Military Vehicle Sustainment Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Armored Vehicles, Military Trucks), By Service (Maintenance, Repair, & Overhaul (MRO), Training and Support, Parts and Components Supply, Upgrades and Modernization), By End User (Army, Navy, Air Force), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 18.44 Billion
CAGR (2026-2031)	7.07%
Fastest Growing Segment	Armored Vehicle
Largest Market	North America
Market Size (2031)	USD 27.78 Billion

Market Overview

The Global Military Vehicle Sustainment Market will grow from USD 18.44 Billion in 2025 to USD 27.78 Billion by 2031 at a 7.07% CAGR. The Global Military Vehicle Sustainment Market encompasses the maintenance, repair, and overhaul (MRO) services, alongside logistics and technical support, essential for preserving the operational readiness of land-based defense platforms. The primary drivers fueling market growth are the imperative to extend the service life of aging vehicle fleets to optimize defense budgets and the heightened operational tempo in conflict zones which demands rapid asset refurbishment to maintain combat effectiveness.

A significant challenge impeding market expansion is the management of supply chain risks and component obsolescence, which frequently delays the acquisition of spare parts for legacy systems and increases lifecycle costs. According to the Aerospace, Security and Defence Industries Association of Europe, in 2024, the services sector, which is integral to supporting systems across their lifecycle, generated €89 billion in turnover, underscoring the substantial economic magnitude of sustainment activities within the defense industrial base.

Key Market Drivers

Escalating geopolitical tensions and asymmetric security threats represent the primary catalyst for the Global Military Vehicle Sustainment Market, driving nations to prioritize the immediate availability of land-based assets. This heightened operational tempo in regions like Eastern Europe and the Middle East accelerates wear and tear on armored fleets, necessitating frequent deep maintenance and logistics support to ensure mission readiness. The surge in defense budgets directly correlates with this demand, as governments allocate substantial funding to sustain high-intensity operations. According to the Stockholm International Peace Research Institute, April 2025, in the 'Trends in World Military Expenditure, 2024' Fact Sheet, total global military expenditure reached $2718 billion in 2024, reflecting the steep financial commitment required to support active defense postures. This environment has created a robust revenue stream for prime contractors; for instance, according to Rheinmetall AG, March 2025, in the 'Financial report: Financial figures FY 2024' press release, the Vehicle Systems division generated sales of €3.79 billion for the fiscal year 2024, a 45 percent increase driven largely by tactical vehicle programs and military truck deliveries.

The modernization and technology refresh of legacy land platforms further anchors market stability, as defense agencies opt to replace or upgrade aging systems rather than solely relying on new development programs. This driver is characterized by the integration of advanced electronics, survivability packages, and power systems into existing chassis, managing obsolescence while bridging the gap to next-generation capabilities. These activities generate significant sustainment and retrofitting contracts for industrial partners tasked with extending the service life of platforms such as the M113 or Bradley Fighting Vehicle. A pertinent example of this trend is highlighted by a recent award; according to GovCon Wire, March 2025, in the 'BAE Lands $357M Army Contract for Armored Vehicles' article, BAE Systems received a $356.7 million contract modification to produce Armored Multi-Purpose Vehicles (AMPVs), a program specifically designed to replace the legacy M113 fleet and modernize the armored brigade combat team's logistical backbone.

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Key Market Challenges

The management of supply chain risks and component obsolescence creates a severe bottleneck for the Global Military Vehicle Sustainment Market, directly undermining the industry's ability to maintain aging fleets. As defense forces attempt to extend the service life of legacy platforms, the scarcity of out-of-production parts leads to extended maintenance turnaround times. When essential components are no longer manufactured, sustainment providers must resort to costly reverse engineering or low-volume fabrication, which prevents the market from efficiently meeting the demands of heightened conflict tempos. This operational friction results in stalled contracts and reduced throughput for maintenance service providers, hampering the revenue potential of the broader market.

The fragility of these logistical networks is further intensified by a heavy dependence on foreign sources for raw materials, which exposes the market to geopolitical volatility. According to the Aerospace Industries Association, in 2024, the defense sector faced a net import reliance of over 50 percent for 10 out of 12 critical minerals essential for manufacturing and sustaining defense systems. This substantial dependency on external supply chains drives up material costs and introduces unpredictability into the acquisition process. Consequently, these compounding delays and financial burdens erode the purchasing power of defense budgets, restricting the overall growth potential of the sustainment market.

Key Market Trends

The Adoption of AI-Driven Predictive Maintenance Models is fundamentally altering sustainment strategies by shifting the focus from reactive repairs to proactive failure anticipation. Military organizations are integrating sensor-based algorithms into land platforms to analyze performance data in real-time, thereby reducing unplanned downtime and optimizing the supply chain for spare parts. This technological pivot allows commanders to maintain higher fleet availability rates without expanding logistical footprints, directly addressing the inefficiencies of schedule-based servicing. A tangible indicator of this shift is the investment in algorithmic solutions; according to PredictiveIQ, September 2024, in the 'The US Army Awards PredictiveIQ a Sequential Phase II SBIR Contract' press release, the company received a contract from the U.S. Army to demonstrate Generalized Physics Informed AI algorithms specifically designed to enable prognostics and predictive maintenance for combat vehicles.

