Key Insights

The North American armored fighting vehicles (AFV) market, valued at $6.51 billion in 2025, is projected to experience robust growth, driven by increasing defense budgets, modernization initiatives, and geopolitical instability. The market's Compound Annual Growth Rate (CAGR) of 5.18% from 2025 to 2033 indicates a steady expansion, fueled by the ongoing demand for advanced military equipment and technological upgrades within the region. Key market segments include Armored Personnel Carriers (APCs), Infantry Fighting Vehicles (IFVs), and Main Battle Tanks (MBTs), each contributing significantly to the overall market value. The United States, as the largest military spender in North America, dominates the market, followed by Canada and Mexico. However, increased investments in defense capabilities by Mexico, driven by regional security concerns, are expected to contribute to growth within the region. Leading companies such as Textron, Thales, Oshkosh, General Dynamics, and BAE Systems are actively engaged in developing and supplying cutting-edge AFVs to meet the evolving demands of North American armed forces.

Technological advancements, particularly in areas such as improved armor protection, enhanced situational awareness systems, and advanced weaponry integration, are pivotal trends shaping the market. The integration of unmanned systems and autonomous technologies into AFVs is gaining traction, promising enhanced battlefield effectiveness and reduced risks to soldiers. However, market growth might face some restraints, including fluctuating defense budgets, competition from international manufacturers, and the high costs associated with research and development of new AFV technologies. Despite these challenges, the overall market outlook for North American armored fighting vehicles remains positive, driven by the enduring need for modernized defense capabilities and proactive strategic investments from various stakeholders. The industry’s focus on enhancing technological capabilities, alongside continuous investments in research and development, suggests a future trajectory of continued market expansion.

This comprehensive report provides an in-depth analysis of the North American armored fighting vehicles (AFV) industry, encompassing market dynamics, growth trends, key players, and future outlook. With a focus on the parent market of defense spending and the child market of land-based military vehicles, this report is essential for industry professionals, investors, and strategic decision-makers. The study period covers 2019-2033, with a base year of 2025 and a forecast period of 2025-2033. Market values are presented in millions of USD.

North America Armored Fighting Vehicles Industry Market Dynamics & Structure

The North American armored fighting vehicles market is characterized by moderate concentration, with a few major players dominating the landscape. Technological innovation, driven by demands for enhanced protection, mobility, and firepower, significantly shapes market dynamics. Stringent regulatory frameworks and export controls influence market access and competition. Substitutes, although limited, include unmanned ground vehicles (UGVs) and other technological advancements in military hardware. End-user demographics are primarily government defense departments, with the US and Canada holding the largest market shares. Mergers and acquisitions (M&A) activity remains relatively frequent, consolidating market power and facilitating technological integration.

• Market Concentration: Highly concentrated, with the top 5 players holding approximately xx% of the market share in 2024.
• Technological Innovation Drivers: Advanced materials, AI-powered systems, improved survivability technologies, and autonomous capabilities.
• Regulatory Frameworks: Stringent export controls and defense procurement regulations influence market dynamics.
• M&A Trends: Consolidation continues through strategic acquisitions of smaller companies by larger players, reaching xx deals in the historical period.
• Innovation Barriers: High R&D costs, lengthy testing and certification processes, and security considerations.

North America Armored Fighting Vehicles Industry Growth Trends & Insights

The North American AFV market experienced steady growth during the historical period (2019-2024), driven by increasing defense budgets and modernization initiatives. The market size reached xx million units in 2024 and is projected to reach xx million units by 2033, exhibiting a CAGR of xx% during the forecast period (2025-2033). Adoption rates vary across vehicle types, with APCs and IFVs witnessing higher demand compared to MBTs. Technological disruptions, particularly in areas such as autonomous systems and improved sensor technologies, are expected to accelerate market growth. Shifting geopolitical dynamics and an emphasis on asymmetric warfare are also contributing to increased procurement.

Dominant Regions, Countries, or Segments in North America Armored Fighting Vehicles Industry

The United States dominates the North American armored fighting vehicles market, accounting for the largest share of both production and consumption. Canada is a significant secondary market, driven by ongoing military modernization programs. Within vehicle types, Armored Personnel Carriers (APCs) hold the largest market segment due to their versatility and adaptability to various operational needs.

