Armored Personnel Carrier (APC) Market Size, Share & Trends Analysis Report By Design (Wheeled APC, Tracked APC), By Range (Less than 500 Km, More than 500 Km), By Carrying Capacity (Less than 10000kg, Greater than and Equal to 10000kg), By Configuration (Amphibious, Non-Amphibious), By End-User (Military, Law Enforcement) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global armored personnel carrier market size was valued at USD 4,413.44 million in 2022. It is expected to reach USD 6,707.06 million by 2031, growing at a CAGR of 4.76% during the forecast period (2023–2031).

APCs, also called armored combat vehicles, armored cars, or infantry mobility vehicles, are armored vehicles used to transport personnel and supplies onto the battlefield. APCs are more mobile because they weigh less than infantry fighting vehicles and main battle tanks. Unlike infantry fighting vehicles (IFV), APCs are primarily made for transport and do not engage in direct-fire combat. They are armored for protection against shrapnel, small arms, and artillery fire but are only lightly armed for self-defense. Non-military organizations additionally utilize APCs of a particular type.

Market Dynamics

Global Armored Personnel Carrier (APC) Market Drivers

Increasing Terrorism Incidences

Violence and conflict have become more prevalent recently. Non-state actors like political militias, criminal gangs, and international terrorist organizations are frequently at war today. The United Nations reported that in 2016 there were more violent conflicts than at any time in the previous nearly 30-year period. Additionally, according to the Global Terrorism Database, there were an estimated 26,445 terrorist-related fatalities worldwide in 2017. The global death toll varied from its lowest point of 7,827 in 2010 to its highest point of 44,490 in 2014 between 2007 and 2017. Thus, rising terrorism incidents fuel the armored personnel carrier market's expansion.

Additionally, after 2014, there was an increase in terrorist attacks in Europe. The years 2014–16 saw the highest rate of attack plots per year and the most fatal terrorist attacks in Europe compared to the years prior put together. The attacks and threats have prompted Europe to invest more money in its land capabilities. Thus, the rise in immediate security threats in the East and South of Europe and European involvement in Middle Eastern conflicts will further propel the growth of the global armored personnel carrier market over the forecast period.

Modernization of Armored Vehicles Fleets

Many older-generation vehicles in the armored vehicle fleets of essential countries in Europe and North America need to be upgraded or replaced. Recent technological and product innovations have increased demand for contemporary APCs. APCs are incorporating several improvements in communication and optical systems as well as fire control systems, helping to increase their demand on the international market. The Argentinean Minister of Defense visited the Guarani armored vehicle production line at the Iveco Brazil factory in November 2020. The visit is significant because it aligns with the army's plan to update its collection of armored vehicles. Like this, several other nations are concentrating on updating their fleet of armored vehicles. Therefore, it is anticipated that the modernization of armored vehicle fleets will propel the growth of the global armored personnel carrier market during the forecast period.

Global Armored Personnel Carrier (APC) Market Restraints

High Vibrations and Audio Related to Tracked APCs

Maximizing lethality, survivability, and mobility is typically the primary design factor for armored vehicles. The vibration from moving vehicles can also impact how well an armored platform performs. During operations, armored vehicle vibrations can harm people's health and cause premature component failure. Vibrations that are too intense in a vehicle are bad because they make the crew uncomfortable and make unnecessary noise. Loud noises also increase the chance of being discovered in enemy territory, which reduces their usefulness for stealth operations. Therefore, it is anticipated that the tracked APCs' high vibrations and sounds will limit the market growth.

Global Armored Personnel Carrier (APC) Market Opportunities

Technological Progress

The globle (APC) industry has seen rapid technological advancements in recent years. More technical developments are made possible by geotargeting, automation, 3D printing, the Internet of Things (IoT), and other technological advancements. For instance, more recent sensor technology integrates with cameras and video surveillance systems for the vehicle, such as 360-degree field of view cameras. These sensors improve situational awareness, and as more vehicles are fitted with various sensors, a network is created that gives each unit a clearer view of its surroundings.

Additionally, Boeing submitted a patent application in 2015 for a system that would shield vehicles from blast damage by producing plasma fields. The concept behind it is to produce an ionized airfield that would either deflect or absorb the energy of the incoming shockwave. This system will likely be mounted on a military vehicle or target. This might improve APCs' capabilities even more. For the players competing in the global armored personnel carrier market, incorporating technological advancements in APCs is thus anticipated to present significant growth opportunities.

Regional Analysis

Asia-Pacific Dominates the Global Market

By region, the global APC market is segmented into North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific is the most significant contributor and is expected to grow at a CAGR of 6.13% during the forecast period. Due to rising defense spending by nations like India, China, South Korea, Japan, and others, the Asia-Pacific region's market will experience the highest growth. Conflicts have arisen in Asian nations as a result of rising terrorism, border disputes, and political unrest, which in turn is fueling the market's expansion. The region's market is expanding due to rising political conflicts, increased military spending, and security threats from China and India. The demand for armored personnel carriers is also driven by increasing domestic R&D initiatives conducted to produce cutting-edge designs of armored vehicles for improved border and marine patrolling and risks of cross-border terrorism. In addition, China's military spending increased to USD 261 billion in 2019, up 5.1% from 2018, according to research by the Stockholm International Peace Research Institute (SIPRI), while India's defense spending increased to USD 71.1 billion, up around 6.8% from the year before.

