increasing number of military vehicles is driving the Defense Logistics Market

Latest News:- Defense Logistics Market: Army is expected to lead the End-user segment during 2024-2028

Technavio analyzes that the Defense Logistics Market is expected to grow at a CAGR of 2.01% during 2023 and 2028. During this period, the market is also expected to show a growth of USD 3.95 billion.There are various factors that contribute to the growth of the market. The defense logistics market is witnessing significant growth due to the increasing requirement for military vehicles in various defense forces worldwide. The proliferation of modern warfare tactics necessitates a large and well-maintained fleet of military vehicles. These vehicles include armored personnel carriers, tanks, and logistics trucks, among others. Defense logistics companies play a crucial role in ensuring the timely delivery and maintenance of these vehicles to meet the evolving needs of military operations.

In the defense logistics sector, L3Harris Technologies, General Dynamics, and Gulfstream Aerospace are key players. The army segment involves three distinct military supply chains: the rapid deployment of light commodities like food, medicine, and clothing; the transportation and maintenance of major weapon systems; and the deployment of large troop contingents. Enhancing supply chain efficiency is crucial during military conflicts. This can be achieved through digital inventory management, advanced technology for monitoring movement, repair, and maintenance, and outsourcing supply and repair services to leverage market strengths. Approximately 85% of military material is transported commercially. By implementing these strategies, defense forces can ensure the timely and effective delivery of essential resources, thereby bolstering situational awareness and readiness. 

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Defense Logistics Market Segmentation

• End-user
  • Army
  • Navy
  • Airforce
• Solution
  • Military infrastructure
  • Military logistics services
  • Military FMS
• Geography
  • North America
  • Europe
  • APAC
  • South America
  • Middle East and Africa

Top Performing Companies

As per our research findings, here are some of the key competitors that are leading the industry

• Amentum Services Inc.
• ASELSAN AS
• BAE Systems Plc
• CMA CGM SA Group
• Crowley Maritime Corp.
• DB Schenker
• Fluor Corp.
• GEODIS
• Honeywell International Inc.
• KBR Inc.
• Leonardo Spa
• Lockheed Martin Corp.
• Northrop Grumman Corp.
• SEKO Logistics
• Thales Group

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Research Analysis Overview

The Defense Logistics market encompasses the provision of logistical support to military forces during conflict and peace time. This includes the management of inventory for ammunition, machinery, and personnel, as well as resource allocation and situational awareness. Military spending on modernization of digital systems and communication networks is driving demand, while budget constraints and geopolitical tensions create uncertainties. Sustainable practices, eco-friendly technologies, energy-efficient transport, and environmental impacts are also becoming increasingly important considerations in defense logistics. Military conflicts and the needs of troops necessitate efficient and effective logistical support, with a focus on reducing the carbon footprint and ensuring budgetary responsibility.

Market Research Overview

The Defense Logistics sector is a significant segment of the global Air Freight and Logistics Market, which falls under the broader Transportation Market. This market encompasses businesses offering air freight transportation, courier services, logistics, and customs agents. Revenue is generated from the provision of these services, including package and mail delivery and tracking of goods in transit up to the point of delivery. Key growth drivers for this market include the surge in cross-border e-commerce activities and the increasing demand for defense logistics services due to military modernization programs. Additionally, the Biden-Harris Administration's focus on sustainability and environmentally friendly practices, as well as the heightened need for cybersecurity in logistics operations, will further fuel market expansion.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

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