Military Land Vehicles Market– Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Offering (Platform, Services), By Product (Infantry fighting vehicles (IFV), Armored personnel carriers (APC), Main battle tanks (MBT), Light multirole vehicles (LMV), Tactical trucks), By Application (Defense and combat, Logistics and transportation), By Region, Competition, 2020-2030F

Market Overview

The Global Military Land Vehicles Market will grow from USD 23.66 Billion in 2024 to USD 29.51 Billion by 2030 at a 3.75% CAGR. The global military land vehicles market encompasses a diverse range of armored platforms, including main battle tanks, infantry fighting vehicles, armored personnel carriers, and tactical support vehicles, all engineered for combat, logistical, and reconnaissance operations across terrestrial environments. Key market drivers include escalating geopolitical tensions, which necessitate enhanced national security postures, and global defense modernization initiatives aimed at replacing aging fleets with technologically advanced systems. Increased defense budgets worldwide further propel demand; for instance, according to the Aerospace and Defence Industries Association of Europe (ASD), in 2023, the European defence sector's turnover grew by 16.9%, with the land sector specifically experiencing a 17.7% growth.

Despite robust growth indicators, the market faces a significant impediment in the form of persistent global supply chain disruptions. These challenges, often stemming from material shortages or logistical bottlenecks, can substantially delay vehicle production and delivery schedules, thereby impeding overall market expansion.

Key Market Drivers

The global military land vehicles market is fundamentally shaped by escalating geopolitical instability and persistent regional conflicts. Such volatility directly increases national security concerns, compelling governments to prioritize robust defense capabilities and replace or augment existing land fleets. The sustained conflict in Ukraine, for instance, has demonstrated the critical need for resilient armored platforms and logistical support vehicles, prompting nations to bolster their ground forces. According to the Stockholm International Peace Research Institute (SIPRI), in April 2025, world military expenditure reached USD 2.718 trillion in 2024, marking a 9.4% increase in real terms from 2023 and representing the steepest year-on-year rise since the end of the Cold War, largely attributable to ongoing conflicts and heightened tensions. This direct correlation between global instability and defense investment underscores a continuous demand for advanced military land vehicles capable of operating across diverse and challenging operational theaters.

Complementing this, increasing global defense budgets and expenditure serve as a primary catalyst for market expansion. Nations are committing substantial financial resources to modernize armed forces, acquire technologically advanced systems, and enhance overall military readiness. This budgetary expansion facilitates significant procurement programs for main battle tanks, infantry fighting vehicles, armored personnel carriers, and tactical trucks, thereby driving production and technological innovation. According to the European Defence Agency (EDA) Defence Data Report, in September 2025, defense spending by the 27 EU Member States reached an unprecedented €343 billion in 2024, a 19% increase compared to 2023. These augmented budgets enable significant investments in the military land vehicle sector; for example, according to Rheinmetall's financial report for Q3 2024, in November 2024, sales at its Vehicle Systems division, which primarily deals with military wheeled and tracked vehicles, amounted to €2,537 million for the first nine months of 2024, a substantial 52% year-on-year increase. Such investments reflect a concentrated effort to upgrade military capabilities and maintain a strategic advantage in the evolving global security landscape.

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Key Market Challenges

Persistent global supply chain disruptions represent a substantial impediment to the growth of the global military land vehicles market. These challenges, characterized by material shortages and logistical bottlenecks, directly hinder the production and delivery schedules for a wide array of armored platforms. Such disruptions result in extended lead times for critical components and sub-assemblies, thereby delaying the manufacturing completion of main battle tanks, infantry fighting vehicles, armored personnel carriers, and tactical support vehicles.

The pervasive nature of these supply chain vulnerabilities significantly impedes the ability of defense manufacturers to meet escalating demand. According to the National Defense Industrial Association's (NDIA) 2024 Vital Signs report, ongoing supply chain issues are a critical challenge for the U.S. Defense Industrial Base, with over 1,300 survey respondents identifying these as significant impediments to industrial readiness and capacity for key military platforms. This directly translates to postponed fleet modernization efforts and reduced operational readiness for armed forces globally, thereby restricting the overall expansion of the military land vehicles market.

Key Market Trends

**Electrification and Hybrid Propulsion Systems Integration**
The integration of electric and hybrid propulsion systems into military land vehicles represents a key trend, delivering enhanced operational efficiency and tactical benefits. These systems reduce fuel consumption, lessening logistical burdens and reliance on vulnerable supply chains. They also offer lower thermal and acoustic signatures, significantly improving stealth during reconnaissance and silent watch. Additionally, hybrid vehicles provide exportable power for onboard electronics and battlefield assets, making them mobile energy hubs. For example, Rheinmetall outlined a strategic concept in November 2025 to establish a Europe-wide network of modular e-fuel production plants, targeting an annual supply of approximately 20 million liters of e-fuels within five years to enhance military energy independence. This initiative reflects the industry's dedication to developing sustainable and tactically superior power solutions.

