Military Vehicle Sustainment Market by Vehicle Type (Armored Vehicles, Military Trucks), Service (Maintenance, Repair, & Overhaul (MRO), Training & Support, Parts and Components Supply, Upgrades & Modernization), End User & Region- Global Forecast to 2028
[211 Pages Report] The Military Vehicle Sustainment market is projected to grow from USD 16.8 billion in 2023 to USD 23.5 billion by 2028, at a CAGR of 7.0%. The need of sustainment services for the old military vehicles rises. The Sustainment services keeps the military vehicle operational. Government support and growing investments are propelling the development of Military vehicles , further boosting the growth of the Military Vehicle Sustainment market. The Military Vehicle Sustainment services enhances the vehicle efficiency and increase the life of military vehicles. The various types of maintenance like condition based maintenance and predictive maintenance are used to maintain the military vehicles.
Military Vehicle Sustainment Market Forecast to 2028
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Military Vehicle Sustainment Market Dynamics
Driver: Increased adoption of data-driven and predictive maintenance
The rising technology integration and upgrades in military vehicles are transforming the military vehicle sustainment market. Modernizing and enhancing existing military platforms have become vital for maintaining competitiveness on the battlefield. Integration and upgrades include the installation of advanced sensors, communication systems, and AI-driven analytics to enhance situational awareness and decision-making capabilities. The integration of unmanned aerial systems (UAS) with ground vehicles offers better reconnaissance and surveillance capabilities, reducing the risk to human operators and providing real-time intelligence. One of the key trends in military vehicle sustainment is the integration of advanced technology to improve vehicle performance, efficiency, and overall survivability. These integration and upgrades for military vehicle sustainment offers benefits like Improved reliability and availability of vehicles, reduced time and cost of repairs, improved safety of personnel, increased readiness of forces, and enhanced mission effectiveness.
Restraints: High cost and Maintenance time for Fleet modernization
Fleet modernization is crucial for enhancing military vehicle capabilities, extending service life, and meeting evolving operational requirements. It involves upgrading, retrofitting, and, in some cases, replacing vehicles in a fleet to ensure they remain effective, reliable, and mission-ready. Fleet modernization also involves replacing outdated military vehicles with new ones. Fleet modernization includes proper availability of spare parts and maintenance support as new vehicles may use different parts and systems than older vehicles, which can make it difficult to find spare parts and maintenance support. The process of modernization can be complex and expensive, making it difficult for the military to afford the modernization of their entire fleet. This leads to delays in repairs and can increase the cost of sustainment. The transition from old to new vehicles can also be troublesome to military operations as for new vehicles it may require training and stimulation for military personnel. This can take time and resources, and it can impact the readiness of forces. It is important to modernize the fleet to ensure that the military has the most capable and reliable vehicles. Fleet modernization includes the integration of advanced technologies. It involves incorporating communication systems, sensors, and data analytics tools to improve situational awareness, communication capabilities, and overall vehicle performance.
Opportunities: Use of autonomous systems
The military vehicle sustainment market is growing due to increased research and development in fully autonomous systems by leading service providers and system developers worldwide. The increased use of autonomous systems in military vehicle will significantly transform the technological shift in military organizations, allowing for more efficient fleet operation and maintenance. The integration of autonomous systems in military vehicle sustainment enhances mission readiness and improves maintenance processes. Autonomous systems are streamlining the process of spare parts provisioning for the logistics and supply chain aspect of military vehicle sustainment. Autonomous drones and robots are being utilized to deliver critical spare parts to military units in remote or challenging environments, reducing lead times and improving logistics efficiency. The increased use of autonomous systems in military vehicle sustainment represents a technological advancement that is revolutionizing military vehicle upkeep. Autonomous hardware systems and autonomous software solutions play a prominent role in enhancing the efficiency, effectiveness, and safety of military vehicle sustainment activities. By leveraging predictive maintenance, autonomous inspections, and streamlined logistics, these systems contribute to improving readiness, cost savings, and overall effectiveness in maintaining military vehicles. Autonomous systems will likely play an increasingly integral role in military vehicle sustainment for enhancing the capabilities of modern armed forces.
