In July 2019, Rheinmetall AG and BAE Systems plc created a joint venture with an aim to manufacture Boxer multirole fighting vehicles for the UK.

Posted by MarketsandMarkets on Jul 15, 2019 2:42:04 PM
MarketsandMarkets

MarketsandMarkets™ View Point:

Amit Pagare, a Senior Research Analyst in the Aerospace and Defense sector at MarketsandMarkets™, shares his views.

Rheinmetall AG and BAE Systems plc have entered into a joint venture to manufacture the Royal British Army’s new Boxer multirole fighting vehicle for the British Mechanised Infantry Vehicle (MIV) program. The Boxer is an all-terrain multi-utility armored vehicle equipped with a drive module and exchangeable mission module, thus enhancing its flexibility and allowing it to be used in warfare as well as peacekeeping missions.

Land UK, a business unit of BAE Systems plc, is expected to work in partnership with Rheinmetall. This joint venture, named Rheinmetall BAE Systems Land (RBSL), will combine the expertise of Rheinmetall’s military vehicle technologies and the vehicle capabilities of BAE Systems’ Land UK. The collaboration is expected to boost exports and create more than 450 jobs.

In 2018, BAE Systems’ Land UK was one of the key players in the UK’s armored vehicles market. This market is dominated by major players such as General Dynamics and Lockheed Martin.

IMPACT ON THE ARMORED VEHICLES MARKET

As per projections by MarketsandMarkets™, the armored vehicles market is expected to reach USD 17 billion by 2023, with a CAGR of 3.25% between 2018 and 2023.

FIGURE 1 UNMANNED ARMORED GROUND VEHICLES SEGMENT OF ARMORED VEHICLES MARKET PROJECTED TO GROW AT THE HIGHEST CAGR FROM 2018 TO 2023
Rheinmetall, BAE armored-vehicles joint venture_2

Source: Secondary Research and MarketsandMarkets™ Analysis

The armored vehicles market is currently driven by the increasing expenditure on military vehicles. Key market players are procuring supply contracts to enhance their position in the armored vehicles segment. By developing technologically advanced and cost-effective products, these players are working towards entering new markets.

Modernization of existing armored vehicle fleets with advanced systems to keep up with the changing nature of warfare has resulted in a significant increase in the number of new contracts and deals in this market. Oshkosh Corporation, General Dynamics Corporation, Textron Inc., Hanwha Corporation, NORINCO, BAE Systems plc, and Rheinmetall AG are a few leading players in the armored vehicles market who have adopted this strategy.

Companies are also adopting strategies that involve joint ventures & partnerships in order to expand or complement their existing products, services, and customer base. In February 2019, Hanwha defense systems entered into a partnership with Bisalloy Steels through which Hanwha received Bisalloy Armour Steel for use in K21 infantry fighting vehicles and AS21 Redback vehicles. Domestic production and sharing of technological know-how with local companies, along with high growth in emerging markets such as India and China, have encouraged companies to adopt these strategies in order to enter new markets.

IMPACT ON TOP COMPETITORS

Key players in the armored vehicles market include Oshkosh Corporation (US), Ukroboronprom (Ukraine), UralVagonZavod (Russia), BAE Systems plc (UK), General Dynamics Corporation (US), Rheinmetall AG (Germany), NORINCO (China), and Textron Inc. (US). These players focus on securing contracts from governments of different countries to boost their organic growth. RBSL will provide design, manufacturing, and support services for the military vehicles of the British Army, as well as for other international customers. A major focus of this initiative is to compete in the global market and create healthy competition in the industry. Top competitors like Lockheed Martin and General Dynamics are expected to invest locally in design and assembly facilities in order to secure major contracts from the European region.

FIGURE 2 KEY CONTRACTS AND NEW PRODUCT DEVELOPMENTS FROM 2014 TO 2018

Rheinmetall, BAE armored-vehicles joint venture_1

Note: pindenotes the events that had a significant impact on the armored vehicles market.
Source: Annual Reports, Press Releases, and MarketsandMarkets™ Analysis

CONCLUSION

Demand in the armored vehicles market is expected to grow at a significant rate across the globe. The expansion of this market can be attributed to increasing deployment of these vehicles by defense forces of different countries in order to carry out overseas missions and anti-terror operations. Another notable reason for the expanding demand is an increase in the number of cross-border conflicts worldwide.

For more information, please write to info@marketsandmarkets.com.Rheinmetall, BAE armored-vehicles joint venture_1

Topics: Aerospace and Defence, armored vehicles market, Rheinmetall AG, BAE Systems plc

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