The Global Armored Vehicles MRO Market 2012-2022 · 6.2.1 MBT MRO market to decline during the...
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www.strategicdefenceintelligence.com [email protected] John Carpenter House, 7 Carmelite Street, LondonEC4Y 0BS, United Kingdom, Tel: +44 (0)20 7936 6830 The Global Armored Vehicles MRO Market 2012-2022
Transcript of The Global Armored Vehicles MRO Market 2012-2022 · 6.2.1 MBT MRO market to decline during the...
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www.strategicdefenceintelligence.com [email protected]
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
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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
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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 expected to attract increased investment on enhanced armor protection capabilities 51
5.5 Threats ............................................................................................................................................52
5.5.1 A large portion of the MRO workload brought under the ambit of government depots in US .................. 52
5.5.2 The US and European economic crisis .................................................................................................... 52
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6 Country Analysis – Armored Vehicles MRO Market ......................................................... 53
6.1 United States Market Size and Forecast 2012–2022 .......................................................................54
6.1.1 APC MRO segment of armored vehicle MRO expected to constitute the largest market share .............. 57
6.1.2 MRAP MRO expected to account for the second largest share ............................................................... 59
6.1.3 MBT MRO segment to exhibit a CAGR of XX% during the forecast period ............................................. 61
6.2 France Market Size and Forecast 2012–2022 .................................................................................62
6.2.1 MBT MRO market to be attractive in France during the forecast period .................................................. 64
6.3 Russia Market Size and Forecast 2012–2022 .................................................................................65
6.3.1 Expenditure on APC MRO to be robust during the forecast period ......................................................... 68
6.3.2 T-90A tanks maintenance, a major program in MBT MRO market .......................................................... 69
6.4 The United Kingdom Market Size and Forecast 2012–2022 ............................................................70
6.4.1 APC MRO market in the UK to increase during the forecast period ........................................................ 73
6.4.2 MBT MRO market to be robust until 2016 ................................................................................................ 74
6.5 Saudi Arabia Market Size and Forecast 2012–2022 ........................................................................75
6.5.1 APC MRO market expected to increase during the forecast period ........................................................ 77
6.5.2 MBT MRO market expected to increase until 2016 .................................................................................. 78
6.6 Israel Market Size and Forecast 2012–2022 ...................................................................................79
6.6.1 MBT MRO market expected to increase during the forecast period ........................................................ 81
6.7 Australia Market Size and Forecast 2012–2022 ..............................................................................82
6.7.1 Australia to spend significantly on APC MRO contracts during the forecast period................................. 85
6.7.2 Australia to spend US$XX billion on maintaining, repairing and overhauling its fleet of MBTs ............... 86
6.8 China Market Size and Forecast 2012–2022 ...................................................................................87
6.8.1 China is expected to invest heavily in MBT MRO during the forecast period .......................................... 90
6.8.2 China expected to allocate US$XX billion towards APC MRO during the forecast period ...................... 91
6.9 India Market Size and Forecast 2012–2022 ....................................................................................92
6.9.1 India’s armored vehicles MRO market driven by the significant investment in upgrading its fleet of Main
Battle Tanks (MBTs) ............................................................................................................................................. 95
6.9.2 India expected to spend US$XX billion on Armored Personal Carriers (APCs) MRO over the forecast
period .................................................................................................................................................................. 96
6.10 Brazil Market Size and Forecast 2012–2022 ...................................................................................97
6.10.1 APC MRO expected to be the highest segment of expenditure by Brazil on armored vehicles MRO ..... 99
6.10.2 MBT MRO segment to increase until 2016 ............................................................................................. 100
6.1 Colombia Market Size and Forecast 2012–2022 ........................................................................... 101
6.1.1 Colombia’s expenditure on APC MRO to increase at a CAGR of XX% ................................................. 103
6.2 Algeria Market Size and Forecast 2012–2022 ............................................................................... 104
6.2.1 MBT MRO market to decline during the forecast period ........................................................................ 106
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7 Major Armored Vehicles MRO Programs ........................................................................ 107
7.1 APC MRO ..................................................................................................................................... 107
7.1.1 Warrior Capability Sustainment Program ............................................................................................... 107
7.1.2 Program to recapitalize high mobility multipurpose wheeled vehicles (HMMWVs)................................ 108
7.1.3 Australian light armored vehicle (ASLAV) upgrade ................................................................................ 109
7.2 MBT MRO ..................................................................................................................................... 110
7.2.1 Through-life modernization of Leclerc main battle tanks ........................................................................ 110
7.2.2 Challenger Lethality Improvement Program ........................................................................................... 111
7.2.3 T-72 upgrade .......................................................................................................................................... 112
7.2.4 Abrams main battle tank modernization program ................................................................................... 113
7.3 MRAP MRO .................................................................................................................................. 114
7.3.1 MRAP Contractor Logistics Sustainment and Support (CLSS) Services contract ................................. 114
7.3.2 Upgrade program for International MaxxPro Mine Resistant Ambush Protected (MRAP) vehicles ...... 115
7.3.3 Upgrade of LAV-III wheeled APC fleet ................................................................................................... 116
7.4 Tactical Trucks MRO ..................................................................................................................... 117
7.4.1 Maintenance and Repair of Mercedes-Benz Trucks .............................................................................. 117
7.4.2 Upgrade of Family of Medium Tactical Vehicles .................................................................................... 118
7.4.3 Medium Support Vehicle System (MSVS) Program ............................................................................... 119
8 Competitive Landscape and Strategic Insights .............................................................. 120
8.1 Competitive Landscape overview .................................................................................................. 120
8.1.1 Navistar: Overview .................................................................................................................................. 121
8.1.2 Navistar: Products and Services ............................................................................................................ 121
8.1.3 Navistar: Alliances .................................................................................................................................. 121
8.1.4 Navistar: Recent Contract Wins ............................................................................................................. 121
8.1.5 Navistar: Financial Analysis .................................................................................................................... 122
8.1.6 BAE Systems: Overview ......................................................................................................................... 124
8.1.7 BAE Systems: Products and Services .................................................................................................... 124
8.1.8 BAE Systems: Alliances ......................................................................................................................... 124
8.1.9 BAE Systems: Recent Contract Wins ..................................................................................................... 125
8.1.10 BAE Systems: Financial Analysis ........................................................................................................... 125
8.1.11 ManTech International: Overview ........................................................................................................... 126
8.1.12 ManTech International: Products and Services ...................................................................................... 127
8.1.13 ManTech International: Alliances ........................................................................................................... 127
8.1.14 ManTech International: Recent Contract Wins ....................................................................................... 127
8.1.15 ManTech International: Financial Analysis ............................................................................................. 128
8.1.16 Rheinmetall: Overview ............................................................................................................................ 128
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8.1.17 Rheinmetall: Products and Services ....................................................................................................... 128
8.1.18 Rheinmetall: Alliances ............................................................................................................................ 128
8.1.19 Rheinmetall: Recent Contract Wins ........................................................................................................ 128
8.1.20 Rheinmetall: Financial Analysis .............................................................................................................. 130
8.1.21 Honeywell: overview ............................................................................................................................... 131
8.1.22 Honeywell: products and services .......................................................................................................... 132
8.1.23 Honeywell: alliances ............................................................................................................................... 132
8.1.24 Honeywell International: recent contract wins ........................................................................................ 133
8.1.25 Honeywell: financial analysis .................................................................................................................. 133
8.1.26 Krauss-Maffei Wegmann: Overview ....................................................................................................... 134
8.1.27 Krauss-Maffei Wegmann: Products and Services .................................................................................. 135
8.1.28 Krauss-Maffei Wegmann: Alliances ........................................................................................................ 135
8.1.29 Krauss-Maffei Wegmann: Recent Contract Wins ................................................................................... 136
8.1.30 Krauss-Maffei Wegmann: Financial Analysis ......................................................................................... 136
8.1.31 Lockheed Martin: Overview .................................................................................................................... 136
8.1.32 Lockheed Martin: Products and Services ............................................................................................... 136
8.1.33 Lockheed Martin: Alliances ..................................................................................................................... 137
8.1.34 Lockheed Martin: Recent Contract Wins ................................................................................................ 137
8.1.35 Lockheed Martin: Financial Analysis ...................................................................................................... 138
8.1.36 Thales: Overview .................................................................................................................................... 139
8.1.37 Thales: Products and Services ............................................................................................................... 139
8.1.38 Thales: Alliances ..................................................................................................................................... 140
8.1.39 Thales: Recent Contract Wins ................................................................................................................ 140
8.1.40 Thales: Financial Analysis ...................................................................................................................... 140
8.1.41 Northrop Grumman: Overview ................................................................................................................ 143
8.1.42 Northrop Grumman: Products and Services........................................................................................... 143
8.1.43 Northrop Grumman: Alliances ................................................................................................................ 143
8.1.44 Northrop Grumman: Recent Contract Wins............................................................................................ 143
8.1.45 Northrop Grumman: Financial Analysis .................................................................................................. 144
8.1.46 General Dynamics: Overview ................................................................................................................. 145
8.1.47 General Dynamics: Products and Services ............................................................................................ 145
8.1.48 General Dynamics: Alliances .................................................................................................................. 146
8.1.49 General Dynamics: Recent Contract Wins ............................................................................................. 146
8.1.50 General Dynamics: Financial Analysis ................................................................................................... 147
8.1.51 Nexter: Overview .................................................................................................................................... 148
8.1.52 Nexter: Products and Services ............................................................................................................... 149
8.1.53 Nexter: Alliances ..................................................................................................................................... 149
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8.1.54 Nexter: Recent Contract Wins ................................................................................................................ 149
8.1.55 Nexter: Financial Analysis ..................................................................................................................... 150
8.1.56 Elbit Systems: Overview ......................................................................................................................... 152
8.1.57 Elbit Systems: Products and Services .................................................................................................... 152
8.1.58 Elbit Systems: Alliances.......................................................................................................................... 152
8.1.59 Elbit Systems: Recent Contract Wins ..................................................................................................... 152
8.1.60 Elbit Systems: Financial Analysis ........................................................................................................... 153
8.1.61 Oshkosh Defense: Overview .................................................................................................................. 155
8.1.62 Oshkosh Defense: Products and Services ............................................................................................. 155
8.1.63 Oshkosh Defense: Alliances ................................................................................................................... 155
8.1.64 Oshkosh Defense: Recent Contract Wins .............................................................................................. 156
8.1.65 Oshkosh Defense: Financial Analysis .................................................................................................... 156
8.1.66 SAIC: Overview ...................................................................................................................................... 156
8.1.67 SAIC: Products and Services ................................................................................................................. 157
8.1.68 SAIC: Alliances ....................................................................................................................................... 157
8.1.69 SAIC: Recent Contract Wins .................................................................................................................. 157
8.1.70 SAIC: Financial Analysis......................................................................................................................... 158
9 Appendix ............................................................................................................................ 160
9.1 Methodology ................................................................................................................................. 160
9.2 Contact us ..................................................................................................................................... 160
9.3 About SDI...................................................................................................................................... 160
9.4 Disclaimer ..................................................................................................................................... 160
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LIST OF FIGURES
Figure 1: Global Armored Vehicles MRO Market (US$ Billion), 2012–2022 ........................................................................................................ 18 Figure 2: Armored Vehicles MRO Market Breakdown by Region (%), 2012–2022 .............................................................................................. 21 Figure 3: North American Armored Vehicles MRO Market (US$ Billion), 2012–2022 .......................................................................................... 22 Figure 4: European Armored Vehicles MRO Market (US$ Million), 2012–2022 ................................................................................................... 23 Figure 5: Asia-Pacific Armored Vehicles MRO Market (US$ Billion), 2012–2022 ................................................................................................ 24 Figure 6: Middle East Armored Vehicles MRO Market (US$ Million), 2012–2022 ............................................................................................... 25 Figure 7: Latin American Armored Vehicles MRO Market (US$ Million), 2012–2022 .......................................................................................... 26 Figure 8: African Armored Vehicles MRO Market (US$ Million), 2012–2022 ....................................................................................................... 27 Figure 9: Armored Vehicles MRO Market Breakdown by Segment (%), 2012–2022 ........................................................................................... 29 Figure 10: APC MRO Market Size (US$ Billion), 2012–2022 .............................................................................................................................. 29 Figure 11: MBT MRO Market Size (US$ Billion), 2012–2022 .............................................................................................................................. 31 Figure 12: MRAP MRO Market Size (US$ Billion), 2012–2022 ........................................................................................................................... 32 Figure 13: Tactical Truck MRO Market Size (US$ Million), 2012–2022 ............................................................................................................... 33 Figure 14: Defense Capital Expenditure of Top Three European Defense Spenders (US$ Billion), 2011–2021 .................................................. 36 Figure 15: Defense Capital Expenditure of Top Three Asian Defense Spenders (US$ Billion), 2011–2021 ....................................................... 37 Figure 16: Defense Capital Expenditure of Top North American Defense Spenders (US$ Billion), 2011–2021 ................................................... 38 Figure 17: Defense Capital Expenditure of Top Three South American Defense Spenders (US$ Billion), 2011–2021 ........................................ 39 Figure 18: Defense Capital Expenditure of Top Three African Countries (US$ Billion), 2011–2021 ................................................................... 40 Figure 19: Defense Capital Expenditure of Top Three Middle Eastern Defense Spenders (US$ Billion), 2011–2021 .......................................... 41 Figure 20: Armored Vehicles MRO Market in the US (US$ Billion), 2012–2022 .................................................................................................. 55 Figure 21: Armored Vehicles MRO Market Split By Category in the US (%), 2012–2022 .................................................................................... 56 Figure 22: APC MRO Market Size in the US (US$ Million), 2012–2022 .............................................................................................................. 58 Figure 23: MRAP MRO Market Size in the US (US$ Million), 2012–2022 ........................................................................................................... 60 Figure 24: MBT MRO Market Size in the US (US$ Million), 2012–2022 .............................................................................................................. 61 Figure 25: Armored Vehicles MRO Market in France (US$ Million), 2012–2022 ................................................................................................. 63 Figure 26: MBT MRO Market Size in France (US$ Million), 2012–2022 .............................................................................................................. 64 Figure 27: Armored Vehicles MRO Market in Russia (US$ Million), 2012–2022 ................................................................................................. 66 Figure 28: Russian Armored Vehicles MRO Market Split by Sector (%), 2012–2022 .......................................................................................... 67 Figure 29: APC MRO Market Size in Russia (US$ Million), 2012–2022 .............................................................................................................. 68 Figure 30: MBT MRO Market Size in Russia (US$ Million), 2012–2022 .............................................................................................................. 69 Figure 31: Armored Vehicles MRO Market in the UK (US$ Million), 2012–2022 ................................................................................................. 71 Figure 32: Armored Vehicles MRO Market Split by Sector in UK (%), 2012–2022 .............................................................................................. 72 Figure 33: APC MRO Market Size in the UK (US$ Million), 2012–2022 .............................................................................................................. 73 Figure 34: MBT MRO Market Size in the UK (US$ Million), 2012–2022 .............................................................................................................. 74 Figure 35: Armored Vehicles MRO Market in Saudi Arabia (US$ Million), 2012–2022 ........................................................................................ 76 Figure 36: APC MRO Market Size in Saudi Arabia (US$ Million), 2012–2022 ..................................................................................................... 77 Figure 37: MBT MRO Market Size in Saudi Arabia (US$ Million), 2012–2022..................................................................................................... 78 Figure 38: Armored Vehicles MRO Market in Israel (US$ Million), 2012–2022 .................................................................................................... 80 Figure 39: MBT MRO Market Size in Israel (US$ Million), 2012–2022 ................................................................................................................ 81 Figure 40: Armored Vehicles MRO Market in Australia (US$ Million), 2012–2022 .............................................................................................. 83 Figure 41: Armored Vehicles MRO Market Split by Sector in Australia (%), 2012–2022...................................................................................... 84 Figure 42: APC MRO Market Size in Australia (US$ Million), 2012–2022 ........................................................................................................... 85 Figure 43: MBT MRO Market Size in Australia (US$ Million), 2012–2022 ........................................................................................................... 86 Figure 44: Armored Vehicles MRO Market in China (US$ Million), 2012–2022 ................................................................................................... 88 Figure 45: Armored Vehicles MRO Market Split by Sector in China (%), 2012–2022 .......................................................................................... 89 Figure 46: MBT MRO Market Size in China (US$ Million), 2012–2022 ............................................................................................................... 90 Figure 47: APC MRO Market Size in China (US$ Million), 2012–2022 ................................................................................................................ 91 Figure 48: Armored Vehicles MRO Market in India (US$ Million), 2012–2022 ..................................................................................................... 93 Figure 49: Armored Vehicles MRO Market Split by Sector in India (%), 2012–2022 ............................................................................................ 94 Figure 50: MBT MRO Market Size in India (US$ Million), 2012–2022 ................................................................................................................. 95 Figure 51: APC MRO Market Size in India (US$ Million), 2012–2022 ................................................................................................................. 96 Figure 52: Armored Vehicles MRO Market in Brazil (US$ Million), 2012–2022 ................................................................................................... 98 Figure 53: APC MRO Market Size in Brazil (US$ Million), 2012–2022 ................................................................................................................ 99 Figure 54: MBT MRO Market Size in Brazil (US$ Million), 2012–2022 ...............................................................................................................100
