Military Vehicle Electrification Market by Platform (Combat Vehicles, Support Vehicles, Unmanned Armored Vehicles), Technology (Hybrid, Fully Electric), Voltage Type (Low, Medium, High), System, Mode of Operation, and Region - Global Forecast to 2030
Update: 9/19/2024
Military Vehicle Electrification Market Size and Growth
[270 Pages Report] The Military Vehicle Electrification Market Size is estimated to be USD 4.1 Billion in 2023 and is projected to reach USD 20.4 Billion by 2030, at a CAGR of 25.6 % from 2023 to 2030. The key driving factor for the growth of the Military Vehicle Electrification Industry Share lies in the intersection of technological advancements, operational efficiency, and environmental sustainability. The imperative to enhance military capabilities while simultaneously addressing global concerns about climate change has led to a heightened focus on electrification. Electric military vehicles offer advantages such as reduced fuel dependency, lower operational costs, and enhanced tactical capabilities. The integration of advanced battery technologies, including improved energy density and faster charging, not only extends operational range but also ensures rapid response capabilities in the field. Additionally, the adoption of electric propulsion aligns with the broader trend toward autonomous and intelligent systems, providing opportunities for optimizing logistics, maintenance, and overall mission effectiveness.
Military Vehicle Electrification Market Forecast to 2030
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Military Vehicle Electrification Market Trends
Drivers: Advanced Modern Battlefield Requirements
Hybrid and fully electric military vehicles yield operational benefits, such as facilitating extended range and improving the onboard power capability for electrified armor, jammers, and directed-energy weapons. Other advantages of military vehicle electrification (MVE) include reduced fuel consumption, reduced acoustic and thermal signature, silent mobility, and lower maintenance and logistics footprint. Military operations require vehicles that can quickly traverse varied terrains, from urban landscapes to rugged terrains and unpredictable battle zones. Electric military vehicles offer superior acceleration, instantaneous torque, and improved maneuverability, providing a significant tactical advantage in dynamic scenarios. In 2022, the Indian Defence research wing collaborated with Pravaig Dynamics (India) to develop an electric tactical vehicle with an acceleration of 0–100 Kmph in 5 seconds.
The imperative for reduced acoustic signatures and enhanced stealth capabilities further propels the adoption of electric propulsion. Silent and discreet operations are critical in modern warfare, where avoiding detection by adversaries is paramount. Electric vehicles contribute to a quieter operational profile, enabling stealthy movements and covert operations crucial for gaining a strategic edge on the battlefield. In 2022, General Dynamics (US) revealed the Abrams X main battle tank that can enable operations from static positions and potentially on the move at low speeds over shorter distances in a very quiet all-electric mode.
Restraints: in Need for Balanced Power-to-Weight Ratio
The power-to-weight ratio serves as a significant restraint in the military vehicle electrification market, posing challenges to the widespread adoption of electric propulsion systems in certain military applications. Military vehicles often require high power outputs to support heavy armor, weaponry, and various mission-specific equipment. Achieving a balance between the power needed for optimal performance and the weight constraints imposed by energy storage systems, such as batteries, is a complex engineering challenge. Current battery technologies face limitations in terms of energy density and weight. The high energy requirements of military operations necessitate large and heavy battery packs to provide sufficient power, leading to concerns about overall vehicle weight and performance. The requirement for substantial armor, specialized equipment, and the capability for prolonged operations intensifies the challenge of managing vehicle weight. This weight constraint hinders the incorporation of electrification technologies, such as heavy battery systems, into military vehicle designs. The Bradley Infantry Fighting Vehicle (IFV) is a key piece of the US Army's armored capabilities. If the Bradley is electrified, the US Army would need to ensure that the added weight from the batteries does not significantly impact its operational performance. The Bradley is designed for mobility, protection, and firepower. Any increase in weight from electrification would need to be carefully balanced against these requirements.
Opportunities: Growing Demand for Hydrogen Fuel Cell Systems
Hydrogen fuel cell vehicles are an advancement in all electric vehicles. In contrast, fuel cell powered vehicles use hydrogen gas for subtle chemical reactions, which are transformed into electrical energy. There has been an increasing demand for hydrogen fuel cells in the transport industry for the logistics of military cargo, equipment, and artillery. In 2020, the US Army Research Laboratory focused on developing hydrogen military vehicles, such as main battle tanks and infantry fighting vehicles.
