Armoured Vehicle Upgrade & Retrofit Market 2014-2024

Armoured Vehicle Upgrade & Retrofit Market Forecast 2014-2024

Opportunities For Leading Companies

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Contents 1. Executive Summary 1.1 Global Armoured Vehicle Upgrade and Retrofit Market Overview

1.2 Benefits of This Report

1.3 Who is This Report For?

1.4 Methodology

1.5 Global Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

1.6 Global Armoured Vehicle Upgrade and Retrofit Submarket Forecasts 2014-2024

1.7 Leading 20 National Armoured Vehicle Upgrade and Retrofit Market Forecasts 2014-2024

2. Introduction to the Global Armoured Vehicle Upgrade and Retrofit Market

2.1 Global Armoured Vehicle Upgrade and Retrofit Market Structure

2.2 Global Armoured Vehicle Upgrade and Retrofit Market Definition

2.3 Global Armoured Vehicle Upgrade and Retrofit Submarket Definitions

2.3.1 Medium Armoured Vehicle Submarket Definition

2.3.2 Main Battle Tank (MBT) Upgrade and Retrofit Submarket Definition

2.3.3 Medium Mine Resistant Vehicle Submarket Definition

2.3.4 Light Protected Vehicle Submarket Definition

2.3.5 Other Armoured Vehicles Submarket Definition

3. Global Armoured Vehicle Upgrade and Retrofit Market 2014-2024 3.1 Global Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

3.2 Global Armoured Vehicle Upgrade and Retrofit Market Analysis 2014-2024

3.3 Global Armoured Vehicle Upgrade and Retrofit Market Drivers and Restraints

4. Armoured Vehicle Upgrade and Retrofit Submarket Forecasts 2014-2024

4.1 Armoured Vehicle Upgrade and Retrofit Submarket Forecast Comparison 2014-2024

4.4 Medium Armoured Vehicle Upgrade and Retrofit Submarket Forecast 2014-2024

4.4.1 Medium Armour Form Core of Vehicle Fleets

4.4.2 Medium Armoured Vehicle Submarket Drivers and Restraints

4.5 Main Battle Tank (MBT) Upgrade and Retrofit Submarket Forecast 2014-2024

4.5.1 Several Countries to Maintain Tank Fleets

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Contents 4.5.2 Main Battle Tanks Submarket Drivers and Restraints

4.6 Medium Mine-Resistant Vehicle Upgrade and Retrofit Submarket Forecast 2014-2024

4.6.1 Most Mine-Resistant Vehicles Not to be in Active Use in Future

4.6.2 Medium Mine-Resistant Vehicles Submarket Drivers and Restraints

4.7 Other Armoured Vehicles Upgrade and Retrofit Submarket Forecast 2014-2024

4.7.1 Upgrades to Other Armoured Vehicles to See Growth

4.7.2 Other Armoured Vehicles Submarket Drivers and Restraints

4.8 Light Protected Vehicles Upgrade and Retrofit Submarket Forecast 2014-2024

4.8.1 Numerous Light Protected Vehicles to Keep Essential Role

4.8.2 Light Protected Vehicles Submarket Drivers and Restraints

5. Leading 20 National Armoured Vehicle Upgrade and Retrofit Markets Forecast 2014-2024 5.1 Leading 20 National Armoured Vehicle Upgrade and Retrofit Markets Share Forecast 2014-2024

5.2 Barriers to Entry Analysis of Armoured Vehicle Upgrade and Retrofit Market

5.3 US Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

5.3.1 Afghanistan Withdrawal, Budget Pressures Figure Prominently in US Market Outlook

5.3.2 US Armoured Vehicle Upgrade and Retrofit Market Drivers and Restraints

5.3.3 US Armoured Vehicle Upgrade and Retrofit Market Major Contracts and Programmes

5.4 UK Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

5.4.1 UK Armoured Vehicle Upgrade Market Flat But Substantial

5.4.2 UK Armoured Vehicle Upgrade and Retrofit Market Drivers and Restraints

5.4.3 UK Armoured Vehicle Upgrade and Retrofit Market Major Contracts and Programmes

5.5 Saudi Arabian Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

5.5.1 Saudi Spending on Upgrading MBTs to Boost Local Market

5.5.2 Saudi Arabian Armoured Vehicle Upgrade and Retrofit Market Drivers and Restraints

5.5.3 Saudi Arabian Armoured Vehicle Upgrade and Retrofit Market Major Contracts and Programmes

5.6 Norwegian Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

5.6.1 Key Programme to Bring Short Term Growth to Norwegian Market

5.6.2 Drivers and Restraints of the Norwegian Upgrade and Retrofit Market

5.6.3 Norwegian Armoured Vehicle Upgrade and Retrofit Market Major Contracts and Programmes

5.7 Russian Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

5.7.1 Focus Back on Russian Land Forces, Upgrades to Play Key Part

5.7.2 Russian Armoured Vehicle Upgrade and Retrofit Market Drivers and Restraints

5.8 Canadian Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

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Contents 5.9 French Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

