"The global Armored Vehicle Upgrade And Retrofit Market was valued at $ 8.3 billion in 2025 and is projected to reach $ 12.6 billion by 2034, growing at a CAGR of 4.8%."
Armored Vehicle Upgrade And Retrofit Market
The Armored Vehicle Upgrade and Retrofit market is growing as military forces and law enforcement agencies seek to extend the operational lifespan of existing armored fleets. Instead of procuring new vehicles, many organizations are opting for cost-effective upgrades that enhance survivability, mobility, and firepower. Upgrades include advanced composite armor, active protection systems (APS), AI-driven situational awareness tools, and next-generation communication systems. Rising geopolitical tensions and asymmetric warfare threats are driving governments to invest in modernizing their armored vehicle fleets to maintain operational readiness.
In 2024, the market saw increased demand for modular upgrade solutions, allowing for quick integration of new armor technologies and electronic warfare systems. AI-powered battlefield analytics were incorporated into upgraded vehicles, providing enhanced real-time decision-making capabilities. The adoption of hybrid-electric propulsion systems in armored vehicles gained traction, improving fuel efficiency and reducing thermal signatures. Additionally, unmanned turret systems and remote weapon stations were widely deployed, allowing for safer and more effective combat operations. Cybersecurity became a key focus, with upgraded armored vehicles featuring advanced encryption and network security measures.
By 2025 and beyond, the integration of autonomous navigation systems in retrofitted armored vehicles will become more prevalent, reducing soldier exposure to high-risk environments. Quantum-resistant communication systems will be adopted to counter next-generation cyber threats. Advanced composite armor with shape-memory alloys will improve vehicle protection and adaptability. AI-driven predictive maintenance will optimize vehicle readiness and reduce downtime. As military forces seek greater operational flexibility, modular upgrade kits will allow rapid adaptation to evolving battlefield conditions.
Key Insights_ Armored Vehicle Upgrade And Retrofit Market
- Rise in modular armor and electronic upgrade packages for cost-effective vehicle modernization.
- Increased adoption of AI-powered battlefield analytics for situational awareness.
- Growth in hybrid-electric propulsion systems for improved fuel efficiency and stealth.
- Deployment of unmanned turrets and remote weapon stations in retrofitted vehicles.
- Enhanced focus on cybersecurity in armored vehicle communication networks.
- Need for cost-effective alternatives to new armored vehicle procurement.
- Rising threats from asymmetric warfare and urban combat scenarios.
- Technological advancements in armor, propulsion, and communication systems.
- Government investments in military modernization and defense readiness.
- Integration complexity when retrofitting older vehicle platforms with new technologies.
Market Scope
| Parameter | Armored Vehicle Upgrade and Retrofit Market scope Detail |
| Base Year | 2024 |
| Estimated Year | 2025 |
| Forecast Period | 2026-2032 |
| Market Size-Units | USD billion |
| Market Splits Covered | By Design, By Vehicle Type, By Armor Level Type, By Point of Sale |
| Countries Covered | North America (USA, Canada, Mexico) |
| Analysis Covered | Latest Trends, Driving Factors, Challenges, Trade Analysis, Price Analysis, Supply-Chain Analysis, Competitive Landscape, Company Strategies |
| Customization | 10% free customization (up to 10 analyst hours) to modify segments, geographies, and companies analyzed |
| Post-Sale Support | 4 analyst hours, available up to 4 weeks |
| Delivery Format | The Latest Updated PDF and Excel Data file |
Armored Vehicle Upgrade And Retrofit Market Segmentation
By Design
- Wheeled Armored Vehicles
- Tracked Armored Vehicles
By Vehicle Type
- Tactical Truck
- Main Battle Tanks (MBT)
- Assault Amphibious Vehicles (AAV)
- Armored Personnel Carrier (APC)
- Armored Recovery Vehicle
- Armored Fighting Vehicle
- Other Vehicle Types
By Armor Level Type
- Rifle
- Mine Resistant
By Point of Sale
- Original Equipment Manufacturer (OEM)
- Retrofit
By Geography
