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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's expansion hinges on multiple factors, including the escalating need for international peacekeeping endeavors, the continuous rise in global armed forces expenditures, and the increasing prevalence of political instability and conflicts worldwide. These driving forces underscore the growing importance of security measures and defense strategies across various regions. As international tensions persist and geopolitical dynamics evolve, there is a heightened emphasis on enhancing defense capabilities and maintaining peacekeeping efforts. This market growth is propelled by the ongoing efforts to address security challenges, bolster army preparedness, and navigate complex geopolitical landscapes.
Market Forecast 2024-2028
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The market is driven by factors such as the deployment of military troops in war-prone locations, increasing geopolitical instabilities and conflicts among conflicting nations, and the demand for advanced technologies like drones, Unmanned Aerial Vehicles (UAVs), and real-time tracking systems. Trends include the rapid growth of the defense sector, opportunities for modernizing facilities and establishing new armed forces bases, and the adoption of technological advancements. Challenges include the huge expenditure associated with setting up military bases and the complexities of the supply chain in volatile environments. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Growing demand for international peacekeeping operations is the key factor driving the growth of the global market. The demand for international peacekeeping operations has been steadily increasing over the past decade. For instance, in 2020, the UN had over 90,000 peacekeepers deployed in 13 different missions across the world. This represents an increase of more than 5,000 peacekeepers from 2019. In addition, the UN has been increasing its peacekeeping budget in recent years, with a proposed budget of USD 6.3 billion for the 2021-2022 period, an increase of 1.1% from the previous budget period. This budget is used to support peacekeeping operations worldwide, including logistics services. Furthermore, the demand for peacekeeping operations is expected to continue growing during the forecast period, driven by ongoing conflicts and political instability in various regions of the world.
As the demand for peacekeeping operations increases, so will the demand for armed forces logistics services. This includes transporting troops, equipment, and supplies into and out of conflict areas, as well as providing basic services such as food, water, and medical supplies. Logistics companies that can provide these services in an efficient and cost-effective manner are well-positioned to capitalize on the growing demand for international peacekeeping operations. These include companies with experience in providing logistics services for peacekeeping operations and companies with a global footprint capable of providing support in multiple regions. Rising demand for international peacekeeping operations is, therefore, one of the major factors expected to drive the growth of the global market during the forecast period.
Increasing globalization of military operations is the primary trend in the global market growth. The increasing globalization of military operations is a significant trend in the global market, and recent data highlights this trend. Over the past decade, there has been a growing trend toward multinational armed forces operations, with countries working together to address common security challenges. For example, in 2021, the US and NATO allies completed the withdrawal of troops from Afghanistan after two decades of armed forces operations. During this time, the market played a critical role in supporting the deployment of troops and equipment to Afghanistan and the subsequent withdrawal. In addition, the ongoing fight against terrorism and extremism has led to multinational armed forces operations in various regions of the world.
The increasing globalization of armed forces operations is driving the demand for armed forces logistics services that can operate in multiple regions and countries. This includes logistics companies that have experience working with different countries and cultures, as well as those with a global presence that can provide support in different regions. Thus, the increasing globalization of military operations is a significant driver that is expected to drive the growth of the global market during the forecast period.
Infrastructure limitations required to support military operations are a major challenge impeding the growth of the global market. Infrastructure limitations are a major challenge for companies operating in the global market. The logistics infrastructure required to support armed forces operations is often complex, costly, and subject to many constraints and limitations. One of the key infrastructure constraints in the global market is the availability and condition of transportation infrastructure such as roads, bridges, railroads, and ports. In many parts of the world, transport infrastructure is inadequate, poorly maintained, or damaged by conflict or natural disasters.
Another infrastructure limitation in the global market is the availability of storage and warehousing facilities. Armed forces logistics operations often require large quantities of equipment, supplies, and ammunition to be stored and maintained in secure facilities. However, in many parts of the world, suitable storage facilities may be limited, inadequate, or subject to security risks. Thus, infrastructure limitations can become a major challenge to the growth of the global market during the forecast period.
The army segment will account for a major share of the market's growth during the forecast period. The army segment held the highest share of the global market in 2022. The army segment in the global market includes three types of military supply chains, such as the first is the rapid movement of light commodities such as food, medicine, and clothing, the second is the transportation of major weapon systems that require repair and maintenance over an extended period, and the third is the deployment chain, which requires large bodies of troops to move in a short period.
