Military Vehicle Sustainment Market - By Service Type (Maintenance, Repair, Overhaul, Supply Chain Management, Training and Support), By Component, By End-User, By Sustainment Phase, By Vehicle Type & Forecast, 2024 – 2032

Military Vehicle Sustainment Market Size

Military Vehicle Sustainment Market was valued at USD 17 billion in 2023 and is anticipated to grow at a CAGR of over 5% between 2024 and 2032. Current trends in military vehicle sustainment emphasize on-demand production capabilities and advanced manufacturing technologies. There is a growing shift towards integrating mobile solutions that allow for on-site production of spare parts, enhancing logistical efficiency and reducing downtime. The adoption of additive manufacturing, particularly metal 3D printing, is becoming
 

increasingly prevalent, enabling rapid prototyping and customization of components. Additionally, the integration of digital ecosystems and smart technologies is facilitating real-time data management and connectivity, streamlining maintenance processes and improving operational readiness. Overall, these trends reflect a move towards more agile, efficient, and responsive sustainment strategies in the military sector.  
 

For instance, In June 2023, Rheinmetall, a military vehicle OEM, introduced an innovative solution for producing spare parts on-site. The Mobile Smart Factory (MSF), presented at an event by the European Defence Agency, features metal 3D printing and post-processing capabilities. Part of Rheinmetall’s IRIS digital ecosystem, the MSF comprises two 20-foot shipping containers: one serves as an office and the other as a production unit.
 

In military vehicle sustainment, the trend of managing an aging fleet and pursuing equipment modernization is increasingly prominent. As many military forces operate older vehicle models, there is a strong emphasis on implementing comprehensive maintenance programs to extend vehicle life while simultaneously investing in modernization efforts. This includes upgrading critical systems with advanced technology, enhancing capabilities, and integrating new components to improve performance and efficiency. These modernization initiatives often involve retrofitting existing vehicles with modern features, ensuring they meet current operational requirements without the high costs associated with acquiring entirely new fleets. This dual approach helps maintain operational readiness while addressing budget constraints and evolving mission demands.
 

The military vehicle sector is seeing continuous advancements in technology, including the introduction of advanced sensors, AI-driven diagnostics, and autonomous systems. Keeping pace with these innovations is essential for effective sustainment but poses a challenge as maintenance personnel must continuously learn and adapt. New technologies often require specialized training for maintenance personnel. Ensuring that all staff are adequately trained in the latest systems can be resource-intensive and logistically challenging, particularly when personnel turnover is high.
 

Military Vehicle Sustainment Market Trends

The military vehicle sustainment sector is witnessing a notable shift towards the advancement of next-generation armored vehicles and extensive product line enhancements. There is a strong emphasis on modernization efforts that enhance vehicle capabilities and ensure alignment with evolving operational requirements. Manufacturers are prioritizing innovation and adaptability in their designs to meet diverse customer needs. Additionally, the integration of advanced technologies into military vehicles is becoming more prevalent, reflecting a commitment to maintaining a competitive edge in the defense sector. Overall, these trends underscore the importance of continuous improvement and responsiveness to market demands in military vehicle production.
 

For instance, in February 2024, EDGE Group entity NIMR unveiled the JAIS Mark 2 (MK2), marking the successful development of its next-generation armored vehicle lineup. Being a manufacturer of combat-proven wheeled military vehicles, NIMR announced the launch of the second-generation JAIS MK2 at the World Defense Show (WDS) 2024.
 

With the rising growth of predictive maintenance in military vehicle sustainment, there is a significant shift towards data-driven strategies that enhance operational efficiency. The integration of IoT sensors and advanced analytics is becoming standard, allowing for real-time monitoring of vehicle health and performance. This proactive approach minimizes downtime by identifying potential issues before they escalate, leading to more effective resource allocation and maintenance scheduling. Additionally, the use of machine learning algorithms is increasingly prevalent, enabling more accurate predictions and tailored maintenance solutions. Overall, these trends highlight a commitment to leveraging technology to improve sustainment practices and ensure mission readiness.
 

Military Vehicle Sustainment Market Analysis

Based on the end-user, the market is segmented into army, air force, navy, and other defense organizations. The air force segment represents the fastest growing segment, with a CAGR of over 7.5% between 2024 and 2032.
 

• The air force is increasingly focusing on the sustainment of aerial refueling and support vehicles, ensuring that they are equipped and maintained to extend the operational range of aircraft during missions. The air force segment is prioritizing sustainability in maintenance practices, exploring eco-friendly solutions and technologies that reduce the environmental impact of vehicle operations and maintenance activities.
   
• There is a significant push towards implementing predictive maintenance solutions tailored for air force vehicles. This includes leveraging data analytics and IoT sensors to monitor aircraft and ground support vehicle health, enabling proactive maintenance scheduling that reduces unexpected failures and enhances mission reliability.
  
   

Based on sustainable phase, the market is segmented into field-level maintenance, and depot-level maintenance. The field-level maintenance segment dominated the market in 2023 and is expected to reach over USD 15 billion by 2032.
 

