Military Vehicle Market to Reach US$ 65.53 Billion by 2031, Driven by Electrification and Rising Defense Expenditure

New York, US - November 05, 2025 - According to a new market research report published by The Insight Partners, titled "Military Vehicle Market Size and Forecast (2021-2031)," the market is projected to grow from US$ 32.47 billion in 2024 to US$ 65.53 billion by 2031, registering a CAGR of 10.8% during 2025-2031.

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The global military vehicle market is witnessing robust growth, fueled by rising defense budgets, modernization initiatives, and the growing demand for multi-role, autonomous, and electric military vehicles. The increasing emphasis on fleet electrification and sustainability is set to shape future market dynamics, as defense forces across the world seek to enhance operational efficiency while minimizing lifecycle costs.

Key Market Insights
Military vehicles remain crucial to modern warfare-supporting logistics, transportation, reconnaissance, and combat missions. The evolving geopolitical landscape, technological advancements in defense systems, and the surge in autonomous ground vehicles (UGVs) are transforming military mobility and combat readiness.

Autonomous military vehicles are emerging as a key trend, offering operational efficiency and enhanced safety by executing high-risk missions such as bomb disposal, surveillance, and logistics in hazardous environments.
Furthermore, multi-role vehicles capable of handling diverse battlefield operations-ranging from troop transport to medical evacuation-are gaining significant traction. Nations such as the US, China, India, and Russia are focusing on replacing outdated, single-purpose fleets with technologically advanced, flexible platforms.

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Market Drivers and Opportunities
• Rising Global Defense Expenditure:
According to the Stockholm International Peace Research Institute (SIPRI), global military spending surged to US$ 2,443 billion in 2023, marking a 6.8% increase from 2022. The US and China lead global defense spending, followed by India, which allocated US$ 83.6 billion in 2023 to military modernization.
• Increasing Vehicle Procurement Contracts:
Defense organizations are actively collaborating with global manufacturers to acquire next-generation vehicles with advanced communication, navigation, and surveillance systems.
• Shift Toward Multi-Role and Hybrid Vehicles:
Innovations in hybrid propulsion, integrated systems, and autonomous technologies are creating lucrative opportunities for manufacturers.

Market Segmentation Highlights
• By Type: Tanks, Military Trucks, Amphibious Vehicles, Armored Vehicles, Reconnaissance Vehicles, Special Purpose Vehicles
• By Application: Tactical Warfare, ISR (Intelligence, Surveillance, Reconnaissance), Ground Support Handling, Military Transportation
• By Technology: Autonomous and Manually Driven Vehicles

Regional Insights
North America dominates the global military vehicle market, driven by extensive defense investments and continuous procurement programs. The US Army remains a major contributor, recently awarding contracts to BAE Systems and General Dynamics Land Systems for new armored vehicle production. Europe and Asia-Pacific are also expected to witness strong growth, fueled by modernization projects and rising geopolitical tensions.

Recent Developments
• BAE Systems received a US$ 184 million contract to produce 48 additional Armored Multi-Purpose Vehicles (AMPV) for the U.S. Army.
• General Dynamics Land Systems was awarded a US$ 257.6 million contract for the M10 Booker Combat Vehicle production.

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Key Players
Major companies operating in the market include ASHOK LEYLAND, BAE Systems Plc, General Dynamics Corporation, NORINCO Group, Oshkosh Defense LLC, Patria, Rheinmetall AG, Soframe, Tata Motors, and Thales Group.

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Contact Person: Ankit Mathur
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Phone: +1-646-491-9876

About Us:
The Insight Partners is a one stop industry research provider of actionable solutions. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We are specialist in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials.

This release was published on openPR.