Land Based Defense Equipment Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Armored Vehicles, Missiles, Tanks, Small Arms And Light Weapons), By Operation (Autonomous Land Based Defense Equipment, Manual), By Application (Military, Law Enforcement), By Region, Competition 2020-2030F

Market Overview

The Global Land Based Defense Equipment Market, valued at USD 15.34 Billion in 2024, is projected to experience a CAGR of 7.44% to reach USD 23.60 Billion by 2030. The Global Land Based Defense Equipment Market encompasses a wide array of military hardware designed for ground combat and support operations, including armored vehicles, artillery systems, infantry weapons, and associated command, control, communications, computers, intelligence, surveillance, and reconnaissance systems. Main drivers propelling this market's growth include escalating geopolitical instability, the imperative for national sovereignty, and widespread modernization efforts by nations seeking to replace aging inventories and enhance operational capabilities. According to the Aerospace and Defence Industries Association of Europe (ASD), the global aerospace and defense market, which comprises land-based equipment, reached approximately €1,194 billion ($1,288 billion) in turnover in 2022.

One significant challenge impeding market expansion is the inherently complex and protracted procurement cycles characteristic of defense acquisition, often spanning multiple years and subject to evolving political priorities and budgetary reallocations. This intricacy contributes to cost overruns and delays in delivering critical capabilities, impacting overall operational readiness.

Key Market Drivers

The Global Land Based Defense Equipment Market is significantly influenced by escalating geopolitical tensions and regional conflicts, compelling nations to bolster their defense capabilities. This driver reflects a direct response to global instability, where perceived threats necessitate increased military preparedness and procurement of advanced ground systems. According to the Stockholm International Peace Research Institute (SIPRI), in April 2024, "Trends in World Military Expenditure, 2023," global military expenditure reached an all-time high of $2443 billion in 2023, representing a 6.8 percent increase in real terms from 2022, primarily driven by ongoing conflicts and heightened regional tensions. These conditions accelerate demand for robust armored vehicles, artillery, and sophisticated command and control systems essential for modern ground warfare scenarios.

A second crucial factor is the widespread global military modernization initiatives, as armed forces worldwide seek to replace aging inventories and enhance operational effectiveness through technological advancements. These initiatives encompass investments in next-generation platforms, integrated battlefield systems, and improved lethality for ground forces. For example, according to InsideDefense. com, in March 2024, "Appropriators allocate $3.72 billion for ground vehicles in 2024 Army budget", the U. S. Army received approximately $3.72 billion to fund ground vehicle programs in fiscal year 2024, an increase of $431 million over its initial request. This commitment to modernization drives demand for innovative land-based defense equipment, including advanced infantry fighting vehicles and self-propelled artillery. Overall, the market for land based defense equipment continues to expand, reflecting sustained investment by key industry players. According to Rheinmetall AG, in March 2024, "Financial figures 2023", the company's backlog reached a new high of €38.3 billion in 2023, increasing by 44% from the previous year.

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Key Market Challenges

The inherently complex and protracted procurement cycles within defense acquisition significantly impede the growth of the Global Land Based Defense Equipment Market. These cycles, often extending over many years, are frequently influenced by shifting political priorities and budgetary reallocations. This inherent intricacy directly contributes to substantial cost overruns and delays in the delivery of essential military capabilities. Such prolonged timelines create considerable uncertainty for manufacturers, thereby discouraging investment in advanced production technologies and capacity expansion.

Furthermore, the protracted nature of these processes slows down the replacement of aging inventories and the enhancement of operational readiness for armed forces globally. According to the European Parliamentary Research Service, in 2024, the estimated cost of not leveraging European economies of scale in defense spending due to fragmentation, which includes inefficient procurement practices, ranged from €18 billion to €57 billion per year. This substantial financial inefficiency directly affects market expansion by diverting funds that could otherwise be allocated to new equipment acquisition or research and development, ultimately restraining the overall dynamism and growth potential of the land-based defense sector.

Key Market Trends

Autonomous Systems Integration for Land Platforms represents a pivotal shift towards enhancing operational efficiency and reducing human exposure to direct combat risks. This trend focuses on developing unmanned ground vehicles capable of performing diverse missions, including reconnaissance, logistics support, and direct fire engagements, thereby acting as force multipliers. According to the Association for Uncrewed Vehicle Systems International (AUVSI), in FY 2024, the U. S. Department of Defense requested an estimated $10.95 billion to support uncrewed vehicle acquisition and development, indicating a substantial governmental commitment to this technology. The integration of artificial intelligence and advanced robotics enables these platforms to operate semi-autonomously or fully autonomously, improving situational awareness and response times. For example, BAE Systems was noted to be developing an autonomous Armored Multi-Purpose Vehicle prototype, highlighting industry efforts in advancing these capabilities. This development promises to redefine tactical operations and enhance battlefield survivability for ground forces.