**Proliferation of Unmanned and Autonomous Ground Vehicles**
The increasing deployment of unmanned and autonomous ground vehicles (UGVs) is fundamentally reshaping battlefield operations by reducing human risk and expanding capabilities. UGVs are designed for varied missions, including reconnaissance, logistics, and combat support, enabling hazardous tasks without direct soldier exposure. Advancements in artificial intelligence, sensor fusion, and remote-control technologies empower these vehicles to navigate complex terrains and execute operations autonomously or semi-autonomously. A significant development in this sector is the €24.8 million investment from the European Defence Fund for the COMMANDS consortium project, which, in November 2025, demonstrated Europe's first autonomous military convoy in Spain, featuring AI-powered coordinated logistics. This funding highlights the accelerating global focus on integrating autonomous systems to enhance efficiency and strategic advantage.

Segmental Insights

The "Platform" segment is experiencing rapid growth within the Global Military Land Vehicles Market, driven by the imperative for military modernization and the evolving nature of global conflicts. Nations are significantly increasing defense budgets and investing in new generation land platforms to enhance tactical superiority and operational readiness. This growth is primarily fueled by the integration of advanced technologies such as artificial intelligence, sophisticated sensor suites, and integrated communication systems, which transform traditional vehicles into intelligent, networked combat assets. These advancements ensure superior mobility, enhanced protection, and increased firepower, allowing platforms to operate effectively across diverse and challenging environments.

Regional Insights

North America leads the global military land vehicles market, driven by significant defense expenditures and ongoing fleet modernization initiatives. The region's dominance is primarily attributable to the substantial investments made by the U.S. Department of Defense in the procurement and maintenance of advanced ground vehicles. North America benefits from a robust industrial base, housing major defense contractors that continuously innovate and develop cutting-edge military vehicle designs, incorporating advanced technologies such as hybrid-electric solutions and autonomous systems to meet evolving operational requirements. This strong emphasis on research and development, coupled with strategic programs, ensures the region maintains its prominent position.

Recent Developments

• In August 2025, Rheinmetall announced a substantial order from the Bundeswehr for over 1,000 logistic vehicles, valued at approximately €770 million. This significant acquisition, which includes 963 swap-body system vehicles and 425 unprotected transport vehicles in 4x4 and 8x8 variants, reinforces Rheinmetall's role in the global military land vehicles market. The order is a call-off from a larger framework contract signed in July 2024, which allows for the potential delivery of up to 6,500 vehicles with a total value of up to €3.5 billion. Deliveries are scheduled to be completed by the end of 2025.

• In January 2025, KNDS, Rheinmetall, and Thales formalized their collaboration by signing a shareholder agreement for a project company dedicated to developing the Main Ground Combat System (MGCS). This initiative in the global military land vehicles market aims to create a next-generation main battle tank for Germany and France, intended to replace their existing Leopard 2 and Leclerc tanks. The new company, with each firm holding a 25% stake, is based in Cologne, Germany, marking a significant step in European defense cooperation. This partnership advances breakthrough research and development for future land combat systems.

• In October 2024, BAE Systems unveiled two new prototypes of its Armored Multi-Purpose Vehicle (AMPV) at AUSA 2024, expanding capabilities within the global military land vehicles market. One prototype integrated a 30mm turret, while the other featured a Modular Turreted Mortar System (MTMS), which had successfully completed U.S. Army evaluations earlier in the year. The company's innovative common top plate design facilitates the seamless integration of over 30 different turret systems onto the AMPV platform. Concurrently, BAE Systems also secured a contract modification valued at $184 million to produce an additional 48 AMPVs for the U.S. Army, further modernizing armored brigade combat teams.

• In May 2024, Textron Systems and Kodiak Robotics announced a strategic collaboration to develop an autonomous military ground vehicle specifically designed for driverless operations. This partnership within the global military land vehicles market involves integrating Kodiak's AI-powered autonomous system, the Kodiak Driver, into a purpose-built uncrewed military vehicle prototype from Textron Systems. The companies aim to demonstrate driverless capabilities later in 2024, focusing on advancing autonomous technologies for military customers. This initiative represents breakthrough research in enhancing the functionality and adaptability of uncrewed land systems.

Key Market Players

• Oshkosh Defense, LLC
• BAE Systems plc
• Ashok Leyland Ltd.
• General Dynamics Corporation
• ST Engineering (Singapore Technologies Engineering Ltd)
• Rheinmetall MAN Military Vehicles GmbH
• JSC Scientific and Production Corporation Uralvagonzavod
• Krauss-Maffei Wegmann GmbH & Co. KG
• Hyundai Rotem (Hyundai Motor Group)
• Iveco S.p.A.

Report Scope:

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

• Military Land Vehicles Market, By Offering:

o   Platform

o   Services

• Military Land Vehicles Market, By Product:

o   Infantry fighting vehicles (IFV)

o   Armored personnel carriers (APC)

o   Main battle tanks (MBT)

o   Light multirole vehicles (LMV)

o   Tactical trucks

• Military Land Vehicles Market, By Application:

o   Defense and combat

o   Logistics and transportation

• Military Land Vehicles 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 Military Land Vehicles Market.

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Global Military Land Vehicles 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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