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Figure 55: Armored Vehicles MRO Market in Colombia (US$ Million), 2012–2022 ............................................................................................102 Figure 56: APC MRO Market Size in Colombia (US$ Million), 2012–2022 .........................................................................................................103 Figure 57: Armored Vehicles MRO Market in Algeria (US$ Million), 2012–2022 ................................................................................................105 Figure 58: MBT MRO Market Size in Algeria (US$ Million), 2012–2022 .............................................................................................................106 Figure 59: Navistar – Revenue Trend Analysis (US$ Billion), 2007–2011 ..........................................................................................................122 Figure 60: Navistar – Operating Profit (US$ Million), 2007–2011 .......................................................................................................................123 Figure 61: Navistar – Net Profit Trend Analysis (US$ Million), 2007–2011 ........................................................................................................123 Figure 62: BAE Systems – Revenue Trend Analysis (GBP Billion), 2007–2011 .................................................................................................125 Figure 63: BAE Systems – Operating Profit (GBP Million), 2007–2011 ..............................................................................................................125 Figure 64: BAE Systems – Net Profit Trend Analysis (GBP Million), 2007–2011 ...............................................................................................126 Figure 65: Rheinmetall – Revenue Trend Analysis (EUR Billion), 2007–2011 ....................................................................................................130 Figure 66: Rheinmetall – Operating Profit (EUR Million), 2007–2011 .................................................................................................................131 Figure 67: Rheinmetall – Net Profit Trend Analysis (EUR Million), 2007–2011 ..................................................................................................131 Figure 68: Honeywell – Revenue Trend Analysis (US$ billion), 2007–2011 .......................................................................................................133 Figure 69: Honeywell – Operating Profit Trend Analysis (US$ billion), 2007–2011.............................................................................................134 Figure 70: Honeywell – Net Profit Trend Analysis (US$ billion), 2007–2011 ......................................................................................................134 Figure 71: Lockheed Martin – Revenue Trend Analysis (US$ Billion), 2007–2011 .............................................................................................138 Figure 72: Lockheed Martin – Operating Profit (US$ Billion), 2007–2011 ...........................................................................................................138 Figure 73: Lockheed Martin – Net Profit Trend Analysis (US$ Billion), 2007–2011 ...........................................................................................138 Figure 74: Thales – Revenue Trend Analysis (EUR Billion), 2007–2011 ............................................................................................................140 Figure 75: Thales – Operating Profit (EUR Million), 2007–2011 .........................................................................................................................142 Figure 76: Thales – Net Profit Trend Analysis (EUR Million), 2007–2011 ..........................................................................................................142 Figure 77: Northrop Grumman – Revenue Trend Analysis (US$ Billion), 2007–2011 .........................................................................................144 Figure 78: Northrop Grumman – Operating Profit (US$ Million), 2007–2011 ......................................................................................................144 Figure 79: Northrop Grumman – Net Profit Trend Analysis (US$ Million), 2006–2010 ......................................................................................145 Figure 80: General Dynamics – Revenue Trend Analysis (US$ Billion), 2007–2011 ..........................................................................................147 Figure 81: General Dynamics – Operating Profit (US$ Million), 2007–2011 .......................................................................................................148 Figure 82: General Dynamics – Net Profit Trend Analysis (US$ Million), 2007–2011 ........................................................................................148 Figure 83: Nexter – Revenue Trend Analysis (EUR Million), 2007–2010 ...........................................................................................................150 Figure 84: Nexter – Operating Profit (EUR Million), 2007–2010 .........................................................................................................................151 Figure 85: Nexter – Net Profit Trend Analysis (EUR Million), 2007–2010 ..........................................................................................................151 Figure 86: Elbit Systems – Revenue Trend Analysis (US$ Billion), 2006– 2010 .................................................................................................153 Figure 87: Elbit Systems – Operating Profit (US$ Million), 2006–2010 ..............................................................................................................154 Figure 88: Elbit Systems – Net Profit Trend Analysis (US$ Million), 2006–2010 ...............................................................................................154 Figure 89: SAIC – Revenue Trend Analysis (US$ Billion), 2009– 2011 ..............................................................................................................158 Figure 90: SAIC – Operating Profit (US$ Million), 2009–2011 ...........................................................................................................................159 Figure 91: SAIC – Net Profit Trend Analysis (US$ Million), 2009–2011.............................................................................................................159
