Military Vehicle Electrification Market Research Report Information By System (Power Generation, Cooling Systems, Energy Storage, Traction Drive Systems, and Power Conversion), By Platform (Combat Vehicles, Support Vehicles, and Unmanned Armored Vehicles), By Technology (Hybrid and Fully Electric), By Operation (Manned and Autonomous/semi-autonomous) And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2032

Global Military Vehicle Electrification Market Overview

Military Vehicle Electrification Market Size was valued at USD 4.3 Billion in 2023. The military vehicle electrification market industry is projected to grow from USD 4.859 Billion in 2024 to USD 11.431 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 13.00% during the forecast period (2024 - 2032). The demand for operational efficiency, expanding adoption of technical improvements, and a growing focus on environmental sustainability are the major market drivers driving the military vehicle electrification market.

Source Secondary Research, Primary Research, MRFR Database and Analyst Review

Military Vehicle Electrification Market Trends

• Growing need for lithium-ion batteries for these vehicles is driving the market growth

The market CAGR for military vehicle electrification is anticipated to expand as a result of the rising need for lithium-ion batteries for these vehicles. Throughout the years, tactical radios, thermal imagers, ECM, ESM, and portable computers have all made extensive use of lithium-ion batteries in the military. Over the next several years, it is anticipated that the use of lithium batteries will spread to heavier platforms, including boats, airplanes, missiles, military vehicles, and shelter applications. For instance, the US Department of Defense invested $1.65 million in July 2021 in NanoGraf Corporation, a US-based business that produces and distributes lithium-ion batteries. With this investment, U.S. military personnel will have greater portable power for the equipment they need to utilize safely and effectively. With silicon anode-based lithium-ion technology, NanoGraf hopes to achieve a runtime improvement of 50–100% over traditional graphite anode lithium-ion cells, making it compatible with all portable batteries. The market for military vehicle electrification is thus expanding due to the rising need for lithium-ion batteries for military vehicles.

The ability to blend in and remain undetected has become essential for military operations on the battlefield of the twenty-first century. To carry out ambush strikes, infiltration missions, or covert surveillance, special forces must maintain silent mobility and minimize thermal signatures. Even front-line combat vehicles must lower their infrared and auditory signals to prevent early adversary detection. This is generating a lot of interest in electrifying military equipment and vehicles. In contrast to internal combustion engines, which are hot and noisy, electric motors operate quietly and with minimal heat. An electric powertrain eliminates engine vibrations, while sound and heat-producing auxiliary systems such as cooling pumps, transmissions, and exhausts are reduced or eliminated. Electric military vehicles may operate nearly silently, even at high speeds, when sound insulation is added to the cabin. Since electric cars have no hot exhaust and a reduced heat signature, thermal scanning is likewise less effective against them. Further, military vehicles with battery-powered electric propulsion can stay stationary for extended periods of time without producing any noise, something that an idle engine can't do. In order to control the vehicle's thermal profile by diverting heat away from important components, active cooling systems can also be included thanks to the use of electricity. Despite prolonged periods of inactivity, stealth is maintained.

In the military vehicle electrification market, product innovation is the main trend that is becoming more and more popular. Large players in the military vehicle electrification market concentrate on new product developments that have the potential to improve customer outcomes and boost their share of the market. For example, US-based Textron Inc., a military vehicle electrification firm, unveiled its advanced military electrification solution for armored vehicle electrification in June 2022. It uses technology to meet the demanding needs of military users while preserving the superior mobility of conventional drivelines. The possible use of power and energy by managing the system and storing its energy for later use is known as harnessing technology. With the potential to export electric power to charge more solid systems and operate vehicles in full-electric silent mode for brief periods on the battlefield, this company's technology offers a quicker path toward vehicle electrification than whole-vehicle design programs. Thus, driving the military vehicle electrification market revenue.

Military Vehicle Electrification Market Segment Insights

Military Vehicle Electrification System Insights

The military vehicle electrification market segmentation, based on system, includes Power Generation, Cooling Systems, Energy Storage, Traction Drive Systems, and Power Conversion. In 2023, the power conversion segment dominated the market due to the crucial part it plays in enhancing operational capacity and energy efficiency. Military vehicles need to be able to seamlessly integrate several power sources, such as advanced electric propulsion technologies or traditional fuel-based systems. Power conversion devices have a crucial role in efficiently managing and allocating power among these numerous sources to guarantee peak performance and the mission's success.

Military Vehicle Electrification Platform Insights

The military vehicle electrification market segmentation, based on platform, includes Combat Vehicles, Support Vehicles, and Unmanned Armored Vehicles. The combat vehicles category generated the most income in 2023, driven by the growing need in combat scenarios for more stealth capabilities, lower maintenance costs, and improved operational efficiency. Tanks and armored fighting vehicles are among the electrified combat vehicles that offer strategic benefits on the battlefield due to their increased acceleration, decreased noise levels, and decreased thermal signatures. This segment's move toward electric powertrains is indicative of the emphasis placed on cutting-edge technology to increase combat effectiveness and preparedness while also supporting more general sustainability objectives.

Figure 1:  Military Vehicle Electrification Market, by Platform, 2023 & 2032 (USD Billion)

Source Secondary Research, Primary Research, MRFR Database and Analyst Review

Military Vehicle Electrification Technology Insights

The military vehicle electrification market segmentation, based on technology, includes Hybrid and Fully Electric. The fully electric category generated the most income in 2023 due to the combination of enhanced technology and tactical benefits. This trend is mostly driven by the inherent efficiency of electric propulsion systems. Electric vehicles (EVs) provide several benefits for military use, including less logistical effort, fewer maintenance costs, and more operational flexibility.

