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Defence Logistics Market To Reach USD 333.11 Billion By Year 2032

The Global Defence Logistics Market Size Was Valued at USD 213.99 Billion in 2023 and is Projected to Reach USD 333.11 Billion by 2032, Growing at a CAGR of 5.04% From 2024-2032.

11-07-2024
shashidhar kotian
Aerospace and Defense
Pristine Intelligence LLP

According to a new report published by Pristine Intelligence, titled, “Defence Logistics Market by Service Type, Transportation Mode Type, and End-User: Global Opportunity Analysis and Industry Forecast, 2024–2032,” The Global Defence Logistics Market Size Was Valued at USD 213.99 Billion in 2023 and is Projected to Reach USD 333.11 Billion by 2032, Growing at a CAGR of 5.04% From 2024-2032. Defense logistics involves planning, coordinating, and executing activities related to the procurement, storage, transportation, maintenance, and distribution of military resources. It ensures readiness, sustainability, and operational effectiveness by optimizing resource allocation and minimizing costs. This complex field manages supply chains and logistical networks, crucial for timely delivery across diverse operational environments, from combat zones to peacetime. The global defense logistics market encompasses managing, distributing, and maintaining military supplies, equipment, and personnel. It supports military operations by enhancing equipment readiness and sustaining forces through transportation, warehousing, inventory management, and supply chain optimization. Recent trends emphasize technological integration like advanced tracking systems and real-time analytics, alongside outsourcing to private contractors. Geopolitical tensions and rising defense budgets globally drive sector growth, particularly in North America, Europe, and Asia-Pacific. The market evolves towards agile logistics networks, enhancing operational capabilities to meet modern military needs worldwide.

According to the global Defence Logistics market analysis, the market is segmented into Service Type, Transportation Mode Type, End-User, and region. By Service Type, the market is categorized into Armament, Military Troop Movement, Technical Support & Maintenance, Medical Aid, and Fire-fighting Protection. By Transportation Mode Type, the market is categorized into Roadways, Airways, Seaways, and Railways. By End-User, the market is categorized into Army, Navy, and Air Force. By region, it is analyzed across North America (U.S.; Canada; Mexico), Eastern Europe (Bulgaria; The Czech Republic; Hungary; Poland; Romania; Rest of Eastern Europe), Western Europe (Germany; UK; France; Netherlands; Italy; Russia; Spain; Rest of Western Europe), Asia-Pacific (China; India; Japan; Southeast Asia, etc.), South America (Brazil; Argentina, etc.), Middle East & Africa (Saudi Arabia; South Africa, etc.).

Increasing defense spending drives demand for advanced military equipment, vehicles, and technology, necessitating efficient logistics to support deployment, maintenance, and operations. This includes crucial logistics services such as transportation, warehousing, and supply chain management, vital for maintaining readiness and effectiveness. As defense budgets rise, there's a need for robust logistical infrastructure to handle global supply chains and ensure timely delivery worldwide.

Integration of technologies like AI, IoT, and blockchain enhances operational efficiency, security, and real-time visibility across logistics networks. IoT enables real-time tracking of assets for proactive maintenance, while AI analyzes data to optimize processes and reduce costs. Automation further streamlines tasks such as inventory management and transportation, enhancing agility and resilience in military logistics. These advancements bolster mission readiness and reduce operational risks, reflecting the evolving needs of modern defense operations amid geopolitical tensions and security challenges.

Global Defence Logistics Market, Segmentation

The Defence Logistics market is segmented based on Service Type, Transportation Mode Type, and End-User, and region

Service Type:

Armament logistics manage the intricate supply chain of weapons, ammunition, and related equipment critical for military operations. Due to the sensitive nature of these materials and stringent security protocols, specialized handling is essential. Military troop movement logistics are pivotal in deploying and sustaining forces across operational theaters, involving strategic planning and execution of personnel, vehicle, and supply transportation to ensure readiness. These logistics demand advanced coordination and rapid response capabilities to support dynamic military engagements. They represent a significant portion of global defense logistics expenditure, driven by military modernization, geopolitical tensions, and the need for enhanced operational efficiency. The emphasis on specialized logistics tailored to armament and troop movement underscores their influence in shaping the defense logistics market.

Transportation Mode Type:

Roads and airways dominate the Defense Logistics Market due to their strategic advantages in flexibility, speed, and accessibility. Road transport excels in reaching diverse terrains and remote areas critical for military operations, allowing rapid movement of personnel, equipment, and supplies. Meanwhile, air transport offers unparalleled speed and global reach, swiftly transporting troops, equipment, and aid across vast distances. Continuous technological advancements enhance the reliability and efficiency of both modes, supporting readiness and global military operations. Their combined dominance underscores the importance of strategic mobility and operational effectiveness in today's complex geopolitical environment.

Region:

North America boasts some of the world's highest defense budgets, with the United States consistently leading in global defense spending. This financial commitment supports significant investments in logistics infrastructure, technology, and personnel training for efficient supply chain management and preparedness. The region benefits from a robust industrial base, encompassing diverse defense contractors, suppliers, and logistics providers crucial for timely procurement, maintenance, and distribution of military resources. Geopolitical alliances like NATO further bolster North America's strategic advantage in defense logistics, promoting collaborative efforts and interoperability among allied nations to tackle global security challenges effectively. Advanced research and development capabilities drive innovation in logistics solutions, including advanced tracking systems and transport technologies, ensuring North America maintains its leadership in defense logistics worldwide.

Some of the leading Defence Logistics market players are

  • AECOM (USA)
  • Crowley Maritime Corp. (USA)
  • General Dynamics Corp. (USA)
  • Northrop Grumman Corp. (USA)
  • Lockheed Martin Corporation (USA)
  • DynCorp International LLC (USA)
  • Fluor Corporation (USA), and Other Major Players.

Key Industry Developments:

  • In September 2023, the Defense Logistics Agency (DLA) awarded a contract valued at up to USD 125.13 million to L3Harris Technologies. This IDIQ-type contract mandates GDIT to provide logistical support, ensuring timely movement of resources, equipment, and supplies to support coalition and US forces.

Key Findings of the Study

  • The market was valued at USD 213.99 billion in 2023 and is projected to reach USD 333.11 billion by 2032, growing at a CAGR of 5.04% from 2024-2032.
  • Increasing defense spending globally drives demand for advanced military equipment and technology, necessitating efficient logistics to support deployment, maintenance, and operations.
  • North America, with its high defense budgets and robust industrial base, leads in defense logistics, supported by strategic alliances like NATO, fostering collaboration and innovation in logistics solutions.
Pristine Intelligence LLP

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