European spending for military land vehicles and associated vetronics is expected to be slashed over the next seven years, driving down the annual European market for land vehicles from $4.25 billion in 2010 to $2.01 billion in 2018, say analysts at market research firm Frost & Sullivan in London.
Although European militaries have an immediate need to acquire new armored combat vehicles and other military land vehicles to replace relatively old military equipment, affordability remains a concern as most European countries are reeling under economic turmoil, Frost & Sullivan analysts say.
Existing European military land vehicle fleets are becoming irrelevant in most European armies for modern military operations because today’s vehicles lack special capabilities for operating in urban environments and asymmetric warfare, analysts explain. Frost & Sullivan outlines the European military land vehicle market in a report entitled European Military Land Vehicles Market Assessment.
Despite expected cuts, significant opportunities remain in the European military land vehicles market, analysts say. France, Germany, the United Kingdom, and Turkey will lead demand for European combat vehicles over the next seven years, analysts say. Moreover, lessons learned from recent wars will encourage European military forces to choose advanced and more efficient equipment, so governments are changing their focus from quantity to quality.