What Transformation Has the Military Vehicle Electrification Market Undergone?
The military vehicle electrification market has seen considerable growth due to a variety of factors.
• The size of the military vehicle electrification market has seen a swift expansion in the past few years. The market, standing at $6.82 billion in 2024, is forecasted to reach a value of $8.05 billion in 2025, with a compound annual growth rate (CAGR) of 18.0%.
The marked increase noted in the historic period is due to reasons such as fuel efficiency, environmental policies, energy security, streamlined logistics, improved armor, and mobility.
How Will The Military Vehicle Electrification Market Size Evolve In The Foreseeable Future?
The military vehicle electrification market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for military vehicle electrification is anticipated to experience a swift expansion in the coming years, reaching a value of $14.27 billion in 2029 with a compound annual growth rate (CAGR) of 15.4%.
Various factors can be credited for this growth during the predicted period, such as interoperability, export opportunities, improvement in charging infrastructure, usage of hydrogen fuel cells, and integration of renewable energy sources. Over the forecast period, key trends like hybrid and electric platforms, advanced battery technology, modular systems, artificial intelligence (AI) and the incorporation of autonomous features, and adaptability to urban warfare are expected to take center stage.
What Are The Essential Drivers Behind The Growth Of The Military Vehicle Electrification Market?
The growth of the military vehicle electrification market is forecasted to be driven by increased fuel efficiency. Fuel efficiency, referring to a vehicle or machine's ability to maximize output or performance with minimal fuel usage, is being enhanced by tech advancements, rigorous environmental regulations, rising fuel prices, and growing consumer appetite for more sustainable and cost-effective travel solutions. For the purpose of fuel efficiency which would decrease fuel usage, increase operational range, and reduce logistic hurdles related to fuel provision in remote or adversarial surroundings, we need military vehicle electrification. As an example, a study by the US-based government agency, Energy Information Administration (EIA), in July 2022, stated that between April 2021 and April 2022, vehicle efficiency in the United States improved by an average of 2%. Additionally, the U.S. Department of Transportation, a US-based federal executive department, declared new fuel economy standards in April 2022 that would increase fuel efficiency by 8% per year for the model years 2024–2025 and by 10% per year for model year 2026. Consequently, the ascending fuel efficiency is spearheading the expansion of the military vehicle electrification market.
How Is The Global Military Vehicle Electrification Market Divided Into Key Segments?
The military vehicle electrification market covered in this report is segmented –
1) By Technology: Hybrid, Fully Electric
2) By Operation: Manned, Autonomous/Semi-Autonomous
3) By Platform: Combat Vehicles, Support Vehicles, Unmanned Armored Vehicles
4) By System: Power Generation, Cooling Systems, Energy Storage, Traction Drive Systems, Power Conversion
Subsegments:
1) By Hybrid: Series Hybrid Systems, Parallel Hybrid Systems, Plug-in Hybrid Systems
2) By Fully Electric: Battery Electric Vehicles (BEVs), Fuel Cell Electric Vehicles (FCEVs)
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What Trends Are Reshaping The Future Of The Opportunities Market?
The main trend currently prevailing in the military vehicle electrification market is product innovation. Key players in this market are prioritizing innovative products that can offer better options and strengthen their market standing. An example of this is Textron Inc., a US company engaged in military vehicle electrification, who launched an upgraded military electrification solution for existing electrified armored vehicles in June 2022. The goal is to maintain the superior maneuverability of traditional drivelines by leveraging technology to meet the pressing needs of military personnel. Using technology in this context refers to the efficient use and control of power and energy, with capabilities for storing energy for later use. This solution from Textron Inc. offers a quicker path to vehicle electrification compared to comprehensive vehicle design programs. It also provides the capacity to output electric power to charge more robust systems and operate vehicles in an entirely electric silent mode for short periods on a battlefield.
Who Are the Key Players in the Military Vehicle Electrification Market?
Major companies operating in the military vehicle electrification market include:
• BAE Systems plc
• Arquus
• Leonardo S.p.A.
• Textron Inc.
• General Motors Company
• Oshkosh Corporation
• Ballard Power Systems Inc.
• AM General LLC
• Nikola Corporation
• Alke S.r.l.
• Aselsan A.S.
• Epsilor Electric Fuel Ltd.
• Flensberg Fahrzeugbau Gesellschaft mbH
• Kongsberg Gruppen
• Lockheed Martin Corporation
• Magna International Inc.
• Navistar International Corporation
• Otokar Otomotiv ve Savunma Sanayi A.S.
• Rheinmetall AG
• Ricardo plc
• Siemens AG
• Tata Motors Limited
• RTX Corporation
• Thales Group
• UQM Technologies Inc.
• Visedo Oy
• Wrightspeed Inc.
• XALT Energy LLC
What are the Regional Insights into the Military Vehicle Electrification Market?
North America was the largest region in the military vehicle electrification market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the military vehicle electrification market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