Military Vehicle Electrification Operation Insights

The military vehicle electrification market segmentation, based on operation, includes Manned and Autonomous/semi-autonomous. The manned category generated the most income in 2023 mainly because of their widespread use in a variety of military missions today and the instant advantages that come with electrification, like lower fuel consumption, fewer maintenance expenses, and improved stealth capabilities thanks to quieter operation. This section focuses on incorporating electric powertrains into conventional crewed vehicles, improving their effectiveness in the field, and lessening their environmental effect—all the while preserving the vital human decision-making component in intricate combat situations.

Military Vehicle Electrification Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American military vehicle electrification market area will dominate this market, propelled by large defense budgets, cutting-edge technology infrastructure, and resounding political backing for programs aimed at modernizing and sustaining the military. A strong network of business leaders and R&D centers dedicated to developing military vehicle technology supports the US, which is at the forefront of this market segment with large investments made in electrifying its defense fleet. The US is concentrating on improving operational capabilities, energy efficiency, and lowering the carbon footprint.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2:  MILITARY VEHICLE ELECTRIFICATION MARKET SHARE BY REGION 2023 (USD Billion)

Source Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe military vehicle electrification market accounts for the second-largest market share, distinguished by a considerable focus on mitigating the environmental impact of defense operations, in line with the region's sustainability objectives and strict emission limits. The development and acceptance of electric and hybrid military vehicles are accelerated by the presence of top defense contractors and automakers in the region, as well as cooperative defense initiatives among EU member states. Further, the German military vehicle electrification market held the largest market share, and the UK military vehicle electrification market was the fastest growing market in the European region.

The Asia-Pacific Military Vehicle Electrification Market is expected to grow at the fastest CAGR from 2024 to 2032, driven by growing defense spending, growing worries about regional security, and a strong push for domestic defense manufacturing. In order to improve their operational preparedness, strategic autonomy, and technological self-reliance, nations such as China, India, and South Korea are making significant investments in electrified military technologies. They are particularly interested in incorporating electric propulsion systems and advanced energy solutions into their military vehicles. Moreover, China’s military vehicle electrification market held the largest market share, and the Indian military vehicle electrification market was the fastest growing market in the Asia-Pacific region.

Military Vehicle Electrification Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the military vehicle electrification 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, the military vehicle electrification 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 vehicle electrification industry to benefit clients and increase the market sector. In recent years, the military vehicle electrification industry has offered some of the most significant advantages to defense. Major players in the military vehicle electrification market are attempting to increase market demand by investing in research and development operations, including BAE Systems, Oshkosh Corporation, Otokar Otomotiv ve Savunma Sanayi AS, GM Defense LLC, Leonardo, Qinetiq, Textron Inc., ST Engineering, Arquus, General Dynamics Corporation, Alke, Krauss-Maffei Wegmann, RENK Group AG, and Crane Aerospace & Electronics.

The company Oshkosh Corp. (Oshkosh) develops, produces, and sells a variety of engineered specialty vehicles and necessary equipment. Concrete mixers, portable and stationary concrete batch plants, tele-handlers, trailers, snow removal vehicles, tactical trucks, ARFF vehicles, simulators and other emergency vehicles, refuse collection vehicles, and firefighting vehicles and equipment are among the company's main products. Among its clients are the US military, fire departments, airports, manufacturing firms, construction contractors, home improvement stores, towing companies, and other governmental organizations.

The multi-industry corporation Textron Inc. (Textron) is involved in the aircraft, defense, industrial, and financial sectors. The company offers a wide range of products and services, including unmanned aircraft systems, land and marine systems, weapons and sensors, Beechcraft and Cessna aircraft sales and aftermarket services, Bell military and commercial helicopters, Tiltrotor aircraft and related spare parts and services, and aviation mission support products and services. In addition, it sells industrial goods such as testing apparatus, golf carts, turf care vehicles, fuel systems, and functional components.

Key companies in the military vehicle electrification market include

• BAE Systems


• Oshkosh Corporation


• Otokar Otomotiv ve Savunma Sanayi AS


• GM Defense LLC


• Leonardo


• Qinetiq


• Textron Inc.


• ST Engineering


• Arquus


• General Dynamics Corporation


• Alke


• Krauss-Maffei Wegmann


• RENK Group AG


• Crane Aerospace & Electronics

Military Vehicle Electrification Industry Developments

For Instance, July 2022 The US Army chose General Motors' GM Defense division to supply a battery-electric vehicle for evaluation and demonstration. GM Defense will use GM's Ultium Platform in the GMC HUMMER EV to satisfy the US Army's need for a light- to heavy-duty battery-electric vehicle.

For Instance, April 2022 Pipistrel was purchased by US-based Textron Inc., a manufacturer of aircraft and aerospace components, for $221.94 million (€218 million). Through this acquisition, Textron Inc. hopes to obtain a competitive edge in the aerospace and defense industry as well as expand its product line in the electrification of military vehicles business. Textron's newest business subsidiary, Textron eAviation, has been formed by Pipistrel. Textron's long-term objective is to offer an environmentally friendly family of aircraft for mission missions, general aviation, urban air transportation, and freight.

Military Vehicle Electrification Market Segmentation

Military Vehicle Electrification System Outlook

• Power Generation


• Cooling Systems


• Energy Storage


• Traction Drive Systems


• Power Conversion

Military Vehicle Electrification Platform Outlook

• Combat Vehicles


• Support Vehicles


• Unmanned Armored Vehicles

Military Vehicle Electrification Technology Outlook

• Hybrid


• Fully Electric

Military Vehicle Electrification Operation Outlook

• Manned


• Autonomous/semi-autonomous

Military Vehicle Electrification Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America