Infantry Fighting Vehicle Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The global infantry fighting vehicle (IFV) market is expected to reach a value of nearly $ 19.11 billion in 2023, with a projection of a high growth trajectory, bringing the market to $ 32.5 billion by 2032. This growth is reflected in a CAGR of 6.07% from 2024 to 2032, which demonstrates the demand for advanced military equipment that enhances combat capabilities on the battlefield. Several factors are driving this growth, such as the rising tensions in the world, the modernization of the armed forces of various countries, and the growing need for the development of armed forces in the region. The introduction of artificial intelligence and the integration of advanced armored systems with enhanced mobility features are also expected to play a major role in the future of the IFV market. These innovations not only increase the combat effectiveness of infantry, but also increase the survivability of infantrymen in combat situations. The major industry players, such as BAE Systems, General Dynamics, and Rheinmetall, are actively investing in research and development, establishing strategic alliances, and launching next-generation IFVs to meet the evolving needs of military operations. For example, BAE Systems is working on the development of a new armored vehicle, the AMPV, which reflects the trend of military vehicles towards greater flexibility and versatility.

Regional Market Size

Regional Deep Dive

The infantry fighting vehicle (IFV) market is characterized by a dynamic landscape across regions, driven by geopolitical tensions, modernization programs and technological developments. The demand for advanced IFVs is influenced by national defense strategies, budgetary allocations and the requirement for enhanced combat capabilities. Each region is characterized by its unique features, such as North America focusing on high-tech innovations, Europe focusing on cooperative defense initiatives, Asia-Pacific witnessing rapid military modernization, Middle East & Africa (MEA) dealing with regional conflicts, and Latin America focusing on defense cooperation to enhance security.

Europe

• The European Union is promoting collaborative defense projects, such as the European Defence Fund, which supports the development of next-generation IFVs, fostering partnerships among member states and companies like Rheinmetall and Nexter.
• Regulatory changes in defense procurement processes are encouraging transparency and competition, leading to increased participation from smaller defense firms in the IFV market.

Asia Pacific

• Countries like India and South Korea are investing heavily in indigenous IFV programs, such as the Indian Army's Future Ready Combat Vehicle (FRCV) initiative and South Korea's K21 IFV upgrades, to enhance their military capabilities.
• China's rapid military modernization includes the development of advanced IFVs like the ZBD-04, which are equipped with state-of-the-art technology, reflecting the region's focus on self-reliance in defense manufacturing.

Latin America

• Countries like Brazil and Colombia are exploring defense partnerships with nations such as the U.S. and Israel to modernize their IFV fleets, focusing on acquiring advanced technologies and enhancing operational capabilities.
• The regional emphasis on internal security and counter-insurgency operations is shaping the demand for versatile IFVs that can operate in diverse environments, leading to increased interest in multi-role vehicles.

North America

• The U.S. Army is currently advancing its Next Generation Combat Vehicle (NGCV) program, which aims to develop a new family of vehicles, including IFVs, that incorporate cutting-edge technologies such as artificial intelligence and autonomous systems.
• Lockheed Martin and BAE Systems are key players in the North American IFV market, with ongoing contracts for the development and production of the Armored Multi-Purpose Vehicle (AMPV) and the Bradley Fighting Vehicle upgrades, respectively.

Middle East And Africa

• The ongoing conflicts in the Middle East have led to increased demand for IFVs, with countries like the UAE and Saudi Arabia investing in modern armored vehicles to enhance their military capabilities.
• The collaboration between local defense manufacturers and international firms, such as the partnership between the UAE's NIMR Automotive and international defense contractors, is driving innovation and production in the IFV sector.

Did You Know?

“The first Infantry Fighting Vehicle, the Soviet BMP-1, was introduced in the 1960s and revolutionized armored warfare by combining the firepower of a tank with the troop-carrying capability of an armored personnel carrier.” — Military History Encyclopedia

Segmental Market Size

The IFV market is the most important for modern military operations and is currently growing steadily due to rising defense budgets and changing war strategies. The main drivers of demand are the need for increased protection and mobility of the infantry and the advancement of combat capabilities. The United States and Russia are investing heavily in the development of IFVs, which is a sign of the need to modernize the armed forces. The IFVs are currently being used in a mature way, with the best examples being the U.S. Army's Bradley Fighting Vehicle and the German Puma IFV, which are used in various military operations. The main use of IFVs is to transport infantry, carry out reconnaissance and provide direct fire support. The IFV market is driven by geopolitical tensions and increasing military spending, and the development of artificial intelligence and unmanned systems is shaping the future of IFVs and enhancing their combat capabilities and survivability.

Future Outlook

IFV market to grow at CAGR 6.07% from 2023 to 2032, from $19.11 billion to $32.49 billion. The increase in the defense budgets of the states is due to the growing tensions in the world and the need to increase the power of the armed forces. In the framework of modernization of the armed forces, the demand for IFVs equipped with the latest developments in artificial intelligence, automation and survivability is expected to increase significantly. In 2032, the share of modern IFVs in the armed forces of the states will exceed 60%, as countries will continue to place modernization and readiness for combat as a priority in their national security strategies. Technological developments, including improved armament, enhanced mobility and unified communications, will completely change the capabilities of IFVs. In addition, the growing demand for multi-role vehicles that can be adapted to various combat conditions will lead to a change in the design and structure of vehicles. Further growth will be driven by the need to enhance collective defense in the framework of the NATO collective defense system and the need to modernize the U.S. Army. The introduction of unmanned systems and the transition to hybrid propulsion will not only increase the efficiency of the operation of IFVs, but will also contribute to the achievement of the goals of sustainable development. As a result, the IFV market is expected to develop significantly and become an essential element in future military operations.