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Military Fighting Vehicle Manufacturing in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

IBISWorld IBISWorld London, United Kingdom Last Updated: April 2025 SIC UK-C304

Revenue

£5.4bn

2025-26

£5.7bn

Past 5-Year Growth

Profit

£XXX.Xm

Employees

12,202

Businesses

79

Wages

£XXX.Xm

Military Fighting Vehicle Manufacturing in the UK industry analysis

European military fighting vehicle manufacturers suffer from intense competition from US manufacturers, representing a considerable proportion of imports. Nonetheless, Germany and France generate a substantial proportion of armoured vehicles under the industry's most significant manufacturer, KMW+NEXTER Defense Systems NV. Manufacturers rely on defence spending across Europe and non-NATO members to boost new order volumes. According to the European Commission, general government expenditure in the EU on defence amounted to 1.3 % of GDP in 2021. However, this figure is rising in response to the Russia-Ukraine conflict, boosting revenue prospects. 

Trends and Insights

  • France & Germany dominate European manufacturing revenue. According to Eurostat, Germany and France collectively generated 70.1% of military fighting vehicle manufacturing revenue in 2020, hosting the industry’s major player, KMW+NEXTER Defense Systems NV.
  • US tariffs are imposing a 25% tariff on European military fighting vehicles. It will directly raise costs for European manufacturers exporting armored vehicles and military trucks to the US, reducing their competitiveness and profit.
  • Manufacturers compete on quality, innovation, delivery times and reputation. Quality competition is solid between manufacturers and high production costs mean companies must secure large orders to make manufacturing worthwhile.
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Top Questions Answered in this Report

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What is the market size of the Military Fighting Vehicle Manufacturing industry in the United Kingdom in 2025?

The market size of the Military Fighting Vehicle Manufacturing industry in the United Kingdom is £5.4bn in 2025.

How many businesses are there in the Military Fighting Vehicle Manufacturing industry in the United Kingdom in 2025?

There are 79 businesses in the Military Fighting Vehicle Manufacturing industry in the United Kingdom, which has grown at a CAGR of 3.7 % between 2020 and 2025.

Has the Military Fighting Vehicle Manufacturing industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Military Fighting Vehicle Manufacturing industry in the United Kingdom has been declining at a CAGR of 1.7 % between 2020 and 2025.

What is the forecast growth of the Military Fighting Vehicle Manufacturing industry in the United Kingdom over the next 5 years?

Over the next five years, the Military Fighting Vehicle Manufacturing industry in the United Kingdom is expected to grow.

How competitive is the Military Fighting Vehicle Manufacturing industry in the United Kingdom?

The level of competition is moderate and steady in the Military Fighting Vehicle Manufacturing industry in the United Kingdom.

Everything you need in one report

  • Reliable market estimates from 2015-2030
  • Competitive analysis, industry segmentation, financial benchmarks
  • Powerful SWOT, Porter’s Five Forces and risk management frameworks
  • Online membership platform with PDF, Word, Excel and PPT exports

Table of Contents

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

European countries often dedicate a fixed proportion of their GDP to spending on military and defence. According to the European Commission, general government expenditure in the EU on defence amounted to 1.3 % of GDP in 2021. However, this share is increasing (>2%) in response to the Russia-Ukraine conflict. Increased GDP in the EU boosts revenue potential for military fighting vehicle producers.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Military Fighting Vehicle Manufacturing in the UK industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

Just-in-Time productions leave manufacturers vulnerable to supply chain disruption. Military vehicle production uses Just-in-Time manufacturing, meaning parts scarcity massively disrupts supply chains and elevates production costs.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Military Fighting Vehicle Manufacturing in the UK industry?


Key Ratios

Data tables
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)
  • Revenue per Employee (2015-2030)
  • Wages/Revenue (2015-2030)
  • Employees per Establishment (2015-2030)
  • Average Wage (2015-2030)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and bottom five countries listed for each:

  • Revenue Growth (2025)
  • Business Growth (2025)
  • Job Growth (2025)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2025)
  • Imports/Demand (2025)
  • Exports/Revenue (2025)
  • Revenue per Employee (2025)
  • Wages/Revenue (2025)
  • Employees per Establishment (2025)
  • Average Wage (2025)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Methodology

Where does IBISWorld source its data?

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