Electrification and Hybridization of Combat Vehicles is another significant trend transforming the land-based defense equipment market, driven by the need for improved fuel efficiency, silent operation, and increased power generation for onboard systems. Hybrid and electric powertrains offer advantages such as reduced acoustic and thermal signatures, which are crucial for stealth in reconnaissance and special operations. This technology also provides substantial exportable power, enabling advanced sensors, communication systems, and directed energy weapons. According to the European Defence Agency (EDA), in September 2023, the HybriDT II project was launched with a total budget of €1.7 million to design full-scale wheeled and tracked military purpose demonstrators with hybrid drive trains. As reported by National Defense Magazine in May 2025, the U. S. Army continues to press ahead with planned investments in hybridizing tactical wheeled vehicles due to warfighting advantages, demonstrating the operational benefits these systems provide. These advancements contribute to more agile and resilient ground combat capabilities.

Segmental Insights

The Armored Vehicle segment is a key growth driver within the Global Land Based Defense Equipment Market. This rapid expansion is primarily attributed to escalating geopolitical tensions and the persistent threat of asymmetric warfare, which compel nations to enhance their defense capabilities. Consequently, governments are undertaking significant military modernization programs, investing in advanced platforms that offer enhanced protection, superior mobility, and integrated combat systems to replace aging fleets. The increasing prevalence of urban conflicts and counter-terrorism operations further necessitates versatile, multi-role armored vehicles capable of operating effectively in complex environments.

Regional Insights

North America leads the global land-based defense equipment market, primarily due to the substantial defense budgets allocated by nations within the region, particularly the United States. This significant financial commitment directly supports extensive modernization programs for armed forces, driving demand for advanced armored vehicles, artillery systems, and sophisticated communication networks. The region benefits from a robust technological base, fostering continuous innovation in areas such as autonomous systems, advanced sensor integration, and AI-powered defense solutions. Furthermore, the presence of prominent global defense contractors, including Lockheed Martin and General Dynamics, contributes significantly to market leadership through substantial research and development efforts and strategic partnerships with government agencies. This confluence of sustained investment, technological prowess, and an established industrial ecosystem solidifies North America's dominant market position.

Recent Developments

• In October 2025, AM General announced a collaborative agreement with Carnegie Robotics and Textron Systems to develop a modular Unmanned Ground Vehicle (UGV) for the U.S. Army’s Medium Modular Equipment Transport Trailer (M-MET) program. This partnership aimed to design and deliver an autonomous platform tailored to the Army’s modernization objectives. The next-generation UGV is intended to autonomously transport multi-class supplies and operational energy, integrate diverse mission payloads, and support Army Transformation in Contact and Multi-Domain Operations. This collaboration combined expertise in light tactical vehicles, autonomous solutions, and crewed/uncrewed military ground vehicles for a significant land-based defense initiative.

• In October 2025, AV, formerly AeroVironment, introduced new variants of its man-portable Switchblade loitering munition family, including the Switchblade 400. This new medium-range anti-armor loitering munition weighs less than 40 pounds, expanding the capabilities available for land-based tactical operations. Additionally, the company provided updates to its existing Switchblade 300, designed for light armor and personnel, and the Switchblade 600, which targets more heavily armored vehicles. These product launches enhance flexibility and scalability for warfighters, building on proven field capabilities within the Global Land Based Defense Equipment Market.

• In October 2025, Lockheed Martin and Diehl Defence signed a Memorandum of Understanding to explore collaboration opportunities focused on Integrated Air and Missile Defense. This agreement primarily sought to expand the global supply chain for the Patriot Advanced Capability-3 (PAC-3) Missile Segment Enhancement (MSE) interceptor. The companies also planned to investigate further research and development activities. The initiative aimed to enhance supply chain resilience for this critical land-based missile defense system, which is utilized by 17 partner nations, thereby supporting allied defense and fostering new business opportunities across the Atlantic.

• In October 2025, Moog Inc. unveiled its latest innovation in turreted weapon systems, the Lightweight Reconfigurable Integrated-weapons Platform (LW RIwP), at the AUSA Annual Meeting and Exposition. This new system, part of the proven RIwP product family, was specifically developed to address the evolving requirements of the U.S. Army's M-SHORAD Increment 4 program. The LW RIwP is engineered to provide substantial firepower for lighter vehicle platforms, such as the Infantry Squad Vehicle, enabling efficient airlift and sling load transport, and thereby enhancing strategic mobility and operational flexibility for land forces.

Key Market Players

• Mitsubishi Heavy Industries Ltd
• Northrop Grumman Corp.
• Paramount Group
• Patria Group
• Rheinmetall AG
• RTX Corp.
• Saab AB
• Tata Advanced Systems Ltd.
• Thales Group
• The Boeing Co.

Report Scope:

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

• Land Based Defense Equipment Market, By Type:

o   Armored Vehicles

o   Missiles

o   Tanks

o   Small Arms

o   Light Weapons

• Land Based Defense Equipment Market, By Operation:

o   Autonomous Land Based Defense Equipment

o   Manual

• Land Based Defense Equipment Market, By Application:

o   Military

o   Law Enforcement

• Land Based Defense Equipment 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 Land Based Defense Equipment Market.

Available Customizations:

Global Land Based Defense Equipment 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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