Industry Statistics and Trends
Military Fighting Vehicle Manufacturing in Europe key trends
France and Germany dominate European military vehicle manufacturing.
According to Eurostat, Germany and France collectively generated more than 70% of revenue in 2023, due to their superior automotive industries. Both countries host facilities for major player KNDS Group.
Foreign threats increase defence spending budgets.
Many European and NATO governments have committed to spending over 2% of annual GDP on defence. The European defence budget's progressive and strategic expansion will boost new orders for military vehicles.
Access all insights and trends with purchase. View purchase options.
Military Fighting Vehicle Manufacturing in Europe
Industry Revenue
Total value and annual change from 2012-2030. Includes 5-year outlook.
Access the 5-year outlook with purchase. View purchase options
Military Fighting Vehicle Manufacturing in Europe market size (2020-2025)
Industry revenue has grown at a CAGR of 0.1 % over the past five years, to reach an estimated €5.2bn in 2025.
Trends and Insights
Global tensions advance defence spending, pushing up exports of EU military vehicles
- NATO members, along with nations in the Asia-Pacific and the Middle East, are ramping up defence budgets in response to mounting geopolitical instability. The drive to strengthen air, naval and ground forces is fuelling a surge in global military expenditure. According to the Stockholm International Peace Research Institute, worldwide defence spending hit a record US$2.7 trillion (€2.3 trillion) in 2024, marking a 9.4% increase from 2023 – the sharpest annual rise since the Cold War ended in 1991. This upward trajectory has persisted into 2025, propelled by escalating geopolitical tensions and widespread military modernisation across all domains of warfare.
Access all 14 market size insights and trends with purchase. View purchase options.
Military Fighting Vehicle Manufacturing in Europe outlook (2025-2030)
Market size is projected to grow over the next five years.
Climbing defence budgets across Europe will drive orders
- Global threats and conflict in the Middle East are forcing many European countries to commit more resources to defence. Global defence spending is projected to reach US$3.6 trillion (€3.1 trillion) by 2030, as reported by Defence Tech, driven by geopolitical tensions, the war in Ukraine, and technological advancements. The hike in spending represents a significant increase from the 2024 baseline, with a notable portion of new funds expected to go toward technologies like AI, cybersecurity, and drones. The expansion in spending will lead to the modernisation of armoured vehicles and tanks.
Access all 9 forward-looking insights and industry data forecasts with purchase. View purchase options.
Revenue
€5.2bn
Employees
14,093
Wages
€X.Xbn
European Leaders & Laggards
Top 5 Countries
Bottom 5 Countries
* CAGR values are for the years 2020-2025.
Explore all 37 country performance rankings and data sheets with your membership purchase.
Biggest companies in the Military Fighting Vehicle Manufacturing in Europe
| Company | Market Share (%)
2025 | Revenue (€m)
2025 | Profit (€m)
2025 | Profit Margin (%)
2025 |
|---|---|---|---|---|
KMW+NEXTER Defense Systems NV | 4,290.0 | 455.0 | 10.6 | |
BAE Systems plc | 33,920.2 | 4,146.7 | 12.2 | |
Rheinmetall MAN Military Vehicles GmbH | 10,410.0 | 1,570.0 | 15.1 |
Access statistics and analysis on all 10 companies with purchase. View purchase options.
Military Fighting Vehicle Manufacturing in Europe
Products & Services Segmentation
Industry revenue broken down by key product and services lines.
Access all segmentation data and analysis with purchase. View purchase options.
Top Questions Answered in this Report
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Military Fighting Vehicle Manufacturing industry in Europe in 2025?
The market size of the Military Fighting Vehicle Manufacturing industry in Europe is €5.2bn in 2025.
How many businesses are there in the Military Fighting Vehicle Manufacturing industry in Europe in 2025?
There are 80 businesses in the Military Fighting Vehicle Manufacturing industry in Europe, which has grown at a CAGR of 3.3 % between 2020 and 2025.
Has the Military Fighting Vehicle Manufacturing industry in Europe grown or declined over the past 5 years?
The market size of the Military Fighting Vehicle Manufacturing industry in Europe has been growing at a CAGR of 0.1 % between 2020 and 2025.
What is the forecast growth of the Military Fighting Vehicle Manufacturing industry in Europe over the next 5 years?
Over the next five years, the Military Fighting Vehicle Manufacturing industry in Europe is expected to grow.
What does the Military Fighting Vehicle Manufacturing industry in Europe include?
Wheeled armoured military vehicles and Tanks are part of the Military Fighting Vehicle Manufacturing industry in Europe.
