Military Truck Market

Military Trucks Market Size and Growth (2022 - 2027):

Military Trucks Market was worth $23 billion in 2020, and it is expected to increase at a CAGR of over 3% from 2022 - 2027, with production rising from 15,677 to 20,171 units.

The military truck market is being driven by factors such as rising demand for customized trucks, technical developments, increasing popularity of military equipment transportation, and the continued growth of army personnel.

A military truck is a vehicle that is used to deliver troops, fuel, and military supplies to the battlefield via paved and unpaved dirt roads, or as the circumstance requires. Several countries have developed their military truck types, each with its technical features and specialization. These vehicles are tailored to the requirements of various ground forces. These vehicles typically consist of a chassis, a motor, a transmission, and a cabin, as well as axles of transmission, tires, electrical, pneumatic, hydraulic, suspensions, direction, engine cooling systems, and brakes. These vehicles, on the other hand, are usually employed to transport military units in remote places.

Recent Developments:

Mercedes-Benz has teased the Vision EQXX, a futuristic electric car with a 1,000-kilometer range. This car is part of a new technology platform that serves as a testbed for improving electric vehicle efficiency. This is part of Daimler's plan to be completely electrified by 2030.

Rheinmetall will provide an electric a/c compressor that has been specially developed for electric vehicles. The contract, which represents a total sales volume of €80 million, is another triumph for Rheinmetall's electrification strategy, which includes the development of new drive components to reduce CO2 emissions as well as the continuous improvement of existing ones.

Tata Motors is planning to open vehicle scrappage centers as part of a franchise agreement, with the first one planned to open in the first quarter of the next fiscal year. Earlier this year, the automaker partnered with the Gujarat government to facilitate the establishment of a vehicle scrappage plant in Ahmedabad, Gujarat.

Rafael Advanced Defense Systems, based in Israel, has formed a cooperation with Krauss-Maffei Wegmann, based in Germany, and General Dynamics European Land Systems, based in Spain, to help market the Trophy active protection system in Europe.

Market Drivers:

The market is expected to be boosted by factors such as increased investments in law enforcement militarization, a government initiative to strengthen military power, the use of advanced technologies, the incorporation of advanced sensors, and electrification. The key challenges in the military truck market, however, are raw material price fluctuations and increased competition.

Military trucks are used to deliver personnel, ammunition, fuel, water, and other utility supplies during combat operations. These trucks are built to travel in both on- and off-road environments. Defense is responsible for all applications in the global military truck industry. Countries such as the United States, the United Kingdom, France, China, and India are concentrating their efforts on the development of ground military vehicles, such as high-tech military trucks.

Restraints

The high cost of vehicles and the restricted number of manufacturers of military trucks may hinder military truck purchases over the projection period.

REPORT COVERAGE:

Market Segmentation

Military Trucks Market Type: The market is segmented into Light-duty, Medium-duty, and Heavy-duty.

Heavy-duty vehicles can operate off-road, in deep water, mud, or snow. These vehicles have a towing capability of 3,000 kg and a payload capacity of 1,000 kg. Small arms fire, artillery shell splinters, grenades, and anti-personnel mines are all protected by these military trucks. Since heavy-duty trucks have more torque and peak power, they are used for certain tasks. Refrigeration, dumping, firefighting, disaster management, tankers, RMC, and containers are only a few of the most common uses.

Military Trucks Market Application: The market is segmented into Cargo & Troop Transportation, and Utility.

In 2020, the cargo and troop transportation category accounted for more than 75% of the military truck market, with significant growth potential in the years ahead. Newmarket opportunities are opening up as the demand for transferring freight and troops around military bases grows. Government officials are forming strategic alliances with industry entities to buy sophisticated military trucks with greater safety features for the safe transportation of soldiers.

Military Trucks Market Fuel: The market is segmented into Diesel, Gasoline, Electric/Hybrid.

The electric truck market is expected to increase at a 6% CAGR through 2026, owing to rising concerns about vehicle emissions around the world. Several regulatory agencies, notably the US Environmental Protection Agency and the European Commission, are enacting strict emission restrictions, which bodes well for the sector.

Military Trucks Market Transmission: The market is segmented into Automatic, Semi-Automatic, and Manual.

Automatic transmissions are popular because of their fuel efficiency and driving comfort provided by automated gear shifts and minimum torque interruption. Suppliers are focusing on developing technologies that are more efficient, comfortable, and long-lasting, while also having a low environmental impact. Customer preferences, which vary by area, play a role in the adoption of new technology. Automatic transmissions are becoming increasingly popular because of the advantages of high speed, increased fuel efficiency, and reduced chance of engine stoppage with heavy loads. These trucks are used by the military to move personnel, cargo, and other supplies across all terrains at great speeds.

Regional Analysis:

Military modernization efforts in North America is credited with driving the expansion of the military vehicle industry in the region. Military trucks in the United States are expected to rise significantly during the forecast period, because of the US Army's increased R&D funding. Cargo/Logistics Due to the recent incidence of army contracts, carrier trucks are likely to expand in popularity in the United States. Mexico plans to use defense products and services to supplement its existing army to face advanced forces. The government intends to achieve its military objectives by utilising advanced technologies and partnering with the United States and other partners.

During the forecast period, Asia Pacific will have the largest market share for military trucks. This is because military trucks are in higher demand in China, India, Japan, South Korea, and Australia. The increased investments made by governments in the region to bolster their military forces and homeland security are attributed to the market's rise in the Asia Pacific.

Furthermore, the increased demand for military trucks is due to cross-border wars and disputes between countries. In India, for example, terrorist attacks, border disputes, delicate multi-cultural issues, and rampant crime are all on the rise. As a result of these considerations, the country has boosted its procurement of high mobility and multi-purpose vehicles, strengthening the military truck market in India.

Market Leaders:

Mercedes-Benz is the leading company in the global military truck market.

Key Players:

1. Tata Motors (India)
2. Mahindra & Mahindra (India)
3. Force (India)
4. Oshkosh Corp (US)
5. Rheinmetall (Germany)
6. Krauss-Maffei (Germany)
7. IVECO (Italy)
8. Tatra Trucks (Czech Republic)
9. Arquus (France)
10. Mitsubishi (Japan)

Impact of  COVID-19 On Military Trucks Market:

The military vehicle market will have a terrible and inferior influence in the future as a result of the pandemic's global spread. During the outbreak, suspended manufacturing and constrained transit movement significantly harmed the worldwide military truck business, as well as the general truck sector. Not only has Covid-19 had an impact on the supply chain, but also on the truck component market, market dynamics, and market competition. Revenues fell in 2020-2021, although they may begin to recover again gradually in 2021-2022. Open-ups will help the military market reclaim growth and a brighter future