• Field-level maintenance increasingly utilizes advanced diagnostic tools and portable equipment that allow maintenance personnel to perform real-time assessments and repairs directly in the operational environment. It enhances the speed and accuracy of troubleshooting, leading to quicker turnaround times for vehicle repairs.
   
• There is a growing focus on training field-level maintenance personnel in new technologies and maintenance practices. This includes upskilling teams to work with advanced systems and equipment, ensuring they are well-equipped to handle the complexities of modern military vehicles in the field, thereby improving maintenance efficiency and effectiveness.
   

The military vehicle sustainment market is experiencing an unprecedented growth in Asia Pacific and is expected to reach USD 10 billion by 2032. Countries in the Asia Pacific are significantly raising their defense budgets, leading to increased investments in military vehicle sustainment. This trend reflects a commitment to enhancing national security and operational readiness. The use of predictive maintenance and smart technologies is on the rise. Armed forces are leveraging IoT and data analytics to enhance maintenance efficiency, reduce downtime, and improve the reliability of military vehicles.
 

European nations are increasingly focusing on collaborative defense initiatives, particularly through NATO, which drives the demand for standardized vehicle sustainment practices and interoperability among member states. There is a significant investment in advanced technologies, such as autonomous systems and smart maintenance solutions, to improve the efficiency and effectiveness of military vehicle sustainment processes.
 

The U.S. and Canadian militaries are heavily investing in modernization initiatives to upgrade existing vehicle fleets, focusing on enhancing capabilities and integrating advanced technologies to maintain operational superiority. For instance, in April 2024, BAE Systems secured a USD 79 million contract from the U.S. Marine Corps to build production representative test vehicles (PRTVs) for the Amphibious Combat Vehicle Recovery (ACV-R) variant, set to be delivered in 2024. The ACV-R will provide essential field support, maintenance, and recovery for the ACV family of vehicles. This contract marks the second phase of the ACV-R program, initiating PRTV production to support government testing next year.
 

Military Vehicle Sustainment Market Share

Lockheed Martin Corporation and BAE Systems plc collectively held a significant share of the military vehicle sustainment industry in 2023. Lockheed Martin Corporation is a global aerospace, defense, and security company headquartered in Maryland, U.S. It is one of the world's largest defense contractors, specializing in the design, production, and sustainment of advanced technology systems, including military vehicles. Lockheed Martin's military vehicle sustainment efforts focus on maintaining operational readiness through comprehensive lifecycle management, innovative maintenance solutions, and advanced logistics support.
 

BAE Systems plc is a British multinational defense, security, and aerospace company headquartered in London. As a leading defense contractor, BAE Systems provides a wide range of military vehicle sustainment services, including maintenance, repair, and overhaul (MRO), as well as modernization and upgrade programs.
 

Military Vehicle Sustainment Market Companies

Major players operating in the military vehicle sustainment industry are:

• Lockheed Martin Corporation
• BAE Systems plc
• Oshkosh Defense, LLC
• General Dynamics Corporation
• Northrop Grumman Corporation
• Rheinmetall AG
• Hanwha Defense

Military Vehicle Sustainment Industry News

• In December 2023, the Organization for Joint Armament Cooperation (OCCAR) signed a contract with ARQUUS and NEXTER, a subsidiary of KNDS, for the VBAE programme. This initiative addresses the pressing need for a modern, innovative light armored vehicle that is fully integrated into the battlefield information system, providing enhanced capabilities in reconnaissance and combat.
   
• In October 2023, AM General, a leading manufacturer of light tactical vehicles and mobility systems, showcased its mission-ready and future-driven capabilities to support the Warfighter at the Annual Meeting and Exposition of the Association of the U.S. Army.
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The military vehicle sustainment market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD billion) from 2024 to 2032, for the following segments:

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Market, By Service Type

• Maintenance
• Repair
• Overhaul
• Supply chain management
• Training and support

Market, By Component

• Engine systems
• Transmission systems
• Electrical systems
• Weapons systems
• Armor and protection systems
• Others

Market, By End-User

• Army
• Air Force
• Navy
• Other defense organizations

Market, By Sustainment Phase

• Field-level maintenance
• Depot-level maintenance

Market, By Vehicle Type

• Combat Vehicles
  • Tanks
  • Armored Personnel Carriers (APCs)
  • Infantry Fighting Vehicles (IFVs)
  • Self-propelled artillery
• Tactical Vehicles
  • Light tactical vehicles
  • Medium tactical vehicles
  • Heavy tactical vehicles
• Support Vehicles
  • Logistics vehicles
  • Maintenance vehicles
  • Medical evacuation vehicles
  • Command and control vehicles
• Unmanned Ground Vehicles (UGVs)
  • Reconnaissance UGVs
  • Combat UGVs
  • Logistics UGVs
  • EOD (Explosive Ordnance Disposal) UGVs

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific

• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA