Global Defence Logistics Market Size, Share & Trends Analysis Report, by Commodity, by End-user, by Transportation mode, By Region Forecasts, 2024-2032

Global Defence Logistics Market Size, Share & Trends Analysis Report, by Commodity, by End-user, by Transportation mode, By Region Forecasts, 2024-2032

Global Defence Logistics Market was valued at US $ 203.8 billion in 2023 and is expected to reach US $ 329.9 billion by 2032 growing at a CAGR of 5.0% during the forecast period 2024 – 2032.

Global defence logistics will expand as a result of growing military modernization initiatives, higher government defence spending, intensifying military conflicts and geopolitical unrest, and growing needs for a dependable and efficient military supply network. The rise in military conflicts and geopolitical tension, government modernization initiatives, and the creation of more robust and efficient military supply chains are some of the reasons propelling the global defence logistics industry. Despite this, inadequate infrastructure systems that worsen rising cyber-threat risks impede industry expansion. The improvement of green practices and technological advancements are anticipated to bolster the expansion of the defence logistics industry throughout the forecast period.

When Russia attacked Ukraine on February 24, 2022, the Russo-Ukrainian war took a significant turn. When nations are at war, they frequently increase military spending and provide funds for troops. As a result, this frequently results in higher spending, which goes hand in hand with the needs of defence logistics and services. There's a chance that changes in geopolitics will strengthen and/or create new international alliances and collaborations in the military domain. Relief efforts and humanitarian aid may be required during such wars. It is possible for defence logistics organisations to work with or support humanitarian initiatives.

One major problem that hinders the development of a strong defense logistic industry is that there are no adequate facilities for storage and transportation. Military logistics suffers reduced efficiencies and effectiveness when deployed in areas with underdeveloped facilities for storage, transportation, and communications systems. Movement of troops across the regions that do not have well established transport infrastructure, for instance, presents difficulties, because there are delays of equipment and movement obstacles. This is expected to hamper the growth of the defence logistics market across the forecast period owed to poor infrastructure.

“Armament segment, by commodity, to be dominating market from 2023 to 2030.”

The Armament section constituted around 61% of the worldwide defence logistics industry in terms of commodity category. The company's dominance is anticipated to continue during the projected period and increasing the use of defence logistics by various military branches, including the army, navy, and air force, would be crucial to maintaining the strategic capabilities. Lastly, at 6.5%, the anticipated CAGR for Technical support and maintenance ought to be the greatest in the sector. It mostly happens as a result of the increased usage of sophisticated weaponry and the corresponding demand for more specialised technical assistance.

“Army segment, by end user, to be dominating market from 2023 to 2030.”

In terms of revenue, the army led the defence logistics market globally in 2023, accounting for almost half of the total. Throughout the predicted period, the dominance is anticipated to continue while cooperating with the armed forces of several nations to support and supply activities. Nonetheless, from 2023 to 2032, the Air Force sector will have the highest compound annual growth rate (CAGR), at 6.3%. The necessity to improve the capabilities and readiness of the defence forces towards accomplishing these goals is primarily responsible for the rise in the number of collaborations between logistics agencies and the air force and defence forces.

“Roadways segment, by transportation mode, to be dominating market from 2023 to 2030.”

In 2023, the Roadways segment made up around two thirds of the worldwide defence logistics market. This top position should hold during the projected time since the army has a number of suitable transportation options for moving resources like tanks and artillery. Between 2023 and 2032, the waterways category is expected to increase at a compound annual growth rate (CAGR) of 7%.

“North America to be largest region in Defence Logistics market.”

In terms of revenue, North America accounted for over 35% of the defence logistics market in 2022, giving it the greatest market share. Throughout the forecast period, it is anticipated that investments in logistic infrastructure will increase as a result of the growing defence budget. On the other hand, the CAGR for the LAMEA region is expected to be the highest, at 7%. It largely results from the rise in counterterrorism operations in particular regions of the Middle East and Africa, where military operations against extremist organisations necessitate defensive logistical supplies.

Defence Logistics Competitive Landscape

The competitive landscape of the Defence Logistics market involves assessing the competitive landscape to understand the strengths, weaknesses, opportunities, and threats of the industry. Key industry players have recognized that the adoption of Defence Logistics technology holds the potential for further growth. The growing desire among producers to optimize their production costs has spurred collaborative efforts among companies to scale up their production capacity. This strategic collaboration not only aims to increase revenue but also seeks to establish dominance in the market.

The Defence Logistics market is highly competitive, with numerous companies vying for market share. Prominent companies in the Defence Logistics Market include:

Major Players:

AECOM, Thales Group, Fluor Corporation, DynCorp International LLC, Lockheed Martin Corporation, ASELSAN A.S., BAE Systems Plc, Honeywell International Inc., Anham FZCO and others.

Recent Developments:

L3Harris Technologies was given a contract by the Defence Logistics Agency (DLA) in September 2023 to replace and repair parts for VSAT gearbox systems. The order is an IDIQ type contract with a maximum value of USD 125.13 million. In order to support the coalition and US forces, GDIT is expected by this contract to provide logistical support that will allow resources, equipment, and supplies to be moved within the allotted time limits.

General Dynamics received multiple contracts totaling $696 million from the US Air Force in March 2021 through Gulfstream Aerospace, a subsidiary of General Dynamics. These contracts deal with the Air Force's need for engineering services and contractor logistics assistance. Gulfstream has been given a contract by the Air Force Life Cycle Management Centre to support the C-20 and C-37 programmes.

In September 2021, Lockheed Martin secured a significant contract valued at US$2.01 billion. The primary goal of this agreement is to give the F-35 air assets vital logistical assistance. It entailed meeting the demands of both domestic and foreign clients.