Military Land Vehicles Market Size was valued at USD 25.80 Billion in 2024. The military land vehicles market industry is projected to grow from USD 26.88 Billion in 2025 to USD 38.94 Billion by 2034, exhibiting a compound annual growth rate (CAGR) of 4.20% during the forecast period (2025 - 2034). Modern military land vehicles are vital for military forces worldwide because to several market drivers such as geopolitical tensions, cross-border wars, diverse armed force deployments, and standardization requirements.
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Growing geopolitical tensions is driving the market growth
In the future, growing geopolitical tensions should drive the military land vehicles market's expansion. Political issues that cause conflict or unrest between two or more nations are known as geopolitical tensions. Many factors, such as power, trade, military action, climate change, or noteworthy occurrences, might cause these tensions. In the case of a conflict that could result from geopolitical tensions, military land vehicles are high-performance vehicles built for mobility and flexibility in difficult terrain. They are utilized for carrying soldiers, weapons systems, battle equipment, and resupplies. For instance, in 2021, organized violence between the nations claimed the lives of at least 119,000 people, a 46% increase from 2020, according to a report released by the Peace Research Institute Organization (PRIO), a Norway-based organization that studies the conditions for peaceful relations between states. Thus, the market for military land vehicles is expanding as a result of the escalating geopolitical tensions.
In 2018, the top five areas in terms of military defense spending were the United States (USD 648 billion), India (USD 66 billion), Saudi Arabia (USD 67 billion), China (USD 249 billion), France (USD 63 billion), and Russia (USD 61 billion). The market is growing due to increased security concerns, rising demand for military hardware, and expanding military modernization requirements. With a CAGR of 3% from 2019 to 2023, it is anticipated that defense spending will total approximately USD 2.1 trillion by 2024. The SIPRI Military Expenditure Database shows that U.S. military sales abroad have been steadily increasing. In 2019, they were around USD 44.2 billion, up from USD 55.7 billion in 2018. Furthermore, because of the growing geopolitical tensions in the Middle East, market participants can find profitable possibilities there. On the other hand, it is anticipated that France, Japan, China, and India will raise their defense budgets, which will further propel market expansion.
The military land vehicle market is witnessing a growing trend in the popularity of product developments. To obtain a competitive advantage in the military land vehicle sector, major corporations are concentrating on developing novel military vehicles. For instance, the German car and weaponry maker Rheinmetall introduced the newest model of their HX line of heavy-duty tactical vehicles intended for military application in May 2021. The trucks offer enhanced security, dependability and mobility, driving comfort, and digital interface architecture. They also have the ability to drive autonomously and form the foundation of many artillery systems. Vehicles of the HX3 series come in 4x4, 6x6, 8x8, and 10x10 configurations. Its distinctive features include a completely redesigned electrical and electric architecture, adaptive cruise control (ACC), emergency brake assist (EBA), and lane departure warning (LDW). Thus, driving the military land vehicles market revenue.
Military Land Vehicles Offering Insights
The military land vehicles market segmentation, based on offering includes Platform and Services. The services segment dominated the market. The maintenance and training services needed for post-purchase support are included in the service segment. Under MOUs, these services differ based on the terms of the purchase agreement. Updating software and platforms, replacing spare parts, and providing additional support services are all under the exclusive purview of the company's services and those of outside partners.
Military Land Vehicles Product Type Insights
The military land vehicles market segmentation, based on product type, includes Infantry Fighting Vehicles (IFV), Armored Personnel Carriers (APC), Main Battle Tanks (MBT), Light Multirole Vehicles (LMV), and Tactical Trucks. The infantry fighting vehicles (IFV) category generated the most income. Infantry Fighting Vehicles (IFVs) pay less attention to protection and more emphasis on mobility and firepower. This strategy has changed in response to recent developments in wars. With their upgraded armor and bigger weaponry, IFVs have given rise to a new class of vehicles in the military land vehicles market known as heavy IFVs. The protection, maneuverability, and firepower of these vehicles are all being improved.
Military Land Vehicles Application Insights
The military land vehicles market segmentation, based on application, includes Defense and Combat, Logistics and Transportation. The defense and combat category generated the most income. There are numerous defense and combat uses for military land vehicles. When engaged in combat, these vehicles are meant to both withstand and lessen the effects of hostile attacks and the increased survivability of soldiers. In addition to maintaining national security and supplying efficient combat capabilities and operations, this military ground vehicle is essential to the military.
