Discover Top 15 Companies in Military Vehicle Electrification Market: Global Share, Market Size, Revenue Report (2024–2035)
RELEASE DATE: Sep 2025 Author: Spherical InsightsRequest Free Sample Speak to Analyst
Description
According to a research report published by Spherical Insights & Consulting, The Global Military Vehicle Electrification Market Size is projected to Grow from USD 5.41 Billion in 2024 to USD 53.25 Billion by 2035, at a CAGR of 23.11% during the forecast period 2025–2035. A rising movement towards hybrid and fully electric military vehicles is occurring as defense agencies globally upgrade their fleets with more efficient and adaptable solutions. This change is a component of a larger initiative to improve military effectiveness while meeting the changing requirements of contemporary combat.
Introduction
The incorporation of electric power and propulsion systems into military vehicles, including tanks, armored vehicles, transport vehicles, and support vehicles, is referred to as military vehicle electrification. It involves incorporating advanced power management systems, utilizing state-of-the-art battery technology, and replacing traditional internal combustion engines with electric motors. In this transition, traditional combustion engines will be replaced with electric motors powered by batteries or hybrid systems to energize the vehicles. It comprises a wide range of military equipment, such as aircraft, naval ships, and ground vehicles. It includes technologies like plug-in hybrid electric (PHEV), hybrid electric (HEV), and battery electric (BEV) systems. The electrification movement is driven by decreasing dependence on fossil fuels, lowering greenhouse gas emissions, and utilizing the advantages of electric propulsion, including improved stealth, reduced maintenance. Governments and defense entities are allocating funds for military fleet electrification to enhance operational efficiency, reduce reliance on fossil fuels, and comply with stringent environmental standards. This is additionally supported by advancements in battery systems, electric propulsion, and hybrid technologies, which provide enhanced performance, stealth features, and lower maintenance expenses.
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Military Vehicle Electrification Market Size & Statistics
- The Market Size for Military Vehicle Electrification Was Estimated to be worth USD 5.41 Billion in 2024.
- The Market size is Going to Expand at a CAGR of 23.11% between 2025 and 2035.
- The Global Military Vehicle Electrification Market Size is anticipated to reach USD 53.25 Billion by 2035.
- North America is expected to generate the highest demand during the forecast period in the global military vehicle electrification market.
- Asia Pacific is expected to grow the fastest during the forecast period in the global military vehicle electrification market.
Regional growth and demand
Asia Pacific is anticipated to grow at the fastest CAGR over the forecast period in the global military vehicle electrification market.
The reasons for this market growth in region due to government initiatives to encourage electric vehicle adoption and provide buying incentives. These efforts are driving the enthusiasm for electric vehicles in the Asia Pacific region. Moreover, the growing population and increasing personal income in neighboring countries are driving a greater demand for sustainable modes of personal transportation.
North America is projected to be grow at the largest market during the forecast period in the global military vehicle electrification market.
The regional market is influenced by a mix of strategic initiatives, technological expertise, and a heightened commitment to sustainability. The region's robust dedication to lowering carbon emissions and diminishing reliance on fossil fuels has resulted in substantial investment in electric vehicle (EV) technology, fostering a supportive climate for military electrification. With its significant defense budget and top defense contractors, the United States is leading the way in developing innovative electric military vehicles. North America leverages its advanced automotive sector to establish a solid foundation for seamlessly integrating electric propulsion technologies into military vehicles. The growing focus on energy security and operational effectiveness maintains the push for electric military vehicles, presenting advantages such as enhanced fuel efficiency and lower logistical hurdles.
Top 10 trends in the Military Vehicle Electrification Market
- Hybridization as a Bridge Technology
- The Quest for Silent Mobility
- Increased Onboard Power for High Demand Systems
- Reduced Logistics and Fuel Dependency
- Autonomous and Semi-Autonomous Vehicle Integration
- Advancements in Energy Storage and Battery Technology
- Development of Off-Grid Charging Solutions
- Focus on Energy Resilience and Sustainability
- Increased R&D and Strategic Partnership
- Retrofitting Existing Fleets.
