Military Truck Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Light Duty, Medium Duty, Heavy Duty), By Propulsion (ICE, Electric), By Transmission Type (Automatic, Semi-Automatic, Manual), By Axle (4×4, 6×6, 8×8, Others), and By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 27.19 Billion
CAGR (2026-2031)	4.47%
Fastest Growing Segment	Electric
Largest Market	North America
Market Size (2031)	USD 35.35 Billion

Market Overview

The Global Military Truck Market will grow from USD 27.19 Billion in 2025 to USD 35.35 Billion by 2031 at a 4.47% CAGR. The Global Military Truck Market encompasses specialized wheeled vehicles designed for the logistical transportation of personnel, munitions, and equipment, as well as tactical variants configured for weapon systems and command operations. The primary drivers supporting market growth include the strategic necessity for nations to modernize aging fleet inventories to ensure high mobility in contested environments and the substantial increase in national defense budgets globally. These fundamental drivers are distinct from technological trends, as they stem from the immediate requirement to maintain robust supply lines and operational readiness amidst rising geopolitical instability.

However, a significant challenge impeding market expansion is the volatility of the global supply chain, particularly regarding the availability of semiconductors and raw materials, which creates production bottlenecks and escalates procurement costs. This financial momentum is evident in recent industrial data. According to the Aerospace, Security and Defence Industries Association of Europe (ASD), in 2024, the land defense sector generated a turnover of €65.3 billion, reflecting the intensified investment in terrestrial mobility and support capabilities.

Key Market Drivers

Escalating geopolitical tensions and regional conflicts serve as the primary catalyst for the Global Military Truck Market, compelling nations to prioritize the rapid acquisition and replenishment of logistical assets. As armed forces face prolonged engagements and volatile security environments, the requirement for robust tactical vehicles to ensure supply chain resilience has intensified. This strategic urgency is visibly translating into large-scale industrial commitments to bolster land mobility capabilities. According to Rheinmetall AG, July 2024, in the 'Bundeswehr orders thousands of military trucks' press release, the German armed forces signed a framework contract for the delivery of up to 6,500 logistics vehicles with a total value of up to €3.5 billion. Such substantial agreements illustrate how immediate security threats are driving high-volume procurement orders for specialized transport platforms.

Concurrently, rising global defense expenditures and budget allocations provide the necessary fiscal foundation to sustain these modernization efforts. Governments are increasing their financial commitments to defense, enabling the replacement of legacy fleets with vehicles offering improved payload capacity. According to the Stockholm International Peace Research Institute (SIPRI), April 2024, in the 'Trends in World Military Expenditure, 2023' fact sheet, total global military expenditure reached $2443 billion in 2023, representing a real-term increase of 6.8 percent. This elevated funding environment directly supports continuous contracting activity within the heavy transport sector. For instance, according to the U.S. Department of Defense, in 2024, Oshkosh Defense was awarded a $231.9 million contract modification for the Family of Heavy Tactical Vehicles, underscoring the steady capital flow directed toward maintaining operational fleet readiness.

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Key Market Challenges

The volatility of the global supply chain constitutes a formidable obstacle to the expansion of the Global Military Truck Market. This disruption, driven principally by the scarcity of semiconductors and essential raw materials, creates severe production bottlenecks that directly counteract the strategic urgency to modernize fleet inventories. As modern logistical and tactical vehicles increasingly rely on advanced electronics and specific alloy components, the inability to secure these inputs on schedule forces manufacturers to extend lead times and delay deliveries. Consequently, this friction prevents the industry from fully capitalizing on the rising demand for terrestrial mobility, as production capacity is physically constrained regardless of available defense budgets.

The magnitude of this operational hurdle is substantiated by recent industry assessments. According to the National Defense Industrial Association (NDIA), in 2025, 54 percent of private sector respondents identified supply chain challenges as a pressing issue facing the defense industrial base. This statistic highlights the pervasive nature of the disruption, indicating that a majority of defense manufacturers are grappling with logistical instability. Such widespread delays not only escalate procurement costs but also stall the revenue recognition cycle for manufacturers, effectively dampening the market's overall growth trajectory despite a favorable investment climate.

Key Market Trends

The Integration of Hybrid-Electric Propulsion Systems is emerging as a transformative technical shift, driven by the operational need to reduce thermal signatures and extend mission range without relying solely on fossil fuel supply lines. Unlike traditional modernization efforts focused on payload, this trend prioritizes energy efficiency and silent watch capabilities, allowing heavy platforms to operate covertly in hostile zones while powering onboard electronic warfare suites. This technological pivot is evident in major industrial activities to future-proof fleet designs. According to Oshkosh Defense, August 2024, in the 'Oshkosh Awarded $1.54 Billion FHTV V Follow-On Contract' press release, the company secured a five-year contract estimated at $1.54 billion which specifically incorporates advanced vehicle architecture to support electrification and drive-by-wire capabilities for the U.S. Army's heavy tactical fleet.