5.9.1 French Foreign Policy to Boost Vehicle Spending

5.9.2 French Armoured Vehicle Upgrade and Retrofit Market Drivers and Restraints

5.9.3 French Armoured Vehicle Upgrade and Retrofit Market Major Contracts and Programmes

5.10 Indian Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

5.10.1 Slowing Economic Growth To Restrict Indian Spending

5.10.2 Armoured Vehicle Upgrade and Retrofit Market Drivers and Restraints

5.10.3 Indian Armoured Vehicle Upgrade and Retrofit Market Major Contracts and Programmes

5.11 Brazilian Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

5.11.1 What Impact Does Economic Slowdown Have on Brazilian Market

5.11.2 Brazilian Armoured Vehicle Upgrade and Retrofit Market Share Expected to Increase

5.11.3 Brazilian Armoured Vehicle Upgrade and Retrofit Market Major Contracts and Programmes

5.12 Chinese Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

5.12.1 Regional Tensions Could Drive Growth of Chinese Armoured Vehicle Market

5.12.2 Chinese Armoured Vehicle Upgrade and Retrofit Market Drivers and Restraints

5.13 Australian Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

5.13.1 Asian Engagement to Affect Australian Market

5.13.2 Australian Armoured Vehicle Upgrade Market Drivers and Restraints

5.13.3 Australian Armoured Vehicle Upgrade and Retrofit Market Major Contracts and Programmes

5.14 Israeli Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

5.14.1 Israel Needs to Keep Up Numbers of Armoured Vehicles in Service

5.14.2 Drivers and Restraints of Israeli Armoured Vehicle Upgrade and Retrofit Market

5.14.3 Israeli Armoured Vehicle Upgrade and Retrofit Market Major Contracts and Programmes

5.15 German Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

5.15.1 German Spending in Vehicle Upgrades Could be Flat

5.15.2 German Armoured Vehicle Upgrade and Retrofit Market Drivers and Restraints

5.15.3 German Armoured Vehicle Upgrade and Retrofit Market Major Contracts and Programmes

5.16 Iraqi Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

5.16.1 Rebuilding Iraqi Military Seen to Invest in Vehicle Upgrades

5.16.2 Iraqi Armoured Vehicle Upgrade and Retrofit Market Drivers and Restraints

5.16.3 Iraqi Armoured Vehicle Upgrade and Retrofit Market Major Contracts and Programmes

5.17 South Korean Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

5.17.1 South Korean Upgrade Market Competes with New Procurements

5.17.2 Market Drivers Promote Strong Growth in South Korean Armoured Vehicle Upgrade and Retrofit

5.18 UAE Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

5.18.1 UAE a Keen Investor in Modernizing its Armed Forces

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Contents 5.18.2 UAE Armoured Vehicle Upgrade and Retrofit Market Drivers and Restraints

