Armored Personnel Carrier (APC) Market Size, Share, Russia-Ukraine War Impact & Industry Analysis, By Platform (Combat Vehicles, Combat Support Vehicles, and Unmanned Armored Ground Vehicles), By Propulsion (Conventional and Electric), By Mobility (Wheeled and Tracked), By System (Drive Systems, Structures & Mechanisms, Weapons & Ammunition Control Systems, Countermeasure Systems, Command & Control Systems, Navigation Systems, Observation & Display Systems, and Others), By Solution (Line Fit and Retrofit), and Regional Forecast, 2025-2032

The global armored personnel carrier (APC) market size was valued at USD 5.45 billion in 2024. The market is projected to grow from USD 5.82 billion in 2025 to USD 8.77 billion by 2032, exhibiting a CAGR of 6.00% during the forecast period. Europe dominated the APC market with a market share of 42.38% in 2024.

An armored personnel carrier (APC) is an extensive type of armored military vehicle designed to transport personnel and equipment in combat zones. These provide mobility and protection, allowing troops to move quickly and safely across battlefield terrain. Since World War I, APCs have become a common part of military equipment around the world.

APCs typically feature protection against small arms fire and artillery fire. Armor is usually composed of steel or aluminum. Some APCs are equipped with CBRN (chemical, biological, radiological, and nuclear) protection. Mobility APCs are designed to operate in a variety of terrain and weather conditions. Most of these can accommodate up to 10-20 soldiers and their equipment. Additionally, armament APCs may be equipped with light, general-purpose, or heavy machine guns, automatic grenade launchers, or missile systems for self-defense, thus supporting ground operations. Compared to infantry fighting vehicles (IFVs), APCs have less armament and are not designed to provide direct fire support in battle.

The global armored personnel carrier (APC) market is characterized by significant growth and competition among several key players. The primary companies involved in this sector are BAE Systems, General Dynamics Corporation, Lockheed Martin, and more. These companies are engaged in developing advanced technologies for APCs, focusing on enhancements in armor protection, mobility, and adaptability to various military needs. For instance, BAE Systems and Patria have been investing in new armor systems, while General Dynamics and Rheinmetall secure large government contracts to ensure stable revenue streams.

The COVID-19 pandemic had a multilevel influence on the global armored vehicle market, affecting various economies. While the pandemic initially caused manufacturing delays and supply chain disruptions, the defense sector's resilience, increased spending, and strategic initiatives have contributed to the market's gradual recovery and growth. Manufacturing operations were also highly affected as producers of automotive components, parts, and assembly lines experienced adverse effects. Companies faced logistical challenges, workforce shortages due to lockdowns and restrictions, and reduced operational capacities, hindering the market's functioning.

GLOBAL ARMORED PERSONNEL CARRIER (APC) MARKET KEY TAKEAWAYS

Market Size & Forecast:

• 2024 Market Size: USD 5.45 billion
• 2025 Market Size: USD 5.82 billion
• 2032 Forecast Market Size: USD 8.77 billion
• CAGR: 6.0% from 2025–2032

Market Share:

• North America held the largest market share in 2024 at 9.91%.

Key Country Highlights:

• Canada: Supplied 1,140 Roshel Senator APCs to Ukraine.
• U.S.: Delivered Strykers and 200 M113 APCs to Ukraine.
• India: Signed USD 144.79 million contract for 1,300 light specialist vehicles in 2021.
• Indonesia: Started licensed production of Harimau MMWT tanks in 2023.
• Egypt: Signed deal for 500 T-90MS tanks with Russia in 2022.

RUSSIA-UKRAINE WAR IMPACT

The Russia-Ukraine war has significantly impacted the growth of the armored personnel carrier (APC) market share, highlighting both the necessity and the challenges associated with these vehicles in modern warfare. APCs are crucial for transporting troops on the battlefield, protecting them from small arms fire, artillery shells, and rocket fragments.

Ukraine has received APCs from various countries as part of international aid. Canada has supplied 1,140 Roshel Senator APCs to Ukraine, making them one of the most widely used armored vehicle models in the conflict. However, these vehicles have faced operational challenges and have been reported as less effective near the frontlines, with some being damaged or destroyed.

The U.S. transferred Stryker APCs to Ukraine, but their performance in combat has been underwhelming. By mid-2024, dozens of Strykers had been destroyed. These APCs, based on a 1970s platform, were intended for low-intensity conflicts and have proven unready for full-scale battles against a well-equipped enemy. The U.S. authorized the supply of 200 M113 APCs to the Ukrainian military. The U.S. military maintains stocks of these APCs and their spares in Europe.