The inherent advantages of hydrogen, such as high energy density and rapid refueling capabilities, make it a viable option for military applications where range, endurance, and quick deployment are paramount. These fuel cells reduce the carbon footprint of military operations and enhance operational flexibility by offering extended mission ranges without compromising power. The modularity of hydrogen fuel cell systems allows for versatile integration across different types of military vehicles, from armored personnel carriers to logistics vehicles, enhancing the overall versatility of a hydrogen-powered fleet.
Challenges: Lifecycle and Durability Issues of Integrated Systems
The key concerns of modernizing military vehicles are their weight and power. Military vehicles should be resilient enough to withstand the standard demands of the industry. Modern military vehicles are required to be reliable for operation on rough terrain, should be functional in extreme temperatures, and be water-resistant. Internal electronic materials such as connectors, headers, and terminals are designed to be rugged.
The series includes connectors designed for the truck, bus, and off-highway sectors, such as the HD30 series, which are constructed from metal shells to meet the needs of the heavy-duty and transportation industry. The connectors operate at high temperatures and do not exhibit mechanical or physical damage after sinusoidal vibration levels, owing to the increase in the number of components needed to perform vital functions. The complexity involved in reducing the size and weight of digital battlefield products is expected to make the manufacturing process increasingly expensive. Industry players need to install sophisticated machinery and invest in R&D activities to increase device efficiency. Undertaking efforts to minimize the associated weight and size of devices while maintaining their advanced features may create barriers to the growth of the military vehicle electrification market.
Military Vehicle Electrification Market Ecosystem
Oshkosh Corporation (US), GM Defense LLC (US), General Dynamics Corporation (US), BAE Systems (UK), Leonardo S.p.A. (Italy), Textron Inc. (US), ST Engineering (Singapore), Qinetiq (UK), Polaris Inc. (US), Aselsan AS (Turkey), Otokar Otomotiv ve Savunma Sanayi AS (Turkey), Krauss-Maffei Wegmann (Germany)are some of the leading companies in the military vehicle electrification market.
Military Vehicle Electrification Market Segments
Based on Batteries, the Lithium Ion Segment Accounts for the Highest Market Share in the Military Vehicle Electrification Market During the Forecast Period
Lithium-ion (Li-ion) batteries are anticipated to lead the military vehicle electrification market due to their exceptional energy density, efficiency, and proven reliability. The demanding requirements of military operations, including high energy storage, rapid charging capabilities, and durability, align well with the strengths of Li-ion technology. These batteries provide a compact and lightweight solution, crucial for military vehicles seeking to balance energy storage capacity with payload considerations.
Moreover, the ability of Li-ion batteries to deliver consistent and high power output enhances the performance of electric military vehicles during critical missions. The versatility of Li-ion technology allows for various form factors, accommodating the diverse designs and configurations of military platforms.
Based on Combat Vehicles, the Main Battle Tanks Segment is Projected to Grow at the Highest Rate During the Forecast Period
Main Battle Tanks (MBTs) are anticipated to grow at the highest rate in military vehicle electrification due to a confluence of strategic, technological, and operational imperatives. As modern warfare evolves, there is a growing recognition that traditional armored vehicles, like MBTs, need to adapt to emerging challenges. Electrification offers MBTs a transformative leap in capabilities, providing increased operational flexibility, efficiency, and a reduced logistical burden. The inherent torque and power characteristics of electric propulsion systems enhance the agility and responsiveness of MBTs on the battlefield, crucial for navigating diverse terrains and responding rapidly to dynamic threats.
Based on Batteries, the Fuel Cell Segment is Projected to Grow at the Highest Rate During the Forecast Period
Fuel cells are anticipated to lead military vehicle electrification due to their unique advantages in addressing specific operational challenges faced by the military. Hydrogen fuel cells offer a compelling solution, providing longer operational ranges and quicker refueling compared to traditional batteries. These attributes are crucial in military applications where mobility, endurance, and rapid deployment are paramount. Fuel cell-powered military vehicles boast reduced logistical burdens as they can operate for extended periods without frequent refueling, enhancing strategic flexibility and operational efficiency. Furthermore, fuel cells generate electricity through a chemical reaction between hydrogen and oxygen, emitting only water vapor as a byproduct. This aligns with the military's increasing focus on sustainability and environmental considerations.
