Main Battle Tanks and AFVs in the Future of European Land Forces
Executive Summary
This analysis highlights the persistent strategic relevance of main battle tanks (MBTs) and armoured fighting vehicles (AFVs) in the evolution of European land forces, particularly in the context of high-intensity warfare scenarios. Drawing from operational lessons in Ukraine, it confirms that armoured forces remain central to deterrence and combined-arms operations, while also exposing vulnerabilities of legacy systems against modern threats such as loitering munitions, anti-tank guided missiles, and persistent surveillance. To address these challenges, European armed forces are accelerating the integration of MBTs with emerging technologies including active protection systems, AI-enabled C4ISR networks, and unmanned platforms, transforming tanks into digitally connected battlefield nodes. Modernisation programs are underway across Europe, with platforms like the Leopard 2A8, Challenger 3, and the MGCS poised to reshape the future of armoured capability.
For companies and investors, this transition offers significant industrial and financial opportunities. As defence spending in Europe reaches levels unseen since the 1950s, demand is growing not only for prime contractors producing vehicles but also for specialized suppliers in areas such as protection systems, electronics, advanced materials, sensor fusion, and logistics infrastructure. Moreover, the shift toward interoperability, digital architecture, and modular upgrades aligns with scalable, exportable solutions across NATO markets. Policymakers are moving to coordinate procurement and co-finance production, offering a more predictable framework for investment. The next decade will be decisive for the consolidation of Europe’s armoured industrial base, presenting a rare window for strategic positioning in a sector undergoing technological transformation and long-term rearmament.