The conflict has exposed the vulnerability of older APC models to modern threats, including armed drones and precision-guided artillery. This is prompting countries, such as India, to seek urgent replacements for their aging fleets of armored fighting vehicles. The war has highlighted the necessity for armored vehicles in modern warfare.

ARMORED PERSONNEL CARRIER MARKET TRENDS

Advancements in Electric Technology for APCs have Emerged as a Key Trend in the Market

The hybrid electric drive systems enhance the silent movement of military vehicles while offering potential military benefits by reducing noise and improving stealth capabilities. Hybrid technology will ultimately reduce the military's reliance on fossil fuels and lead to various technological and operational advancements.

• In January 2022, the University of Wisconsin received a U.S. Army contract to explore the integration of hybrid powertrains into the fleet. Additionally, the U.S. Army's electric Light Reconnaissance Vehicle (eLRV) is expected to be equipped with a hybrid system prior to moving toward complete electrification. Furthermore, in January 2022, Oshkosh Defense introduced its electric military vehicle, eJLTV, which is a hybrid vehicle designed for troop transportation.

Rising demand for energy-efficient production processes, increasing safety and security concerns, the need for software systems that can predict component failure, changing workforce dynamics, increasing importance of regulatory compliance, and the implementation of APCs for manually uncontrollable processes are driving the APC market growth.

Industries are prioritizing APC systems to meet comprehensive control and optimization requirements, enhancing efficiency and precision in controlling process variables.

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MARKET DYNAMICS

MARKET DRIVERS

Growing Asymmetric Warfare Globally Contributes to Market Expansion

In asymmetric warfare, the parties or states involved possess unequal military assets, leading the weaker side to utilize unconventional arms and strategies to take advantage of their opponent's weaknesses. In the past ten years, political instability, along with economic, religious, and socio-cultural challenges, has intensified asymmetric warfare. Thus, it has allowed government entities to utilize combat vehicles to safeguard themselves against terrorist/rebel assaults and shield them against airborne and explosive attacks.

Moreover, these vehicles have turret gun systems designed for counterinsurgency operations. For instance, in Dec 2024, India deployed APCs in its operations against Naxalites in eastern India. Consequently, the upsurge in asymmetric warfare is expected to result in a surge of APCs across the globe.

Rising Demand for Next-Generation Military Vehicles Equipped with Advanced Weaponry Systems to Stimulate Market Growth

There is an increase in conflicts, terrorism, and warfare activities across the globe. This increase in violence and cross-border activities among Asian nations and other areas has led certain countries to enhance their military capabilities. Governments globally are utilizing contemporary Main Battle Tanks (MBTs), Light-Protected Vehicles (LPVs), Infantry Fighting Vehicles (IFVs), and various other vehicles to strengthen and support their military forces. Consequently, this factor could drive market growth throughout the forecast period.

In addition, developing countries are highly emphasizing sophisticated weapon systems, deploying vehicles to safeguard against diverse threats, and driving the armored personnel carrier (APC) market growth expansion. For example, in September 2021, the Royal Netherlands Army chose BAE Systems and contracted it a mid-life upgrade project for the CV9035NL along with the enhancement of the CV90 MkIV. Through this program, the company provided a new turret design. The overall worth of the contract was approximately USD 500 million.

MARKET RESTRAINTS

Electrical and Mechanical System Failures to Hinder Market Expansion

APCs are susceptible to mechanical stress from crossing rough terrains and logistical stress from different operations. These vehicles require consistent maintenance to operate properly and avoid malfunctions. Issues regarding vehicle upkeep and breakdown exist, including the fact that consistent maintenance is vital for automobiles. It encompasses regular checks, lubricating, cleaning, and substituting worn-out components. Nonetheless, the upkeep of the vehicle is more expensive than normal vehicles used.

Moreover, automobiles may encounter mechanical, electrical, and structural issues. Common failure modes include engine, transmission, suspension, and armor issues. Moreover, the effects of vehicle malfunction can vary from unsuccessful missions to fatalities. It is essential to guarantee that all vehicles are well-maintained and routinely inspected to reduce the likelihood of breakdowns. All these aspects hamper market growth.

SEGMENTATION ANALYSIS

By Platform

Combat Vehicles to Dominate the Market Due to the Growing Need for Infantry Mechanization and Modernization Initiatives

Based on the platform, the market has been segmented into combat vehicles, combat support vehicles, and unmanned armored ground vehicles.

