Confidence in global armoured vehicle market at a five-year high
To download the Report for free, click on cover
While confidence in the South American market wilted somewhat, the other burgeoning defence markets – the Middle East, Africa, and Asia-Pacific – offset this decline and was further consolidated by the muted yet robust response in Europe. It was the reinvigorated North American market though, which recovered from a miserable indictment in last year’s report where insecurity tripled over a 12 month period, that ultimately fortified opinion with 43 percent indicating they were ‘very confident’ in the future of the global market.
The backdrop of the Ukraine crisis, the violent rise of ISIL in Iraq and Syria, continued tension in the Middle East dappled with flourishes of hot conflict in the region, and the increasingly bitter territorial clashes between China and her neighbours has put further pressure on governments to bolster military capabilities and armoured vehicle fleets. Active or planned armoured vehicle procurement programmes in almost every major and developing military force in the world are testament to that. All are explored in detail throughout this report.
India has long been the go-to market for armored vehicle manufacturers and component suppliers but having sustained a third year-on-year decline with just 40 percent of respondents identifying it as a priority target market is industry losing patience with a market blighted by bureaucracy and hurdles? In contrast, markets in the Middle East – in particular Saudi Arabia, Turkey and the UAE – are increasingly seen as attractive export opportunities. Australia and Mexico were also signaled by respondents to be compelling markets over the next 10 years.
The threat from improvised explosive devices (IEDs) continues to be the most significant in a post-Afghanistan operating environment so investment and innovation in this area remains critical. As a result, Armoured Personnel Carriers (APCs) and Mine-Resistant Ambush-Protected (MRAP) vehicles will be in high demand despite a recent slump in orders for the latter as militaries seek increasingly lighter, more flexible and agile platforms. In parallel, it is apparent that demand for Light Armoured Vehicles (LAVs) will dwarf that for Main Battle Tanks (MBTs) in the future as the nature of warfare evolves and militaries encounter an ever more complex hybrid threat.
More armoured vehicle manufacturers and component suppliers are seeking to expand their global operations than ever but getting a foothold in new and emerging markets and understanding regional standards was identified as the key challenge for respondents. Invariably, help will come in the form of improved face-to-face engagement with regional military and industry leaders and collating intelligence on specific markets.
