The infantry-fighting-vehicle market — often referred to in more general terms as the infantry armored vehicle market — is increasingly coming into its own as a critical pillar of modern land-combat capability, and according to MRFR data its trajectory is both compelling and sustained. As of 2024, the MRFR-analysed market size of the infantry fighting vehicle sector stood at a substantial USD 20.27 billion, a figure that reflects not only the growing importance of these mechanized platforms but also the steadily rising commitment by nations to modernize their ground forces. Over the forecast period, from 2025 to 2035, MRFR projects the infantry armored vehicle market to expand at a compound annual growth rate (CAGR) of about 6.07%, reaching a projected valuation of USD 38.76 billion by 2035.

This expected growth in the infantry armored vehicle market is underpinned by a number of converging forces. Modern militaries are increasingly emphasizing the need for infantry armored vehicle systems that combine firepower, protection, and mobility — giving frontline troops the ability to maneuver, communicate, and engage with agility. Technological innovation is a key driver: manufacturers are integrating advanced systems ranging from artificial intelligence-enabled targeting and decision support to enhanced communication networks and more efficient propulsion. These developments make infantry armored vehicles far more capable on diverse, contested battlefields. At the same time, rising defense budgets and intensifying geopolitical tensions are pushing many countries to ramp up procurement and modernization of their armored fleets, especially in regions where the strategic calculus demands more mechanized infantry readiness.

Regional dynamics also play a significant role in shaping the infantry fighting vehicle market. North America holds a dominant position, driven by strong defense spending and sustained modernization programs. In contrast, Asia-Pacific is emerging as one of the fastest-growing regional markets for infantry armored vehicles, fueled by rising military investments and mounting security concerns. As countries in that region expand and upgrade their fleets, the demand for advanced infantry armored vehicle systems is expected to surge. Key global players in this market include established defense giants such as General Dynamics, BAE Systems, Rheinmetall, Hanwha Defense, Nexter Systems, Elbit Systems, and others — companies that are already competing aggressively on system innovation, interoperability, and cost-effectiveness.

From a systems perspective, the infantry armored vehicle market encompasses a diverse range of vehicle types: wheeled versus tracked mobility platforms, variants such as armored personnel carriers, mechanized infantry combat vehicles, light and heavy infantry fighting vehicles, and configurations equipped with different caliber weapon systems. As armies modernize, many are favoring vehicles that offer a blend of protection, speed, and firepower, while also being adaptable to emerging mission profiles like peacekeeping, rapid deployment, and hybrid warfare. The MRFR data underscores that the modernization of existing armored fleets — including retrofitting older infantry fighting vehicles with upgraded fire control, armor, and communications — is a major trend in near-term procurement strategies.

Looking forward, the outlook for the Infantry Fighting Vehicle Market appears robust. The projected CAGR of 6.07% suggests that demand will not only come from replacement of legacy platforms but also from fresh procurement across emerging and developed defense markets. Technology convergence — combining AI, networking, hybrid propulsion, and modular design — is expected to further stimulate innovation, making next-generation infantry armored vehicle systems more efficient, lethal, and survivable. Moreover, as militaries increasingly prioritize joint operations and coalition force interoperability, procurement and design decisions will likely favor IFV systems that support multi-domain integration. All told, MRFR’s forecast paints a picture of a dynamic and growing infantry armored vehicle market, underpinned by modernization, strategic investment, and ever-evolving system requirements.