The combat vehicles segment is anticipated to dominate the market during the forecast period. The growth of this segment is attributed to current and future needs for infantry mechanization and modernization initiatives in both developing and developed nations across the globe. For example, in July 2022, according to the Permanent Structured Cooperation Office (PESCO) of the European Union (EU), an initiative was started by EU member nations, including Italy, Finland, and Slovakia, for conducting RDT&E of a shared prototype for the creation of infantry fighting vehicles, amphibious assault vehicles, and a light APC. The shared prototype platform was aimed at facilitating quicker combat deployment maneuvers, ISR activities, logistics assistance, combat backing, command and control functions, and medical aid. It will also aid in providing interoperability among the armed forces of EU member states.

The unmanned armored ground vehicles segment will be the fastest-growing segment throughout the forecast duration. These unmanned vehicles can function in hazardous settings and are utilized for defense purposes. Consequently, the sector will expand more quickly as the need for creating and utilizing unmanned military crafts increases.

The combat support vehicles sector is anticipated to grow moderately throughout the forecast period, owing to its fire support, varied operational assistance, and additional functionalities.

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By Propulsion

Increasing Combats & Warfare Boosted Conventional Segment Growth

By propulsion, the market is segmented into conventional and electric.

The conventional segment led the market in 2024, driven by military modernization initiatives, including the electric propulsion technology, the ongoing Russia-Ukraine conflict, and shifting procurement priorities due to increasing combats, warfare, and global civil unrest. For example, in April 2022, Nadicorp Holdings Sdn Bhd and Nurol Makina supplied 20 Ejder Yalcin 4x4 wheeled APCs to Malaysian Battalion 850-5 (MALBATT 850-5) Contingent within the United Nations Interim Force in Lebanon (UNIFIL). These APCs were fitted with ASELSAN Stabilized Advanced Remote Weapon Platform (SARP) and Remote Weapon Station (RWS).

The electric segment is expected to grow with the highest CAGR during the forecast period. Many OEMs have thoroughly investigated hybrid vehicles to comply with the continuously rising emission and fuel efficiency regulations in the U.S., Europe, and Asia. Moreover, hybrid powertrain elements, encompassing power electronics and electric motor drives, have emerged as a method to enhance vehicle energy efficiency and market presence during the projected time frame.

• For example, in April 2022, the U.S. Army and Department of Defense aimed to overhaul its ground vehicle inventory by implementing electric and hybrid-electric propulsion technologies. Additionally, the U.S. Army has evaluated hybrid-electric versions of Humvees and Joint Light Tactical Vehicles. Furthermore, General Motors declared its plan to invest USD 35 billion in cutting-edge vehicle technology, which encompasses power and propulsion systems for electric cars.

By Mobility

Growing Need for Wheeled Mobility in Border Patrol Activities to Propel Segment Growth

The market has been divided into wheeled and tracked segments based on mobility.

The wheeled segment dominated the market in 2024 and is expected to grow during the forecast period. This is majorly due to its usefulness in special operations, troop deployment, border patrol activities, combat support tasks, such as command and control, and medical assistance for military forces. The increased need for 4X4 LAVs for intelligence, surveillance, reconnaissance (ISR), and transport uses is attributed to the military's heightened requirements. For example, in May 2020, China North Industries Group Corporation (NORINCO) created military vehicles with four wheels that can be airdropped, which began operating with the Chinese Air Force. The monitored category will experience substantial growth owing to a rise in the procurement of main battle tanks and vehicles used in challenging landscapes.

The tracked segment is projected to expand at a steady growth rate over the forecast period. Leading OEMs are concentrating on the conventional importance of slow-moving, heavily armored military vehicles, evolving into primary platforms that are lighter, quicker, agile, fuel-efficient, and designed for high-tempo operations. They also focus on platforms that fit effectively within the enemy's decision cycle and offer improved survivability through agility, terrain access, and tactical adaptability. These elements will drive the segment growth during the projection timeframe.

By System

Drive Systems Segment to Dominate Due to Increasing Need for Sophisticated Driving Systems

Based on system, the market is divided into drive systems, structures & mechanisms, weapons & ammunition control systems, countermeasure systems, command & control systems, navigation systems, observation & display systems, and others.

