Mexico Sees Spike in Armored Vehicle Demand Over Safety Fears

The demand for armored vehicles in Mexico has surged, driven by rising security concerns on streets and highways. As of 2024, Mexico ranks second in Latin America for armored vehicle demand, surpassing Colombia, while Brazil remains the regional leader.

Omar Lara, Minister, National Automotive Armoring Commission (CNB), reported a steady 15% growth rate in the industry, with 2,862 holograms issued in 2023.

“The industry continues to grow, with the number of registered companies rising from 60- 80 two years ago to 136 in 2024. However, material costs have increased due to factors such as exchange rate fluctuations and the Russia-Ukraine conflict, which has driven up the price of ballistic steel,” Lara explained.

The armored vehicle sector serves a diverse range of industries. In 2023, 7% of holograms were issued to the freight transport sector, including companies securing high-value goods, as theft and violent crime in the sector rose. According to the National Association of Vehicle Tracking and Protection Companies (ANERPV), freight theft has increased by nearly 10% annually, with 84% of incidents involving violence.

“We work to facilitate the armor for these vehicles, despite challenges such as rising material costs and a shortage of skilled labor,” Lara said, emphasizing the need for specialized training institutions for armorers. He noted that the sector increasingly views armoring as an investment rather than an expense.

While the industry shows positive growth, Lara acknowledged that the demand for armored vehicles is primarily driven by increasing insecurity. “This industry used to cater mainly to high-income sectors. Now, large and medium-sized businesses are adopting armoring to safeguard their goods,” he added.

Demand for anti-kidnapping armored vehicles has grown by 15% to 20% in 2024 compared to the previous year, according to the CNB. These vehicles, typically equipped with Level 4 ballistic protection, guard against high-speed projectiles, while Level 5 protection is used to counter organized crime threats.

The CNB has also observed rising demand for higher-level ballistic protection among both civilian and corporate users. Gadi Mokotov, President, CNB, emphasized the importance of safety without compromising comfort. “Our goal is to ensure user safety while maintaining vehicle quality and comfort,” he stated.

To further professionalize the industry, the CNB has partnered with the Group of Executives in Corporate Risk Management (GEMARC) to promote best practices in armored security for corporate environments.