Increased need for lithium-ion batteries for military vehicles is expected to drive market expansion in the near future at a CAGR of 13.00% during the forecast period 2024 to 2032

Market Research Future (MRFR) has published a cooked research report on the “Global Military Vehicle Electrification Market” that contains information from 2019 to 2032. The military vehicle electrification market is estimated to register a CAGR of 13.00% during the forecast period of 2024 to 2032.

MRFR recognizes the following companies as the key players in the global military vehicle electrification market - BAE Systems, Oshkosh Corporation, Otokar Otomotiv ve Savunma Sanayi AS, GM Defense LLC, Leonardo, Qinetiq, Textron Inc., ST Engineering, Arquus, General Dynamics Corporation, Alke, Krauss-Maffei Wegmann, RENK Group AG, and Crane Aerospace & Electronics.

Market Highlights

The global military vehicle electrification market is accounted to register a CAGR of 13.00% during the forecast period and is estimated to reach USD 11.431 billion by 2032.

The need for electrified military vehicles is expected to increase due to rising defense spending worldwide. To meet environmental sustainability targets and lower carbon footprints, military forces all over the world are investing a lot of money in electrifying their fleets of land vehicles. Moreover, military troops find it easier to conduct stealthy operations in times of high conflict when their vehicles are electrified, which encourages electrified military vehicle adoption. Consequently, growing defense spending is driving the market.

Segment Analysis

The global military vehicle electrification market has been segmented into system, platform, technology, and operation.

On the basis of the system, the market is segmented into Power Generation, Cooling Systems, Energy Storage, Traction Drive Systems, and Power Conversion. The power conversion segment was attributed to holding the largest market share in 2023 because of its critical role in improving operational capability and energy efficiency. The smooth integration of various power sources, from conventional fuel-based systems to cutting-edge electric propulsion technologies, is necessary for military vehicles. In order to ensure optimal performance and the success of the mission, power conversion devices are essential for effectively controlling and distributing power among these many sources. The need for advanced power conversion systems is growing as armed forces place a higher priority on sustainability, economy, and less environmental impact.

Based on platform, the global military vehicle electrification market has been segmented into Combat Vehicles, Support Vehicles, and Unmanned Armored Vehicles. The combat vehicles segment was expected to hold the largest market share in 2023. High levels of strength, agility, and mobility are necessary for combat vehicles, which are at the vanguard of military operations. Combat vehicles are a perfect fit for electrification projects because they have several benefits in these domains. Fast acceleration and enhanced maneuverability in combat are made possible by the quick torque that electric propulsion systems give. In emergencies, this improves the combat vehicle's reactivity and efficacy. In order to improve stealth, combat vehicles must also minimize noise and thermal traces because they are frequently used in close proximity to soldiers.

Based on technology, the global military vehicle electrification market has been segmented into Hybrid and Fully Electric. The fully electric segment was expected to hold the largest market share in 2023 because of a confluence of improved technology and strategic advantages. The intrinsic efficiency of electric propulsion systems is the main force behind this change. The advantages of electric vehicles (EVs) for military applications include lower maintenance costs, less logistical work, and increased operational flexibility. Electric motors' silent operation also improves stealth qualities, giving special operations and reconnaissance teams a tactical advantage.

Based on operation, the global military vehicle electrification market has been segmented into Manned and Autonomous/semi-autonomous. The manned segment was expected to hold the largest market share in 2023. Defense operations have a strong foundation because of the long-standing employment of manned military vehicles, which have a wealth of knowledge and infrastructure already in place. Furthermore, because human control provides a degree of flexibility and decision-making that autonomous or semi-autonomous systems find difficult to match, human control is still highly trusted for mission-critical jobs. Furthermore, because military operations are typically complicated and involve human judgment and intervention in real-time, manned vehicles have become increasingly important in a variety of defense methods.

Regional Analysis

The global military vehicle electrification market, based on region, has been divided into North America, Europe, Asia-Pacific, and Rest of the World. North America consists of the US and Canada. The Europe military vehicle electrification market comprises of Germany, France, the UK, Italy, Spain, and the rest of Europe. The military vehicle electrification market in Asia-Pacific has been segmented into China, India, Japan, Australia, South Korea, and the rest of Asia-Pacific. The Rest of the World military vehicle electrification market comprises the Middle East, Africa, and Latin America.

The largest market share for military vehicle electrification was maintained by the North American regional sector. The region's will to lessen its reliance on fossil fuels and carbon emissions has resulted in large investments in electric vehicle (EV) technology, fostering an atmosphere that is favorable for the military to adopt electrification. The United States is leading the way in the development of state-of-the-art electric military vehicles due to its substantial defense budget and creative defense contractors. The area also has the advantage of a developed and sophisticated automotive sector, which offers a strong basis for the incorporation of electric propulsion systems into military equipment.

Moreover, the Europe market has been persistently growing over the forecast period. Significant defense spending, excellent defense capabilities, and a heavy emphasis on technical innovation distinguish the region. Germany, in particular, has made significant contributions to the European market's growth because of its large defense expenditure and continuous attempts to improve the military vehicle economy and lower emissions. Additionally, the region's increasing investments in R&D initiatives linked to the electrification of military vehicles have produced creative solutions that have fueled the market's expansion.

Additionally, Asia Pacific is anticipated to experience the quickest growth over the forecast period. Some of the biggest defense spenders in the world, such as China, India, and South Korea, are based in the Asia-Pacific region and are actively updating their fleets of military vehicles. There is a growing demand for electric and hybrid military vehicles as a result of these nations' increased focus on lowering their carbon footprint and using greener technologies. In addition, this area has a strong military and automotive manufacturing base, as well as a strong presence of major industry players and technological developments.

Furthermore, the rest of the world's military vehicle electrification market is divided into the Middle East, Africa, and Latin America. The market for military vehicle electrification in the rest of the world is progressively changing as a result of growing knowledge of the advantages of electrification in terms of upkeep, operational efficiency, and compliance with international environmental regulations. The region's priorities are to modernize its armed forces, improve energy security, and wean itself off of fossil fuels. As a result, nations are gradually investigating the use of electric and hybrid technology in their defense industries.

Key Findings of the Study

• The global military vehicle electrification market is expected to reach USD 11.431 billion by 2032, at a CAGR of 13.00% during the forecast period.


• The Asia-Pacific region accounted for the fastest-growing global market. These countries' rising emphasis on reducing their carbon footprint and utilizing greener technologies has resulted in an increase in demand for electric and hybrid military vehicles.


• Based on platform, the combat vehicles segment was attributed to holding the largest market in 2023, with an approximate market share of 47%.

BAE Systems, Oshkosh Corporation, Otokar Otomotiv ve Savunma Sanayi AS, GM Defense LLC, Leonardo, Qinetiq, Textron Inc., ST Engineering, Arquus, General Dynamics Corporation, Alke, Krauss-Maffei Wegmann, RENK Group AG, and Crane Aerospace & Electronics are the key market players.