The Increasing Reliance on Contractor Logistics Support (CLS) Partnerships is redefining how armed forces manage the lifecycle of complex ground platforms. As vehicles become more technically intricate, defense departments are increasingly outsourcing Maintenance, Repair, and Overhaul (MRO) responsibilities to original equipment manufacturers to leverage their proprietary expertise and specialized supply chain networks. This strategy enhances fleet readiness by ensuring that retrofits and repairs are executed with OEM-level precision, mitigating the risks associated with internal labor shortages or technical gaps. Evidence of this trend is found in major industrial awards; according to ExecutiveBiz, August 2024, in the 'General Dynamics Receives $174M Army Contract for Stryker Vehicle Retrofit, Repair' article, General Dynamics Land Systems secured a $174.4 million contract to deliver extensive retrofit and repair operations for the U.S. Army's Stryker fleet, validating the growing dependency on private sector support for vehicle sustainment.

Segmental Insights

The Armored Vehicle segment currently represents the fastest-growing category within the Global Military Vehicle Sustainment Market. This rapid expansion is primarily driven by global defense initiatives aimed at extending the service life of aging heavy ground fleets rather than procuring new platforms. Defense departments increasingly invest in maintenance, repair, and overhaul services to integrate modern protection systems and electronics into legacy armored units. Consequently, the demand for sustainment ensures operational readiness against evolving ballistic threats, prompting significant expenditure on upgrades for main battle tanks and armored personnel carriers.

Regional Insights

North America maintains the leading position in the Global Military Vehicle Sustainment Market, primarily driven by significant defense expenditure in the United States. The region operates a large fleet of tactical and combat vehicles that requires consistent maintenance, repair, and overhaul services to ensure operational readiness. Strategic initiatives by the United States Department of Defense focus on extending the lifecycle of existing platforms, which generates steady demand for sustainment solutions. Furthermore, established contracts between government agencies and regional original equipment manufacturers ensure the continuous availability of essential support services.

Recent Developments

• In August 2024, General Dynamics Land Systems received a contract worth $174.4 million from the United States Army to provide retrofit and repair services for the Stryker family of vehicles. This cost-plus-fixed-fee award was designed to support the long-term sustainment of the Stryker fleet, with the necessary work to be performed at the company’s designated facilities. The contract aimed to address the ongoing maintenance needs of these combat vehicles, ensuring their continued reliability and operational capability. The project was managed by the Army Contracting Command and was scheduled to run through February 2029 to support fleet readiness.
• In July 2024, Oshkosh Defense secured a contract from the Defense Logistics Agency valued at approximately $143.2 million to support military vehicle logistics. The agreement required the company to deliver wheel and tire assemblies to meet the United States Army's requirements. Under this firm-fixed-price requirements contract, the defense manufacturer was tasked with supplying these essential components to maintain the operational readiness of the military's wheeled vehicle fleet. The ordering period for this sustainment effort was scheduled to continue through July 2027, utilizing the Army's working capital funds to ensure a steady supply of parts for vehicle maintenance.
• In July 2024, Babcock International was awarded a contract extension by the United Kingdom Ministry of Defence to continue its support for Ukraine's military land assets. The agreement tasked the company with managing the supply chain, providing spare parts, and maintaining military vehicles and equipment gifted to the Ukrainian armed forces. Additionally, the scope of work included training Ukrainian personnel to conduct repairs independently. This extension built upon previous support services, ensuring that critical armoured vehicles remained available for operations and could be returned to service efficiently, thereby strengthening the logistical resilience of the partner nation.
• In June 2024, Rheinmetall Ukrainian Defense Industry LLC officially opened a new maintenance and repair center in western Ukraine to support the sustainment of combat vehicles. The facility was established to focus on the service and overhaul of Marder infantry fighting vehicles, with confirmed plans to support Leopard 1 and Leopard 2 main battle tanks in the future. This strategic initiative involved the German company utilizing existing local infrastructure while providing specialized tools, spare parts, and technical training. The hub aimed to ensure the rapid repair of critical military assets directly on Ukrainian soil, significantly enhancing the operational efficiency of the armed forces.

Key Market Players

• Rheinmetall AG
• BAE Systesms
• Gneral Dynamics Corporation
• Elbit Systems Ltd.
• Oshkosh Corporation
• Lockheed Martin Corporation
• L3Harris Technologies Inc.
• Thales Group
• ManTech International Corporation
• Honeywell International Inc

By Vehicle Type	By Service	By End User	By Region
Armored Vehicles Military Trucks	Maintenance Repair & Overhaul (MRO) Training and Support Parts and Components Supply Upgrades and Modernization	Army Navy Air Force	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Military Vehicle Sustainment Market, By Vehicle Type:

• Armored Vehicles
• Military Trucks

• Military Vehicle Sustainment Market, By Service:

• Maintenance
• Repair
• & Overhaul (MRO)
• Training and Support
• Parts and Components Supply
• Upgrades and Modernization

• Military Vehicle Sustainment Market, By End User:

• Army
• Navy
• Air Force

• Military Vehicle Sustainment 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