United States Armoured Vehicles Upgrade and Retrofit Market Insight
Published: 28 May 2026 | Report Format: Electronic (PDF)
United States armoured vehicles upgrade and retrofit market is projected to register a CAGR of approximately 6.48% through 2035, driven by increasing defense modernization programs, rising investments in battlefield survivability technologies
U.S. Armoured Vehicles Upgrade and Retrofit Market Insights Forecasts to 2035
- The US Armoured Vehicles Upgrade and Retrofit Market Size Was Estimated at USD 2.94 Billion in 2025
- The Market Size is Expected to Grow at a CAGR of around 6.48% from 2025 to 2035
- The US Armoured Vehicles Upgrade and Retrofit Market Size is Expected to Reach USD 5.53 Billion by 2035
Notable Insights for U.S. Armoured Vehicles Upgrade and Retrofit Market
- By vehicle type, infantry fighting vehicles (IFVs) accounted for nearly 37.9% share of the armoured vehicles upgrade and retrofit market in 2025.
- The United States government allocated more than USD 32.6 Billion between 2024 and 2026 toward armored combat vehicle modernization programs, battlefield mobility enhancement systems, active protection technologies, electronic warfare integration, and tactical ground force survivability initiatives.
- According to industry assessments, armor and survivability upgrade kits represented approximately 31.7% of total retrofit spending in 2025, while electronics and battlefield communication upgrades emerged as the fastest-growing modernization segment across U.S. military vehicle platforms.
- In December 2025, the U.S. Army awarded BAE Systems Land and Armaments a contract modification valued at nearly USD 198.4 Million to support future Armored Multi-Purpose Vehicle (AMPV) production and modernization programs, reinforcing long-term armored vehicle industrial base expansion within the United States.
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What Makes Decisions Advisors Research Unique?
- Defense Modernization, Intelligence and Military Vehicle Forecasting
Decisions Advisors delivers specialized defense market intelligence through comprehensive evaluation of armored vehicle modernization programs, battlefield mobility technologies, survivability enhancement systems, military electronics integration, and tactical defense procurement strategies.
- Advanced Defense Research Methodology and Multi-Layer Validation
Our analytical methodology integrates defense procurement assessments, military modernization tracking, Pentagon budget analysis, battlefield systems benchmarking, defense contractor evaluations, and secondary industry validation to generate highly accurate market forecasts and strategic business intelligence.
- Armoured Vehicle Technology Benchmarking and Competitive Landscape Analysis
The study provides comprehensive analysis of armor enhancement systems, active protection technologies, hybrid-electric military propulsion platforms, AI-enabled battlefield communication systems, modular combat vehicle architectures, and electronic warfare integration technologies.
Competitive Analysis:
The report offers the appropriate analysis of the key organizations/companies involved within the US Armoured Vehicles Upgrade and Retrofit market, along with a comparative evaluation primarily based on their product of offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.
Top Companies in United States Armoured Vehicles Upgrade and Retrofit Market
- General Dynamics Corporation
- BAE Systems plc
- Oshkosh Corporation
- AM General LLC
- Rheinmetall AG
- Elbit Systems Ltd.
- Leonardo DRS Inc.
- Textron Inc.
- Moog Inc.
- Curtiss-Wright Corporation
- Others
Recent Developments:
- In December 2025, BAE Systems secured a U.S. Army contract modification worth approximately USD 198.4 Million supporting Armored Multi-Purpose Vehicle production continuity, engineering support, tooling enhancement, and long-lead modernization activities for future armored combat vehicle programs.
- In October 2025, BAE Systems plc launched upgraded hybrid-electric propulsion integration technologies for armored combat vehicles, reducing fuel consumption by nearly 14% and enhancing tactical mobility performance across retrofit military vehicle programs.
Market Segmentation:
United States Armoured Vehicles Upgrade and Retrofit Market, By Vehicle Type
- Armored Personnel Carriers (APCs)
- Infantry Fighting Vehicles (IFVs)
- Mine-Resistant Ambush Protected Vehicles (MRAPs)
- Main Battle Tanks (MBTs)
- Light Tactical Vehicles
- Others
United States Armoured Vehicles Upgrade and Retrofit Market, By Technology
- Active Protection Systems
- Hybrid-Electric Propulsion
- AI-Enabled Combat Systems
- Modular Open-System Architectures
- Advanced Sensor Integration
- Autonomous Combat Assistance Systems
United States Armoured Vehicles Upgrade and Retrofit Market, By End User
- Army
- Marine Corps
- Homeland Security Agencies
- Defense Contractors
- Others
Expert Views:
According to defense industry analysts, the U.S. armoured vehicles upgrade and retrofit market is expected to witness robust long-term growth due to increasing military modernization initiatives, rising investments in survivability enhancement systems, and growing adoption of digitally integrated battlefield technologies across armored combat platforms. Experts indicate that hybrid-electric military mobility systems, AI-enabled combat assistance technologies, active protection systems, and modular electronic warfare integration will remain major strategic priorities for defense contractors and military agencies.
Author: Sanket and Pranali By Spherical Insights and Consulting