Challenges: Lack in resource allocation
The lack of resource allocation in military vehicle sustainment is a concern that can have comprehensive effects for a nation’s defense capabilities. Government and defense organizations are facing challenges when it comes to allocating sufficient resources to support the maintenance, repair, and modernization of their military vehicle fleets. Military vehicles, particularly advanced platforms like tanks, heavy tactical vehicles , and other combat vehicles require specialized expertise, advanced technology, and high-quality spare parts for effective maintenance and upgrades. One of the primary issues contributing to this resource allocation shortfall is budget constraints. The funds available for sustainment activities may not be appropriate with the scale and complexity of modern military vehicles due to limited budget competing priorities, economic conditions, and political considerations. This can lead to delayed maintenance, reduced readiness levels, and increased operational risks.. These resources often come at a premium, and if budgets are not adjusted accordingly, the sustainment efforts can suffer for military vehicles. Defense organizations mostly focus on short-term objectives and immediate needs, neglecting the importance of long-term planning.
Military Vehicle Sustainment Market Ecosystem
Companies that provides services Military Vehicle Sustainment, includes government firms, industries as key stakeholders in Military Vehicle Sustainment Market. Investors, funders, academic researchers, integrators, service providers, and licensing authorities are the major influencers in this market. Prominent companies in this market include Rheinmetall AG (Germany), BAE Systesms (UK), Gneral Dynamics Corporation (US), Elbit Systems Ltd. (Israel), and Oshkosh Corporation (US).
Based on the Vehicle Type, the Armored Personnel Carrier segment is estimated to grow at highest rate during the forecast period.
Based on the Vehicle type, the Armored Personnel Carrier is estimated to grow at highest rate. To keep Armored Personnel Carriers operational regular maintenance is essential, including preventive maintenance to identify and address issues before they become major problems, and corrective maintenance to fix any damage. Armored personnel carriers (APCs) are used for transporting troops and providing protection in combat situations. Sustainment services for Armored Personnel Carriers are crucial to enhance the operational readiness, longevity, and effectiveness of military vehicle.
Based on End User, the Army is anticipated to dominate the market.
Based on the End User, the Army holds the largest market share. Army uses ground vehicles like armored personnel carriers (APCs), tanks, and transport vehicles. The Army maintains huge fleet of these vehicles that require constant upkeep, maintenance, and logistical support. Military vehicle sustainment services includes maintenance, spare parts procurement, training for vehicle operators and maintainers, and upgradation. Due to more number of active fleet in operational the need for sustainment services rises in the Army to drive the military vehicle sustainment market.
The Asia Pacific market is projected to dominate Military Vehicle Sustainment market.
Asia Pacific is projected to dominate the Military Vehicle Sustainment market during the forecast period. India is projected to show highest growth rate for the Military Vehicle Sustainment market in Asia Pacific. The domination of the Military Vehicle Sustainment market in Asia Pacific can be attributed by the rapid modernization of military vehicles in the region. The Military Vehicle Sustainment market in India is predicted to develop and evolve in future years, owing to the privatization in military vehicle sustainment services.
Military Vehicle Sustainment Markett by Region
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Key Market Players
The Military Vehicle Sustainment companies is dominated by a few globally established players such as The Rhienmetall AG (Germany), BAE Systems (UK), General Dynamics Corporation (US), Elbit Systems Ltd. (Israel), and Oshkosh Corporation (US) are some of the leading players operating in the Military Vehicle Sustainment market; they are the key service providers that secured Military Vehicle Sustainment contracts in the last few years. Major focus was given to the contracts and new product development due to the changing requirements of government and defense.
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- Latest News, Updates & Trend analysis
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Report Metric |
Details |
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Market size available for years |
2020–2022 |
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Base year considered |
2022 |
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Forecast period |
2023-2028 |
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Forecast units |
Value (USD Billion) |
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Segments Covered |
By Vehicle Type, By Service, By End User |
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Geographies covered |
North America, Europe, Asia Pacific, Rest of the World |
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Companies covered |
Rheinmetall AG (Germany), BAE Systems (UK), General Dynamics Corporation (US), Elbit Systems Ltd. (Israel), and Oshkosh Corportaion (US) and among others. |
Military Vehicle Sustainment Market Highlights
The study categorizes Military Vehicle Sustainment market based on Forecast Type, Purpose, Industry,Organisation Size, and Region.
