The US$ 98.4 Mn global tracks for defense and security market will cross US$ 100 Mn by 2020 end and move up to US$ 144.5 Mn by the end of 2027. The market is estimated to witness gradual over the assessment period 2017-2027 at a CAGR of 3.9%, in terms of value. Rubber pricing volatility has been spotted as a primary factor restricting the growth of market since the recent past.
While rubber pin tracks will dominate by product type, APC is expected to lead by vehicle type, followed by tanks. A majority of companies are observed to focus on heavy-load vehicles, as adoption of rubber tracks has been higher by heavy-load vehicle manufacturers. By region, EMEA and North America are identified to be the key rubber tracks markets for security and defense sectors. China and SEAP will sustain steady growth over the next decade.
IFV/AIFV to Register Highest Growth by Vehicle Type due to Growing Adoption by Armies
Tanks are predominantly considered as the key components of modern armies, which are supported by ground attack or surveillance aircrafts. This US$ 32, 609 thousand segment is anticipated to thrive at a declining CAGR of 3.8% through to 2027, whereas APC segment that was valuated at US$ 38,912.7 thousand in 2017 will reportedly expand at a 3.9% CAGR over 2017-2027. APC is one of the many types of armored fighting vehicle and is specifically designed for the transportation of infantry to the actual battlefield. Currently, APC segment holds the maximum revenue share of the market i.e. over 39%, followed by tanks segment that has over 33% share of the market value.
Key Players to Focus on Heavy-load Vehicles
A few of the companies leading the global market for rubber tracks include Soucy International Inc., Ocean Rubber Factory LLC, COECA SA, William Cook Holding Limited (Cook Defense Systems), LS Mtron Ltd., and GMT Rubber and Metal Technic Ltd. While key players are currently competing on the basis of improved efficiency, enhanced lifespan, reduced operational costs, and curtailed weight, some of them are concentrating on signing long-term contracts with end-use industries. In order to maintain a competitive edge, several companies are adopting product innovation strategies. Moreover, some of the players are providing advanced training to their workmen so as to operate and maintain better and more efficiently.
Decent expansion of defense sector is likely to prove beneficial in terms of low maintenance costs. One of the manufacturers indicates the role of governments in the growth of rubber tracks market. Increasing investments by governments in military and defense sector will possibly provide a thrust to demand for military vehicles such as APC, tanks, and IFV – eventually supporting the growth of rubber tracks market. Soucy International Inc. seems to capture the maximum revenue share of the global market for rubber tracks, whereas Camso, which is one of its competitors, is striving to enter the military vehicle market for rubber band. Many companies are also providing free rubber band tracks to OEMs for promotion through demonstration.
MRRSE offers custom market research services that help clients to get information on their business scenario required where syndicated solutions are not enough.Get A Free Custom Research Quote