With the rise in defense investments by emerging nations, there has been a significant surge in the demand for various types of armored vehicles over the past few years. The assimilation of lightweight technology, compact and advanced photonic and advanced components for enhancing operational efficiency of armored vehicles is likely to aid the growth of the global armored vehicle market in the forecast period of 2015-2023. However, the high maintenance cost of armored vehicles and absence of regulatory norms in Asia Pacific and Rest of the World is likely to impede the growth of the global armored vehicle market.
Increasing Investment to Modernize Military in Rest of World and Asia Pacific to Propel Demand for Armored Vehicles
The rise in concerns for security from terrorist attacks and insurgent groups in Asia Pacific has emphasized the need for modernizing military groups and organizations in the region. Government bodies in the region have been compelled to increase the funds allotted to for the defense sector. India, South Korea, and China among others in Asia Pacific are aiming at the acquisition of advanced armored vehicles for enhancing their military vehicles stock. Nations like Israel, Iran, Turkey, and Saudi Arabia among others are significantly focusing on raising their military budgets and equip their military groups with more advanced armored vehicles.
Moreover, the need for efficient, robust, light weight, and compact vehicles from the military sector is further expected to augment the demand for armored vehicles in the upcoming years. Technological advancements in navigation techniques, surveillance, superior situation awareness, and communication are likely to provide manufacturers of armored vehicles with potential growth opportunities.
Lack of Monitoring Standards to Impede Growth of Global Armored Vehicles Market
Various countries in Asia Pacific lack the presence of proper regulatory standards regarding the use and protection levels of armored vehicles. Moreover, the high price of armored vehicles and the availability of low quality materials from various manufacturers are likely to further impede the sales of armored vehicles. Many unauthorized armored vehicles companies are emerging in countries like China, Brazil, and India and challenging the market position of established companies. As emerging economies have low defense budgets and have cost conscious consumers, affording armored vehicles becomes difficult for people in emerging countries at certain times.
Considering all these factors, the global armored vehicle market is projected to rise at a 5.2% CAGR between 2015 and 2023. In 2014, the market was valued at US$22.73 bn and is likely to reach a market worth US$35.49 bn in 2023.