US Infantry Fighting Vehicle Market Research Report: By Vehicle Type (Armored Personnel Carrier, Mechanized Infantry Combat Vehicle, Light Infantry Fighting Vehicle, Heavy Infantry Fighting Vehicle), By Mobility Type (Wheeled, Tracked), By Firepower (Low Caliber Armament, Medium Caliber Armament, High Caliber Armament), By Application (Combat Operations, Support Operations, Reconnaissance) and By End Use (Military, Paramilitary, Government) - Forecast to 2035

US Infantry Fighting Vehicle Market Overview:

US Infantry Fighting Vehicle Market Size was estimated at 4.68 (USD Billion) in 2023. The US Infantry Fighting Vehicle Market Industry is expected to grow from 5(USD Billion) in 2024 to 10 (USD Billion) by 2035. The US Infantry Fighting Vehicle Market CAGR (growth rate) is expected to be around 6.504% during the forecast period (2025 - 2035).

Key US Infantry Fighting Vehicle Market Trends Highlighted

The US Infantry Fighting Vehicle Market is witnessing several important trends driven by technological advancements and changing defense strategies. A key market driver is the increasing focus on modernization efforts within the United States Army. The US has been investing in upgraded versions of existing infantry fighting vehicles to improve their lethality, survivability, and mobility. This modernization initiative aligns with the military's need to adapt to emerging threats and enhance overall operational effectiveness. New technologies such as advanced armor systems, enhanced firepower, and integrated communication systems are being emphasized to ensure the vehicles meet evolving battlefield demands.Opportunities in this market can be capitalized on by increasing collaboration between defense contractors and government agencies. The push for joint operational capabilities among different branches of the military can create demand for versatile infantry fighting vehicles that can operate effectively in various scenarios. Moreover, as the US continues to explore partnerships with allied nations, there is a potential for shared technologies and joint development projects, further stimulating the market for infantry fighting vehicles. Recent trends show an growing emphasis on artificial intelligence and automation in military vehicles, which is influencing the design and functionality of infantry fighting vehicles in the US.The military is increasingly incorporating AI-driven systems that assist operators by providing real-time data analysis and situational awareness. This trend towards smarter vehicle systems is further supported by the Department of Defense's commitment to integrating innovative technologies into military applications. Overall, these developments reflect a shift in the US Infantry Fighting Vehicle Market towards more advanced, versatile, and collaborative military capabilities.

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

US Infantry Fighting Vehicle Market Drivers

Increase in Defense Budgets

The US government has consistently increased its defense spending, aimed at enhancing military capabilities, which directly influences the US Infantry Fighting Vehicle Market Industry. In 2022, the United States defense budget was approximately 813 billion USD, representing a significant increase compared to previous years, driven by rising geopolitical tensions. The White House's National Defense Strategy indicates a focus on modernizing the military's equipment to ensure readiness against emerging threats.This includes initiatives to upgrade and procure advanced infantry fighting vehicles that can withstand modern warfare scenarios. As a result, a continual increase in defense budgets will significantly boost investments in the US Infantry Fighting Vehicle Market, contributing to its expected growth trajectory from 2025 to 2035. Furthermore, the demand for advanced vehicles that possess improved capabilities, such as enhanced armor and mobility, will create an escalating need within this market, aligning with the growing emphasis on modernizing military forces.

Technological Advancements

The US Infantry Fighting Vehicle Market Industry is poised for growth due to rapid technological advancements in military equipment. Innovations in automation, artificial intelligence, and advanced armor materials are transforming the capabilities and effectiveness of infantry fighting vehicles. The US Army's project for the Next Generation Combat Vehicle (NGCV) aims to integrate cutting-edge technology and has garnered attention with a projected investment of 6.1 billion USD by the end of fiscal year 2024.This initiative reflects the US Army's commitment to upgrading infantry fighting vehicles to include features that enhance situational awareness, lethality, and survivability. As military organizations emphasize the need to leverage technology in warfare, the US Infantry Fighting Vehicle Market is expected to grow concurrently, aligning with the desire for innovative solutions that enhance operational effectiveness in various combat scenarios.

Rising Geopolitical Tensions

Ongoing geopolitical tensions, particularly with nations like Russia and China, are a major driver for the US Infantry Fighting Vehicle Market Industry. Since 2017, the US has enhanced its military posture in response to perceived threats, which has led to increased procurement of advanced military equipment. This includes a focus on bolstering ground forces with modern infantry fighting vehicles. Reports from the Congressional Budget Office indicate that the global unrest has pushed the US to prioritize military readiness, with approximately 60 billion USD allocated specifically for modernization initiatives.This resourcing effort creates a robust demand for infantry fighting vehicles designed to perform effectively in contested environments, ultimately driving growth in this market.

US Infantry Fighting Vehicle Market Segment Insights:

Infantry Fighting Vehicle Market Vehicle Type Insights

The US Infantry Fighting Vehicle Market centers on the Vehicle Type segment, showcasing a diversified range of vehicle classifications that cater to various operational needs of the military. This segment emphasizes the significance of robust and versatile vehicles that enhance battlefield efficiency. Among the various classifications, the Armored Personnel Carrier is essential for troop transport, offering protection and mobility in combat zones, making it a staple in military operations. The Mechanized Infantry Combat Vehicle represents a critical advancement in this space, integrating offensive capabilities with troop transport, thereby enabling combined arms operations effectively.In contrast, the Light Infantry Fighting Vehicle provides agility and speed, suitable for reconnaissance missions and rapid deployment, appealing to modern warfare's need for quick-strike capabilities. Meanwhile, the Heavy Infantry Fighting Vehicle serves as the backbone of armored units, equipped with superior firepower and armor protection, thereby dominating frontline engagements. As defense budgets increase and geopolitical tensions rise, the US continues investing in developing cutting-edge Vehicles within this market segment to ensure readiness and superiority in diverse combat scenarios.The growth in defense spending and strategic initiatives by the US government are driving investments within the Infantry Fighting Vehicle Market, reflecting a commitment to enhancing military capabilities and preparedness. Overall, the segmentation of Vehicle Type within the US Infantry Fighting Vehicle Market reflects pivotal advancements and strategies that address both the current and future requirements of the armed forces, ensuring they remain equipped to face evolving threats and maintain a competitive edge on the battlefield.

 

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

Infantry Fighting Vehicle Market Mobility Type Insights

The US Infantry Fighting Vehicle Market is increasingly categorized by Mobility Type, which includes both Wheeled and Tracked vehicles. In recent years, the demand for Infantry Fighting Vehicles has been driven by modern warfare needs, prompting military forces to adopt mobility solutions that balance speed and terrain adaptability. Wheeled vehicles are gaining popularity due to their operational flexibility and lower maintenance costs, often designed for rapid troop transport and quick deployments. Conversely, Tracked vehicles offer superior off-road capabilities and enhanced armor protection, making them essential for frontline engagements and dense terrain navigation.Each mobility type plays a critical role, with tracked vehicles being particularly significant in armored combat scenarios. The shift toward advanced technologies and weapon systems, aligned with the evolving defense strategies, further strengthens the significance of these mobility types in the market. Current trends highlight a growing investment in electric and hybrid propulsion systems, spurred by the US government's focus on sustainability and reduced logistical footprints in military operations. The segmentation within the Infantry Fighting Vehicle Market emphasizes crucial operational roles, suggesting a balanced approach is essential as militaries look to enhance their tactical capabilities while addressing diverse combat environments.

Infantry Fighting Vehicle Market Firepower Insights

 

The Firepower segment within the US Infantry Fighting Vehicle Market is integral to enhancing the combat capabilities of ground forces. This segment is primarily characterized by various types of armament, including Low Caliber Armament, Medium Caliber Armament, and High Caliber Armament, each serving distinct roles on the battlefield. Low Caliber Armament is crucial for close-quarter engagements and provides rapid-fire capabilities, often utilized against infantry and light vehicles. Meanwhile, Medium Caliber Armament represents a balance between firepower and mobility, offering versatility for a broad range of combat scenarios.High Caliber Armament, on the other hand, plays a significant role in anti-armor operations, capable of engaging heavily fortified targets with precision. With an increasing focus on modernization and technological advancements, the demand for a diverse array of firepower options continues to grow, driven by the need for effective deterrence and tactical superiority in global conflicts. This trend enhances the overall US Infantry Fighting Vehicle Market statistics, as each armament type addresses specific warfare requirements and aligns with evolving defense strategies.Challenges such as budget constraints and the integration of new technologies persist, but they also present opportunities for innovation and improvement in armament design and deployment strategies. The strategic emphasis on achieving robust and flexible firepower ensures that the US remains competitive in modern warfare.

Infantry Fighting Vehicle Market Application Insights

 

The Application segment of the US Infantry Fighting Vehicle Market plays a crucial role in the overall functionality and effectiveness of military operations. The market is primarily segmented into Combat Operations, Support Operations, and Reconnaissance, each serving a specific purpose within infantry engagements. Combat Operations focus on direct engagement with adversaries, offering superior firepower and protection, which is vital for maintaining dominance on the battlefield. Support Operations provide logistical and situational assistance, enhancing operational efficiency and resource management.Reconnaissance operations facilitate intelligence gathering and surveillance, ensuring tactical advantages over the enemy. As military strategies evolve, the demand for advanced features in these applications is growing, driven by the need for increased mobility, enhanced firepower, and improved survivability. Challenges in the market include the need for modernization amid budget constraints and balancing technological advancements with operational readiness. However, opportunities for growth lie in integrating next-gen technologies such as automation and artificial intelligence, ensuring that the US maintains its strategic edge in an ever-changing defense landscape.Each application within this segment contributes significantly to the overall effectiveness and readiness of military forces, highlighting the importance of the US Infantry Fighting Vehicle Market in national defense strategies.

Infantry Fighting Vehicle Market End Use Insights

 

The US Infantry Fighting Vehicle Market exhibits significant diversity in its End Use segmentation, which includes Military, Paramilitary, and Government applications. The Military sector dominates this landscape due to increasing defense budgets and the ongoing modernization of armed forces, driven by geopolitical challenges. The demand for advanced Infantry Fighting Vehicles in combat scenarios plays a crucial role in enhancing operational effectiveness. Paramilitary forces also contribute notably to market growth, as they require specialized vehicles for domestic security and counter-terrorism operations.This growing emphasis on internal stability and safety bolsters the need for robust vehicles capable of navigating urban environments. Government use, while sometimes overshadowed by Military and Paramilitary sectors, is critical as it encompasses procurement for disaster relief, emergency response, and law enforcement applications. The interplay between these segments highlights the multifaceted nature of the US Infantry Fighting Vehicle Market, shaped by evolving security needs and technological advancements. Market trends indicate a shift towards enhanced mobility, survivability, and situational awareness in vehicle design, ensuring that all segments are poised for considerable development in response to changing operational requirements.

US Infantry Fighting Vehicle Market Key Players and Competitive Insights:

The US Infantry Fighting Vehicle Market is characterized by intense competition and a dynamic landscape shaped by technological advancements and evolving military requirements. As nations strive to maintain defensive capabilities amid geopolitical tensions, the demand for advanced infantry fighting vehicles significantly increases. The market encompasses various players, including defense contractors specializing in the design, development, and production of armored vehicles. These companies invest heavily in research and development to enhance vehicle capabilities, focusing on aspects like mobility, firepower, and protection to meet the diverse operational needs of the armed forces. The competitive insights show a market where innovation plays a key role, with companies vying for government contracts and partnerships to solidify their positions. This competitive arena sees collaborations between established players and new entrants, creating a robust ecosystem aimed at advancing infantry warfare technology.Lockheed Martin holds a significant position in the US Infantry Fighting Vehicle Market, showcasing its strength in delivering high-tech solutions that cater to the needs of the US military. With a commitment to advancing capabilities in armored vehicle design, Lockheed Martin integrates cutting-edge technologies such as advanced armor systems, electronic warfare, and enhanced situational awareness into its offerings. The company benefits from a strong reputation for reliability and performance, which helps it gain trust among military customers. This trust, coupled with the ability to adapt to rapidly changing defense requirements, reinforces Lockheed Martin's strategic advantage. The firm's extensive experience in defense contracting, along with its robust infrastructure for research and manufacturing, further solidifies its competitive edge in the US market. General Dynamics is another key player in the US Infantry Fighting Vehicle Market, well-recognized for its advanced armored solutions and commitment to military innovation. The company offers a range of products, including state-of-the-art infantry fighting vehicles that prioritize speed, firepower, and survivability. With a strong market presence, General Dynamics is known for developing systems that incorporate technological advancements such as networked communications and integrated fire control systems. The company's strengths lie in its engineering capabilities and experience in large-scale defense contracts, which enable it to deliver reliable and effective solutions for the US military. Its strategic focus on mergers and acquisitions further enhances its portfolio, allowing General Dynamics to access new technologies and expand its offerings in the infantry fighting vehicle sector. Overall, its proactive approach towards innovation and partnerships underscores its position as a formidable force in the US defense landscape.

Key Companies in the US Infantry Fighting Vehicle Market Include:

• Lockheed Martin


• General Dynamics


• Kuwait and Gulf Link Transport


• Thales Group


• BAE Systems


• Mack Defense


• Textron


• Sikorsky Aircraft


• L3Harris Technologies


• Patria


• Oshkosh Defense


• Elbit Systems


• Northrop Grumman


• Rheinmetall


• Honeywell

US Infantry Fighting Vehicle Market Industry Developments

In recent months, the US Infantry Fighting Vehicle Market has seen notable developments, including a growing demand for modernization as military forces aim to enhance operational capabilities. Key players such as Lockheed Martin and General Dynamics are actively involved in initiatives to upgrade existing platforms and integrate advanced technologies, focusing on improved mobility and lethality. Notably, in August 2023, General Dynamics announced a contract to provide upgraded infantry fighting vehicles to the US Army, showcasing their commitment to innovation. Additionally, merger and acquisition activity has been modest; however, in April 2022, BAE Systems acquired Ampthill-based organization Government Technologies, a move aimed at strengthening their position in the market. Market valuation has also seen a positive trend, with analysts projecting growth driven by increased defense budgets, emphasizing the need for enhanced infantry capabilities amidst evolving threats. Moreover, the US Army's ongoing commitment to the Future Combat Systems program, aimed at developing next-generation vehicles, underscores significant investment and strategic direction in the infantry fighting vehicle sector. As of 2023, companies like Oshkosh Defense and Rheinmetall continue to collaborate on various contracts, demonstrating the competitive landscape and focus on state-of-the-art solutions in vehicle design and technology.

US Infantry Fighting Vehicle Market Segmentation Insights

Infantry Fighting Vehicle Market Vehicle Type Outlook

• Armored Personnel Carrier


• Mechanized Infantry Combat Vehicle


• Light Infantry Fighting Vehicle


• Heavy Infantry Fighting Vehicle

Infantry Fighting Vehicle Market Mobility Type Outlook

• Wheeled


• Tracked

Infantry Fighting Vehicle Market Firepower Outlook

• Low Caliber Armament


• Medium Caliber Armament


• High Caliber Armament

Infantry Fighting Vehicle Market Application Outlook

• Combat Operations


• Support Operations


• Reconnaissance

Infantry Fighting Vehicle Market End Use Outlook

• Military


• Paramilitary


• Government

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	4.68(USD Billion)
MARKET SIZE 2024	5.0(USD Billion)
MARKET SIZE 2035	10.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	6.504% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Lockheed Martin, General Dynamics, Kuwait and Gulf Link Transport, Thales Group, BAE Systems, Mack Defense, Textron, Sikorsky Aircraft, L3Harris Technologies, Patria, Oshkosh Defense, Elbit Systems, Northrop Grumman, Rheinmetall, Honeywell
SEGMENTS COVERED	Vehicle Type, Mobility Type, Firepower, Application, End Use
KEY MARKET OPPORTUNITIES	Advanced armor technology integration, Autonomous vehicle development, Enhanced mobility solutions, Upgraded communication systems, Multi-role capabilities expansion
KEY MARKET DYNAMICS	increasing defense budgets, modernization of fleet, technological advancements, geopolitical tensions, emphasis on multi-role capabilities
COUNTRIES COVERED	US