What Transformation Has the Military Truck Market Undergone?
The military truck market has seen considerable growth due to a variety of factors.
•The steady growth of the military truck market size has been witnessed over recent years. This market is predicted to increase from $24.65 billion in 2024 to $25.55 billion in 2025, experiencing a compound annual growth rate (CAGR) of 3.7%.
The growth in the past years is due to factors like the Cold War military buildup, geopolitical tensions, the modernization of armed forces, defense budget allocations, and military conflict and peacekeeping missions.
How Will The Military Truck Market Size Evolve In The Foreseeable Future?
The military truck market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of military trucks is anticipated to witness consistent growth in the coming years, with a projection of reaching $30.47 billion in 2029 with a 4.5% compound annual growth rate (CAGR).
This growth during the projection period can be credited to rising worldwide security issues, the need for adaptable and versatile military vehicles, geopolitical unrest, modernization programs of military forces, and emphasis on swift deployment capabilities. The upcoming trends in the projection period encompass the invention of electric and hybrid military trucks, focus on fuel proficiency and sustainability, the adoption of flexible and customizable vehicle platforms, application of artificial intelligence in military logistics, and the use of high-level materials for superior durability.
What Are The Essential Drivers Behind The Growth Of The Military Truck Market?
The escalation in the budget allocation for military in various countries is projected to drive the military truck market's expansion. The term military spending refers to the funds spent on enhancing and maintaining a nation's defense forces or activities correlated to defense. As funds allotted for military purposes increase, the demand for military apparatus, including military trucks, tends to rise. For example, the House of Commons Library of the UK Parliament, a UK government body, reported in May 2024 that the UK's defense budget for the fiscal year 2023/24 touched $70.47 billion. This figure is estimated to escalate to $74.24 billion in the fiscal year 2024/25, implying a real-term rise of 4.5%. Consequently, the heightened military expenditure is fuelling the growth of the military truck market.
How Is The Global Military Truck Market Divided Into Key Segments?
The military truck market covered in this report is segmented –
1) By Truck Type: Light, Medium, Heavy
2) By Propulsion: Diesel, Gasoline, Electric Or Hybrid
3) By Transmission Type: Automatic, Semi-Automatic, Manual
4) By Application: Cargo Logistics, Troops Transport, Other Applications
Subsegments:
1) By Light: Tactical Light Trucks, Utility Light Trucks
2) By Medium: Tactical Medium Trucks, Cargo Medium Trucks
3) By Heavy: Tactical Heavy Trucks, Cargo Heavy Trucks, Recovery Heavy Trucks
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What Trends Are Reshaping The Future Of The Military Truck Market?
A main trend observed in the military truck market is product innovations. To remain competitive, leading companies in the industry implement new technologies. For instance, General Dynamics European Land Systems, a military vehicle manufacturer based in Spain, introduced the DURO-e, an all-electric all-terrain 4x4 vehicle and the first of its kind, in June 2022. The term DURO-e stands for durable and robust. Features of the DURO-e include a digital vehicle framework, a versatile powertrain capable of utilising a diesel engine from EURO 3 to EURO 6, a purely electric powertrain either battery-electric or fuel cell electric, silent drive, boost, and prolonged silent watch abilities, carbon-neutral and cost-effective operation practical for daily military tasks, a minimal heat and noise footprint, high energy efficiency, and independent energy supply. Because of these features, the versatile and effective DURO-e can accommodate a range of requirements like transport, logistics, and support operations.
Who Are the Key Players in the Military Truck Market?
Major companies operating in the military truck market include:
• Mercedes-Benz Group AG
• Ford Motor Company
• Lockheed Martin Corporation
• Volvo Defense AB
• ZF Friedrichshafen AG
• General Dynamics Corporation
• Mitsubishi Heavy Industries Ltd.
• PACCAR Inc.
• BAE Systems
• Thales Group
• IVECO S.p.A.
• Hino Motors Ltd.
• Oshkosh Corporation
• Rheinmetall AG
• Ashok Leyland Ltd.
• Tata Motors Limited
• Renault Trucks
• Krauss-Maffei Wegmann GmbH & Co. KG
• Mack Trucks Inc.
• Scania AB
• AM General LLC
• Arquus Co
• ACMAT Corporation
• TATRA TRUCKS AS
• Astra Veicoli Industriali S.p.A.
• GM Defense LLC
What are the Regional Insights into the Military Truck Market?
North America was the largest region in the military truck market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the military truck market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
