Tanks Global Market Report 2022

Major players in the tanks market are Oshkosh Defense LLC, General Dynamics Corporation, BAE Systems Plc., Textron Inc., Navistar International Corporation, Norinco Private Limited, Rheinmetall AG, Ukroboronprom, UralVagonZavod, Hyundai Rotem, Nexter Systems, Krauss-Maffei Wegmann GmbH And Co. KG, IVECO, Elbit Systems, INKAS Armored Vehicle Manufacturing and International Armored Group.

The global tanks market is expected to grow from $1.81 billion in 2021 to $1.90 billion in 2022 at a compound annual growth rate (CAGR) of 4.7%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $2.12 billion in 2026 at a CAGR of 2.8%.

The tanks market consists of sales of military tanks by entities (organizations, sole traders, and partnerships) that produce military tanks.A tank is an armored fighting vehicle that is equipped with heavy firepower and strong armor designed for front-line combat.

Only goods and services traded between entities or sold to end consumers are included.

The main types of tanks are light, medium, and heavy.The various technology deployed in tanks includes an active mine system, active protection system, modular ballistic armor, situational awareness system, interoperable communication, vehicle information integration, electric armor that are used for patrolling and fighting.

The global tanks market is expected to grow from $1.81 billion in 2021 to $1.90 billion in 2022 at a compound annual growth rate (CAGR) of 4.7%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $2.12 billion in 2026 at a CAGR of 2.8%.

Asia Pacific was the largest region in the tanks market in 2021.Western Europe is expected to be the fastest growing region in the forecast period.

The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The increase in the defense budget for the military is expected to drive the growth of the tanks market. According to the Stockholm International Peace Research Institute (SIPRI) report, the total global military expenditure rose to $1,917 billion in 2019, a 3.6% increase from the previous year and the largest annual growth in spending since 2010. India has become the third-largest military spender in the world, after the US and China. According to InvestIndia, there has been an increase of 5.8% in defense allocation in India in the 2020-21 budget compared to the 2019-20 budget. Sweden has also decided to raise its defense budget for 2021 by 40%, which is the biggest defense spending in 70 years. According to the Centre for Strategic and International Studies report, China has increased its defense budget from $177.6 billion in 2019 to $179 billion in 2020. Reports from the Ministry of defense of Australia show that the government is going to invest $270 billion over the next 10 years and 2% of the GDP in 2020-21 for defense. Increased defense budgets are expected to drive the market for tanks during the forecast period.

The high cost of production for main battle tanks is expected to hinder the growth of the tanks market.Technological advancements have added new features in today’s military tanks, therefore the cost of production to manufacture a single unit of the tank has also increased.

For instance, Russia’s T-14 Armata features upgraded armor, computerized systems, a 125mm smoothbore cannon system, and a range of over 500 kilometers and therefore with this additional feature, the tank cost around $4 million per unit.Moreover, to procure technologically advanced tanks, many developed and developing countries need to pay the huge sums of money.

For instance, India has paid $1.2 billion for the technology transfer fee to Russia for T-90S tanks. Such a high cost of main battle tanks is expected to have a negative impact on the growth of tanks markets.

The defense is increasingly implementing robot tanks in the military for the purpose of high security which is likely to be a major trend in the tanks market.Robotic tanks are autonomous robots designed for military applications such as transport, search and rescue, and others.

These tanks are equipped with guns a rocket arm, and a missile arm.In January 2020, the USA has given a contract to QinetiQ North America to build four robotic combat vehicle-light prototypes and another contract to Textron to build four robotic combat vehicle-medium prototypes.

In July 2020, Russia prepared a robot tank Derivatsiya-PVO which is self-propelled artillery tasked with an anti-air mission.Russia revealed that it had combat-tested its Uran-9 robot tank in Syria which has a gun and missile armament.

Such developments in military tanks emerging as a trend in the tanks market.

In January 2020, BAE Systems PLC, a British multinational defense, security, and aerospace company, acquired Collins Aerospace Military Global Positioning System (GPS) business from Raytheon Technologies Corporation for $1.93 billion. Collins Aerospace Military Global Positioning System is capable of tracking jet fighters to tanks and therefore the acquisition will bring innovative technology and an extensive installed base of products to the company. Raytheon Technologies Corporation is an aerospace and defense company that provides advanced systems and services for commercial, military, and government customers worldwide.

The countries covered in the tanks market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK and USA.