Which countries have the most businesses in the Military Fighting Vehicle Manufacturing industry in Europe?
The European country with the most businesses in the Military Fighting Vehicle Manufacturing industry is United Kingdom.
How competitive is the Military Fighting Vehicle Manufacturing industry in Europe?
The level of competition is moderate and steady in the Military Fighting Vehicle Manufacturing industry in Europe.
Related Industries
This industry is covered in 37 countries
- Military Fighting Vehicle Manufacturing in Norway
- Military Fighting Vehicle Manufacturing in the UK
- Military Fighting Vehicle Manufacturing in Europe
- Military Fighting Vehicle Manufacturing in Denmark
- Military Fighting Vehicle Manufacturing in Portugal
- Military Fighting Vehicle Manufacturing in Czechia
- Military Fighting Vehicle Manufacturing in Germany
- Military Fighting Vehicle Manufacturing in Finland
- Military Fighting Vehicle Manufacturing in Austria
- Military Fighting Vehicle Manufacturing in Poland
- Military Fighting Vehicle Manufacturing in Slovakia
- Military Fighting Vehicle Manufacturing in Latvia
- Military Fighting Vehicle Manufacturing in France
- Military Fighting Vehicle Manufacturing in the Netherlands
- Military Fighting Vehicle Manufacturing in Croatia
- Military Fighting Vehicle Manufacturing in Sweden
Table of Contents
About this industry
Industry definition
Manufacturers in this industry make military fighting vehicles, including tanks, armoured amphibious military vehicles, troop carriers and other military fighting vehicles like armoured personnel carriers. The industry also encompasses the repair and maintenance of military fighting vehicles.
Related Terms
Wheeled Armoured Military VehiclesTanksArmoured Personnel CarriersWhat's included in this industry?
Wheeled armoured military vehiclesTanksSelf-propelled artilleryTracked armoured vehiclesAmphibious military vehicles Armoured engineering vehicles Airborne vehiclesCompanies
KMW+NEXTER Defense Systems NVBAE Systems plcRheinmetall MAN Military Vehicles GmbHIndustry Code
304 - Manufacture of military fighting vehicles in Europe
View up to 10 companies with purchase. View purchase options.
Performance
Key Takeaways
Global tensions advance defence spending, pushing up exports of EU military vehicles
View more insights with purchase. View purchase options.
Revenue Highlights
Trends
- Revenue
- 2025 Revenue Growth
- Revenue Volatility
Employment Highlights
Trends
- Employees
- Employees per Business
- Revenue per Employee
Business Highlights
Trends
- Businesses
- Employees per Business
- Revenue per Business
Profit Highlights
Trends
- Total Profit
- Profit Margin
- Profit per Business
Current Performance
Charts
- Revenue in the Military Fighting Vehicle Manufacturing in Europe industry (2012 -2030)
- Employees in the Military Fighting Vehicle Manufacturing in Europe industry (2012 -2030)
- Business in the Military Fighting Vehicle Manufacturing in Europe industry (2012 -2030)
- Profit in the Military Fighting Vehicle Manufacturing in Europe industry (2012 -2030)
Analysis
What's driving current industry performance in the Military Fighting Vehicle Manufacturing in Europe industry?
Outlook
Analysis
What's driving the Military Fighting Vehicle Manufacturing in Europe industry outlook?
Volatility
Analysis
What influences volatility in the Military Fighting Vehicle Manufacturing in Europe industry?
Charts
- Industry Volatility vs. Revenue Growth Matrix
Life Cycle
Analysis
What determines the industry life cycle stage in the Military Fighting Vehicle Manufacturing in Europe industry?
Charts
- Industry Life Cycle Matrix
Products and Markets
Highlights
Trends
- Largest Market
- Product Innovation
Key Takeaways
The US is imposing a 25% tariff on European military fighting vehicles. It will directly raise costs for European manufacturers exporting armoured vehicles and military trucks to the US, reducing their competitiveness and profit.
Products and Services
Charts
- Products and Services Segmentation
Analysis
How are the Military Fighting Vehicle Manufacturing in Europe industry's products and services performing?
Analysis
What are innovations in the Military Fighting Vehicle Manufacturing in Europe industry's products and services?
Major Markets
Charts
- Major Market Segmentation
Analysis
What influences demand in the Military Fighting Vehicle Manufacturing in Europe industry?