Military Vehicle Electrification Market Regions
North America is Expected to Lead the Military Vehicle Electrification Market Trends in 2023
North America is expected to lead the military vehicle electrification market due to a convergence of technological expertise, robust defense budgets, and a commitment to environmental sustainability. The region houses some of the world's most advanced defense industries and cutting-edge research facilities, fostering innovation in electric propulsion systems and energy storage technologies. With a strong emphasis on modernization and maintaining a technological edge, the U.S. Department of Defense has been actively investing in electric and hybrid-electric military vehicle programs. The integration of electric vehicles aligns with the U.S. military's goal of enhancing operational efficiency, reducing reliance on traditional fuel sources, and mitigating logistical challenges.
Furthermore, the region's commitment to environmental initiatives and reducing carbon footprints has prompted defense agencies to explore cleaner and more sustainable alternatives. Stringent emission regulations and a growing awareness of the environmental impact of traditional military vehicles are driving the adoption of electric propulsion systems. Additionally, public-private partnerships, research collaborations, and a supportive regulatory environment contribute to North America's leadership in advancing military vehicle electrification, making it a focal point for industry players and ensuring the region's pivotal role in shaping the future of electrified military fleets.
Military Vehicle Electrification Market by Region
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Military Vehicle Electrification Industry Companies: Top Key Market Players
Military Vehicle Electrification Companies are dominated by globally established players such as:
- Oshkosh Corporation (US)
- GM Defense LLC (US)
- General Dynamics Corporation (US)
- BAE Systems (UK)
- Leonardo S.p.A. (Italy)
- Textron Inc. (US)
- ST Engineering (Singapore)
- Qinetiq (UK)
- Polaris Inc. (US)
- Aselsan AS (Turkey)
- Otokar Otomotiv ve Savunma Sanayi AS (Turkey)
- Krauss-Maffei Wegmann (Germany)
These companies have well-equipped manufacturing facilities and strong distribution networks across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
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Report Metric |
Details |
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Estimated Market Size |
USD 4.1 Billion in 2023 |
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Projected Market Size |
USD 20.4 Billion by 2030 |
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Growth Rate |
25.6% |
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Market Size Available for Years |
2019–2030 |
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Base Year Considered |
2022 |
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Forecast Period |
2023–2030 |
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Forecast Units |
Value (USD million) |
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Segments Covered |
By Platform, by System, by Technology, by Mode of Operation, by Voltage Type, and Region |
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Geographies Covered |
North America, Europe, Asia Pacific, Middle East and Rest of the World |
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Companies Covered |
Oshkosh Corporation (US), GM Defense LLC (US), General Dynamics Corporation(US), BAE Systems (UK), Leonardo S.p.A. (Italy),Textron Inc. (US), ST Engineering (Singapore), Qinetiq (UK), Polaris Inc. (US), Aselsan AS (Turkey), Otokar Otomotiv ve Savunma Sanayi AS (Turkey), Krauss-Maffei Wegmann (Germany), Flensburg Fahrzeugbau GmbH (Germany), Polaris Inc. (US), Rheinmetall AG (Germany), Arquus Defence (France), Epsilor Electric Fuel Ltd ( Israel), Nexter Group (France), Ukroboronprom (Ukraine), Milrem Robotics (UK), AM General (US), Highland Systems (US), Alke(Italy), Mega Engineering Vehicles Inc. (US), FNSS (Turkey) |
Military Vehicle Electrification Market Highlights
This research report categorizes the Military Vehicle Electrfication market based on Platform, System, Technology, Mode of Operation, Voltage Type, and Region.
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Recent Developments
- In July 2022 GM Defense, a subsidiary of General Motors, was selected by the US Army to provide a battery electric vehicle for analysis and demonstration. GM Defense will leverage the GMC HUMMER EV, featuring GM’s Ultium Platform, to meet the US Army’s requirement for a light to heavy-duty battery electric vehicle.
- In 2020 BAE Systems was awarded a USD 32 million prototype agreement by the US Army’s Rapid Capabilities and Critical Technologies office (RCCTO) to integrate a Hybrid Electric Drive (HED) system onto a Bradley Fighting Vehicle.
Key Questions Addressed by the Report:
What is the current size of the military vehicle electrification market?
The Military Vehicle Electrification market is estimated to be USD 4.1 Billion in 2023 and is projected to reach USD 20.4 Billion by 2030, at a CAGR of 25.6 % from 2023 to 2030.