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Segment |
Subsegment |
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By Vehicle Type |
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By Service |
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By End User |
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By Region |
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Recent Developments
- In June 2023, Rheinmetall AG :- Rheinmetall AG presented a new solution for the mobile production of spare parts for military vehicles. The Mobile Smart Factory (MSF) offers metal 3D printing and postprocessing capabilities and is fully integrated into Rheinmetall’s IRIS (Integrated Rheinmetall Information System) digital ecosystem.
- In June 2022, General Dynamics Corporation : - General Dynamics Corporation demonstrated Autonomous Vehicle System (AVS) at CANSEC 2022. The AVS solution will optimize equipment performance and increase operational readiness to reduce the military's cost of ownership of vehicle fleets.
Frequently Asked Questions (FAQs) Addressed by the Report
Which are the major companies in the Military Vehicle Sustainment market? What are their major strategies to strengthen their market presence?
Some of the key players in the Military Vehicle Sustainment market Rheinmetall AG (Germany), BAE Systems (UK), General Dynamics Corporation (US), Elbit Systems Ltd. (Israel), and Oshkosh Corporation (US) and among others, are the key service providers that secured Military Vehicle Sustainment system contracts in the last few years.
What are the drivers and opportunities for the Military Vehicle Sustainment market?
The market for Military Vehicle Sustainment has grown substantially across the globe, especially in Asia Pacific. There is high demand of military vehicles globally to increase the fleet size. Due to this increased demand, there is an increased need for Military Vehicle Sustainment market with the necessary capabilities.
Which region is expected to grow at the highest rate in the next five years?
The market in the Asia Pacific region is projected to grow at the highest CAGR from 2023 to 2028, showcasing strong demand for Military Vehicle Sustainment services in the region. Several Asia Pacific countries and organizations are also actively investing in the development of Military Vehicles around the region.
What is the CAGR of the Military Vehicle Sustainment Market?
The CAGR of the Military Vehicle Sustainment Market is 7.0%
Which segment to show highest CAGR of the Military Vehicle Sustainment Market?
The Armored Personnel Carriers by Vehicle type to show highest growth rate during the forecasted year for Military Vehicle Sustainment Market
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The study involved four major activities in estimating the current size of the Military Vehicle Sustainment market. Exhaustive secondary research was done to collect information on the market, peer market, and parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
The ranking analysis of companies in the Military Vehicle Sustainment market was carried out using secondary data from paid and unpaid sources, as well as by analyzing the product portfolios and service offerings of key 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 referred for this research study included the conference and Expo of Military Vehicles, corporate filings such as annual reports, investor presentations, and financial statements of trade, business, and professional associations. The secondary data was collected and analyzed to arrive at the overall size of the market, which was validated by primary respondents.
Primary Research
Extensive primary research was conducted after obtaining information regarding the Military Vehicle Sustainment market scenario through secondary research. Several primary interviews were conducted with market experts from both the demand and supply sides across major countries of North America, Europe, and Asia Pacific. Primary data was collected through questionnaires, emails, and telephonic interviews. The primary sources from the supply side included various industry experts, such as Chief X Officers (CXOs), Vice Presidents (VPs), Directors from business development, marketing, product development/innovation teams, and related key executives from Military Vehicle Sustainment companies; service providers; distributors; and key opinion leaders.
Primary interviews were conducted to gather insights such as market statistics, data on revenue collected from the products and services, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also helped in understanding the various trends related to technology, application, vertical, and region. Stakeholders from the demand side, such as CIOs, CTOs, CSOs, and installation teams of the customer/end users who are using Military Vehicle Sustainment, were interviewed to understand the buyer’s perspective on the suppliers, products, component providers, and their current usage of Military Vehicle Sustainment and future outlook of their business which will affect the overall market.
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Market Size Estimation
The research methodology used to estimate the size of the Military Vehicle Sustainment market includes the following details.
- The top-down and bottom-up approaches were used to estimate and validate the size of the Military Vehicle Sustainment market. The research methodology used to estimate the market size includes the following details.
