Military Vehicle Sustainment Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Armored Vehicles, Military Trucks), By Service (Maintenance, Repair, & Overhaul (MRO), Training and Support, Parts and Components Supply, Upgrades and Modernization), By End User (Army, Navy, Air Force), By Region, By Competition, 2020-2030F

 Market Overview

The Global Military Vehicle Sustainment Market was valued at USD 17.22 Billion in 2024 and is expected to reach USD 25.85 Billion by 2030 with a CAGR of 7.07% during the forecast period. The demand for sustainment services for aging military vehicles is increasing. These services are essential for keeping military vehicles operational. Government support and rising investments are driving the development of military vehicles, further accelerating the growth of the Military Vehicle Sustainment market. These services improve vehicle efficiency and extend the lifespan of military assets. Various maintenance approaches, such as condition-based maintenance and predictive maintenance, are employed to ensure the optimal functioning of military vehicles.

The military vehicle sustainment sector is experiencing a significant shift towards the development of next-generation armored vehicles and comprehensive product line improvements. Modernization efforts are focused on enhancing vehicle capabilities and ensuring they meet evolving operational demands. Manufacturers are placing a strong emphasis on innovation and flexibility in their designs to address a wide range of customer requirements. In February 2024, EDGE Group’s NIMR introduced the JAIS Mark 2 (MK2), showcasing the successful development of its next-generation armored vehicle series. As a leading manufacturer of combat-tested wheeled military vehicles, NIMR unveiled the second-generation JAIS MK2 at the World Defense Show (WDS) 2024.

Market Drivers

Rising Defense Budgets and Military Modernization

As geopolitical tensions persist and security concerns intensify, countries are significantly increasing their defense budgets to modernize their military assets, including land-based vehicles. The ongoing modernization of military vehicles, incorporating cutting-edge technologies such as advanced armor, autonomous systems, and propulsion systems, is driving the need for sustained maintenance. These modern vehicles require specialized maintenance, repair, and overhaul (MRO) services to ensure their readiness and operational efficiency. Additionally, military fleets are aging, necessitating a continuous investment in vehicle sustainment to avoid performance degradation. The modernization of existing fleets and the procurement of new vehicles further fuel demand for sustainment services, as these complex systems require regular updates, maintenance, and parts replacement to stay operational. General Dynamics Land Systems received a USD 712.3 million order from the U.S. Army for 300 Stryker DVHA1 vehicles. This contract strengthens the capabilities of Stryker brigades by incorporating advanced technologies, including a high-performance engine, durable suspension, and integrated digital networking.

Technological Advancements in Military Vehicles

Technological advancements are a crucial driver of the military vehicle sustainment market. Modern military vehicles are becoming increasingly sophisticated, integrating technologies like artificial intelligence, GPS, hybrid propulsion, and autonomous systems. These innovations provide significant operational advantages but also create new challenges for vehicle sustainment. For instance, maintaining and repairing advanced sensors, communication systems, and vehicle electronics demands specialized skills and equipment. The integration of smart diagnostics, predictive maintenance systems, and enhanced vehicle tracking technology is making vehicle sustainment more efficient and cost-effective. Consequently, the adoption of these advanced technologies necessitates the development of more advanced maintenance strategies, further driving the growth of the sustainment market. In June 2023, the U.S. Army selected General Dynamics Land Systems, a division of General Dynamics, to advance to the detailed design, prototype production, and testing phases of the XM30 Mechanized Infantry Combat Vehicle competition. The XM30, part of the Army’s next-generation infantry fighting vehicle program, is set to replace the Bradley Fighting Vehicle and was previously known as the Optionally Manned Fighting Vehicle (OMFV). The U.S. Army Contracting Command awarded General Dynamics Land Systems a $768.7 million firm-fixed-price contract for Phase III and IV, which includes detailed design, prototype production, and testing.

Extended Vehicle Lifespan and Upgrades

As military budgets tighten and procurement cycles lengthen, there is a growing emphasis on extending the lifespan of existing military vehicles. Rather than purchasing entirely new fleets, many countries focus on upgrading their current assets with modern components and systems to extend their operational lifespan. These upgrades often involve replacing obsolete parts, enhancing capabilities, and improving vehicle performance. Such initiatives require ongoing sustainment efforts, including regular inspections, maintenance, and parts replacement. This trend significantly contributes to the demand for vehicle sustainment services, as extended lifespans result in greater long-term service needs, driving sustained market growth. 

