According to our latest market study on "Military Rubber Tracks Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Type and End Use," the market is projected to reach US$ 239.98 million by 2028 from US$ 143.10 million in 2021; it is expected to grow at a CAGR of 7.7% from 2021 to 2028.
The military rubber tracks market is expected to see growth opportunities in the coming years due to the increasing expenditure on new armored vehicles. The growing tension in Europe due to the Russia and Ukraine war is leading military forces in the region to increase their defense budgets and focus on equipping their armed forces with high-end battle tanks, infantry fighting vehicles, armored infantry fighting vehicles, and armored personnel carriers. For example, the German government has announced a one-time special fund of US$ 110.6 billion (100 billion) to strengthen their defense forces, while the French army is modernizing its war vehicles and tanks, with a budget of ~US$ 404.80 million. Additionally, the Italian Ministry of Defense is planning to replace its Dardo infantry fighting vehicles and Ariete tanks with 700 new armored vehicles by 2023 with a budget of ~US$ 6.79 billion (EUR 6 billion). The Russian army is also expected to receive over 400 armored vehicles in 2022 as per the Russian Defense Ministry. These modernization programs are likely to drive the military rubber tracks market in the future.
Impact of COVID-19 on Middle East & Africa Military Rubber Tracks Market
In the first half of the year, most economic activities in the Middle East & Africa came to a halt due to a surge in COVID-19 cases in the region, disrupting the raw material supply chain and adversely affecting the military rubber tracks market. Furthermore, the military rubber tracks market in the Middle East & Africa is limited in terms of market players, although Saudi Arabia has been one of the world's top military spenders and has increased its spending on advanced military vehicles for border security in recent years. These factors have contributed to the modest growth of the military rubber tracks market in the Middle East & Africa in 2020.
Key Findings of Study:
The military rubber tracks market analysis based on geography includes segmentation into North America, Europe, Asia Pacific, Middle East and Africa, and South America. The United States (US) is the largest military spender worldwide, with a fleet size of around 45,193 armed vehicles, including approximately 6,612 main battle tanks and 1,498 self-propelled artillery. Moreover, the North American armed forces are heavily investing in advanced autonomous ground vehicles, which is likely to create growth opportunities for military rubber tracks market players in the region.
Europe is witnessing an increase in its defense budgets every year, especially by NATO (The North Atlantic Treaty Organization) countries. A considerable portion of this budget is allocated towards advanced armored vehicles, such as main battle tanks and armored infantry fighting vehicles. Additionally, Europe has several manufacturers of armored vehicles, including BAE Systems plc, Rheinmetall AG, Nexter group KNDS, Rostec, and Krauss-Maffei Wegmann. The region also has several military rubber tracks market players, including GMT Rubber-Metal-Technic Ltd, DST Defence Service Tracks GmbH, and Astrak UK Ltd, which are contributing to the growth of the military rubber tracks market in Europe.
The escalating border disputes among China and India, India and Pakistan, China and Russia, Russia and Japan, and South Korea and North Korea have led to the allocation of higher funds for military budgets by the governments in the region. China, India, Japan, and South Korea are among the top military spenders and are increasing their defense budgets annually, which has led to a rise in the procurement of armored vehicles. For example, in September 2021, the Indian government allocated approximately US$ 1.01 billion for the acquisition of Arjuna Mk-1A 118 battle tanks. This increase in military spending is contributing to the growth of the military rubber tracks market in the Asia Pacific region.
The military rubber tracks market size is being boosted by significant investments in advanced armored vehicles by countries in the Middle East and Africa, including the UAE, Saudi Arabia, and Israel, as they prioritize border security. Additionally, South American governments are also investing heavily in their defense reinforcement efforts, leading to increased procurement of advanced armored vehicles and further driving the growth of the military rubber tracks market share in the region.
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