Military Truck Market Research Report and Outlook by 2028

The military truck sector is anticipated to expand from US$ 19,052.77 million in 2023 to US$ 22,537.79 million by 2028, reflecting a compound annual growth rate (CAGR) of 3.4% during this period.

The electrification of military vehicles is expected to significantly drive the military truck market throughout the forecast period. The US Army's new Climate Strategy aims for an all-electric, light-duty, non-tactical fleet by 2027, with a complete transition to an all-electric non-tactical fleet and hybrid tactical vehicles by 2035. To achieve these ambitious targets, various manufacturers are prioritizing the development of hybrid and electric military vehicles. For instance, in January 2022, Oshkosh Corp launched its inaugural hybrid-electric Joint Light Tactical Vehicle (eJLTV), which features a silent drive capability. This innovative vehicle allows for silent operations, extended silent watch, improved fuel efficiency, and increased exportable power, making it particularly suitable for combat and reconnaissance missions. The eJLTV enhances fuel economy by over 20% and boasts a battery capacity of 30kWh. In 2021, General Motors unveiled an all-electric variant of its Infantry Squad Vehicle and a hydrogen fuel cell-powered version of the Chevy Colorado. Additionally, in February 2022, BAE Systems introduced its hybrid Bradley Infantry Fighting Vehicle, recognized for its survivability, mobility, and lethality. Consequently, the rising investments in hybrid and electric military vehicle production (beyond just trucks) are likely to motivate manufacturers to pursue partial or complete electrification of military trucks, marking a significant trend in the market during the forecast period.

Military trucks play a crucial role in various military operations, including the transportation of troops and logistics. The increasing deployment of military personnel in Europe has led to a heightened demand for trucks. As armed forces frequently operate in challenging weather conditions, there is a growing need for trucks capable of functioning in non-permissive environments. Furthermore, military organizations are seeking trucks that offer low life cycle costs, reduced fuel consumption, and a high degree of modularity, which enhances the flexibility and adaptability of these vehicles to meet operational demands, thereby further driving the need for advanced military trucks in Europe.

Europe is home to several military truck manufacturers, such as Iveco Group NV, TATRA TRUCKS AS, Arquus SAS, General Dynamics European Land Systems SLU, AB Volvo, and Rheinmetall AG. These companies are consistently engaged in the modernization of military trucks. For example, in May 2021, Rheinmetall AG introduced the latest generation of its HX family of heavy-duty tactical trucks designed for military applications. These trucks have been completely redesigned, incorporating new technologies and military-off-the-shelf (MOTS) products. They feature autonomous driving capabilities, which can support various artillery systems, and provide enhanced protection, reliability, mobility, driving comfort, and a sophisticated digital interface architecture.

The military truck market is categorized based on application, truck type, propulsion type, and technology. In terms of application, the market is divided into cargo/logistics carriers and troop carriers. By truck type, it is segmented into light trucks, medium trucks, and heavy trucks. The propulsion type classification includes electric/hybrid and diesel options. Additionally, the market is segmented by transmission type into automatic and manual transmissions. Regionally, the market is divided into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM).

The overall size of the military truck market has been determined through a combination of primary and secondary research methods. Extensive secondary research has been conducted using both internal and external sources to gather qualitative and quantitative data related to the market. This process aids in forming an overview and forecast of the market across all segments. Furthermore, numerous primary interviews have been carried out with industry stakeholders to validate the data and obtain analytical insights. This includes discussions with industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the military truck sector.