The Global Armored Vehicles MRO Market 2012-2022 · PDF file 6.2.1 MBT MRO market to decline...

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Transcript of The Global Armored Vehicles MRO Market 2012-2022 · PDF file 6.2.1 MBT MRO market to decline...

  • Ss

    www.strategicdefenceintelligence.com icdreports@progressivedigitalmedia.com

    John Carpenter House, 7 Carmelite Street, LondonEC4Y 0BS, United Kingdom, Tel: +44 (0)20 7936 6830

    The Global Armored Vehicles MRO Market

    2012-2022

    The Global Military MRO Market2012–2022

  • The Global Armored Vehicles MRO Market 2012–2022

    www.strategicdefenceintelligence.com icdreports@progressivedigitalmedia.com

    2

    TABLE OF CONTENTS

    1 Introduction ......................................................................................................................... 12

    1.1 What is this Report About? ..............................................................................................................12

    1.2 Definitions .......................................................................................................................................12

    1.3 Summary Methodology ...................................................................................................................14

    1.4 About Strategic Defence Intelligence (www.strategicdefenceintelligence.com) ...............................15

    2 Executive Summary ............................................................................................................ 16

    3 Global Armored Vehicles MRO Market Size and Drivers ................................................. 18

    3.1 Armored Vehicles MRO Market Size and Forecast 2012–2022 .......................................................18

    3.1.1 Global armored vehicles MRO market to show positive growth during the forecast period ..................... 18

    3.2 Global Armored Vehicles MRO Market – Regional Analysis ............................................................19

    3.2.1 North America dominates the global armored vehicles MRO market ...................................................... 19

    3.2.2 Demand for APC MRO in the US to support the global armored vehicles MRO market ......................... 22

    3.2.3 Armored vehicles MRO market to be robust in Europe due to planned budget cuts ............................... 23

    3.2.4 The armored vehicles MRO market in the Asia-Pacific to be witness robust spending over the forecast period .................................................................................................................................................................. 24

    3.2.5 Armored vehicles MRO market in the Middle East to increase during the forecast period ...................... 25

    3.2.6 Brazil and Colombia expected to be the highest spenders in the armored vehicles MRO sector in the Latin American region ........................................................................................................................................... 26

    3.2.7 Markets in Africa expected to increase over the forecast period ............................................................. 27

    3.3 Armored Vehicles MRO Sub–Sector Market Size Composition .......................................................28

    3.3.1 APC MRO market to record strong CAGR growth ................................................................................... 28

    3.3.2 MBT MRO to account for the second largest segment in this sector ....................................................... 30

    3.3.3 Market for MRAP MRO to account for the third largest segment in this sector........................................ 32

    3.3.4 Market for Tactical truck MRO to register a CAGR of XX% during the forecast period ........................... 33

    3.4 Demand Drivers and Growth Stimulators ........................................................................................34

    3.4.1 Modernization initiatives will drive the demand for armored vehicles MRO ............................................. 34

    3.4.2 Technological innovations driving the military armored vehicles MRO market ........................................ 34

    3.5 Defense Budget Spending Review ..................................................................................................36

    3.5.1 European capital expenditure expected to increase during the forecast period ...................................... 36

    3.5.2 Asian defense budgets expected to increase at a robust pace ................................................................ 37

    3.5.3 North American defense expenditure projected to decline marginally during the forecast period ........... 38

    3.5.4 Modernization programs likely to drive defense expenditure in South American countries ..................... 39

    3.5.5 Military budgets of African countries expected to increase during the forecast period ............................ 40

    3.5.6 Defense budgets of Middle Eastern countries likely to increase during the forecast period .................... 41

  • The Global Armored Vehicles MRO Market 2012–2022

    www.strategicdefenceintelligence.com icdreports@progressivedigitalmedia.com

    3

    3.6 Defense Modernization Review .......................................................................................................42

    3.6.1 Financial constraints causing delays in European defense modernization programs ............................. 42

    3.6.2 Defense budgets of Asian countries likely to be driven by competitive arms acquisitions ....................... 42

    3.6.3 Global economic slowdown leading to defense budget cuts in the North American region ..................... 42

    3.6.4 Need to replace aging equipment driving South American defense expenditure .................................... 43

    3.6.5 Security threats increasing the defense budget of African countries ....................................................... 43

    3.6.6 Demand for air defense systems is likely to increase in the Middle East ................................................. 43

    4 Industry Trends, Recent Developments and Challenges ................................................ 44

    4.1 Technological Developments ..........................................................................................................44

    4.1.1 South Korea has pioneered an active protection system for military vehicles ......................................... 44

    4.1.2 Northrop Grumman develops advanced vehicle protection technologies ................................................ 44

    4.1.3 Fuel cell technology for Main Battle Tanks ............................................................................................... 44

    4.2 Market Trends .................................................................................................................................45

    4.2.1 Focus on survivability and adaptability ..................................................................................................... 45

    4.2.2 Growth in performance based logistics (PBL) contracts .......................................................................... 45

    4.3 Industry Consolidation .....................................................................................................................46

    4.3.1 Joint programs expected to increase over the forecast period................................................................. 46

    4.3.2 Companies are expected to consolidate in the face of global defense budget cuts ................................ 46

    4.4 Key Challenges ...............................................................................................................................47

    4.4.1 Balancing increased protection with reduced weight ............................................................................... 47

    4.4.2 High taxes hamper indigenous growth in some countries ........................................................................ 47

    5 SWOT Analysis of the Armored Vehicles MRO Market .................................................... 48

    5.2 Strengths.........................................................................................................................................49

    5.2.1 Wear and tear of armored vehicles used in recent wars expected to augment sector growth ................ 49

    5.2.2 Modernization of existing armored vehicle fleets driving the market ........................................................ 49

    5.2.3 Force readiness initiatives by major defense spenders driving expenditure on maintenance of vehicles49

    5.3 Weaknesses ...................................................................................................................................50

    5.3.1 Lack of domestic MRO capabilities in some countries ............................................................................. 50

    5.3.2 Extended cycle times often lead to a reduction in number of operational vehicles .................................. 50

    5.4 Opportunities ...................................................................................................................................51

    5.4.1 Aging fleets of armored vehicles expected to boost expenditure in the MRO market.............................. 51

    5.4.2 Defense budget cuts expected to channel more funds towards the armored vehicle MRO sector ......... 51

    5.4.3 Threat from IEDs expec