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Key Market Challenges

Aging Military Fleets and Rising Maintenance Costs

One of the most significant challenges in the Global Military Vehicle Sustainment Market is the aging of military vehicle fleets. Many nations rely on military assets that were procured decades ago, and over time, these vehicles experience increased wear and tear. As fleets age, the cost of maintenance, repair, and overhaul (MRO) rises substantially. Older vehicles often require more frequent repairs, and the availability of replacement parts can become limited, leading to higher procurement costs for obsolete components. Additionally, the extended downtime of aging vehicles impacts operational readiness and efficiency, which is a critical concern for military forces during periods of heightened operational demand. Maintaining older vehicles also requires specialized knowledge and skill sets that may be scarce, as fewer personnel are trained on legacy systems. The challenge of balancing the high costs associated with these older fleets with budget constraints forces military forces to adopt innovative sustainment strategies, such as retrofitting, system upgrades, and modular replacements, to maintain the fleet’s effectiveness.

Complexity of Modern Military Vehicle Systems

Modern military vehicles are becoming increasingly complex, incorporating advanced technologies like autonomous systems, sophisticated sensors, AI-based navigation, and integrated communication systems. These advancements, while enhancing vehicle capabilities, also introduce challenges in maintenance and repair. Maintaining these complex systems demands specialized knowledge, tools, and diagnostic capabilities. Traditional sustainment approaches often fail to address the intricacies of modern military vehicles, requiring more advanced training for technicians and engineers. Additionally, the integration of numerous high-tech systems makes it harder to identify issues and execute repairs quickly, resulting in longer downtime. Furthermore, the global supply chain for advanced components and technologies can be fragile, making it difficult to procure specific parts for these high-tech systems, further complicating sustainment efforts.

Supply Chain and Logistical Challenges

Efficient and timely supply chain management is a critical component of military vehicle sustainment, yet it remains a significant challenge. The global nature of military operations often means that parts and maintenance services must be delivered quickly and efficiently to remote or austere locations, which can be hindered by geopolitical tensions, trade restrictions, or logistical bottlenecks. Military sustainment programs require robust and resilient supply chains, capable of supporting the maintenance needs of vehicles in various operational environments. Delays in obtaining parts, poor coordination between suppliers, and lack of access to key materials or skilled labor can lead to prolonged downtime, affecting the overall operational readiness of military forces. These logistical challenges necessitate enhanced strategies for inventory management, parts procurement, and distribution to ensure that military vehicles are always ready for deployment when needed.

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Key Market Trends

Adoption of Predictive Maintenance and Smart Technologies

A major trend in the Global Military Vehicle Sustainment Market is the increasing adoption of predictive maintenance and smart technologies. By leveraging data analytics, Internet of Things (IoT) devices, and artificial intelligence (AI), military forces can predict potential failures before they occur. Sensors embedded within vehicles monitor key parameters like engine temperature, pressure levels, and component wear. This real-time data is then analyzed using AI algorithms to forecast when a vehicle is likely to require maintenance or experience a breakdown. Predictive maintenance not only helps in reducing downtime but also optimizes the lifecycle of military vehicles, making maintenance more cost-effective. Instead of relying on routine inspections or reactive repairs, military organizations can now take a more proactive approach, addressing issues before they lead to operational disruptions. This trend is gaining momentum due to the growing availability of affordable IoT sensors, cloud computing, and the advancement of AI technology, making it increasingly feasible to implement on a large scale.

Sustainment through Modular Design and Upgrades

Another key trend is the focus on modular design and system upgrades to prolong the lifespan of military vehicles. As defense budgets face constraints, military forces are opting to upgrade existing vehicles rather than procure new ones. Modular vehicle designs facilitate easier and more cost-effective upgrades, as specific components or systems can be replaced or enhanced without requiring a complete overhaul of the entire vehicle. This approach is especially beneficial for improving the technological capabilities of older vehicles, such as adding new communication systems, advanced armor, or hybrid propulsion systems. The flexibility offered by modular designs makes it easier to adapt vehicles to changing mission requirements without the need for entirely new platforms. This trend is particularly prominent in military sectors seeking to modernize without incurring the high costs associated with purchasing entirely new fleets. Modular design and upgrades are becoming integral to vehicle sustainment strategies, ensuring the continued relevance of military fleets.