What are the key sustainability strategies adopted by leading players operating in the military vehicle electrification market?
Response: Key players have adopted various organic and inorganic strategies to strengthen their position in the military vehicle electrification market: Oshkosh Corporation (US), GM Defense LLC (US), General Dynamics Corporation (US), BAE Systems (UK), Leonardo S.p.A. (Italy), Textron Inc. (US), ST Engineering (Singapore), Qinetiq (UK), Polaris Inc. (US), Aselsan AS (Turkey), Otokar Otomotiv ve Savunma Sanayi AS (Turkey), Krauss-Maffei Wegmann (Germany) are some of the leading companies in the military vehicle electrification market.
What new emerging technologies and use cases disrupt the military vehicle electrification market?
Response: Advanced Energy Storage Systems, Energy Harvesting, and Advanced Power electronics could disrupt the military vehicle electrification market.
Who are the key players and innovators in the ecosystem of the military vehicle electrification market?
Response: Oshkosh Corporation (US), GM Defense LLC (US), General Dynamics Corporation (US), BAE Systems (UK), Leonardo S.p.A. (Italy), Textron Inc. (US), ST Engineering (Singapore), Qinetiq (UK), Polaris Inc. (US), Aselsan AS (Turkey), Otokar Otomotiv ve Savunma Sanayi AS (Turkey), Krauss-Maffei Wegmann (Germany).
Which region is expected to hold the highest market share in the military vehicle electrification market?
Response: In 2023, North America is expected to hold the greatest market share for the military vehicle electrification market during the forecast period, and the US is anticipated to grow at the highest CAGR.
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This research study involved the extensive use of secondary sources, directories, and databases, such as the Stockholm International Peace Research Institute (SIPRI), Department of Defense (DoD), UN Comtrade, Organization for Economic Cooperation and Development (OECD), and Factiva, to identify and collect relevant information on the military vehicle electrification market. Primary sources included industry experts from the concerned market, preferred suppliers, manufacturers, solution providers, technology developers, alliances, and organizations related to all segments of the value chain. All primary sources were interviewed to obtain and verify critical qualitative and quantitative information as well as assess the prospects of the market.
In-depth interviews were conducted with various primary respondents, including key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, among others, to obtain and verify critical qualitative and quantitative information and to assess future prospects of the market.
Secondary Research
The market share of companies in the military vehicle electrification market was determined using secondary data made available through paid and unpaid sources and by analyzing product portfolios of major companies operating in the market. These companies were rated based on the performance and quality of their products. These data points were further validated by primary sources.
Secondary sources that were referred to for this research study on the military vehicle electrification market included government sources such as the US Department of Defense (DoD), defense budgets, military modernization program documents, corporate filings such as annual reports, investor presentations, and financial statements, and trade, business, and professional associations. This secondary data was collected and analyzed to arrive at the overall size of the military vehicle electrification, which was further validated by primary respondents.
Secondary research was primarily used to obtain critical information about the value and supply chain of the market. It was also used to identify key players by various products, market classifications, and segmentation per their offerings. Secondary information helps understand industry trends related to Military vehicle electrification technology, mode of operation, voltage type, platform, system and regions, and developments from the market and technology-oriented perspectives.
Primary Research
In the primary research process, various sources from the supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. Primary sources from the supply side included industry experts such as vice presidents, directors from business development, marketing, and product development/innovation teams, related key executives from the EV industry, manufacturers, integrators, and key opinion leaders. Extensive primary research was conducted after obtaining information about the current scenario of the Military vehicle electrification market through secondary research. Several primary interviews were conducted with the market experts from the demand and supply sides across major countries of North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
This primary data was collected through questionnaires, emails, and telephonic interviews.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the size of the market. The research methodology used to estimate the market size also includes the following details:
- Key players were identified through secondary research, and their market ranking was determined through primary and secondary research. This included a study of annual and financial reports of the top market players and extensive interviews of leaders, including CEOs, directors, and marketing executives.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data was consolidated, enhanced with detailed inputs, analyzed by MarketsandMarkets, and presented in this report.
Bottom-Up Approach
The bottom-up approach was employed to arrive at the overall size of the military vehicle electrification market.