5.18.3 UAE Armoured Vehicle Upgrade and Retrofit Market Major Contracts and Programmes

5.19 Italian Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

5.19.1 Italian Defence Spending Pressures to Affect Market

5.19.2 Italian Armoured Vehicle Upgrade and Retrofit Market Drivers and Restraints

5.19.3 Italian Armoured Vehicle Upgrade and Retrofit Market Major Contracts and Programmes

5.20 Turkish Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

5.20.1 Large Number of Turkish Armoured Vehicles Show Potential for Growth

5.20.2 Turkish Armoured Vehicle Upgrade and Retrofit Market Drivers and Restraints

5.21 Japanese Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

5.21.1 Japanese Vehicle Upgrade Market to Pick Up

5.21.2 Armoured Vehicle Upgrade and Retrofit Spending Rising in the Japanese Market

5.22 Egyptian Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

5.22.1 Political Uncertainty Clouds Egyptian Market

5.22.2 Egyptian Armoured Vehicle Upgrade and Retrofit Market Drivers and Restraints

5.23 Rest of the World Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

5.23.1 Emerging Markets to Boost Growth Toward End of Forecast Period

5.23.2 Rest of the World Armoured Vehicle Upgrade and Retrofit Market Drivers and Restraints

5.23.3 Rest of the World Armoured Vehicle Upgrade and Retrofit Market Major Contracts and Programmes

6. SWOT Analysis of the Armoured Vehicle Upgrade and Retrofit Market 2014-2024 7. Expert Opinion 7.1 Navistar Defense

7.1.1 Adapting to Smaller Government Budgets

7.1.2 Leveraging Commercial Business

7.1.3 Continued Service of MaxxPro MRAPs

7.1.4 Impact of Constrained Government Budgets

7.1.5 Armoured Vehicle Upgrades and New Acquisitions

7.1.6 Regions Where Demand for Armoured Vehicle Upgrades Could Grow

7.2 Diehl Defence

7.2.1 Diehl Defence Solutions for Armoured Vehicle Upgrades

7.2.2 Expected Demand for Armoured Vehicle Upgrades

7.2.3 Types of Upgrades That Will be in Demand

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Contents 7.2.4 Types of Vehicles Likely to See Upgrades

7.2.5 Drivers of Growth in Demand for Armoured Vehicle Upgrades

7.2.6 Possible Restraints to Demand for Armoured Vehicle Upgrades

7.2.7 Demand for Armoured Vehicle Upgrades After Withdrawal from Afghanistan

7.2.8 Regions Where Demand for Armoured Vehicle Upgrades Will Grow

8. Leading Companies in the Armoured Vehicle Upgrade and Retrofit Market

8.1 BAE Systems Overview

8.1.1 Large Portfolio to Provide Demand for Upgrades Business

8.1.2 BAE Systems Competitors

8.1.3 BAE Systems Main Regional Focus

8.1.4 BAE Systems Major Armoured Vehicle Upgrade Contracts

8.1.5 BAE Systems Organisational Structure

8.2 Elbit Systems Overview

8.2.1 Elbit Systems Eyes Demand for RWS, Sensor Upgrades

8.2.2 Elbit Systems Competitors

8.2.3 Elbit Systems Main Regional Focus

8.2.4 Elbit Systems Major Armoured Vehicle Upgrade Contracts

8.2.5 Elbit Systems Organisational Structure

8.3 Exelis Inc. Overview

8.3.1 Counter-IED Solutions Key to Exelis’s Vehicle Upgrade Success

8.3.2 Exelis Competitors

8.3.3 Exelis Main Regional Focus

8.3.4 Exelis Major Armoured Vehicle Upgrade Contracts

8.3.5 Exelis Organisational Structure

8.4 Finmeccanica SpA Overview

8.4.1 Finmeccanica Subsidiaries Focus on Subsystem Upgrades

8.4.2 Finmeccanica SpA Competitors

8.4.3 Finmeccanica SpA Main Regional Focus

8.4.4 Finmeccanica SpA Major Armoured Vehicle Upgrade Contracts

8.4.5 Finmeccanica SpA Organisational Structure

8.5 General Dynamics Corporation Overview

8.5.1 Leading Armoured Vehicle Supplier Looks to Meet Substantial Demand for Upgrades

8.5.2 General Dynamics Corporation Competitors

8.5.3 General Dynamics Corporation Main Regional Focus

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Contents 8.5.4 General Dynamics Corporation Major Armoured Vehicle Upgrade Contracts

8.5.5 General Dynamics Corporation Organisational Structure

8.6 Honeywell International Inc Overview

8.6.1 MBT Upgrades Benefit Honeywell

8.6.2 Honeywell International Inc Competitors

8.6.3 Honeywell International Inc Main Regional Focus

8.6.4 Honeywell International Inc Major Armoured Vehicle Upgrade Contracts

8.6.5 Honeywell International Inc Organisational Structure

8.7 Kongsberg Gruppen ASA Overview

8.7.1 Kongsberg Dominates Contracts for Remote Weapon Stations

8.7.2 Kongsberg Gruppen ASA Competitors

8.7.3 Kongsberg Gruppen ASA Main Regional Focus

8.7.4 Kongsberg Gruppen ASA Major Armoured Vehicle Upgrade Contracts

8.7.5 Kongsberg Gruppen Organisational Structure

8.8 Krauss-Maffei Wegmann GmbH and Co KG Overview

8.8.1 KMW A Strong Player in European Market

8.8.2 Krauss-Maffei Wegmann GmbH and Co KG Competitors

8.8.3 Krauss-Maffei Wegmann GmbH and Co KG Main Regional Focus

8.8.4 Krauss-Maffei Wegmann GmbH and Co KG Major Armoured Vehicle Upgrade Contracts

8.8.5 Krauss-Maffei Wegmann GmbH and Co KG Organisational Structure

8.9 Lockheed Martin Corporation Overview

8.9.1 British Contract Provides Boost For Lockheed Martin

8.9.2 Lockheed Martin Corporation Competitors

8.9.3 Lockheed Martin Corporation Main Regional Focus

8.9.4 Lockheed Martin Corporation Major Armoured Vehicle Upgrade Contracts

8.9.5 Lockheed Martin Corporation Organisational Structure

8.10 Navistar Inc Overview

8.10.1 US Contracts Sustain Navistar’s MRAP Leadership

8.10.2 Navistar Inc Competitors

8.10.3 Navistar Inc Main Regional Focus

8.10.4 Navistar Inc Major Armoured Vehicle Upgrade Contracts

8.10.5 Navistar Inc Organisational Structure

8.11 Nexter Group Overview

8.11.1 French Group Nexter Central Offers Wide Ranging Upgrades

8.11.2 Nexter Group Competitors

8.11.3 Nexter Group Main Regional Focus

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Contents 8.11.4 Nexter Group Organisational Structure

8.12 Nurol Holding AS Overview

8.12.1 Rising Turkish Spending Helps Nurol

8.12.2 Nurol Holding AS Competitors

8.12.3 Nurol Holding AS Main Regional Focus

8.12.4 Nurol Holding AS Organisational Structure

8.13 Oshkosh Corporation Overview

8.13.1 M-ATV Contracts Central to Oshkosh’s Success

8.13.2 Oshkosh Corporation Competitors

8.13.3 Oshkosh Corporation Main Regional Focus

8.13.4 Oshkosh Corporation Major Armoured Vehicle Upgrade Contracts

8.14 QinetiQ Group Plc Overview

8.14.1 Popular RPG Defence Upgrade is QinetiQ’s Main Offering

8.14.2 QinetiQ Group Plc Competitors

8.14.3 QinetiQ Group Plc Main Regional Focus

8.14.4 QinetiQ Group Plc Major Armoured Vehicle Upgrade Contract

8.14.5 QinetiQ Group Plc Organisational Structure

8.15 Rafael Advanced Defense Systems Ltd Overview

8.15.1 Rafael’s Trophy APS Protects Tanks

8.15.2 Rafael Advanced Defense Systems Ltd Competitors

8.15.3 Rafael Advanced Defense Systems Ltd Main Regional Focus

8.15.4 Rafael Advanced Defense Systems Major Armoured Vehicle Upgrade Contracts

8.16 Renco Group Overview

8.16.1 HMMWV Supplier AM General Continues to Reap Rewards

8.16.2 Renco Group Competitors

8.16.3 Renco Group Main Regional Focus

8.16.4 Renco Group Major Armoured Vehicle Upgrade Contracts

8.16.5 Renco Group Organisational Structure

8.17 Rheinmetall AG Overview

8.17.1 Rheinmetall Supplies Tank Upgrades

8.17.2 Rheinmetall AG Competitors

8.17.3 Rheinmetall AG Main Regional Focus

8.17.4 Rheinmetall AG Major Armoured Vehicle Upgrade and Retrofit Contract

8.17.5 Rheinmetall AG Organisational Structure

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Contents 8.18 Thales Group Overview

8.18.1 Communications Upgrades Key for Thales

8.18.2 Thales Group Competitors

8.18.3 Thales Group Main Regional Focus

8.18.4 Thales Group Major Armoured Vehicle Upgrade Contracts

8.18.5 Thales Group Organisational Structure

8.19 Uralvagonzavod PLC Overview

8.19.1 Wide Popularity of Russian Armoured Vehicles to Provide Substantial Demand for Upgrades

8.19.2 Uralvagonzavod PLC Competitors

8.19.3 Uralvagonzavod PLC Main Regional Focus

8.19.4 Uralvagonzavod PLC Major Armoured Vehicle Upgrade Contracts

8.20 Volvo Group Overview

8.20.1 Several Companies in Volvo Group Successful in Upgrade Market

8.20.2 Volvo Group Competitors

8.20.3 Volvo Group Main Regional Emphasis

8.20.4 Volvo Group Major Armoured Vehicle Upgrade and Retrofit Contracts

8.20.5 Volvo Group Organisational Structure

8.21 Other Leading Companies in the Global Armoured Vehicle Upgrade and Retrofit Market

9. Conclusions 9.1 Global Armoured Vehicle Upgrade and Retrofit Market Outlook

9.2 Global Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

9.3 Global Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

9.4 Global Armoured Vehicle Upgrade and Retrofit Submarket Forecasts 2014-2024

9.5 Leading 20 National Armoured Vehicle Upgrade and Retrofit Market Forecasts 2014-2024

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Armoured Vehicle Upgrade & Retrofit Market Forecast 2014-2024: Opportunities For Leading Companies

4.8 Light Protected Vehicles Upgrade and Retrofit Submarket Forecast 2014-2024

Table 4.10 Light Protected Vehicles Upgrade and Retrofit Submarket Forecast 2014-2024 ($m, AGR %, CAGR%, Cumulative)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014-24 Sales $m

400 385 385 395 415 425 420 440 450 455 475 465 4710

AGR (%)

-3.8 0.0 2.6 5.1 2.4 -1.2 4.8 2.3 1.1 4.4 -2.1

CAGR 2014-19 (%)

1.8 2019-24 2.1

CAGR 2014-24 (%)

1.9 Source: Visiongain 2014

2014 2019 2024

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

0

100

200

300

400

500

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

AGR

(%)

Sale

s ($

m)

Year

Light Protected Vehicles AGR (%)

8.1% 9.3% 8.8%

Figure 4.14 Light Protected Vehicles Upgrade & Retrofit Submarket Share Forecast 2014, 2019 & 2024 (% Share)

Source: Visiongain 2014

Figure 4.13 Light Protected Vehicles Upgrade & Retrofit Submarket Forecast 2014-2024 ($m, AGR%)

Source: Visiongain 2014

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Armoured Vehicle Upgrade & Retrofit Market Forecast 2014-2024: Opportunities For Leading Companies

5.3.2 US Armoured Vehicle Upgrade and Retrofit Market Drivers and Restraints

Table 5.3 USA Armoured Vehicle Upgrade & Retrofit Market Drivers & Restraints Drivers Restraints

Vehicle Reset Programmes Defence Budget Cuts Emphasis on Force Protection and More Advanced

Technologies Withdrawal from Afghanistan by end-2014

Large Defence Budget Shift to Asia-Pacific Focus and Resulting Primacy of Maritime and Air Assets

Source: Visiongain 2014

5.3.3 USA Armoured Vehicle Upgrade and Retrofit Market Major Contracts and Programmes

Table 5.4 USA Armoured Vehicle Upgrade and Retrofit Market Major Contracts and Programmes (Company, Value, Date, Description)

Company Value ($m) Date Description

BAE Systems 34 Jan-11 Bradley Upgrades

General Dynamics 7.9 Jan-11 691 RG-31 Window Armour Upgrade Kits

BAE Systems 130 Feb-11 Upgrades to General Dynamics RG-31

BAE Systems 47.7 Feb-11 Bradley Operation Desert Storm Situational Awareness

(ODS-SA) General Dynamics 8.3 Feb-11 691 Block Upgrade Kits for RG-31

Kongsberg Gruppen 120.4 Feb-11 CROWS II

Oshkosh Corporation 101.9 Feb-11 2080 M-ATV Underbody Improvement Kits

BAE Systems 11.3 Mar-11 Caiman Modifications

General Dynamics 25.2 Mar-11 691 RG-31 Engineering Change Proposal Kits

General Dynamics 59.1 Mar-11 21 Abrams M1A2 SEPv2 Upgrades

Exelis 8.5 Mar-11 Counter Radio-Controlled Electronic Warfare Vehicle

Receiver/ Jammer (CVRJ) SRCTec 94.4 Apr-11 Duke Vehicle CREW

BAE Systems 11.4 Apr-11 RG-33 Modifications

Lockheed Martin Corporation 58.6 Apr-11 Gyrocam 15in triple sensor (15TS)

SRCTec 78 Apr-11 Duke Vehicle CREW

BAE Systems 18.5 May-11 Marine Corps Transparent Armor Gun Shield (MCTAGS)

General Dynamics 42.2 May-11 RG-31 Engineering Change Proposal Upgrades

QinetiQ 21.8 May-11 Q-Net on RG-31

Oshkosh Corporation 19.8 May-11 M-ATV Underbody Improvement Kit Installation

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Armoured Vehicle Upgrade & Retrofit Market Forecast 2014-2024: Opportunities For Leading Companies

