Military Logistics Market Size - Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2024 – 2032

Military Logistics Market Size

Military Logistics Market size is projected to observe substantial growth between 2024 and 2032, due to rise in military activities majorly driven by the growing military spending across the globe. As per the Office of Management and Budget, the U.S. spent $766 billion on national defense in fiscal year (FY) 2022. The growing reliance on digital systems is leading to the increased emphasis on cybersecurity in military logistics, further contributing to the cruciality of securing communication networks, data, and supply chain information for preventing cyber threats.
 

The growing awareness of the environmental impacts of military logistics operations leading to the deployment of eco-friendly technologies, energy-efficient transport, and a broader focus on sustainable practices will also prove favorable for the industry development. However, the surging budget constraints along with the rising geopolitical tensions and uncertainties resulting in disrupted supply chains and logistics operations will pose a barrier for the industry demand.
 

Military Logistics Market Trends

Technological proliferation and the rising amalgamation of various connected technologies will support the market growth. Several industry participants, in association with defense bodies, are making use of drones and unmanned aerial vehicles (UAV) for military logistics to reduce delivery time along with the operational costs. For instance, in January 2022, the U.S. Army publicized its plans of testing UAV drones, equipped with autonomous technology to deliver critical medical supplies to the battlefield. The rising incorporation of advanced technologies like AI, automation, IoT, and blockchain to enhance supply chain visibility, improve efficiency, and enable real-time decision-making will add to the market development.
 

Military Logistics Market Analysis

By mode of transportation, the military logistics industry is segmented into airways, seaways, and land ways. The airways segment is predicted to witness a lucrative growth rate from 2024 to 2032, impelled by the rising prominence of air transport and the introduction of various options, including UAV in military logistics. Air transport enables the quick and efficient deployment of military personnel, equipment as well as supplies to distant locations, emerging vital for responding rapidly to crises, conflicts, or emergencies. Rising investments in strategic airlift capabilities to enhance the ability to project power globally will also define the segment growth.
 

Asia Pacific military logistics market is expected to foresee significant growth through 2032, propelled by the increasing military activities. The surging efforts by regional governments to boost indigenous production capabilities in the defense sector is driving the establishment of various military bases within countries to safeguard borders. For instance, the Chinese government announced a defense budget of approximately USD 229 billion for 2022. The rise in defense budget for acquisition of armaments along with the increasing reliance on technology will also prove favorable for the regional industry growth.
 

Military Logistics Market Share

Strategic collaborations, including acquisitions and partnerships, new product developments and R&D investments are largely implemented by military logistic firms to increase their service offerings and offer one-point solutions to various military organizations.
 

Some of the major military logistics industry participants include:

• AECOM
• ANHAM
• Lockheed Martin
• KBR
• DynCorp International
• BAE Systems
• Thales Group
• Honeywell International Inc.
• ASELSAN A.S.
• Fluor Corporation
• Genco
   

Military Logistics Industry News

• In December 2023, Lockheed Martin Corp. secured a modification contract worth $13.3 million involving its F-35 fighter aircraft by Patuxent River, MD, a naval air systems command. Through the deal, Lockheed provided reach-back support for sustaining all Norway as well as Italian Reprogramming Laboratory systems, and associated consumables and spare material/tooling.

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