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The military logistics market size is forecast to increase by USD 971.1 million at a CAGR of 2.09% between 2023 and 2028. The market is experiencing significant growth due to several key trends and drivers. The increasing globalization of military operations and the growing demand for international peacekeeping missions are major factors fueling market expansion. Additionally, regulatory compliance related to logistics has become increasingly stringent, necessitating the adoption of advanced technologies and solutions to ensure efficient and effective supply chain management. These trends are driving the market towards automation, digitalization, and the integration of emerging technologies such as artificial intelligence and the Internet of Things. The market is expected to continue its growth trajectory in the coming years, as military forces continue to prioritize the efficient and reliable delivery of essential supplies and resources to support their operations.
The market involves planning, coordinating, and executing the movement, storage, and supply of resources for armed forces to ensure timely support during military activities. This includes the transportation of troops, maintenance of equipment, and communication networks to ensure effective coordination. With the increasing complexity of military operations, there is a growing emphasis on ecofriendly technologies and energy-efficient transport to reduce the environmental footprint and mitigate budget constraints. However, disrupted supply chains and technological proliferation pose significant challenges to military logistics. Effective planning and coordination are crucial to overcome these challenges and ensure the smooth flow of resources to troops in the field.
Military logistics plays a vital role in the success of military operations by providing the necessary resources and support to troops in a timely and efficient manner.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
By End-user Insights
The army segment is estimated to witness significant growth during the forecast period. The market encompasses Facility management services for military bases, ensuring the provision of Medical services, Hospitalization, and Evacuation during military activities. The transportation infrastructure includes Roads, Railroads, Canals, Airways, and adherence to Safety and Convenience standards. Regional divisions in the market performance are influenced by Military spending, Communication networks, and regulatory standards. The market's competitors prioritize Quality, Penetration, and adherence to Hydrogen-powered railway, Triangulation, and eco-friendly Technological proliferation. Uncertainties, such as budget constraints, geopolitical tensions, and disrupted supply chains, necessitate advanced technologies, automation, and connected technologies like drones for delivery time optimization. Cyber threats and environmental impacts are addressed through energy-efficient transport and sustainable practices.
Industry development relies on overcoming battlefield challenges and implementing advanced technologies to enhance market performance.
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The army segment was valued at USD 3.94 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Military logistics encompasses facility management and various services, including medical services, hospitalization, and evacuation, to ensure the smooth functioning of military activities. The logistics network relies on an intricate infrastructure of roads, railroads, canals, airways, and communication networks. Safety and convenience are paramount in military logistics, with regional divisions implementing regulatory standards to ensure quality and penetration. Military spending on logistics continues to grow, driven by market performance, technological proliferation, and connected technologies such as drones. However, budget constraints, geopolitical tensions, uncertainties, and disrupted supply chains pose challenges. The industry is developing eco-friendly technologies, including hydrogen-powered railways, triangulation, and energy-efficient transport, to mitigate environmental impacts and promote sustainable practices.
Safety and security are critical in military logistics, with a focus on cyber threats and advanced technologies for automation and delivery time optimization. Battlefield logistics requires agility and quick response, with military facilities adopting advanced technologies and communication networks to ensure efficient and effective service delivery. Despite these advancements, military logistics faces challenges such as battlefield conditions, terrain, and weather, which necessitate strong and adaptable solutions.
Our military logistics market researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing demand for international peacekeeping operations is the key driver of the market. The global market experiences significant growth due to the increasing demand for international peacekeeping operations. These operations, characterized by their intricacy and expansive scope, necessitate a strong logistical infrastructure to ensure their effectiveness. Military personnel and supplies must be transported via airways, seaways, and landways to support peacekeeping missions in diverse and challenging environments, often affected by conflict or instability. Logistical requirements entail various services, such as transportation, supply chain management, and infrastructure development. Furthermore, the acquisition of specialized equipment, including armored vehicles and medical supplies, is a crucial aspect of military logistics. The defense sector invests heavily in military bases and strategic collaborations to enhance military logistic service offerings.
In times of conflicts and emergencies, the market plays a pivotal role in ensuring the readiness and operational efficiency of defense forces. The integration of advanced technologies, such as IoT and blockchain, further streamlines military logistics processes and bolsters security.
