How Are Defense Manufacturers Responding to the Changing Scenario in the Armored Vehicle Industry?

Highlights:

• Introduction
• Unmanned ground vehicles and their advantages
• Increasing adoption of advanced technologies in the industry

In the last few years, various regional conflicts and geopolitical crises have risen across the globe. In February 2022, Russia started a ‘special military operation’ against Ukraine, while on October 7, 2023, Hamas and other Palestinian groups attacked Israel which started a war between the two sides. On the other side of the world, China, through its expansionist policy, has been targeting its neighbors like Taiwan, India, the Philippines, etc. The Red Sea attacks by Houthis, the Azerbaijan-Armenia war, terrorism in the Jammu & Kashmir region, and military coups in different countries of Africa have all led to developed and developing countries increase their military and defense budgets drastically.

As of today, only a few handful countries like the US, Russia, India, China, etc., have the technology to develop nuclear weapons. Hence, most other countries are focusing on modernizing their conventional armies by investing in emerging technologies and high-tech defense products. To cater to these demands, defense manufacturers are promoting advancements and innovations in tanks, armored vehicles, ballistic and cruise missiles, radars, etc.

The emergence of unmanned ground vehicles (UGVs) establishing a new dimension in the industry

In recent times, one major advancement in the armored vehicle industry has been the development of unmanned ground vehicles, which can operate without any onboard human control. These vehicles make use of remote sensing technologies to understand the surrounding environment and are generally controlled via teleoperation. UGVs are usually deployed in operations or areas where there is substantial risk to human life. Furthermore, the demand for these armored vehicles has been increasing as they can perform different functions ranging from bomb disposal to reconnaissance and surveillance tasks. They can also be used for logistical purposes for supporting armies engaged in some combat on a battlefield.

Another important reason behind the rising popularity of deploying UGVs instead of manned armored vehicles is that UGVs are a cost-effective solution. In the case of conventional vehicles, soldiers need to be trained to use them properly and maximize their utility. However, the cost of recruiting and training additional troops for running UGVs is minimal. Moreover, UGVs can be easily integrated with other advanced technologies like unmanned aerial vehicles, satellites, radars, tanks, etc., thereby ensuring interoperability and connectivity on the battleground.

Over the years, various countries have been utilizing UGVs in wars in Ukraine, Syria, Afghanistan, Iraq, etc. Companies like Armtrac Machines, a UK-based mine clearance equipment manufacturer, have been delivering unmanned ground vehicles to nations like Lebanon, Saudi Arabia, Egypt, Kosovo, the US, Bosnia, Chad, Sudan, etc. Many new defense startups have also started developing UGVs to compete with these industry giants and expand their footprint in the industry. In September 2023, Arrobot, a defense startup in Hyderabad, India, announced the launch of its UGV for logistics, surveillance, and reconnaissance operations in mountainous terrains. The company released a press statement saying that it had already received orders from ten different multinational corporations and public sector undertakings.

Technological advancements in armored vehicles creating new opportunities in the landscape

The armored vehicle industry has witnessed immense growth recently, particularly in Europe, due to various factors. The growing demand for bulletproof vehicles for providing security to VIPs and government officials is one such reason behind the rise of this landscape. To address these demands, defense manufacturers are shifting away from traditional steel armor and adopting advanced materials like carbon fiber-reinforced polymers. These high-tech materials have a better strength-to-weight ratio which along with improving the ballistic protection of the vehicle also enhances its mobility and fuel efficiency. Researchers are trying to develop new materials using nanotechnology which is expected to improve the strength and durability of the armor plates.

Along with this, advanced technologies like AI and machine learning are being used to improve the situational awareness of the vehicle and enhance its navigational and communication capabilities. In addition, the use of predictive analytics for threat assessment is expected to generate new avenues of growth for the defense sector in the coming period.

To conclude, the armored vehicles industry has seen a huge surge in the adoption of unmanned ground vehicles due to their benefits in terms of operational safety of soldiers and cost-effectiveness. Furthermore, the integration of emerging technologies like AI and machine learning and the use of advanced composites to manufacture durable and resilient armor plates is anticipated to augment the growth rate of the landscape in the years to come.

To understand the different growth drivers and investment opportunities in the landscape, feel free to contact us.

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