- The key players were identified through secondary research, and their market ranking was determined through primary and secondary research. This included a study of the annual and financial reports of the top market players and extensive interviews of leaders, including chief executive officers (CEO), 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 markets 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.
Military Vehicle Sustainment market size: Bottom-Up Approach
The bottom-up approach was employed to arrive at the overall size of the Military Vehicle Sustainment market from the revenues of the key players in the market.
Steps involved in the bottom-up approach:
- Historical, current, and future contracts, deals, and partnerships have been mapped based on press releases and company news Identifying the annual revenue of major companies operating in the Military Vehicle Sustainment market.
- By modeling estimations, the current and future volume of the land vehicles need to be delivered has been derived.
- The ASP of military vehicle sustainment services on each vehicle type (armored vehicles, military trucks) has been identified through company press releases, database and contracts, and maintenance expenditure limit sheets.
- Market = (Volume of vehicle types (armored vehicles, military trucks) that need to be delivered* ASP of military vehicle sustainment services).
Global Military Vehicle Sustainment Market Size: Top-Down Approach
- In the top-down approach, the overall market size was used to estimate the size of individual markets (mentioned in the market segmentation) acquired through percentage splits from secondary and primary research.
- The size of the most appropriate and immediate parent market has been used to calculate specific market segments to implement the top-down approach.
- Companies providing military vehicle sustainment services are included in the report.
- The total revenue of these companies has been identified through their annual reports and other authentic sources. In cases where annual reports are unavailable, company earnings have been estimated based on the number of employees, Factiva, ZoomInfo, press releases, and publicly available data.
- Company revenue has been calculated based on the various operating segments.
- All publicly available company contracts related to the military vehicle sustainment market have been mapped and summed up.
- Based on the parameters (contracts, agreements, partnerships, joint ventures, product matrix, secondary research), the share of military vehicle sustainment in each segment has been estimated.
Data Triangulation
After arriving at the overall market size, the total market has been split into several segments and subsegments. The data triangulation and market breakdown procedures explained below have been implemented, wherever applicable, to complete the overall market engineering process and arrive at the estimated market numbers for military vehicle sustainment segments and subsegments. The data has been triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market size was validated using the top-down and bottom-up approaches.
Report Objectives
- To define, describe, and forecast the size of the military vehicle sustainment market based on Vehicle type, Services and End User
- To forecast the size of the market segments with respect to four regions: North America, Europe, Asia Pacific, Middle East and the Rest of the World (RoW), along with their key countries
- To identify and analyze drivers, restraints, opportunities, and challenges influencing the growth of the market
- To identify the industry and technology trends prevailing in the military vehicle sustainment market
- To analyze micromarkets1 with respect to their individual growth trends, prospects, and contribution to the market
- To profile leading companies in the market based on their product portfolios, market shares, and key growth strategies
- To track and analyze competitive developments such as joint ventures, mergers, and product launches carried out by the key players in the market
Market Definition
The main aim of vehicle sustainment is to maximize the availability of the assets by minimizing downtime and lifecycle costs. Military vehicle sustainment refers to the process of maintaining and supporting military vehicles throughout their lifecycle to ensure their operational readiness and longevity. It involves activities aimed at preserving, repairing, upgrading, and managing military vehicles to sustain their functionality and combat effectiveness. The importance of military vehicle sustainment is to provide operational readiness, cost efficiency, and safety.
The military vehicle sustainment market includes a wide range of products and services that are essential to ensure military vehicles are operational, safe, and effective throughout their operational lifecycle.
Market Stakeholders
- Suppliers of Military Vehicles
- Software/Hardware/Service and Solution Providers
- Original Equipment Manufacturers (OEMs)
- Maintenance, Repair, and Overhaul (MRO) providers
Available Customizations
MarketsAndMarkets offers the following customizations for this market report:
- Additional country-level analysis of the Military Vehicle Sustainment market
- Profiling of additional market players (up to 5)
Product Analysis
- Product matrix, which provides a detailed comparison of the product portfolio of each company in the Military Vehicle Sustainment market
Growth opportunities and latent adjacency in Military Vehicle Sustainment Market