Figure 1: Military Land Vehicles Market, by Application, 2022 & 2032 (USD Billion)
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American military land vehicles market area will dominate this market. The region's increased revenue share is primarily due to the significant demand for US military transportation systems. The number of US military personnel is currently rising. The U.S. military is expected to expand by roughly 5,600 soldiers in the future, split between the active and reserve components of the services, according to the Defense Department's budget request for 2021. Throughout the projection period, the market for military land vehicles will be driven by this expansion in logistics and troop mobility.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: MILITARY LAND VEHICLES MARKET SHARE BY REGION 2022 (USD Billion)
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe military land vehicles market accounts for the second-largest market share. Major European countries have tried to maintain military spending and have increased their defense budgets in spite of the outbreak. This has allowed countries with large defense expenditures to execute significant procurement projects without experiencing unnecessary delays. The crisis in Ukraine is expected to lead to a rise in military land vehicle procurement by several European countries in the coming years. Further, the German military land vehicles market held the largest market share, and the UK military land vehicles market was the fastest growing market in the European region
The Asia-Pacific Military Land Vehicles Market is expected to grow at the fastest CAGR from 2023 to 2032 because of the rise in cross-border terrorism in the Indian subcontinent and the countries of China, India, South Korea, and Japan spending more on military. Furthermore, in order to address the diversified needs of the armed forces in the region, producers and suppliers in the area are making strategic investments in R&D, manufacturing, and the supply chain of various military land vehicles. Moreover, China’s military land vehicles market held the largest market share, and the Indian military land vehicles market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the military land vehicles market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, military land vehicles industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the military land vehicles industry to benefit clients and increase the market sector. In recent years, the military land vehicles industry has offered some of the most significant advantages to medicine. Major players in the military land vehicles market are attempting to increase market demand by investing in research and development operations includes Oshkosh Defense, LLC, General Dynamics Corporation, ST Engineering, BAE Systems plc, Hyundai Rotem, Ashok Leyland, China North Industries Corporation (NORINCO), Rheinmetall AG, Nexter Systems, Uralvagonzavod, Krauss-Maffei Wegmann (KMW), and Iveco S.p.A.
Technology, engineering, and communications solutions that are sophisticated and integrated are offered by Singapore Technologies Engineering Ltd. (ST Engineering). Aerostructures and systems, aerospace MRO, aviation assets management solutions, commercial and military MRO, satellite solutions, urban solutions, unmanned aerial systems, defense and homeland security, sensor and electro-optics, and cybersecurity are among the things it provides. In addition to turnkey rail services, repair, and conversion services, the company offers engineering and maintenance services. Additionally, ST Engineering offers smart facilities management, logistics, and facilities management.
Ashok Leyland Ltd., also known as Ashok Leyland, is an integrated automotive firm that is a part of Hinduja Automotive Ltd. It provides power solution systems, light commercial vehicles, heavy and medium commercial vehicles, and associated parts. The UAE, Bangladesh, Nigeria, the UK, Sri Lanka, Kenya, and India are among the countries where it has production plants. In order to produce high-press die-casting extruded aluminum components for the automotive & telecommunications industries, the company has joint venture agreements with Alteams Group and John Deere for construction equipment.
Oshkosh Defense, LLC
General Dynamics Corporation
ST Engineering
BAE Systems plc
Hyundai Rotem
Ashok Leyland
China North Industries Corporation (NORINCO)
Rheinmetall AG
Nexter Systems
Uralvagonzavod
Krauss-Maffei Wegmann (KMW)
Iveco S.p.A.
For Instance, January 2021 For $115 million, Oshkosh Corporation, an American industrial firm that designs and manufactures military vehicles and specialist trucks, purchased Pratt Miller. By acquiring Pratt Miller, Oshkosh Corporation will be able to benefit from his expertise and ideas in fields such as robotics, electrification, autonomous and linked systems, and artificial intelligence, which will position the company for future expansion.
Military Land Vehicles Offering Outlook
Platform
Services
Military Land Vehicles Product Type Outlook
Infantry Fighting Vehicles (IFV)
Armored Personnel Carriers (APC)
Main Battle Tanks (MBT)
Light Multirole Vehicles (LMV)
Tactical Trucks
Military Land Vehicles Application Outlook
Defense and Combat
Logistics and Transportation
Military Land Vehicles Regional Outlook
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2024 | USD 25.80 Billion |
| Market Size 2025 | USD 26.88 Billion |
| Market Size 2034 | USD 38.94 Billion |
| Compound Annual Growth Rate (CAGR) | 4.20% (2025-2034) |
| Base Year | 2024 |
| Market Forecast Period | 2025-2034 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Offering, Product Type, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Oshkosh Defense, LLC, General Dynamics Corporation, ST Engineering, BAE Systems plc, Hyundai Rotem, Ashok Leyland, China North Industries Corporation (NORINCO), Rheinmetall AG, Nexter Systems, Uralvagonzavod, Krauss-Maffei Wegmann (KMW), and Iveco S.p.A. |
| Key Market Opportunities | Increasing number of intelligence, surveillance, and reconnaissance (ISR) tasks require autonomous ground vehicles |
| Key Market Dynamics | Growing their defense budgets in order to improve their armed forces Growing worldwide tensions and the demand for cutting-edge military hardware |
Frequently Asked Questions (FAQ) :
The military land vehicles market size was valued at USD 25.80 Billion in 2025.
The market is projected to grow at a CAGR of 4.20% during the forecast period, 2025-2034.
North America had the largest share in the market
The key players in the market are Oshkosh Defense, LLC, General Dynamics Corporation, ST Engineering, BAE Systems plc, Hyundai Rotem, Ashok Leyland, China North Industries Corporation (NORINCO), Rheinmetall AG, Nexter Systems, Uralvagonzavod, Krauss-Maffei Wegmann (KMW), and Iveco S.p.A.
The services category dominated the market in 2022.
The infantry fighting vehicles (IFV) had the largest share in the market.
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