Military Infrastructure and Logistics Market Forecasts to 2030 – Global Analysis By Type (Military Logistics Services, Military Force Management System (FMS), Military Infrastructure and Other Types), Mode of Transportation, End User and By GeographyAccording to Stratistics MRC, the Global Military Infrastructure and Logistics Market is accounted for $44.6 billion in 2023 and is expected to reach $60.7 billion by 2030 growing at a CAGR of 4.5% during the forecast period. Military logistics entails the cost-effective planning, handling, and physical movement of necessities from the source to military bases or from bases to bases. The architecture and long-term structures that support armed forces while they are on the move, stationed at bases, or engaged in operations are known as military infrastructure. It also comprises the capability to prepare the armed forces for deployment and replenish that force once it has been deployed, as well as the capability to equip, sustain, and supply the armed forces with national production facilities and infrastructure.
According to the Federal Register, The Defense Supply Agency was renamed the Defense Logistics Agency (DLA) in 1977, and the Under Secretary of Defense for Acquisition, Technology, and Logistics was given charge of, direction from, and control over the DLA.
Market Dynamics:
Driver:
Rising worry for security
One of the key factors driving the market's growth is the increasing security concern experienced by people all over the world. By enabling quick deployment of soldiers and equipment to border regions, facilitating smooth transportation, improving coordination, and ensuring sufficient supplies of weapons, ammunition, food, water, medicines, protective gears, and other resources, military infrastructure and logistics are essential to enhancing a nation's defence capabilities. A further aspect promoting growth is the quick military modernisation efforts brought on by the rising defence budget.
Restraint:
Infrastructure constraints
Military activities frequently demand a complicated, expensive, and susceptible to numerous restrictions and limitations logistics infrastructure. The availability and state of transportation infrastructure, including roads, bridges, trains, and ports, is one of the major infrastructural restrictions in the market. The world's transport infrastructure is frequently insufficient, neglected, or destroyed as a result of armed conflict or natural calamities. Limitations in the infrastructure provide a significant problem for businesses competing in the market.
Opportunity:
Increasing geopolitical instability
Military logistics are in high demand as a result of the escalating geopolitical unrest among the rivalling states. In such wars, the military must improve their capabilities with cutting-edge weaponry, artillery, and transportation systems. These elements cause military personnel movement fluctuations to be more frequent and raise demand for the delivery of various types of military equipment. This has a favourable effect on the market.
Threat:
Availability of warehouse and storage facilities
Large amounts of supplies, equipment, and ammunition must frequently be maintained in secure locations in order to support military logistics activities. However, it's possible that there aren't enough, insufficient, or secure enough storage facilities in many regions of the world. Despite the enormous growth potential presented by increased military spending, market participants' success will be threatened by dangers resulting from supply chain complexity.
Covid-19 Impact:
Due to the rigorous social segregation policies, international border sealing, and national lockdowns, global trading operations significantly decreased. This had a significant influence on the world economy since businesses all over the world were compelled to shut down completely or partially, which upset the supply-demand balance. In addition, because of the nationwide lockdown and supply chain inconsistencies, the logistics providers are also experiencing a liquidity problem. Businesses located in or dependent on supply chain operations from countries that have been severely affected by the epidemic are the first victims of the disease.
The military logistics services segment is expected to be the largest during the forecast period
The military logistics services segment is expected to be the largest during the forecast period. The use of new digital technologies, such as the Internet of Things (IoT), is the primary reason fueling the market segment's expansion. Due to factors including the military of various nations' efforts to modernise and restore buildings, the facility management market is anticipated to expand during the forecasted period. Medical services including hospitalisation and evacuation are probably going to be crucial in increasing market expansion.
The land ways segment is expected to have the highest CAGR during the forecast period
The land ways segment is expected to have the highest CAGR during the forecast period. Roads dominated the global market for military logistics in terms of transportation. The main driving force behind the expansion of road-based military logistics transportation is factors like the expansion and relocation of the current military installation, as well as the satisfaction of the logistical and operational needs of the existing military establishment.
Region with largest share:
North America is projected to hold the largest market share during the forecast period, owing to the heavy investments by militaries in countries. The necessity to support a variety of military missions as well as rising military spending and demand for cutting-edge logistical technologies are to blame for this. Geopolitical concerns, such as hostilities with other nations and the requirement to maintain a significant military presence in the area, also have an impact on the market.
Region with highest CAGR:
Asia Pacific is projected to hold the highest CAGR over the forecast period, due to the presence of key market players combined with rising demand from the end-users. The need for stronger military infrastructure and logistics services has increased as a result of security threats and international terrorism. The development of advanced infrastructure and improved network communication capabilities was compelled by the need for network-centric warfare, and this is what is causing the region to thrive.
Key players in the market
Some of the key players in Military Infrastructure and Logistics market include Saudi Bin Laden Group, VolkerStevin Limited, Laing O'Rourke, Mace Group, Claxton Logistics Services LLC, Jacobs Engineering Group, Solent Gateway, Morgan Sindall, AECOM, DynCorp International LLC, Fluor Corporation, ManTech International Corporation, One Network Enterprises Inc, Reeves Construction Company, Lockheed Martin Corporation, Klinge Corporation and Claxton Logistics Services LLC.
Key Developments:
In May 2023, IFS and Lockheed Martin recently announced a new partnership designed to strengthen their position in the marketplace by capitalizing on each of the organizations’ strengths.
In October 2022, Lockheed Martin and Red Hat, Inc. today announced a collaboration to advance artificial intelligence (AI) innovation at the edge on Lockheed Martin military platforms.
Types Covered:
• Military Logistics Services
• Military Force Management System (FMS)
• Military Infrastructure
• Other Types
Mode of Transportations Covered:
• Seaways
• Airways
• Land ways
End Users Covered:
• Navy
• Airforce
• Army
• Other End Users
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
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