The drive systems segment dominated the market in 2024 and is projected to be the fastest-growing segment from 2025 to 2032. The increasing need for sophisticated driving systems by military forces from different countries is fueling the expansion of this segment in the market. Additionally, the rising demand for strong and resilient diesel engines also contributes to the segment growth. The need for turbine engines is also rising due to modernization efforts for main battle tanks.

Command and control systems will see a substantial increase as the demand for autonomous ground systems rises. Command and control (C2) systems in APCs are critical for enhancing battlefield communication, situational awareness, and operational efficiency. These systems integrate advanced technologies to ensure seamless coordination among military units.

By Solution

Growing Need to Boost Procurement Through Licensed Production in Emerging Nations to Contribute to the Retrofit Segment’s Growth

Based on solution, the market is divided into retrofit and line fit.

The retrofit segment dominated the market in 2024 and is expected to grow during the forecast period. The demand for licensed production is increasing in developing nations. Most countries rely on manufacturing trends instead of procurement from foreign OEMs or governments, fostering productive growth throughout the forecast period.

For instance, in September 2023, PT Pindad was responsible for the licensed product of 18 Harimau ultramodern medium-weight tanks (MMWT) (FNSS Kaplan MT MMWT) for the Indonesian Army. PT Pindad commenced the delivery of the Harimau MMWT in 2022, featuring a CMI Cockerill 3105 turret and a 105MM L-53 CV rifled gun with a GVW of 35 tons.

Additionally, developing countries are enhancing their vehicles with innovative systems to advance in warfare. For example, the U.S. Army states that the fortified unit, strategists, and researchers are creating technology prototypes made under the Advanced Targeting and Lethality Back System (ATLAS) initiative.

The line fit segment in the armored personnel carrier market refers to vehicles that are manufactured and delivered with pre-installed features and capabilities, as opposed to retrofitted or upgraded vehicles. This segment is significant for military forces looking for modern, ready-to-deploy solutions. The line fit segment in the APC market is growing due to increasing global security concerns, technological innovations, and modernization efforts by militaries worldwide. This segment emphasizes delivering ready-to-use vehicles equipped with state-of-the-art capabilities for diverse operational requirements. This segment is expected to capture 73% of the market share in 2025, registering a CAGR of 6% during the forecast period (2025-2032).

ARMORED PERSONNEL CARRIER MARKET REGIONAL OUTLOOK

The global Armored Personnel Carrier market is divided into North America, Europe, Asia Pacific, the Middle East, Africa, and Latin America, according to region.

Europe

Europe held the largest market share with a valuation of USD 2.11 billion in 2023 and USD 2.31 billion in 2024. The region is expected to experience steady growth throughout the forecast period. Amid the continuing conflict between Russia and Ukraine, the need for battle tanks is rising alongside the regions for APCs. Russia is likely to be valued at USD 1.18 billion in 2025. Furthermore, the current lineup of vehicles that are set to transit into the next generation of vehicles is expected to propel market expansion. For example, in May 2022, Rheinmetall BAE Systems Land (RBSL) granted a contract to Curtiss-Wright to deliver the Turret Drive Servo System (TDSS) for the upcoming British Army Challenger 3 main battle tank. Germany is projected to be worth USD 0.143  billion in 2025, while France is poised to hold USD 0.23 billion in the same year.

Middle East

The Middle East & Africa is the second largest region set to hold USD 1.23 billion in 2025 and record a significant CAGR of 6.30% during the forecast period (2025-2032), due to significant contributors, such as NIMR Automotive LLC, Koç Holding A.Ş., BMC Otomotiv Sanayi ve Ticaret A.S., STREIT Group, International Armored Group (IAG), Arab Organization for Industrialization (AOI), and EDGE Group. Since 2018, Turkey, the UAE, Saudi Arabia, and others have raised their defense budgets for domestically produced APCs. Turkey is set to reach a market value of USD 0.37 billion in 2025, while Egypt is estimated to hit USD 0.23 billion in the same year.

Africa

African market is foreseen to hold the third largest market share valued at USD 0.79 billion in 2025.The APC market is generating less profit in the MBT sector. Increasing procurement initiatives from South Africa, Egypt, and other nations are likely to enhance market growth globally. In April 2022, the Egyptian Ministry of Defense signed a deal with the Russian state-owned company Uralvagonzavod (UVZ) for a regular supply of 500 T-90MS MBTs in Egypt, whereby Uralvagonzavod will establish a facility to assemble the tanks using parts imported from Russia.

