May 7, 2007 - U.S. Military Ground Vehicle Armor Represents a $20 Billion Market 2005 to 2013.
In their newest report for the armor industry, 2007 U.S. Military Ground Vehicle Armor Forecast, Vector Strategy projects that an estimated $20 billion of military ground vehicle armor will be procured by the US Department of Defense for US military forces between 2005 and 2013 (nine years inclusive).
In addition, the industry experiences an unprecedented peak in fiscal year 2007 armor procurement. According to Marcia Price, president of Vector Strategy, "Armor procurement in fiscal year 2007 is 159% the level of procurement in fiscal year 2006 - including base and supplemental budgets now under consideration by Congress."
"This peak is due to the need to repair and replace armored vehicles lost or worn out in current Iraq and Afghanistan operations, to add equipment such as MRAP vehicles to fill recently identified war-fighting needs, to supply armored vehicles to support the surge of additional troops to Iraq, to add and upgrade armored vehicles to improve current and future war-on-terrorism capabilities, and to begin procuring armored vehicles needed to support the Army and Marine Corps plans to add 92,000 active duty troops to the force over the next several years," says Ms. Price.
Fiscal year 2007 and 2008 military ground vehicle armor procurement is sharply driven by large increases in supplemental funding for force protection and equipment reset.
Vector projects that fiscal year 2010 to fiscal year 2013 armor procurement will decline slightly from 2009 levels, but still remain a substantial market for armor industry participants.
Vector forecasts additional armor procurement for FY09 to FY13 (above the DoD's base budget for those years) to address contingency operations in which U.S. forces become involved in, to fund additional sustainment of combat vehicles, to provide applique armor to increase the protection level of mine protected vehicles, and fund JLTV armor procurement.
In fiscal year 2007, 39% of total military ground vehicle armor procurement funds armor for light tactical vehicles such as HMMWV's; medium and heavy tactical vehicles represent 27% of total armor procurement; ASV's, MRAP, and other mine protected vehicles account for 10% of armor spending in 2007; and combat vehicles, such as the Stryker, Bradley, and Abrams, account for 24% of 2007 armor procurement.
Market trends affecting military ground vehicle armor procurement include:
- Even the newest HMMWV variants (M1151, M1152, and M1165) are facing weight and payload issues due to up-armoring and are still not offering vehicle occupants the desired ballistic and blast protection.
- MRAP procurement is likely to affect HMMWV procurement and production.
- Implementation of the Long Term Armoring Strategy within the US Army's procurement of the Family of Medium Tactical Vehicles initiates in FY07.
- MRAP and ASV-like vehicles will play an expanded role in the procurement and deployment of military ground vehicles even beyond FY07 and FY08.
- TUSK (Tank Urban Survivability Kit) and other similar efforts funded through “Situational Awareness” program funding will continue to be developed and deployed on all combat vehicles in the future.
- Vector believes that current combat vehicles will receive more funding that that currently projected by the DoD to sustain their functionality through FCS deployment.
- Although Stryker procurement of new vehicles is slowing, Vector believes there is the potential for significant funding for armor related modification programs for in-service vehicles.
- The Expeditionary Fighting Vehicle (EFV), Marine Personnel Carrier (MPC), and Internally Transportable Vehicle (ITV) are all new platforms coming into production during Vector's forecast horizon. Armor solutions for the EFV and MPC are likely to be lightweight composite based designs.
- Vector also foresees continued upgrades in LAV armor as this vehicle is a vital element of the USMC vehicle stable and will remain in the field for another 20 years.
For more information on the forecast, download a report brochure and order form (PDF format) or download the first 14 pages FREE to preview the report (PDF format).
About Vector Strategy, Inc. Vector Strategy, Inc. is a private company based in Orlando, Florida that offers reports, publications, and other market research services to the military armor industry. Vector Strategy helps companies stay abreast of technology trends, government procurement, market size and growth, industry players, supply chain issues, and other intelligence that business executives need to make informed decisions and build effective strategic plans.
For more information contact Marcia Price, Vector Strategy at 407-532-7365 or mprice@vector-strategy.com.
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