Defense Logistics Market Size to grow by USD 3.95 billion between 2024-2028
According to a research report “ Defense Logistics Market” by End-user (Army, Navy, Airforce) Solution (Military infrastructure, Military logistics services, Military FMS) Geography (North America, Europe, APAC, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 3.95 billion, at a CAGR of 2.01% during the forecast period. The global defense logistics market is experiencing significant growth due to the increasing demand for military vehicles from armed forces worldwide. Notably, the Indian Air Force intends to expand its fighter jet fleet by acquiring 400 new aircraft by 2030, with 72 Sukhoi-30s and 36 Rafale fighters already ordered. Meanwhile, the Chinese People's Liberation Army (PLA) maintains a substantial aviation presence, with approximately 2,942 aircraft distributed among the PLAAF (1,977), PLA ground forces (556), and PLAN (409). These procurement plans underscore the importance of robust defense logistics systems to ensure the readiness and effectiveness of military forces..
Browse market data tables, figures, and in-depth TOC on “Defense Logistics Market” by End-user (Army, Navy, Airforce) Solution (Military infrastructure, Military logistics services, Military FMS) Geography (North America, Europe, APAC, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample
By End-user, the Army segment is projected to dominate the market size in 2024
In the defense logistics market, the army segment encompasses three distinct military supply chains. The first involves the swift transfer of light commodities like food, medicine, and uniforms. The second pertains to the transportation and maintenance of major weapon systems over an extended timeframe. Lastly, the deployment chain necessitates the rapid movement of large troop contingents within a short time span. Enhancing supply chain efficiency can be achieved through digitalization of inventories, employing advanced technology for real-time monitoring of movement, repair, and maintenance, and outsourcing supply and repair/maintenance services to capitalize on the burgeoning market potential. Approximately 85% of all military material is transported via commercial means.
By Solution, Military infrastructure segment is expected to hold the largest market size for the year 2024
The global defense logistics market encompasses a range of permanent and temporary installations essential for combat operations and inland command centers. These installations include barracks, airfields, military bases, secure communication facilities, warehousing space, and maintenance stations. To optimize infrastructure performance and enhance security, military organizations are integrating advanced technologies, such as network-centric warfare communication. This technology enables real-time transportation of vast information to the battlefield, necessitating infrastructure expansion, including higher bandwidth and increased battlefield visibility based on user numbers per base. The market's growth is fueled by significant defense spending in emerging countries, like India and Saudi Arabia, for infrastructure modernization, as well as collaborative efforts.
North America is forecasted to hold the largest market size by region in 2024
The North American region, led predominantly by the United States, has been the world's largest military spender since the turn of the century, accounting for approximately 40% of global defense expenditures in 2021. With the US economy representing nearly 35% of the global Gross Domestic Product (GDP), its defense budget, which is the largest in the world, reflects this economic dominance. Notably, the US defense spending has continued to increase, with the government approving a USD32 billion defense budget for the fiscal year 2022, up from the previous year. However, the region's military spending growth is projected to remain flat during the forecast period due to the US military drawdown from Iraq in 2011.
The Defense Logistics Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The Defense Logistics market is facing numerous challenges in the current geopolitical landscape, including uncertainties and tensions that can impact military spending and resource allocation. Budget constraints continue to be a major concern, making the adoption of sustainable practices, energy-efficient transport, and eco-friendly technologies increasingly important. The environmental impacts of military operations are also becoming a priority, with a focus on reducing carbon emissions and minimizing waste. Communication networks and digital systems are essential for situational awareness and effective logistics management. Military forces rely on inventory management systems to ensure troops, machinery, ammunition, and other resources are available when and where they are needed. In times of conflict, logistics plays a critical role in supporting military personnel and maintaining the readiness of military forces. Modernization of defense logistics is a key focus area, with investments being made in advanced technologies such as autonomous vehicles, drones, and artificial intelligence to streamline operations and improve efficiency. The use of digital systems and data analytics is also becoming more prevalent, enabling real-time tracking of inventory and predictive maintenance of machinery. Despite these advancements, defense logistics remains a complex and challenging field, requiring careful planning, coordination, and adaptation to changing circumstances.
Market Research Overview
The Defense Logistics Market encompasses a wide range of service offerings provided by military logistic firms to military organizations for the transportation and supply of armaments, critical medical supplies, and other essential resources to military bases and personnel. The defense sector relies heavily on strategic airlift capabilities for emergencies, conflicts, and crises, utilizing both air transport and land ways, as well as seaways and airways, depending on the mode of transportation required. Real-time decision-making, efficiency, and supply chain visibility are crucial in defense logistics, with the integration of blockchain, IoT, automation, and connected technologies playing an increasingly important role. The industry demand for defense logistics is driven by uncertainties such as geopolitical tensions, budget constraints, and military activities. Key players in the market include Gulfstream Aerospace, General Dynamics, and L3Harris Technologies, among others. Modernization, resource allocation, and situational awareness are top priorities, with a focus on sustainable practices, energy-efficient transport, and eco-friendly technologies. Defense logistics involves the transportation of commodities such as gloves, biofuel, fighter planes, and federal agencies' resources. The market segments analysis includes transportation mode type, service type, and segments such as gloves, biofuel, fighter planes, and manufacturing facilities. The use of autonomous technology, unmanned aerial vehicles, and drones is increasing for delivery time optimization and battlefield support. The defense logistics market faces challenges such as cyberattacks, communication systems vulnerabilities, and infrastructure and transportation network security. Sustainability and cybersecurity are top priorities, with a focus on recycling, waste reduction, alternative fuels, energy efficiency, and eco-friendly technologies. The market is expected to grow significantly due to military spending, modernization, and the Biden-Harris Administration's emphasis on environmentally friendly practices and sustainability.
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