5.15 German Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024

Table 5.36 German Armoured Vehicle Upgrade and Retrofit Market Forecast 2014-2024 ($m, AGR %, CAGR%, Cumulative)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014-24 Sales $m

60 55 50 50 50 60 60 60 60 65 65 65 640

AGR (%)

-8.3 -9.1 0.0 0.0 20.0 0.0 0.0 0.0 8.3 0.0 0.0

CAGR 2014-19 (%) 1.8 2019-24 1.6

CAGR 2014-24 (%) 1.7

Source: Visiongain 2014

2014 2019 2024

-15.0-10.0-5.00.05.010.015.020.025.0

010203040506070

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

AGR

(%)

Sale

s ($

m)

Year

Market Value AGR (%)

1.2% 1.3% 1.2%

Figure 5.31 German Armoured Vehicle Upgrade & Retrofit Market Share Forecast 2014, 2019 & 2024 (% Share)

Source: Visiongain 2014

Figure 5.30 German Armoured Vehicle Upgrade & Retrofit Market Forecast 2014-2024 ($m, AGR%)

Source: Visiongain 2014

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Armoured Vehicle Upgrade & Retrofit Market Forecast 2014-2024: Opportunities For Leading Companies

7. Expert Opinion

7.1 Navistar Defense

Navistar Defense is a leading producer of mine-resistant vehicles with the MaxxPro series, several

thousand of which have been sold to the US and its allies. Navistar Defense is a subsidiary of US

truck and engine maker Navistar. Mr Pat MacArevey, Navistar vice president of government

business, provided answers to Visiongain’s questions in February 2014 and we are grateful for his

contribution.

7.1.1 Adapting to Smaller Government Budgets Visiongain: Do you expect demand for armoured vehicle upgrades to increase or decrease over

the next decade?

Navistar’s Pat MacArevey: Today, government budgets are smaller and we are adapting by

concentrating on soliciting and negotiating government business and contracts while continuing to

support our existing vehicles through parts and sustainment. In the years ahead, many current and

future opportunities exist, including those for armoured vehicles. Today, we are focused on

adapting our offerings to help meet customers’ changing needs.

7.1.2 Leveraging Commercial Business Visiongain: What products and solutions does Navistar offer for armoured vehicle upgrades?

Navistar’s Pat MacArevey: We have the ability to leverage the manufacturing power of our

commercial business, which allows us to broaden our offerings based on our customer needs.

Today, we offer armoured cab solutions and we are pursuing opportunities in the reset and

refurbishment aftermarkets. Our Mine-Resistant Ambush-Protected (MRAP) Survivability Upgrade

and MaxxPro Recovery Vehicle Performance Kit are additional examples of upgrades we offer.

7.1.3 Continued Service of MaxxPro MRAPs Visiongain: Navistar sold several thousand MRAPs to the US military, and with the imminent

withdrawal from Afghanistan in end-2014, how many do you expect will require upgrades in the

future?

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Armoured Vehicle Upgrade & Retrofit Market Forecast 2014-2024: Opportunities For Leading Companies

8. Leading Companies in the Armoured Vehicle Upgrade and Retrofit Market

8.1 BAE Systems Overview

Table 8.1 BAE Systems Overview (Total Revenue, Subsidiaries in Market, HQ, Ticker, Contact, Website) Total Company Revenue $bn $30.15bn (£18.18bn) (2013)

Subsidiaries in Market BAE Systems Land and Armaments

Headquarters London, UK

Ticker LSE: BA

IR Contact Andrew Wrathall

Website www.baesystems.com

Source: Visiongain 2014

8.1.1 Large Portfolio to Provide Demand for Upgrades Business BAE Systems is the second largest global aerospace, defence and security contractor, offering

services for air, land and naval forces, as well as electronic and information technology. The

company employs over 100,000 people worldwide and has seven main home markets- USA; UK,

Sweden, India, South Africa; Saudi Arabia and South Africa.

BAE is the second largest company in the global armoured vehicle upgrade and retrofit market,

thanks to its development of IFVs such as the USA’s M2/M3 Bradley and MRAPs such as the RG-

33, which was designed by BAE Land Systems in South Africa. BAE Systems also supplied the

CV90 series of tracked IFVs in wide use in Europe. Many of these were acquired in the 1990s to

early 21st century and are due for upgrades during the forecast period.

8.1.2 BAE Systems Competitors • General Dynamics Corp.

• Nexter Group

• Krauss-Maffei Wegmann GmbH and

Co KG

8.1.3 BAE Systems Main Regional Focus • North America • Europe