Military Vehicle Electrification Market Growth Size [2031]

Report Description

Military Vehicle Electrification Market Outlook 2031

The global military vehicle electrification market size was valued at USD 3.1 Billion in 2022 and is likely to reach USD 42.61 Billion by 2031, expanding at a CAGR of 33.8% during 2023 – 2031. The market growth is attributed to the growing adoption of modern military vehicles.

Growing adoption of modern military vehicles is projected to boost the demand for military vehicle electrification during the forecast period. Military forces across the globe are adopting modern military vehicles that require electrification to supply electric power to several computer systems, cooling systems, and air-conditioning systems. Therefore, the rising demand for modern military vehicles is propelling the market.

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The demand for military vehicle electrification is rapidly rising in combat, support, and unmanned armored vehicles, as they reduce fuel consumption and acoustic & thermal signature as well as offer silent mobility, lower maintenance, and logistics footprint. Electrification also eliminates the complicated and expensive gearboxes used in military vehicles, which enhances their adoption in manned and unmanned armored vehicles.

The COVID-19 pandemic propelled the demand for military vehicle electrification. The rise in border conflict between neighboring countries during the pandemic led to the adoption of advanced electronic systems in military vehicles. This significantly boosted the demand for military vehicle electrification, as it supplies electric power to the electronic components in military vehicles. Additionally, military spending across the globe registered a significant rise during the pandemic, which boosted the demand for military vehicle electrification. For instance,

• According to the STOCKHOLM INTERNATIONAL PEACE RESEARCH INSTITUTE, the global military expenditure was valued at USD 1981 billion in 2020, which was an increase of 2.6% than in 2019.

Impact of Artificial Intelligence (AI) on Military Vehicle Electrification

The introduction of artificial intelligence and growing advancements in military equipment create an immense opportunity in the market. Companies in the market are leveraging artificial intelligence in electric military vehicles to predict maintenance, improve performance and safety features, and enhance user experience. AI in electric military vehicles analyzes the battery health and predicts the remaining range based on speed, acceleration, and power consumption. Companies in the market are deploying AI in the electrification of military vehicles, as it helps them streamline the R&D process for new electric military vehicles, minimize design & development time, and rectify the flaws in the design & development process.

Military Vehicle Electrification Market Dynamics

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Major drivers

Increasing military spending across the globe is projected to boost the demand for military vehicle electrification. Military forces across the globe are heavily spending on electrification in land vehicle fleets to match environmental sustainability objectives and reduce carbon footprints. Additionally, electrification in vehicles helps military forces to perform silent operations in extreme war situations, which enhances its adoption in military vehicles. Thus, rising military spending is propelling the market. For instance,

• According to a report published by STOCKHOLM INTERNATIONAL PEACE RESEARCH INSTITUTE on April 24, 2023, the global military spending grew by 13% in 2022 and reached USD 2240 billion.

Rising border conflicts are projected to drive the market in the coming years. Electrification in military vehicles provides instantaneous power to the electronic components placed in the military vehicles during war situations. It also supplies electric power to the cooling systems of military vehicles, which enhances their demand in combat vehicles. Therefore, increasing global tension is boosting the demand for military vehicle electrification.

Existing Restraints

Electrification in military vehicles offers a limited range, as these vehicles run on battery and electric motors. It makes them unsuitable for reconnaissance and military operations. This is expected to restrict the market during the forecast period. Additionally, heavy battery is required for the electrification of military vehicles, which is projected to hamper the market. Heavy battery weight reduces the performance of military vehicles, as the weight of the body is inversely proportional to the power supplied to the engine.

Emerging Opportunities

Increasing spending in R&D activities by major players creates an immense opportunity in the market. The research & development (R&D) activities develop and introduce EV-based military vehicles that tackle any type of terrain challenge. For instance, on July 19, 2022, GM Defense LLC announced the launch of the GMC HUMMER EV for the US Army to conduct analysis and demonstration. It is designed to tackle any type of terrain challenge and support reduced reliance on fossil fuels both in the operational and garrison environments.

