Military Vehicle Market Report: Size, Share and Outlook by 2031

The Military Vehicle Market was valued at approximately US$ 32.47 billion in 2024 and is projected to grow to US$ 65.53 billion by 2031, reflecting a compound annual growth rate (CAGR) of 10.8% from 2025 to 2031.

This market is categorized into five primary regions: North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South & Central America. In 2024, North America led the market, followed by Europe and Asia Pacific.

Within North America, the key economies include the United States, Canada, and Mexico. The United States is at the forefront of the military vehicles market in this region. The government's commitment to enhancing the defense sector, particularly through the development of advanced military vehicles for logistics, transportation, and combat, is a significant driver of market growth. In 2022, the U.S. military expenditure reached US$ 860.6 billion, slightly down from approximately US$ 870.7 billion in 2021. By 2023, this investment increased to US$ 916 billion, underscoring the nation's focus on bolstering its defense capabilities to address rising security demands.

Major players in the U.S. military vehicle market include Lockheed Martin Corporation, General Dynamics Corporation, and BAE Systems Plc. Innovations in transportation, logistics, and combat platforms are driving the demand for versatile military vehicles. For example, in 2023, BAE Systems received a US$ 211 million contract modification from the U.S. Marine Corps for additional amphibious combat vehicles (ACVs), which included the procurement of 40 personnel variants and associated support and testing equipment. Furthermore, in 2024, BAE Systems secured another US$ 25 million contract to deliver more ACV personnel units. In 2022, the U.S. Army awarded AM General LLC a contract worth US$ 732.7 million for lightweight battlefield vehicles and related technologies for various military applications. These developments highlight the increasing technological advancements and the necessity for modern, multi-functional vehicles to enhance national security.

The military vehicle market is also segmented by application into categories such as ground support handling, tactical warfare, intelligence, surveillance, and reconnaissance (ISR), military transportation, and others. The tactical warfare segment accounted for the largest market share in 2024. Factors such as the growing complexity of warfare, the emergence of asymmetric threats, and the demand for improved tactical mobility and protection for ground forces are driving this segment's growth.

The military transportation segment is characterized by its emphasis on payload capacity, operational range, and versatility, with vehicles designed to function across diverse terrains and environmental conditions. This category includes trucks, trailers, and specialized transport platforms, each tailored to meet specific military logistics needs. The modernization of aging fleets, evolving operational requirements, and the ongoing demand for efficient logistics in complex combat scenarios are key factors propelling growth in this segment. For instance, in January 2025, the German armed forces (Bundeswehr) awarded Rheinmetall a contract for 568 logistics vehicles, which includes 349 unprotected transport vehicles and 219 trucks with a swap-body system, valued at over US$ 410 million, with deliveries planned for 2025 and 2026. This contract exemplifies the ongoing efforts to modernize military transportation and the increasing need for reliable logistics solutions.

Key players in the Military Vehicle Market include ASHOK LEYLAND, BAE Systems Plc, General Dynamics Corporation, NORINCO Group, Oshkosh Defense, LLC, Patria, Rheinmetall AG, Soframe, Tata Motors, Thales Group, Lockheed Martin Corporation, and KNDS France. These companies are pivotal in shaping the market landscape.

The overall size of the Military Vehicle Market has been determined through a combination of primary and secondary research methods. Extensive secondary research was conducted using both internal and external sources to gather qualitative and quantitative data regarding the market size. This approach also facilitated an overview and forecast of the market across all segments. Additionally, numerous primary interviews were held with industry stakeholders to validate the findings and gain deeper analytical insights. This process involved discussions with industry experts, including VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants such as valuation experts, research analysts, and key opinion leaders in the Military Vehicle Market.