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LIST OF TABLES
Table 1: Global Armored Vehicles MRO Market Overview .................................................................................................................................. 20 Table 2: Global Armored Vehicles MRO Market Overview .................................................................................................................................. 28 Table 3: SWOT Analysis of the Armored Vehicles MRO Market ......................................................................................................................... 48 Table 4: US Armored Vehicles MRO Market Overview ....................................................................................................................................... 54 Table 5: Key Armored Vehicles MRO Programs ................................................................................................................................................. 55 Table 6: French Armored Vehicles MRO Market Overview ................................................................................................................................. 62 Table 7: Major French Armored Vehicles MRO Programs .................................................................................................................................. 63 Table 8: Russian Armored Vehicles MRO Market Overview ............................................................................................................................... 65 Table 9: Major Russian Armored Vehicles MRO Programs ................................................................................................................................. 66 Table 10: UK Armored Vehicles MRO Market Overview ..................................................................................................................................... 70 Table 11: Major UK Armored Vehicles MRO Programs ...................................................................................................................................... 71 Table 12: Saudi Arabia’s Armored Vehicles MRO Market Overview ................................................................................................................... 75 Table 13: Major Armored Vehicles MRO Programs of Saudi Arabia ................................................................................................................... 76 Table 14: Israel’s Armored Vehicles MRO Market Overview ............................................................................................................................... 79 Table 15: Major Armored Vehicles MRO Programs of Israel ............................................................................................................................... 80 Table 16: Australian Armored Vehicles MRO Market Overview .......................................................................................................................... 82 Table 17: Key Armored Vehicles MRO Programs ............................................................................................................................................... 83 Table 18: Chinese Armored Vehicles MRO Market Overview ............................................................................................................................. 87 Table 19: Main Chinese Armored Vehicles MRO Programs ................................................................................................................................ 88 Table 20: Indian Armored Vehicles MRO Market Overview ................................................................................................................................ 92 Table 21: Key Indian Armored Vehicles MRO Programs..................................................................................................................................... 93 Table 22: Brazilian Armored Vehicles MRO Market Overview............................................................................................................................. 97 Table 23: Key Brazilian Armored Vehicles MRO Programs ................................................................................................................................. 98 Table 24: Armored Vehicles MRO Market Overview of Colombia ......................................................................................................................101 Table 25: Algerian Armored Vehicles MRO Market Overview ............................................................................................................................104 Table 26: Program Details – Warrior Capability Sustainment Program ..............................................................................................................107 Table 27: Program Details – Program to recapitalize high mobility multipurpose wheeled vehicles (HMMWVs) .................................................108 Table 28: Program Details – Through-life modernization of Leclerc main battle tanks ........................................................................................110 Table 29: Program Details – Challenger Lethality Improvement Program ..........................................................................................................111 Table 30: Program Details –T-72 Upgrade Program ..........................................................................................................................................112 Table 31: Program Details – Abrams main battle tank modernization program ..................................................................................................113 Table 32: Program Details – MRAP Contractor Logistics Sustainment and Support (CLSS) Services contract ..................................................114 Table 33: Program Details – Upgrade program for International MaxxPro MRAP vehicles .................................................................................115 Table 34: Program Details – Canadian LAV-III wheeled APC fleet upgrade program .........................................................................................116 Table 35: Program Details – Maintenance and Repair of Mercedes-Benz Trucks ..............................................................................................117 Table 36: Program Details – Upgrade of Family of Medium Tactical Vehicles ....................................................................................................118 Table 37: Program Details – Medium Support Vehicle System Program ............................................................................................................119 Table 38: Navistar – Recent Contract Wins .......................................................................................................................................................121 Table 39: BAE Systems – Alliances ...................................................................................................................................................................124 Table 40: BAE Systems – Recent Contract Wins ...............................................................................................................................................125 Table 41:ManTech International – Alliances ......................................................................................................................................................127 Table 42: ManTech International – Recent Contract Wins .................................................................................................................................127 Table 43: Rheinmetall – Recent Contract Wins..................................................................................................................................................128 Table 44: Honeywell – Alliances ........................................................................................................................................................................132 Table 45: Honeywell – Recent Contract Wins ....................................................................................................................................................133 Table 46: Krauss-Maffei Wegmann – Alliances ..................................................................................................................................................135 Table 47: Krauss-Maffei Wegmann – Recent Contract Wins .............................................................................................................................136 Table 48: Lockheed Martin – Alliances ..............................................................................................................................................................137 Table 49: Lockheed Martin – Recent Contract Wins ..........................................................................................................................................137 Table 50: Thales – Recent Contract Wins..........................................................................................................................................................140 Table 51: Northrop Grumman – Alliances ..........................................................................................................................................................143 Table 52: Northrop Grumman – Recent Contract Wins ......................................................................................................................................143 Table 53: General Dynamics – Alliances ...........................................................................................................................................................146 Table 54: General Dynamics – Recent Contract Wins .......................................................................................................................................146
The Global Armored Vehicles MRO Market 2012–2022
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Table 55: Nexter – Alliances ..............................................................................................................................................................................149 Table 56: Nexter – Recent Contract Wins ..........................................................................................................................................................149 Table 57: Elbit Systems – Alliances ...................................................................................................................................................................152 Table 58: Elbit Systems – Recent Contract Wins ...............................................................................................................................................152 Table 59: Oshkosh Defense – Alliances ............................................................................................................................................................155 Table 60: Oshkosh Defense – Recent Contract Wins ........................................................................................................................................156 Table 61: SAIC – Alliances ...............................................................................................................................................................................157 Table 62: SAIC – Recent Contract Wins ............................................................................................................................................................157
The Global Armored Vehicles MRO Market 2012–2022
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1 Executive Summary
The global armored vehicle MRO market is expected to increase at a CAGR of XX% during the forecast
period
In 2012, the global armored vehicles MRO market valued US$XX billion and is expected to value US$XX
billion by 2022, representing a CAGR of XX% during the forecast period. The demand for armored vehicles
MRO services is anticipated to be driven by a worldwide ageing of military equipment, technological
innovations in the industry, internal and external security threats, territorial disputes, and modernization
initiatives undertaken by armed forces across the world. Cumulatively, the global market is expected to value
US$XX billion during the forecast period and is expected to be dominated by North America, followed by Asia
Pacific and Europe. Despite the economic crisis in Europe, Europe’s share of the global market is projected to
increase during the forecast period, albeit marginally, due to the scheduled deployment of various
modernization programs that had been initiated in previous years.
In terms of categories, the APC MRO market is expected to account for the highest proportion of spending in
the global armored vehicles MRO market, followed by markets for MBT MRO, MRAP MRO, and tactical trucks
MRO.
The Global Armored Vehicles MRO Market 2012–2022
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2 Global Armored Vehicles MRO Market Size and Drivers
2.1 Armored Vehicles MRO Market Size and Forecast 2012–2022
2.1.1 Global armored vehicles MRO market to show positive growth during the forecast period
The global armored vehicles MRO market is estimated to value US$XX billion in 2012 and increase at a
CAGR of XX% during the forecast period, to reach its peak of US$XX billion by 2022. Budget cuts and
austerity measures have resulted in governments around the world reassessing their procurements and
upgrading existing fleets where financially preferable. The market consists of 4 categories of military armored
vehicles MRO activities: MBT MRO, APC MRO, Tactical Trucks MRO, and MRAP MRO. The APC MRO
market is expected to account for XX% of the global military armored vehicles MRO market, followed by MBT
MRO with a share of XX%, MRAP MRO with XX%, and tactical trucks with XX% share. Cumulative global
expenditure on military armored vehicles MRO is expected to reach US$XX billion throughout the forecast
period.
