equipped with larger caliber turret systems to replace their aging, under-gunned inventory.

Segmental Insights

Based on recent market analysis, the Amphibious segment is identified as the fastest-growing category within the Global Infantry Fighting Vehicle Market. This rapid expansion is primarily driven by the increasing strategic emphasis on littoral warfare and expeditionary capabilities among defense forces globally. Nations with extensive maritime borders are prioritizing the procurement of versatile platforms that ensure seamless mobility between sea and land to address evolving coastal security challenges. Furthermore, the urgent need to modernize aging marine corps fleets with vehicles delivering superior dual-terrain maneuverability and enhanced crew protection continues to accelerate investment in this sector.

Regional Insights

North America holds a dominant position in the Global Infantry Fighting Vehicle market, driven primarily by substantial defense expenditure and continuous fleet modernization efforts. The United States Department of Defense consistently allocates significant funding for the procurement and development of next-generation combat platforms to replace aging units. Specifically, the United States Army focuses on enhancing armored capabilities to improve crew survivability and operational efficiency. Furthermore, the concentration of established defense manufacturers within the region supports steady production and supply chain stability. These factors collectively sustain North America as the leading regional market.

Recent Developments

• In December 2024, BAE Systems secured a significant contract valued at approximately $2.5 billion to supply CV90 combat vehicles to Denmark and Sweden. This agreement, established under a trilateral framework, involves the delivery of 115 new CV9035 MkIIIC vehicles to Denmark and 50 units to Sweden to replenish and expand their respective fleets. The deal also includes provisions for financing additional vehicles intended for Ukraine, reinforcing the defense capabilities of the region. These new infantry fighting vehicles will feature advanced turrets and improved ergonomics, built to the same standard as the latest mid-life upgrade program for the Netherlands, ensuring high interoperability and combat effectiveness.
• In October 2024, Leonardo and Rheinmetall officially established a joint venture aimed at developing and producing a new main battle tank and a variant of the Lynx infantry fighting vehicle for the Italian Army. The collaboration, named Leonardo Rheinmetall Military Vehicles (LRMV), is headquartered in Rome and operationally based in La Spezia, with a 50:50 shareholding structure. The primary objective of this partnership is to address the Italian Army's Armoured Infantry Combat System (AICS) program requirements. The joint venture plans to localize a significant portion of the development and production work within Italy, creating a European hub for heavy combat vehicle manufacturing.
• In August 2024, General Dynamics Land Systems completed the preliminary design review for the XM30 Mechanized Infantry Combat Vehicle, a critical step in the U.S. Army's program to replace the M2 Bradley. This milestone allowed the company to proceed into the detailed design phase of the competition. The proposed vehicle features a hybrid electric powertrain and a 50mm cannon, designed to operate with a two-person crew and carry six infantry soldiers. The successful review demonstrated the validity of the design concepts and digital engineering maturity required to meet the Army's rigorous modernization goals for its armored brigades, utilizing advanced simulations to refine the platform.
• In June 2024, Rheinmetall signed a memorandum of understanding with the Ukrainian government to initiate the production of Lynx infantry fighting vehicles within Ukraine. The agreement was finalized during the Ukraine Recovery Conference in Berlin, with the aim of delivering the first locally produced unit by the end of the year. This strategic cooperation focuses on localizing defense manufacturing capabilities to support Ukraine's long-term security needs. The collaboration also involves the establishment of joint repair and maintenance facilities to ensure the operational readiness of the armored vehicles supplied to the Ukrainian armed forces, expanding the company's industrial footprint in Eastern Europe.

Key Market Players

• General Dynamics Corporation
• Rheinmetall AG
• BAE Systems plc
• Textron Inc.
• Elbit Systems Ltd.
• Oshkosh Corporation
• Nexter Group
• Denel SOC Ltd.
• FNSS Savunma Sistemleri A.Ş.
• BMC Otomotiv Sanayi ve Ticarest AS

By Type	By Configuration	By Application	By Region
Wheeled and Tracked	Amphibious and Non-Amphibious	Combat Armored Reconnaissance Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Infantry Fighting Vehicle Market, By Type:

• Wheeled and Tracked

• Infantry Fighting Vehicle Market, By Configuration:

• Amphibious and Non-Amphibious

• Infantry Fighting Vehicle Market, By Application:

• Combat
• Armored Reconnaissance
• Others

• Infantry Fighting Vehicle Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE