This research service analyses the global military land vehicles market for 2013–2022, and seeks to elucidate future revenues split between new procurements (platform and modernisation acquisitions) and support-in-service (maintenance and other platform support services) to highlight potential market opportunities beyond new platform sales alone. This takes into consideration current, planned and anticipated procurements, vehicle fleet size, and various demand parameters to predict the capability requirements and procurement rates of forces globally, whilst considering the changing future strategic environment.

Key Questions This Study Will Answer
  • How are shifting defence industry dynamics affecting the global military land vehicles market?
  • Highest spenders, fastest growers, most unmet demand—which markets are the most attractive? 
  • How will innovation affect competitive positioning in the market? 
  • Will changing end-user decision making and buying habits create new procurement models? 
  • Does the main battle tank have a place in future conflict? 
  • Will unmanned ground vehicles significantly alter the market beyond 2022?

Key Findings 
  • New procurements of military land vehicles are expected to vary by region; some would choose upgrades and maintenance of existing fleets, especially in traditional markets, but others would still look to purchase new units. Exports to emerging regions are likely to provide continuing revenue in platform sales, but maintenance and support contracts would be more attractive in regions where aging platforms are not currently being replaced. 
  • Changing end-user buying habits, driven by the need for long-term cost efficiency and through-life capability support, are creating new procurement models, with the industry taking on the responsibility for the operational effectiveness of platforms. Providing long-term support, innovation and flexibility throughout the life cycle will be important factors to win new business. 
  • Heavy vehicles still have a place in the market, as all regions see a need to maintain or procure in this segment. This is matched by a need to add lightweight vehicles to fleets to enable flexible and rapid force deployment with balanced capability. 
  • Technological innovation is not assessed to radically alter the market between 2013 and 2022, although semi-autonomy in unmanned systems could be the exception in as little as   years. Business-model innovation to provide flexible solutions that enable end users to be agile and better deal with uncertainty is important in the  -year timeframe. 
  • Competition is likely to remain intense. The top end of the market is expected to continue to be dominated by ‘global giants’ that are strongly positioned in the traditional markets. However, the landscape in emerging markets to which these global OEMs are exporting is complex. Offset requirements, partnerships, local suppliers and complex end-user needs are strong forces affecting the industry. 
  • Suppliers offering new systems technologies to improve platform modularity and adaptability along with innovative service solutions are likely to strengthen their position in the market. 
  • Asia-Pacific, driven by continued Chinese growth, is the most attractive market. Outside of China in this region, Australia, South Korea and Japan are other attractive markets. High growth rates in Thailand and Indonesia are driving procurements as well. 
  • Despite the lingering economic downturn and the spectre of sequestration, the United Sates is forecast to have the highest revenue growth. Using a best-case-scenario approach, where planned programs go ahead in the mid–long term, North America is expected to be the most attractive region, driving the entire market. 
  • Discounting the impact of China, Europe is actually the largest market outside North America, with European stagnation expected to recover to marginal growth over the forecast period. 
  • In Central Asia, the largest opportunities are expected in the difficult-to-access Russian market, driven by expected new procurements during 2015–2016. 
  • The remaining regional markets are likely to remain largely unchanged, with no large-scale procurements expected: in Latin America, only Brazil presents key opportunities, despite high growth rates in Mexico and Colombia; and both the Middle East and African markets are expected to remain stable.