Segmental Insights

End User Insights

The Army holds the largest market share in the Global Military Vehicle Sustainment Market due to its extensive reliance on ground-based vehicles for various operations. Armies worldwide maintain a vast fleet of combat vehicles, logistics trucks, armored personnel carriers, and other military transport vehicles, all of which require continuous sustainment to ensure operational readiness. The Army’s heavy use of military vehicles for both combat and logistical support creates a constant need for maintenance, repairs, and upgrades. Additionally, many countries prioritize investing in their army’s vehicle fleet due to the critical role these vehicles play in defense strategies. As military vehicles age, the demand for sustainment services increases, including retrofitting, system enhancements, and repairs to extend the vehicle’s lifespan. The Army’s emphasis on vehicle readiness, combined with the size and scope of its fleets, makes it the dominant end user in the military vehicle sustainment market. 

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Regional Insights

North America dominated the Global Military Vehicle Sustainment Market due to its substantial defense budgets, advanced technological capabilities, and the size of its military fleets. The United States, as a leading global military power, invests heavily in maintaining its vast array of military vehicles, which include combat vehicles, tactical trucks, and armored personnel carriers. The U.S. Army, Navy, and Marine Corps require constant sustainment to ensure these vehicles remain operational in diverse environments. Moreover, North America is at the forefront of adopting advanced sustainment technologies, such as predictive maintenance, AI-driven diagnostics, and modular upgrades, which further contribute to market growth. The region also benefits from robust defense contractors and suppliers, enhancing the efficiency of vehicle maintenance and parts procurement. Additionally, geopolitical concerns, particularly in relation to global security and defense commitments, drive continuous demand for vehicle sustainment services in North America, solidifying its market dominance.

Recent Developments

• In 2023, Rheinmetall AG introduced an innovative solution for the mobile production of spare parts for military vehicles. The Mobile Smart Factory (MSF) features metal 3D printing and post-processing capabilities, fully integrated into Rheinmetall’s IRIS (Integrated Rheinmetall Information System) digital ecosystem.
• In 2024, BAE Systems was awarded a USD 318 million services contract to support the U.S. Army's fleet of M109A6 and A7 self-propelled howitzers, along with their associated vehicles. The contract covers the provision of lifecycle sustainment and technical services.
• In 2023, Pratt & Whitney was awarded an USD 870 million contract by the Defense Logistics Agency to sustain TF33 engines, which power the Boeing B-52 Stratofortress and E-3 Sentry aircraft. This long-term agreement aims to enhance the USAF's readiness, providing extensive maintenance and support services.
• In 2023, Elbit America has opened a new combat vehicle assembly and integration center of excellence in North Charleston, South Carolina, making a significant investment in the region. The facility is designed to support the U.S. military by offering essential vehicle sustainment and integration services, enhancing the capabilities and readiness of both American and allied forces.

Key Market Players

• Rheinmetall AG
• BAE Systesms
• Gneral Dynamics Corporation
• Elbit Systems Ltd.
• Oshkosh Corporation 
• Lockheed Martin Corporation
• L3Harris Technologies Inc.
• Thales Group
• ManTech International Corporation
• Honeywell International Inc.

Report Scope:

In this report, the global Military Vehicle Sustainment Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·         Military Vehicle Sustainment Market, By Vehicle Type:

o   Armored Vehicles

o   Military Trucks

·         Military Vehicle Sustainment Market, By Service:

o   Maintenance, Repair, & Overhaul (MRO)

o   Training and Support

o   Parts and Components Supply

o   Upgrades and Modernization

·         Military Vehicle Sustainment Market, By End User:

o   Army

o   Navy

o   Air Force

·         Military Vehicle Sustainment Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe & CIS

§  France

§  Germany

§  Spain

§  Italy

§  United Kingdom

o   Asia-Pacific

§  China

§  Japan

§  India

§  Vietnam

§  South Korea

§  Australia

§  Thailand

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Turkey

o   South America

§  Brazil

§  Argentina

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the global Military Vehicle Sustainment Market.

Available Customizations:

Global Military Vehicle Sustainment Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).