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The army segment was valued at USD 3.94 billion in 2018 and continued to grow until 2022. Supply chain efficiency can be improved by digitizing inventory, using technology to move, better monitoring repairs and maintenance, and outsourcing delivery and repair/maintenance to take advantage of market strengths. More than 85% of all materials are transported by commercial means. However, the onsite supply chain relies primarily on service transportation due to the nature of the activity, difficult terrain, and operating environment, including road conditions. Large fleets of service transport should be minimized using technology and resources available in the private sector. Therefore, such factors are expected to drive the growth of the military segment in the global market during the forecast period.
Based on type, the market has been segmented into logistics and distribution, facility management, and services. The logistics and distribution segment will account for the largest share of this segment. The logistics and distribution segment includes procedures that are performed for carrying out the movement and maintenance of military forces. Military organizations hire third parties or adopt performance-based logistics contracts for the movement, storage, distribution, and disposition of primary materials, such as ammunition, sustainable food rations, and vehicle components, as well as entire military vehicles, such as tanks and jeeps. The contracted market players perform a prior analysis to restock supplies if it is required. They are also contracted by defense organizations to transport personnel between different stations. In addition, these market players are accountable for the maintenance and disposition of facilities that are outsourced to them by defense organizations. The changing dynamics of geopotential conflicts and cooperation among military forces will drive the growth of this segment.
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APAC is estimated to contribute 40% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
Another significant region contributing to the market growth is North America. North America is home to some of the world's largest military forces, including the US and Canada, and these countries have significant logistics needs to support their military operations. The market in North America is driven by a range of factors, including increasing military spending, growing demand for advanced logistics technologies, and the need to support a wide range of military operations. The market is also impacted by geopolitical factors, such as tensions with other countries and the need to maintain a strong military presence in the region. Hence, such factors are driving the market during the forecast period.
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 offers military logistics solutions such as program management, design, acquisition, installation, and technical support of worldwide telecommunications systems and interoperable command centers.
Agility Public Warehousing Co. K.S.C.P: The company offers military logistics services such as heavy-lift and freight management, identifying and moving military equipment retrograde, and customs clearance, maintenance, and repair.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
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.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
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.
The market is shaped by various factors, such as the deployment of military troops to war-prone locations and the need for effective disaster solutions in challenging environments. The market landscape depends on the delivery time, battlefield, automation, IoT, blockchain, seaways, land ways, air transport, emergencies, borders, defense budget, acquisition of armaments, strategic collaborations, Planning, Coordinating, Executing, Timely support, military logistics, service offerings. The geopolitical setting plays a significant role in driving demand, with geopolitical instabilities and conflicts between nations driving the requirement for advanced logistics solutions. The market is driven by the continuous advancements in technologies related to arms, artilleries, and transportation facilities, enabling smoother military personnel movement and supply chain management.
Moreover, key market drivers include the development of new military bases to enhance border security and modernize facilities, along with the increasing demand for logistics services to support humanitarian missions and defense sector operations. The market landscape depends on the Regulatory standards, Quality, Penetration, Hydrogen-powered railway, Triangulation, military activities, communication networks, cyber threats, environmental impacts, eco-friendly technologies, energy-efficient transport, sustainable practices, industry development, budget constraints, geopolitical tensions, uncertainties, disrupted supply, Technological proliferation, connected technologies. The integration of technological advancements such as drones, Unmanned Aerial Vehicles (UAVs), real-time tracking systems, Geographic Information Systems (GIS), and Radio-Frequency Identification (RFID) further contributes to market growth opportunities.
Furthermore, the market faces challenges such as huge expenditures associated with setting up military bases and the complexities of the supply chain, especially in conflict zones. Military Logistics encompasses various types such as logistics & distribution, medical services including evacuation and hospitalization, and modes of transportation, including roadways, railways, waterways, and airways, prioritizing safety, convenience, and efficiency for armed forces. Key players in this market include Lockheed Martin Corporation, Northrop Grumman, and Raytheon Technologies, driving military infrastructure projects and catering to the evolving needs of the international strategic landscape influenced by hegemonism, unilateralism, power politics, geopolitical rifts, technological superiority, evolving threats, and military strategies and organizational structures centered around military bases.
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 analysis, market research and growth, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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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