Bottom Up Market Size Estimation Methodology
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Step 1 |
Mapped deliveries of military electric vehicles |
Mapped deliveries of all types of electric military vehicles considered under military vehicle electrification segments from 2023 to 2030 |
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Step 2 |
Classified the components required for each vehicle type |
Each vehicle technology considered in the scope (fully electric and hybrid) requires different types of electric components, in which the penetration of each technology is different. |
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Step 3 |
Identified the total cost of manufacturing electric military vehicle |
Identified and mapped the total cost of manufacturing vehicles for each electric military vehicle considered in the study. |
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Step 4 |
Listing contracts for military electric vehicles |
Listing all the contracts for military electric vehicles to validate the market size. |
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Step 5 |
Arriving at the global market size (2023) |
Global market 2023 = (electric military vehicle delivery for 2023 * Cost of electric military vehicle derived from contract ). |
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Step 6 |
Arriving at the global market size (2023-2030) |
The global market was estimated based on data on existing and upcoming projects announced by OEMs, average digital readiness Index, percentage of commercial electric vehicles, and average defense growth rate. |
Market Size Estimation Methodology: Bottom-Up Approach
Top-Down Approach
In the top-down approach, military electric vehicle manufacturers were identified. The revenue of players as per their revenue specific to the market was identified. The base market number for each player was arrived at by assigning a weight to the contracts for military electric vehicles by these companies for the stages of electrification.
Market Size Estimation Methodology: Top-Down Approach
Data Triangulation
- Country-wise military electric vehicle deliveries were considered for base data. Data was taken from the OEM manufacturers of military electric vehicles and various governing bodies of each country.
- Military vehicle technology type and penetration are considered to calculate the upcoming trends of the market.
The following figure indicates the market breakdown structure and the data triangulation procedure implemented in the market engineering process to develop this report.
The figure above demonstrates the core data triangulation procedure used in this report for every market, submarket, and subsegment. The percentage split for various market segments, including system, platform, technology, mode of operation, voltage type and region, was used to determine the size of the military vehicle electrification market.
Market Definition
- Military vehicle electrification is the method of adapting new technologies for the use of electrical power for the operation of automotive drivetrains, auxiliary systems, turret motors/drives, and other mechanical subsystems in military vehicles. It involves the use of hybrid engines, battery technologies, fuel cells, and other primary power sources for military tactical and combat vehicles. It helps in increased efficiency, power, and performance in critical missions and operations. Military vehicle electrification can be categorized based on technologies such as hybrid drive and fully electric. It has applications in surveillance & stealth modes, combat vehicles, utility trucks, logistics & transportation, and armored vehicles, among others
Key Stakeholders
- Military Vehicle Electrification Solution Providers
- Military Vehicle Electrification Platform Providers
- Military Vehicle Electrification System Providers
- Technology Providers
- Armed Forces
- Military Vehicle Electrification Product Manufacturers
- Component Manufacturers
- Distributors and Suppliers
- Investors and Venture Capitalists
- Component Manufacturers
- Distributors and Suppliers
- Universities, Research Organizations, Forums, Alliances, and Associations
- Ministries of Defense
- Original Equipment Manufacturers (OEMs)
- Regulatory Bodies
- R&D Companies
Report Objectives
- To define, describe, and forecast the size of the military vehicle electrification market based on platform, system, technology, mode of operation, voltage type, and region from 2023 to 2030
- To forecast the size of various segments of the market with respect to major regions, namely, North America, Europe, Asia Pacific, Middle East & Africa, and Latin America
- To identify and analyze key drivers, restraints, opportunities, and challenges influencing the growth of the Military vehicle electrification market across the globe
- To strategically analyze micromarkets 1 with respect to individual growth trends, prospects, and their contribution to the military vehicle electrification market
- To analyze opportunities for stakeholders in the market by identifying key market trends
- To analyze competitive developments such as contracts, acquisitions and expansions, agreements, partnerships, new product launches, and Research & Development (R&D) activities in the military vehicle electrification market
- To provide a detailed competitive landscape of the -market, in addition to an analysis of business and corporate strategies adopted by leading market players
- To strategically profile key market players and comprehensively analyze their core competencies
1. Micromarkets refer to segments and subsegments of the Military Vehicle Electrification market included in the report.
2. Core competencies of the companies were captured in terms of their key developments and strategies to sustain their position in the market
Available customizations
Along with the market data, MarketsandMarkets offers customizations as per the specific needs of companies. The following customization options are available for the report:
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company
Regional Analysis
- Further breakdown of the market segments at the country level
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Generating Response ...
Growth opportunities and latent adjacency in Military Vehicle Electrification Market