1. Hybridization as a Bridge Technology
Hybrid systems, integrating a conventional internal combustion engine with an electric motor and battery, provide a combination of improved fuel efficiency, greater operational range, and the capability to function in silent watch mode, essential for surveillance and reconnaissance.
2. Reduced Logistics and Fuel Dependency
Utilizing more fuel-efficient hybrid systems or electric vehicles that can be charged from diverse sources enables the military to diminish its dependence on an exposed fuel supply chain, thereby enhancing operational readiness and preserving lives.
3. Focus on Energy Resilience and Sustainability
Electrification is a key component of this strategy, helping to meet sustainability mandates, reduce emissions, and increase energy resilience by diversifying away from fossil fuels.
4. Increased R&D and Strategic Partnership
Collaboration between key market players and the military that utilize the swift advancements in the commercial EV industry.
5. Autonomous and Semi-Autonomous Vehicle Integration
The accurate management of electric motors, along with a centralized power supply for computers and sensors, streamlines the incorporation of autonomous and semi-autonomous systems.
Empower your strategic planning:
Stay informed with the latest industry insights and market trends to identify new opportunities and drive growth in the global military vehicle electrification market. To explore more in-depth trends, insights, and forecasts, please refer to our detailed report.
Top 15 Companies Leading the Military Vehicle Electrification Market
- BAE Systems
- Oshkosh Corporation
- Otokar Otomotiv ve Savunma Sanayi AS
- GM Defense LLC
- Leonardo
- Qinetiq
- Textron Inc.
- ST Engineering
- Arquus
- General Dynamics Corporation
- Alke
- Krauss-Maffei Wegmann
- RENK Group AG
- Crane Aerospace & Electronics
- Elbit Systems
- Others
1. BAE Systems
Headquarters: London, United Kingdom
BAE Systems is a worldwide leader in aerospace and defense, with a longstanding and strategically significant role in the electrification of military vehicles. In contrast to certain rivals entering the market now, BAE Systems possesses decades of expertise in hybrid-electric propulsion, having modified its technology from the commercial transit bus industry for military use. The foundation of BAE Systems' military vehicle electrification sector is built on its very successful commercial transit bus offerings. BAE Systems Series-E and Series-ER hybrid-electric drive systems have been in operation, driving thousands of buses globally. This financial achievement has given the company essential expertise in power management, battery integration, and system reliability, which it is currently utilizing for the defense industry. BAE Systems possesses a solid history of partnering with government bodies and other industry leaders to advance military electrification.
2. Leonardo
Headquarters: Rome, Italy
Leonardo S.p.A. is a leading worldwide entity in the defense and aerospace industries, and its involvement in the military vehicle electrification sector is growing more important. Although Leonardo may not be widely recognized for electric vehicles, it is strategically placed to supply the intricate, high-voltage power management systems, sensors, and various electronics crucial for advanced hybrid and electric military vehicles. Leonardo's method for electrifying military vehicles focuses on supplying the essential brains and power systems necessary for their operation, rather than constructing the entire vehicle from scratch. Leonardo DRS has played a crucial role as a supplier for the M1A1 Abrams tank program, delivering embedded diagnostics and various electronic solutions. This background in a conventional, robust combat system offers a solid base for incorporating new electric technologies.
3. Elbit Systems
Headquarters: Haifa, Israel.
Elbit Systems plays a major role in the military vehicle electrification sector, concentrating on delivering the electronic and power systems that facilitate vehicle upgrades instead of producing the vehicles directly. Their approach focuses on providing a complete, integrated range of technologies that improve a vehicle's functions, particularly highlighting power management and command and control systems.