The chart below shows the expected armored vehicles MRO market value during 2012–2022:
Figure 1: Global Armored Vehicles MRO Market (US$ Billion), 2012–2022
Source: SDI analysis © SDI
XX
XX
XX
XX
XX
XX
XX
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
US
$ B
illi
on
2022
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2.2 Global Armored Vehicles MRO Market – Regional Analysis
2.2.1 North America dominates the global armored vehicles MRO market
The North American region accounts for the highest expenditure in the global armored vehicle MRO market
and the majority of the expenditure can be attributed to the US, with Canada accounting for a small share. As
the US has been engaged in continuous military operations in Afghanistan and Iraq, along with Canadian
forces, a significant number of their armored vehicles have undergone significant wear and tear. Furthermore,
most of the country’s active fleet of armored vehicles is aging fast and has an average age of 14 years. This is
expected to attract significant MRO investments in the country’s armored vehicle market with its fleet including
M1 Abrams Tanks (average age 13 years), Bradley Fighting Vehicles (average age 10 years) and M-113
Based vehicles ( average age 13 years), among several others. Moreover, the US Army aims to maintain the
average age of its armored vehicles at or below half of their service life, by continuously upgrading them to
match the capabilities of the latest models and by incorporating technologies developed by the Future Combat
Systems program when the new systems become available.
The table below gives a brief overview of the global armored vehicles MRO market:
Table 1: Global Armored Vehicles MRO Market Overview
Region Market in 2012 Market in 2022 Total Market (2012–2022)
Annualized growth/decline
(2012–2022)
North America US$XX. billion US$XX. billion US$XX billion XX%
Asia-Pacific US$XX billion US$XX billion US$XX billion XX%
Europe US$XX million US$XX million US$XX billion XX%
Middle East US$XX million US$XX million US$XX billion XX%
Africa US$XX million US$XX million US$XX billion XX%
Latin America US$XX million US$XX million US$XX billion XX%
Total Armored Vehicles MRO Market US$XX billion US$XX billion US$XX billion XX%
Source: SDI analysis © SDI
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2.3 Armored Vehicles MRO Sub–Sector Market Size Composition
2.3.1 APC MRO market to record strong CAGR growth
APC MRO has emerged as the category that is expected to witness maximum global spending in the armored
vehicles MRO market. With the advent of counterinsurgency as a dominant theme of modern asymmetric
warfare, medium, balanced, and mechanized infantry units are becoming popular, as they possess flexible
capabilities. APCs enable combat units to utilize modern sensor and communication technology, and at the
same time can provide survivability by prevailing against anti-tank and improvised explosive devices (IED). In
such a scenario, major defense spenders, including the US, China, and South Korea, which are committed to
maintaining readiness and performance of their active fleets, have renewed their focus upon increasing the
service lives of aging APCs. Another major factor influencing a high spend in this segment is the recent
conflicts and operations in Afghanistan and the Middle East. These combat operations have made it
imperative for armed forces of the allied nations to move towards life cycle extension programs around a
number of vehicle platforms that are considered to be of strategic importance.
The table below gives a brief overview of the global armored vehicles MRO market:
Table 2: Global Armored Vehicles MRO Market Overview
Category Market in 2012 Market in 2022 Total Market (2012–2022)
Annualized growth/decline
(2012–2022)
APC MRO US$XX billion US$XX billion US$XX billion XX%
MBT MRO US$XX billion US$XX billion US$XX billion XX%
MRAP MRO US$XX million US$XX billion US$XX billion XX%
Tactical Truck MRO US$XX million US$XX million US$XX billion XX%
Total Armored Vehicles MRO Market US$XX billion US$XX billion US$XX billion XX%
Source: SDI analysis © SDI