 Scope of the Military Vehicle Electrification Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Technology Segment Analysis

Based on technology, the military vehicle electrification market is bifurcated into hybrid and fully electric. The fully electric segment dominated the market in 2022 and is projected to continue its dominance throughout the forecast period, owing to the increasing demand for sustainable transportation in the military to reduce the carbon footprint. Military vehicles widely adopt fully electric technology, as they need extreme power for acceleration and braking. Additionally, fully electric technology has lower maintenance than hybrid technology, due to the presence of an electric motor and emission of few pollutants. This increases the demand for fully electric technology in military vehicle electrification.

Vehicle Type Segment Analysis

In terms of vehicle type, the global market is categorized into combat, support, and unmanned armored. The support segment registered significant growth in 2022, due to its potential to transport troops, equipment, and supplies. Military forces are deploying electrification in support vehicles to the reduce carbon footprint. Additionally, electrification in support vehicles provides extended range and improves the onboard power capability for electrified armor and jammers.

The combat segment is expected to expand at a robust pace in the coming years, owing to the rising geopolitical tensions and the need for advanced military equipment. Combat vehicles are adopting electrification, as they provide instantaneous power to electronically controlled weapons. Moreover, electrification in combat vehicles enhances vehicle range, acceleration, and hill-climbing ability. This increases the demand for electrification in combat vehicles.

Application Segment Analysis

Based on system, the military vehicle electrification market is divided into power generation system, cooling system, energy storage system, traction drive system, and power conversion system. The power conversion system segment held a large share of the market in 2022, due to the growing adoption of electronic components in military vehicles. Power conversion is a critical component in the electrification of military vehicles, as they convert high-voltage DC power from the battery to low-voltage DC power for various vehicle systems. Power conversion has high energy conversion efficiency, which means that the input electrical energy is converted into output electrical energy with high efficiency. It reduces energy waste and loss, which increases the demand for electrification of military vehicles.

The cooling system segment is anticipated to expand at a rapid pace during the forecast period, owing to its ability to provide efficient and reliable cooling solutions for the batteries. Cooling systems are used in military vehicle electrification to maintain stability in the voltages for batteries to work efficiently. It also regulates the motor temperature, which enhances their demand for military vehicle electrification.

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Operation Segment Analysis

In terms of operation, the global market is bifurcated into manned and autonomous/semi-autonomous. The autonomous/semi-autonomous segment is expected to expand at a quick pace during the assessment period, owing to the increasing use of remotely operated vehicles in the war zone. Electrification in autonomous/semiautonomous vehicles improves the efficiency and effectiveness of military operations. Additionally, governments and military forces in several countries are deploying electric and autonomous vehicles for complex military operations, which enhances the demand for autonomous/semi-autonomous segment.

Regional Outlook

Based on region the military vehicle electrification market is segregated into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America accounted for a major share of the market in 2022, due to the rapid adoption of advanced military capabilities and the growing modernization of military vehicles. Additionally, the presence of established market players in the region such as GM Defense LLC, General Dynamics Corporation, Oshkosh Corporation, and Textron Systems is propelling the market. Moreover, governments and military forces in the region are planning to electrify non-tactical military vehicles to cut down on greenhouse emissions, which is estimated to boost the demand for military vehicle electrification in the coming years. For instance,

• As per the statement released by the White House on December 13, 2021, the US government plans to electrify non-tactical military vehicles and end gas-powered vehicle purchases by 2035.

The market in Asia Pacific is expected to expand at a high CAGR in the coming years, owing to increasing military spending, growing modernization of military equipment such as military vehicles, and rising border tensions. Moreover, military forces in the region are planning to adopt electric vehicles to reduce dependency on fossil fuels and give impetus to green energy, which is estimated to propel the market during the forecast period. For instance,

• According to a report published by the Ministry of Defense of India on August 4, 2023, the Indian Army is planning to introduce a limited number of electric vehicles (EVs) in peace stations across the country.

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