Europe is expected to grow at a CAGR of 4.14% during the forecast period. European markets have raised their defense spending and have tried to keep doing so throughout the pandemic. They will be able to carry out significant procurement projects as a result without experiencing significant delays. The European market is expected to expand moderately due to key companies like BAE Systems, Rheinmetall AG, and others. Due to the necessity for new equipment to support current force structures, military units worldwide are pursuing modernization plans to replace their outdated armored vehicles.

The U.S. government's highest defense spending on the acquisition and modernization of military vehicles is credited with the region's dominance. Significant market contributors in North America include General Dynamics Corporation, Textron Systems, Oshkosh Defense, and others. In addition, moderate growth is predicted for the Middle East due to rising military spending by Saudi Arabia, the UAE, Turkey, and other countries. Rising procurement initiatives from South Africa, Brazil, and other countries are anticipated to fuel market expansion in the rest of the world.

Segmental Analysis

The global armored personnel carrier market is segmented by design, range, configuration, and end-user.

Based on the design, the global market is bifurcated into wheeled APC and tracked APC.

The wheeled APC segment is the highest contributor to the market and is expected to grow at a CAGR of 4.41% during the forecast period. One design is frequently preferred over another based on various factors, including mobility, survivability, and supportability. For instance, wheeled APCs are better when unrestricted mobility is not the primary mission driver. On-road usage is greater than off-road usage because they can naturally reach faster speeds. Due to the lower friction losses when compared to tracked APCs, wheeled APCs typically have better fuel efficiency. As a result, wheeled APCs can operate over wider areas.

Tracked APCs can offer significantly faster mission travel times if the mission primarily involves off-road travel. Due to reduced suspension clearance, wheel turning clearance, and the lack of multiple transfer cases and drive shafts, which are essential to the design of multi-wheeled vehicles, tracked APCs are inherently more compact than wheeled APCs.

Based on the range, the global armored personnel carrier market is bifurcated into less than 500 km and more than 500 km.

The more than 500km segment owns the highest market share and is expected to grow at a CAGR of 4.85% during the forecast period. The operational range of an APC is influenced by both onboard fuel storage and fuel efficiency. A good APC operation range is essential for supporting roles in missions. The operational range and fuel efficiency of wheeled APCs are superior to those of tracked APCs by design. For instance, the Australian Defense Force's M113AS4 has a 550 km operational range. The operating range of the BTR-80, an 8X8 wheeled amphibious armored personnel carrier, is also about 600 km. With a class-leading range of 1,050 km, the Boxer APC is manufactured by ARTEC, a partnership between Krauss-Maffei Wegmann (KMW) and Rheinmetall. The rising demand for APCs with a longer operational range is what is driving the global market for armored personnel carriers. In order to meet the growing demand for a broader range of APCs, the major manufacturers are concentrating on expanding the operational range of their products.

Based on the carrying capacity, the global armored personnel carrier market is bifurcated into less than 10000kg and greater than and equal to 10000kg.

The greater than 10,000kg segment is the highest contributor to the market and is expected to grow at a CAGR of 4.45% during the forecast period. The need for APCs with greater payload capacities is growing. Armed forces can transport more equipment and armed personnel thanks to the APCs' higher carrying capacity. Additionally, the APCs need to undergo several modifications, including the addition of secondary armaments and modular weapon platforms. Due to the increasing demand for heavier payloads, APCs with high carrying capacities will likely gain popularity over the forecasted period. For instance, the Piranha V and Patria AMVXP are two important APCs with more than 10,000 kg carrying capacity.

Based on the configuration, the global market is bifurcated into amphibious and non-amphibious.

The non-amphibious segment is the highest contributor to the market and is expected to grow at a CAGR of 4.48% during the forecast period.

Amphibious APCs can traverse bodies of water, while non-amphibious APCs cannot. Frequently, the amphibious APCs are propelled by their tracks, water jets, or propellers. The average vehicle's speed through the water is much slower than its ground speed. For instance, the AAVP-7 can swim at 13.2 km/h, while the M113 can only swim at a maximum speed of 5.8 km/h, or roughly 10% of its road speed. The ABC-79M, Patria AMV XP, Singaporean Terrex, Bumerang, BTR-4, DefTech AV8, Enigma APC, TATA Kestrel, and other models are additional examples of amphibious APCs. The benefit of mobility in bodies of water contributes to the high demand for amphibious APCs.

Based on the end-user, the global market is bifurcated into military and law enforcement.

The military segment is the highest contributor to the market and is expected to grow at a CAGR of 4.64% during the forecast period. The military has long been equipped with armored personnel carriers. The use of APCs for law enforcement has increased due to the rising political tensions, civil unrest, and security threats experienced globally in recent

Recent Developments

December 2022- Sweden, Germany, and the U.K. jointly agreed to procure 436 BvS10 armored all-terrain vehicles, the manufacturer BAE Systems stated in a press release. The vehicles will support the Arctic operations for the Collaborative All-Terrain Vehicle (CATV) program.