Military Logistics Market Growth Analysis

Market Insights

The Military Logistics Market was estimated at US$ 330.3 Billion in 2021 and is expected to grow at a CAGR of 5.1% during 2022-2028 to reach US$ 550.1 Billion in 2028.

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What is military logistics?

Military logistics involves planning, coordinating, and executing the movement, storage, and supply of personnel, equipment, and resources for armed forces. It ensures timely support to troops, maintenance of operational capabilities, and effective deployment in various theaters of operation.

This vital branch of the military is responsible for the organization, transportation, and upkeep of the armed forces. It relates to the transfer of personnel from one location to another. It is carried out by air, sea, or land to get the upper hand against possible enemies during conflict or a natural disaster and to compete with other state actors. In military conflicts, logistics frequently plays a key role in determining the final result of battles. The military's responsibilities for diverse activities, such as reconnaissance, surveillance, and fast reaction, necessitate the necessity of military logistics.

Market Dynamics

The size of the military logistics industry has grown due to several variables. For instance, the military helps protect a country and contributes significantly to worldwide humanitarian assistance efforts. Increased technological integration in military logistics is one of the major industry trends that might promote growth.

It is anticipated that the military logistics market will expand quickly due to the expanding technology developments in the defense industry, which will present new lucrative prospects. The market will increase due to technological advancements, the integration of several linked technologies, and artificial intelligence. Uncrewed aerial vehicles (drones) are sometimes used for military logistics. The growing trend toward improving situational awareness and delivering real-time information, which leads to deploying sophisticated military logistics, presents more options. The real-time tracking system uses GIS, RFID, and other technologies to produce precise maps that show the best routes to take given traffic, weather, and other factors. Consequently, the industry has several prospects for expansion.

The dynamic market offers a variety of chances, which raises its allure on a worldwide scale. For instance, there is a chance to boost the amount of automation by integrating new digital technologies into the current military logistical systems.

Several investments/guidelines in the industry have been directed in recent years, which would boost the overall market. Some of them are:

• The UK MOD (Ministry of Defense) is looking for technological advancements to significantly improve military logistics capacity in the Maritime, Land, and Air domains. Multiple ideas may be funded with a total of around USD $ 1.1 million, with projects presenting their innovation at a demonstration event hosted in the UK in September 2021. To identify, develop, and present to the military logistics community innovations that have the potential to deliver a step change in military logistics capability across the Maritime, Land, and Air domains, the Defence and Security Accelerator (DASA) competition run on behalf of the MOD's Defence Science and Technology Laboratory (DSTL) is seeking to engage with industry and academia.

In Europe, fighter planes completed test flights using just biofuel in recent months, the first 3D-printed uncrewed aerial vehicle (UAV) was sent to a battle zone, and gloves with power-generating capabilities that can keep soldiers warm in frigid regions were put to the test. The tactical and logistical aspects of combat are evolving due to new technology. Recent advancements in military logistics applications may free up much-needed resources, rebalance the force, and provide operational advantages like more dispersed portability.

Segments Analysis

By Type

The market may be divided into three categories: logistics and distribution, facility management, and services. Distribution and logistics have previously dominated the market environment. The use of new digital technologies, such as the Internet of Things, is the primary driver that has fueled the market segment's rise (IoT). Due to factors including the military of various nations' efforts to modernize and restore buildings, the facility management market is anticipated to develop throughout the predicted period. Medical services, including hospitalization and evacuation, will be crucial in bolstering the military logistics market's expansion in the services sector.

By Mode of Transportation Type

The market may be divided into segments roads, railroads, canals, and airways. In recent years, road transportation has dominated the market. Compared to other forms of transportation, the market sector benefits from high safety and convenience levels, among other things. Due to its capacity to carry large numbers of soldiers, the railway sector is also anticipated to play a significant role and contribute to the market's growth.

Regional Analysis

The military logistics market may be split into numerous regional divisions, including Latin America, the Middle East, Europe, North America, and Asia-Pacific. The North American area has been acting as a pioneer in the market; owing to the presence of significant market players, the region is predicted to significantly impact the worldwide market over the estimated period. Additionally, the United States of America's substantial military spending may act as a catalyst and raise market income for military logistics in the area. Due to increased investment in R&D to support smart military logistics, the Europe sector is also anticipated to develop throughout the anticipated period. Due to India and China's increased expenditure on military operations to strengthen their current military capabilities, the Asia Pacific market sector is anticipated to have the largest growth in the coming years. Accordingly, every geographic area will contribute to the market performance over the anticipated time based on the detailed market perspective.

Key Players

The overall competitive landscape has been affected due to these mergers and acquisitions. The following are the major players in the military logistics market:

• AECOM
• Anham FZCO
• ASELSAN A.S.
• BAE Systems Plc
• KBR, Inc.
• Lockheed Martin Corporation
• DynCorp International LLC
• Fluor Corporation
• Honeywell International, Inc.
• Thales Group

The market for military logistics is fiercely competitive and characterized by several notable competitors vying for market dominance. Introducing new competitors is anticipated to be hampered by the military industry's tight safety and regulatory standards. Additionally, dominating markets like the US significantly impact the market, as do the general economic conditions there. As a result, contracts may be postponed or canceled during a recession, resulting in a slower growth rate and negatively impacting the market dynamics.

There is stiff competition in the Military Logistics market. The growth of the companies is directly dependent on industry conditions and government support. These companies differentiate their Military Logistics based on their quality and penetration in the target and emerging markets. Also, some major mergers and acquisitions in the industry recently have significantly influenced the competitive dynamics. For example:

• Military logistics systems are being enhanced via cutting-edge technology like artificial intelligence (AI) and the Internet of Things (IoT).
• Toto promotes economic development in the area; AECOM, a well-known participant in the military logistics sector, has decided to build a hydrogen-powered railway in Central Italy.

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

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