Simultaneously, the Development of Unmanned Ground Logistics Vehicles (UGLVs) is accelerating to mitigate personnel risk during "last-mile" resupply missions in contested environments. By removing drivers from convoy operations, defense forces can maintain high-throughput logistics flows despite threats from improvised explosive devices or ambushes, effectively shifting the burden of exposure from soldiers to autonomous platforms. This trend is substantiated by recent procurement decisions focused on robotic mobility rather than manned capacity. According to American Rheinmetall Vehicles, October 2024, in the 'Rheinmetall Wins Major Contract for US Army’s S-MET Inc II Program' press release, the subsidiary was selected to manufacture and deliver eight autonomous prototype vehicles for the Small Multi-Purpose Equipment Transport program, marking a critical step toward fielding unmanned logistics assets.

Segmental Insights

The electric segment is currently the fastest-growing category within the global military truck market. This expansion is primarily driven by increasing mandates from defense organizations to reduce carbon footprints and dependency on fossil fuel logistics. For instance, the United States Army Climate Strategy outlines specific goals for electrifying tactical and non-tactical vehicle fleets to enhance operational resilience. Furthermore, electric military trucks offer distinct tactical advantages, such as silent watch capabilities and reduced thermal signatures, which effectively support the modernization requirements of defense forces worldwide.

Regional Insights

North America maintains a leading position in the global military truck market primarily due to substantial defense budgets and ongoing fleet modernization programs. The United States Department of Defense actively funds the replacement of aging logistical and tactical vehicle fleets to enhance operational readiness. Consequently, the region benefits from a robust industrial base where manufacturers execute large-scale government contracts for modern transport units. Additionally, increased investments in autonomous and electric vehicle technologies for military applications further support market expansion, ensuring North America remains the dominant region.

Recent Developments

• In July 2025, Oshkosh Defense received orders from the U.S. Army valued at $167 million for the delivery of 225 heavy tactical trucks and 54 trailers. These orders were placed under the Family of Heavy Tactical Vehicles contract and included Heavy Expanded Mobility Tactical Truck A4 variants and Palletized Load System A2 vehicles. The procurement supported multiple U.S. Army components, including the National Guard and Reserve, and facilitated the integration of next-generation defense technologies. The company emphasized that these vehicles would support the development and fielding of advanced air defense systems capable of countering complex threats.
• In December 2024, Iveco Defence Vehicles signed a significant contract with the Italian Land Armaments Directorate for the supply of 1,453 tactical-logistic trucks. The agreement was established to modernize the Italian Army's fleet with deliveries scheduled to take place between 2025 and 2038. The contract encompassed various configurations of the company's High Mobility range, including vehicles specialized for troop transport, material handling, and recovery missions. These new-generation trucks were designed to offer high protection and mobility, featuring modular armored cabs and compatibility with existing logistics platforms to support operations in diverse environmental conditions.
• In October 2024, GM Defense unveiled its "Next Gen" tactical vehicle prototype at the Association of the United States Army annual meeting to address modern battlefield requirements. The new vehicle was a hybrid-electric platform based on the Chevrolet Silverado 2500HD ZR2, designed to provide silent watch and silent drive capabilities for enhanced stealth in high-threat environments. The prototype featured a turbo-diesel engine paired with a 12-module battery pack, offering extended range and exportable power for mission-critical systems. This product launch demonstrated the company's strategic focus on integrating commercial automotive technologies into the global military truck market.
• In July 2024, Rheinmetall AG signed a historic framework contract with the German Armed Forces for the delivery of up to 6,500 military logistic vehicles. This agreement, valued at up to €3.5 billion, represented the largest single order for military trucks in the company's history. The deal included an initial call-off for over 610 vehicles, comprising unprotected transport vehicles in five-ton and fifteen-ton configurations based on the HX vehicle family. This contract allowed the customer to flexibly order additional trucks over a seven-year period, including a new 4x4 vehicle category designed to ensure logistical efficiency and interoperability.

Key Market Players

• Oshkosh Defense
• Rheinmetall AG
• Tata Motors Defence
• BAE Systems
• Iveco Defence Vehicles
• General Dynamics
• AM General
• MAN Truck & Bus
• Scania AB
• Ashok Leyland Defence

By Type	By Propulsion	By Transmission Type	By Axle	By Region
Light Duty Medium Duty Heavy Duty	ICE Electric	Automatic Semi-Automatic Manual	4×4 6×6 8×8 Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Military Truck Market, By Type:

• Light Duty
• Medium Duty
• Heavy Duty

• Military Truck Market, By Propulsion:

• ICE
• Electric

• Military Truck Market, By Transmission Type:

• Automatic
• Semi-Automatic
• Manual

• Military Truck Market, By Axle:

• 4×4
• 6×6
• 8×8
• Others

• Military Truck 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