• United States: Dominant due to substantial defense spending, a large army, and a robust domestic manufacturing base.
• Canada: Significant market driven by military modernization and border security concerns.
• APC Segment: Largest segment owing to widespread use and relatively lower acquisition cost compared to IFVs and MBTs.
• IFV Segment: Strong growth driven by modernization programs focused on improved infantry mobility and firepower.
• MBT Segment: Market size is smaller than APC and IFV segments, but it is expected to grow in the coming years.
• Other Vehicle Types: This segment includes specialized armored vehicles like reconnaissance vehicles, command vehicles, and engineering vehicles which has relatively smaller market size but is expected to grow due to its important role in the military.

North America Armored Fighting Vehicles Industry Product Landscape

The product landscape is characterized by a wide array of armored fighting vehicles, ranging from lightweight APCs to heavy MBTs. Recent innovations focus on increased protection through advanced armor materials and composite structures, enhanced mobility via improved suspension systems and powertrains, and improved firepower through the integration of advanced weapon systems and precision-guided munitions. Unique selling propositions often include tailored configurations to meet specific operational needs and the integration of advanced technologies such as active protection systems.

Key Drivers, Barriers & Challenges in North America Armored Fighting Vehicles Industry

Key Drivers:

• Increasing defense budgets in the US and Canada.
• Modernization of existing fleets and replacement of outdated equipment.
• Growing demand for enhanced protection and technological upgrades.
• Geopolitical instability and increased regional conflicts.

Key Challenges:

• High manufacturing costs and lengthy production cycles.
• Supply chain disruptions and dependence on global suppliers.
• Stringent regulatory compliance requirements and export controls.
• Intense competition amongst established and emerging players.

Emerging Opportunities in North America Armored Fighting Vehicles Industry

• Development and integration of autonomous systems and AI capabilities.
• Increased demand for specialized armored vehicles such as mine-resistant ambush protected (MRAP) vehicles.
• Opportunities in the export market, particularly in allied nations.
• Growing demand for hybrid and electric-powered armored vehicles, aimed at reducing fuel consumption and emissions.

Growth Accelerators in the North America Armored Fighting Vehicles Industry

Long-term growth is expected to be fueled by continuous technological advancements, strategic partnerships between defense contractors and technology firms, and expansion into new international markets. Increased focus on cybersecurity and integration of advanced communication systems will further drive market growth. Government investments in R&D and modernization initiatives remain critical drivers.

Key Players Shaping the North America Armored Fighting Vehicles Market

• Textron Inc
• THALES
• Oshkosh Corporation
• General Dynamics Corporation
• Rheinmetall AG
• Elbit Systems Ltd
• QinetiQ Group
• AM General LLC
• Leonardo S p A
• BAE Systems plc
• HDT Global

Notable Milestones in North America Armored Fighting Vehicles Industry Sector

• November 2022: BAE Systems plc awarded a USD 32 million contract by the US DoD to supply M2A4 and M7A4 Bradley fighting vehicles to the US Army.
• November 2022: The Canadian military contracted General Dynamics Corporation for USD 165 million to acquire 39 additional light-armored vehicles.

In-Depth North America Armored Fighting Vehicles Industry Market Outlook

The North American armored fighting vehicles market is poised for sustained growth over the forecast period, driven by a combination of factors including increased defense spending, technological innovation, and geopolitical uncertainties. Strategic partnerships, focused R&D initiatives, and a shift towards advanced technologies, such as autonomous systems, will play a crucial role in shaping the future market landscape. Opportunities exist for companies that can adapt to evolving operational requirements and provide innovative, cost-effective solutions.

North America Armored Fighting Vehicles Industry Segmentation

• 1. Vehicle Type
  • 1.1. Armored Personnel Carrier (APC)
  • 1.2. Infantry Fighting Vehicle (IFV)
  • 1.3. Main Battle Tank (MBT)
  • 1.4. Other Vehicle Types
• 2. Geography
  • 2.1. United States
  • 2.2. Canada

North America Armored Fighting Vehicles Industry Segmentation By Geography

• 1. United States
• 2. Canada