The increasing globalization of military operations is the upcoming trend in the market. The global market has witnessed significant growth in recent years due to the increasing trend of multinational military operations. With countries collaborating to address common security challenges, the logistics sector has played a pivotal role in supporting the deployment of military personnel and supplies to various conflict zones and emergency situations. For instance, the market played a crucial part in facilitating the deployment of troops and equipment to Afghanistan and the subsequent withdrawal. Furthermore, ongoing global conflicts and the fight against terrorism and extremism have led to multinational military operations in various regions, such as the G5 Sahel Joint Force in Africa.
In this context, advanced technologies like IoT and blockchain are being increasingly adopted to optimize military logistics operations through real-time tracking of supplies and secure transactions along airways, seaways, and land ways. Air transport continues to be a critical component of military logistics, ensuring the timely delivery of essential supplies and equipment to military bases and borders. Defense budgets continue to prioritize the acquisition of armaments and strategic collaborations to enhance military logistic service offerings and meet the evolving needs of military organizations.
Growing regulatory compliance related to logistics is a key challenge affecting the market growth. The global market encompasses the transport and delivery of military personnel, supplies, and equipment through various modes, including airways, seaways, and landways. In the defense sector, the timely and efficient movement of resources is crucial during conflicts and emergencies. IoT and blockchain technologies are increasingly being adopted to streamline military logistics operations, ensuring regulatory compliance and enhancing transparency. Military organizations rely on strategic collaborations and military logistic service offerings to manage their defense budgets and the acquisition of armaments. Customs regulations and export control restrictions pose challenges, requiring logistics companies to provide extensive documentation and adhere to complex procedures, potentially impacting operational speed and efficiency.
The military logistics market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AECOM: The company specializes in providing comprehensive military logistics services, encompassing program management, design, acquisition, installation, and technical support for global telecommunications systems and interoperable command centers.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Military logistics plays a crucial role in ensuring the timely support of troops and maintaining the operational capabilities of armed forces during conflicts and natural disasters. Effective planning, coordinating, and executing movement, storage, and supply of resources are essential for the success of military operations. Military logistics encompasses various branches of organization, including transportation by air, sea, and land. The market includes applications such as deployment, maintenance, and combat support. New technologies like artificial intelligence, situational awareness tracking systems, and integration of logistics and distribution are driving the expansion of this market. The integration of logistics and distribution is crucial for the upkeep and transfer of resources, ensuring the availability of supplies and equipment for troops.
Military logistics involves the planning, coordination, and execution of the movement and storage of resources for armed forces. This includes the transportation of troops, supplies, and equipment by air, sea, and land. The market is categorized into various segments based on the type of resources and the mode of transportation. Military logistics is essential for the operational capabilities of armed forces during conflicts and natural disasters, making it a critical market for the defense industry. Military logistics applications include deployment, maintenance, and combat support. Effective logistics planning and execution are crucial for the success of military operations, especially during battles and conflicts.
The market is experiencing significant growth due to the integration of new technologies like artificial intelligence, situational awareness tracking systems, and automation in military logistics operations. The market includes applications in various sectors, such as maritime, air, and land forces. The maritime sector includes the logistics of naval forces and the transportation of supplies and equipment by sea. The air sector includes the logistics of air forces and the transportation of troops and supplies by air. The land sector includes the logistics of ground forces and the transportation of troops, supplies, and equipment by land. Military logistics plays a vital role in ensuring the readiness and effectiveness of armed forces during conflicts and natural disasters.
Effective planning, coordination, and execution of logistics operations are essential for the success of military missions. The market is experiencing significant growth due to the integration of new technologies like artificial intelligence, situational awareness tracking systems, and automation. Military logistics involves the planning, coordination, and execution of the movement and storage of resources for armed forces. This includes the transportation of troops, supplies, and equipment by air, sea, and land. Military logistics is essential for the operational capabilities of armed forces during conflicts and natural disasters. Effective military logistics planning and execution are crucial for the success of military operations.
Market Scope |
|
Report Coverage |
Details |
Page number |
177 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.09% |
Market growth 2024-2028 |
USD 971.1 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.03 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
APAC at 40% |
Key countries |
US, China, India, Russia, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AECOM, Agility Public Warehousing Co. K.S.C.P, Amentum Services Inc., Anham Fzco LLC, BAE Systems Plc, CACI International Inc., CLAXTON LOGISTICS SERVICES LLC, CMA CGM SA Group, Colak Group, Crane Worldwide Logistics, Crowley Maritime Corp., Fluor Corp., General Dynamics Corp., KBR Inc., Lockheed Martin Corp., ManTech International Corp., One Network Enterprises Inc., SEKO Logistics, Thales Group, and Wincanton Plc |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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