Ground Combat Systems (Formerly Land Domain, Land Combat Systems) Sept. 16, 2018

Land Combat Systems

Without argument, the global market for combat vehicles is on the rise. In both quality and quantity, the resurgence of state and multi-national threats has stoked demand for the development and delivery of modern weapon systems around the world. Furthermore, the increasingly rapid state of commercial technological innovation promises to answer that demand with increasingly capable defense applications delivered by both large Original Equipment Manufacturers (OEM) and non-traditional players operating in a highly competitive global market place. In 2016, the total military vehicle market is estimated to have earned revenues of approximately $35B for research, development and the procurement of new and upgraded weapon systems, delivering over 30,000 new and upgraded vehicles. By 2025, the market is forecasted to expand to over $45B in total annual revenue (6.6% Compound Annual Growth Rate) with the average price increasing at a rate of over 5% per year reflecting the high degree of technological advances resident in each system. According to Jane’s, over $443B will be spent on research, development, production, and modernization of military vehicles between 2016 and 2025. On average, innovation is incremental and accelerating, resulting in land combat systems that are increasingly more expensive to develop and fielded in decreasing time increments. Furthermore, the total number of systems is predicted to remain fairly steady as national preference shifts to quality over force structure growth as a means of countering rising threats.