Defense mechanism: Rising defense spending and geopolitical tension will boost industry demand moving forward

The Armored Vehicle Manufacturing industry experienced significant declines over the five years to 2017. Prior to the five-year period, US combat operations in the Middle East and a climbing defense budget created a boom in demand for armored vehicles. However, just before the current five-year period, this trend reversed. The United States began to wind down combat operations in the Middle East, the defense budget was cut and the sequestration eventually kicked in. Over the five years to 2022, the defense budget is anticipated to eventually stabilize, and development and production programs like the Armored Multi-Purpose Vehicle and the Joint Light Tactical Vehicle should increase demand for industry products...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Increasing geopolitical tensions are anticipated to help operators maintain relatively high exports orders
  • Oil-rich Saudi Arabia alone is expected to more than triple its import of industry products
  • Industry exports are projected to remain positive as geopolitical tensions continue
  • Industry Report - Industry Key Buyers Chapter

    The Armored Vehicle Manufacturing industry has a very high level of concentration, with the top four players estimated to hold a combined market share of 84.8% in 2017. General Dynamics and BAE Systems are the primary recipients of government contracts for armored vehicle production, although production contracts have declined precipitously for all industry manufacturers over the past five years. When a major player receives a contract from the US Army, some components, such as weapons systems, vehicle armor, communications and electronics are typically contracted out to subcontractors that also form part of the industry...purchase to read more.

    Additional Insights for the Armored Vehicle Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Armored Vehicle Manufacturing Industry are

  • Provision of superior after sales service
  • Undertaking technical research and development
  • Financial structure of the company
  • IBISWorld analysts also discuss how external factors such as Federal funding for defense and NATO defense spending in the Armored Vehicle Manufacturing industry impact industry performance..

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    What's in this report

    What is the Armored Vehicle Manufacturing Industry?

    This industry includes establishments engaged in manufacturing, modifying, repairing and servicing military armored vehicles. These vehicles are used in combat to transport infantry and munitions or to provide combat support. Tanks are not included in this industry.

    Industry Products
  • Mobile artillery vehicles
  • Tracked armored vehicles
  • Wheeled armored vehicles
  • Industry Activities
  • Manufacturing armored vehicles and parts
  • Manufacturing self-propelled weapons
  • Modification of armored vehicles
  • Repair of armored vehicles
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Federal funding for defense
  • NATO defense spending
  • Price of steel
  • Trade-weighted index

  • Current Performance
  • Direct hit
  • Trade
  • Other trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Stabilization
  • Other trends
  • Table: Armored Vehicle Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Armored Vehicle Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Public Administration

  • Key Selling Industries
  • Engine & Turbine Manufacturing
  • Nonferrous Metal Foundry Products Manufacturing
  • Paint Manufacturing
  • Screw, Nut & Bolt Manufacturing
  • Structural Metal Product Manufacturing
  • Tire Manufacturing

  • Products & Services
  • Wheeled armored vehicles
  • Tracked armored vehicles
  • Mobile artillery vehicles
  • Chart: Armored Vehicle Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • US defense spending
  • Foreign demand
  • Technological and environmental change

  • Major Markets
  • Exports
  • Army
  • Marines
  • Chart: Major Market Segmentation for the Armored Vehicle Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Armored Vehicle Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Armored Vehicle Manufacturing Industry

  • Industry Globalization
    General Dynamics Corp., BAE Systems, Oshkosh Corporation, Navistar International Corp.,
  • Table: General Dynamics Corp. - financial performance
  • Table: BAE Systems - financial performance
  • Table: Oshkosh Corporation - financial performance
  • Table: Navistar International Corp. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Armored Vehicle Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Armored Vehicle Manufacturing Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Federal funding for defense (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bradley Fighting Vehicle (Bfv)
  • A fully armored, fully tracked tank produced by BAE Systems that is designed to carry mechanized infantry into close contact with the enemy.
  • Mine Resistant Ambush Protected (Mrap)
  • Vehicles designed to survive improvised explosive device (IED) attacks and ambushes.
  • Stryker
  • An eight-wheeled armored personal carrier produced by General Dynamics.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Armored Vehicle Manufacturing is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Armored Vehicle Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Armored Vehicle Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Armored Vehicle Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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