International Trade
Highlights
- Total Imports into Europe
- Total Exports into Europe
Heat maps
- Industry Concentration of Imports by Country
- Industry Concentration of Exports by Country
Data Tables
Value and annual change (%) included
- Number of Imports and Exports by European Country (2025)
Geographic Breakdown
Business Locations
Heat maps
- Share of Total Industry Revenue by Region (2025)
- Share of Total Industry Enterprises by Region (2025)
- Share of Total Industry Employment by Region (2025)
- Share of Total Industry Wages by Region (2025)
Industry Geographic Breakdown
Data Tables
Values and annual change provided for 37 European countries:
- Revenue (2025)
- IVA (2025)
- Enterprises (2025)
- Employment (2025)
- Exports (2025)
- Imports (2025)
Competitive Forces
Highlights
Trends
- Concentration
- Competition
- Barriers to Entry
- Substitutes
- Buyer Power
- Supplier Power
Key Takeaways
Manufacturers compete on quality, innovation, delivery times and reputation. Quality competition is solid between manufacturers and high production costs mean companies must secure large orders to make manufacturing worthwhile. Manufacturers must produce vehicles able to perform in extreme conditions with minimal failure rates.
Supply Chain
Charts
Buyer and supply industries
Companies
Market Share
Charts
- Industry Market Share by Company (2020-2025)
Companies
Data Tables
Top 10 companies by market share:
- Market share (2025)
- Revenue (2025)
- Profit (2025)
- Profit Margin (2025)
Data Tables
- Countries of operation for KMW+NEXTER Defense Systems NV
- Countries of operation for BAE Systems plc
- Countries of operation for Rheinmetall MAN Military Vehicles GmbH
- Countries of operation for General Dynamics European Land Systems GmbH
- Countries of operation for Iveco Defence Vehicles SpA
- Countries of operation for NPO Uralvagonzavod AO
- Countries of operation for Arquus SAS
- Countries of operation for Ukrainska Oboronna Promyslovist
- Countries of operation for Koc Holding AS
- Countries of operation for CN ROMARM SA
External Environment
Highlights
Trends
- Regulation & Policy
- Assistance
Key Takeaways
European countries raise defence spending. According to the European Commission, general government expenditure in the EU on defence amounted to 1.9 % of GDP in 2024, rising from 1.3% of GDP in 2021.
External Drivers
Analysis
What demographic and macroeconomic factors impact the Military Fighting Vehicle Manufacturing in Europe industry?
Financial Benchmarks
Highlights
Trends
- Profit Margin
- Average Wage
- Largest Cost
Key Takeaways
Just-in-Time productions leave manufacturers vulnerable to supply chain disruption. Military vehicle production uses Just-in-Time manufacturing, meaning parts scarcity massively disrupts supply chains and elevates production costs.
Cost Structure
Charts
- Share of Economy vs. Investment Matrix
-
Industry Cost Structure Benchmarks:
- Marketing
- Depreciation
- Profit
- Purchases
- Wages
- Rent
- Utilities
- Other
Analysis
What trends impact cost in the Military Fighting Vehicle Manufacturing in Europe industry?
Key Ratios
Data tables
- IVA/Revenue (2015-2030)
- Imports/Demand (2015-2030)
- Exports/Revenue (2015-2030)
- Revenue per Employee (2015-2030)
- Wages/Revenue (2015-2030)
- Employees per Establishment (2015-2030)
- Average Wage (2015-2030)
Country Benchmarks
European Leaders & Laggards
Data Tables
Top and bottom five countries listed for each:
- Revenue Growth (2025)
- Business Growth (2025)
- Job Growth (2025)
European Country Performance
Data Tables
Rankings available for 37 countries. Statistics ranked include:
- IVA/Revenue (2025)
- Imports/Demand (2025)
- Exports/Revenue (2025)
- Revenue per Employee (2025)
- Wages/Revenue (2025)
- Employees per Establishment (2025)
- Average Wage (2025)
Structural Comparison
Data Tables
Trends in 37 countries benchmarked against trends in Europe
- Concentration
- Competition
- Barriers to Entry
- Buyer Power
- Supplier Power
- Volatility
- Capital Intensity
- Innovation
- Life Cycle
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2015-2030)
- IVA (2015-2030)
- Establishments (2015-2030)
- Enterprises (2015-2030)
- Employment (2015-2030)
- Exports (2015-2030)
- Imports (2015-2030)
- Wages (2015-2030)
Methodology
Where does IBISWorld source its data?
IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and IBISWorld's proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools.
To learn more about specific data sources used by IBISWorld's analysts globally, including how industry data forecasts are produced, visit our Help Center.
France
Italy
Spain