The Global Armored Vehicles and Counter IED Vehicles Market 2011–2021

Lon­don, May, 2011 – The glob­al armored vehi­cles and counter IED vehi­cles mar­ket is expect­ed to record decline from 2011–2021 due to the end of mil­i­tary oper­a­tions in Afghanistan and Iraq in this peri­od. As a result of West­ern aus­ter­i­ty and high lev­els of fis­cal debt in the West, defense mod­ern­iza­tion plans have over­whelm­ing­ly been post­poned to con­tain fis­cal expen­di­ture. In Asia, defense expen­di­ture and mod­ern­iza­tion is set to increase due to China’s large defense expen­di­ture increase and ter­ri­to­r­i­al dis­putes with­in the region. How­ev­er, despite North America’s high lev­els of fis­cal debt, this region will con­sti­tute the largest share of the glob­al mar­ket from 2011–2021.


Glob­al armored vehi­cles and counter IED vehi­cles mar­ket to decline

In 2011, the glob­al armored vehi­cles and counter IED vehi­cles mar­ket val­ued over US$25 bil­lion. How­ev­er, the mar­ket is expect­ed to decline from 2011–2021 as mil­i­tary oper­a­tions in Afghanistan and Iraq are expect­ed to end in this peri­od. In line with this expec­ta­tion, the mar­ket val­ue is expect­ed to fall by around US$1 bil­lion by 2021, with a cumu­la­tive val­ue of over US$250 bil­lion from 2011–2021.

North Amer­i­ca to con­sti­tute largest mar­ket share

Despite the high fis­cal deficit of North Amer­i­can coun­tries, from 2011–2021 these nations will con­sti­tute over 30% of the glob­al armored vehi­cles and counter IED vehi­cles mar­ket, which is the largest mar­ket share. Europe is expect­ed to account for around a quar­ter of mar­ket share from 2011–2021, but demand for armored vehi­cles in this peri­od will decline. In con­trast, Asia will increas­ing­ly require armored and counter IED vehi­cles to com­bat ter­ri­to­r­i­al dis­putes and to cater to the large troop size of region­al forces. Addi­tion­al­ly, soar­ing oil prices and eco­nom­ic devel­op­ment in the Mid­dle East will increase demand for armored vehi­cles from 2011–2021, and the dis­cov­ery of oil and min­er­al resources in Africa, along with eth­nic and ter­ri­to­r­i­al dis­putes, will increase demand for armored vehi­cles in this region. Although South Amer­i­can coun­tries plan to mod­ern­ize their armed forces, this mod­ern­iza­tion is only expect­ed for air and navy forces, and there­fore demand for armored vehi­cles in this region is expect­ed to decline from 2011–2021.

Infantry fight­ing vehi­cles (IFV) and armored per­son­nel car­ri­ers (APC) account for largest mar­ket share

Col­lec­tive­ly, IFVs and APCs are expect­ed to account for the largest share of the glob­al armored vehi­cles and counter IED vehi­cles mar­ket from 2011–2021. Increas­ing glob­al troop sizes and over­seas oper­a­tions are expect­ed to increase demand for tac­ti­cal trucks and light mul­ti­role vehi­cles (LMV). How­ev­er, the end of mil­i­tary oper­a­tions in Afghanistan and Iraq, cou­pled with the inte­gra­tion of mine pro­tec­tion tech­nol­o­gy in all oth­er class­es of vehi­cles, will result in mine resis­tant ambush pro­tect­ed (MRAP) vehi­cles con­tribut­ing just over 5% to the glob­al mar­ket from 2011–2021. Increas­ing glob­al demand for armored and counter IED vehi­cles will come from over­seas peace­keep­ing mis­sions, ter­ri­to­r­i­al dis­putes, mil­i­tary mod­ern­iza­tion pro­grams and inter­nal insur­gen­cies faced by some coun­tries.

Tech­no­log­i­cal inno­va­tions enhance capa­bil­i­ties of armored vehi­cles

Mod­ern armed forces must keep up with tech­no­log­i­cal advances and changes to threats, ter­rains and tac­tics in order to effec­tive­ly cater to mod­ern war­fare. This has forced many mil­i­taries to mod­ern­ize their fleets with tech­nol­o­gy to ensure sur­viv­abil­i­ty, con­nec­tiv­i­ty, mobil­i­ty and lethal­i­ty. Armed forces must bal­ance pro­tec­tion, pay­load and per­for­mance with improved vehi­cle effi­cien­cy while invent­ing ways to reduce oper­a­tional and through-life sup­port costs.

West­ern aus­ter­i­ty to encour­age con­sol­i­da­tion

Defense cuts by West­ern gov­ern­ments, com­bined with the high cost of devel­op­ing tech­no­log­i­cal­ly supe­ri­or weapons plat­forms, have encour­aged con­sol­i­da­tion amongst gov­ern­ments, ser­vices and indus­tries. This has led to domes­tic and inter­na­tion­al con­sol­i­da­tion through joint devel­op­ment and pro­cure­ment pro­grams, which are expect­ed to con­tin­ue from 2011–2021.

Mod­ern­iza­tion delayed in Europe but increas­ing in Asia

Euro­pean coun­tries such as the UK, France, Ger­many and Spain have post­poned defense mod­ern­iza­tion due to the recent eco­nom­ic cri­sis, which result­ed in high lev­els of fis­cal debt. As a result, Euro­pean coun­tries have post­poned mod­ern­iza­tion plans to con­tain fis­cal expen­di­ture and are explor­ing options for joint pro­cure­ment and equip­ment devel­op­ment.

How­ev­er, defense mod­ern­iza­tion in Asia, which pri­mar­i­ly con­sists of India, Chi­na, Japan and South Korea, is lead­ing to an increase in glob­al defense cap­i­tal expen­di­ture. China’s sig­nif­i­cant increase in defense expen­di­ture has led to an imbal­ance of pow­er in Asia, and oth­er Asian coun­tries have been forced to increase their defense expen­di­ture. The alleged nuclear aspi­ra­tions of North Korea and ter­ri­to­r­i­al dis­putes between Thai­land, Malaysia and Sin­ga­pore also con­tribute to enhanced defense expen­di­ture and mod­ern­iza­tion in Asia.

Here you can find more infor­ma­tion about: The Glob­al Armored Vehi­cles and Counter IED Vehi­cles Mar­ket 2011–2021

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