Elbit Systems aims to enhance the vehicles ' interiors by electrifying them to improve intelligence and capabilities, utilizing a significant subsidiary, Kinetics. Elbit Systems holds a distinctive place in the market because of its comprehensive strategy for vehicle upgrades. The future of the company depends on the growing need for smarter and more interconnected vehicles. Elbit Systems plays a vital role in the electrification of military vehicles by supplying sophisticated electronics and power management systems that convert a vehicle from a basic machine into an advanced, connected, and versatile platform for multiple missions.
4. ST Engineering
Headquarters: Mo Kio Electronics Park Rd, Singapore
ST Engineering is an international technology and engineering corporation with a notable presence in the defense and aerospace sectors. Its position in the military vehicle electrification sector revolves around its Land Systems division, platforms to satisfy the changing demands of contemporary military forces. ST Engineering plans to incorporate hybrid electric drive (HED) technology into its current and future military vehicles. The firm is not merely electrifying a conventional vehicle; it is leveraging the potential of electrification to improve the vehicle's fundamental combat abilities. Leveraging its background as a vehicle original equipment manufacturer (OEM) alongside cutting-edge hybrid electric technology, the company is creating a new era of combat platforms that are more intelligent, durable, and better prepared for contemporary warfare.
5.General Dynamics Corporation
Headquarters: Reston, Virginia, USA
General Dynamics Corporation its Land Systems division plays a pivotal role in the military vehicle electrification sector. Instead of being a parts provider like Bosch or a commercial to military converter like BAE Systems. GD Land Systems focuses on electrifying its main product lines, the well-known Abrams tank and the Stryker combat vehicle. The objective of the company is to preserve its competitive advantage by developing advanced platforms that are stronger, more efficient, and strategically superior. General Dynamics focuses on the advancement and integration of hybrid electric drive (HED) technology. The organization has demonstrated this dedication via two major technology displays AbramsX main battle tank and the StrykerX combat vehicle. General Dynamics in electrifying military vehicles closely corresponds with the US Army's overall modernization plan. The Army has established bold objectives to electrify its vehicles to enhance efficiency, boost tactical performance, and minimize its logistical impact.
Are you ready to discover more about the military vehicle electrification market?
The report provides an in-depth analysis of the leading companies operating in the global military vehicle electrification market. It includes a comparative assessment based on their product portfolios, business overviews, geographical footprint, strategic initiatives, market segment share, and SWOT analysis. Each company is profiled using a standardized format that includes:
Company Profiles
- BAE Systems
- Business Overview
- Company Snapshot
- Products Overview
- Company Market Share Analysis
- Company Coverage Portfolio
- Financial Analysis
- Recent Developments
- Merger and Acquisitions
- SWOT Analysis
- Oshkosh Corporation
- Otokar Otomotiv ve Savunma Sanayi AS
- GM Defense LLC
- Leonardo
- Qinetiq
- Textron Inc.
- ST Engineering
- Arquus
- General Dynamics Corporation
- Alke
- Krauss-Maffei Wegmann
- RENK Group AG
- Crane Aerospace & Electronics
- Elbit Systems
- Others
Conclusion
The Global Military Vehicle Electrification Market Size is expected to see significant expansion, increasing from USD 5.41 billion in 2024 to USD 53.25 billion by 2035, with an impressive CAGR of 23.11%. This expansion is supported by the tactical transition of defense organizations globally toward hybrid and fully electric military vehicles, motivated by the necessity to boost fuel efficiency, lower emissions, enhance operational stealth, and lessen logistical dependencies. Innovations in battery technology, energy management, and eco-friendly power options facilitate this shift, allowing for more advanced and adaptable military systems. Prominent firms like BAE Systems, Leonardo, Elbit Systems, ST Engineering, and General Dynamics are at the forefront of the market by creating and incorporating advanced electrification technologies into current and future military vehicles. Regionally, North America continues to be the largest market due to substantial defense spending, technological proficiency, and dedication to sustainability, whereas the Asia Pacific area is the fastest-growing market, bolstered by governmental programs and increasing defense expenditures.
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