Latin America

Latin American countries are continuing the armed forces' modernization efforts. The increasing issues related to the illegal drug trade, militant terrorism, and economic & social inequality have fueled persistent violence, creating demand for these vehicles in the region. The acquisition of an APC for military troop deployment in urban areas of Latin America will increase the market growth.

North America

North America is the fourth largest market likely to reach USD 0.540 billion in 2025. The presence of key companies, including General Dynamics Corporation, Textron Systems, Oshkosh Defense, and others, is propelling market growth in North America. The U.S. market is poised to be valued at USD 0.5 billion in 2025.

Asia Pacific

Asia Pacific region is predicted to experience the significant growth during the forecast period, driven by rising defense expenditures by nations such as India, China, South Korea, Japan, and others. Heightened terrorism, transnational conflicts, and political strife have led to battles in Asian nations, propelling market expansion. The Chinese market is set to be valued at USD 0.13 billion in 2025. For example, in March 2021, the Indian Ministry of Defense entered into a USD 144.79 million contract with Mahindra Defense Systems Ltd (MDSL) to provide the Indian Army with 1,300 light specialist vehicles. Additionally, the Light Tactical Vehicle, a sophisticated tactical vehicle capable of transporting medium machine guns, automatic grenade launchers, and anti-tank guided missiles, is receiving approval for utilization by different combat units.

COMPETITIVE LANDSCAPE

KEY INDUSTRY PLAYERS

Key Players in the Market are Focused on Development of Military Vehicles and their Design

The Armored Personnel Carrier (APC) market includes numerous manufacturers involved in the development and design of military vehicles. These players focus on creating technologically advanced products and building solid relationships with governments in both developed and emerging nations.

A few of these participants include General Dynamics Corporation, BAE Systems, and Rheinmetall AG. In February 2021, the Prime Minister of India delivered the Arjun Main Battle Tank Mark-1A (MK-1A) to the Indian Army, which was created by the Defense Research and Development Organization (DRDO). The Arjun MBT Mk IA offers excellent mobility, outstanding firepower, exceptional protection, and crew comfort.

LIST OF KEY ARMORED PERSONNEL CARRIER COMPANIES PROFILED

• NORINCOGROUP.com Inc. (China)
• Oshkosh Defense, LLC  (U.S.)
• Otokar (Turkey)
• Rheinmetall AG (Germany)
• Krauss-Maffei Wegmann GmbH (Germany)
• Denel SOC Ltd (South Africa)
• IVECO DEFENCE VEHICLES (Italy)
• BAE Systems (U.K.)
• General Dynamics Corporation (U.S.)
• Textron Systems (U.S.)

KEY INDUSTRY DEVELOPMENTS

• December 2024 – The Polish Ministry of Defense finalized a deal to procure 80 Rosomak-L wheeled APCs for its military. The agreement, estimated at around 4.3 billion PLN (close to 1.2 billion USD), encompasses a complete set of logistical assistance and training services.
• October 2024 – The Romanian Ministry of Defense chose the Turkish company Otokar to deliver more than 1,000 light armored tactical military vehicles to the Romanian Army. Under the USD 934 million contract, excluding value-added tax, a total of 1,059 Cobra II Light Armored Tactical Wheeled Vehicles will be supplied.
• May 2024 – Imco Industries revealed a deal valued at USD 105.6 million with the Israeli Defense Ministry. The long-term contract assigns Imco the responsibility of creating and supplying electrical systems and subsystems for the armored vehicles of the Israel Defense Forces (IDF), which includes the Merkava tank as well as the Namer and Eitan armored personnel carriers.
• March 2024 – The U.S. Army granted BAE Systems a USD 754.3 million contract for additional Armored Multi-Purpose Vehicles, or AMPVs, intended to replace outdated M113 armored personnel carriers. The agreement, revealed on Wednesday, establishes an anticipated delivery date of February 2027.
• January 2023 – Oshkosh Defense, a subsidiary entirely owned by Oshkosh Corporation, declared that the Israeli Ministry of Defense (IMOD) has chosen Oshkosh Defense to manufacture the APC hulls for the Israeli Defense Forces. Under this contract, which is worth more than USD 100 million, Oshkosh Defense will manufacture hundreds of Eitan APC main bodies.

REPORT COVERAGE

The research report delivers an in-depth market analysis and emphasizes critical factors, such as top companies, product categories, and primary applications. In addition, the report provides an overview of the market and emphasizes important industry trends and developments. Along with the aforementioned factors, the report includes various elements that have played a role in the market's growth in recent years.

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Report Scope & Segmentation