- North America (USA, Canada, Mexico)
- Europe (Germany, UK, France, Spain, Italy, Rest of Europe)
- Asia-Pacific (China, India, Japan, Australia, Vietnam, Rest of APAC)
- The Middle East and Africa (Middle East, Africa)
- South and Central America (Brazil, Argentina, Rest of SCA)
Key Companies Analysed
Hyundai Motor Group, SAIC Motor Corporation Limited., Hanwha Group, Tata Motors Limited, General Dynamics Corporation, Northrop Grumman Corporation, Mitsubishi Heavy Industries Ltd., Rostec State Corporation, BAE Systems PLC, Lockheed Martin Corporation, Thales Group, L3Harris Technologies Inc., Leonardo S.p.A., Iveco S.p.A, Textron Inc., Navistar Inc., ST Engineering, Oshkosh Corporation, Rheinmetall AG, Elbit Systems Ltd., Nexter Systems, Krauss-Maffei Wegmann GmbH and Co. KG, Ukroboronprom, RUAG Holding, AM General LLC, Patria Plc., CMI Group Inc., FNSS Savunma Sistemleri AS., Denel Land Systems, MKU Limited.
Recent Developments
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Jan 2026 – Elbit Systems: Won new contracts (about $150M) to supply its Iron Fist Active Protection System (APS) for integration on European NATO CV90 IFVs, expanding fleet survivability upgrades against modern anti-armor threats.
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Dec 2025 – Rheinmetall & KNDS (PSM JV): Signed an expanded Bundeswehr Puma program agreement, with a planned S2 configuration upgrade to address obsolescence and add new capabilities (including enhanced counter-UAS features), extending the Puma modernization roadmap.
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Dec 2025 – Patria & Rosomak S.A.: Extended their 8×8 vehicle manufacturing collaboration to 2034, enabling long-term lifecycle support, modernization packages, and domestic upgrade flexibility for in-service fleets and future variants.
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Nov 2025 – Elbit Systems: Secured about $210M in contracts from the Israel MoD for tank upgrades, covering advanced systems integration and modernization work to enhance protection, lethality, and digital battlefield connectivity.
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Sep 2025 – Rheinmetall BAE Systems Land (RBSL): Reported a key Challenger 3 testing milestone, supporting the UK’s MBT upgrade program focused on improved firepower, protection, and digital architecture.
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Aug 2025 – Rheinmetall: Signed a 7-year Leopard 2A4 service and sustainment contract with the Czech Ministry of Defence (including Bergepanzer support), strengthening lifecycle maintenance and readiness for upgraded NATO-standard armored fleets.
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Jul 2025 – General Dynamics Land Systems (GDLS): Awarded a U.S. Army contract to support the Abrams Engineering Program, advancing modernization work streams tied to next-configuration requirements, design activities, and technology insertion.
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May 2025 – GDLS & WZM (Poland): Signed a framework agreement to build local capabilities to support and sustain Abrams fleets in Europe, expanding depot-level maintenance and long-term modernization support infrastructure.
Research Methodology
Our research methodology combines primary and secondary research techniques to ensure comprehensive market analysis.
Primary Research
We conduct extensive interviews with industry experts, key opinion leaders, and market participants to gather first-hand insights.
Secondary Research
Our team analyzes published reports, company websites, financial statements, and industry databases to validate our findings.
Data Analysis
We employ advanced analytical tools and statistical methods to process and interpret market data accurately.
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FAQ's
The Global Armored Vehicle Upgrade And Retrofit Market is estimated to generate USD 8.3 billion in revenue in 2025.
The Global Armored Vehicle Upgrade And Retrofit Market is expected to grow at a Compound Annual Growth Rate (CAGR) of 4.84% during the forecast period from 2025 to 2034.
The Armored Vehicle Upgrade And Retrofit Market is estimated to reach USD 12.6 billion by 2034.
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