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Defence Logistics Market Research Report 2024

Defence Logistics Market Global Industry Analysis and Forecast (2024-2032) by Service Type (Armament, Military Troop Movement, Technical Support & Maintenance, Medical Aid, Fire-fighting Protection), Transportation Mode Type (Roadways, Airways, Seaways, Railways), End-User (Army, Navy, Air Force), and Region

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Report ID: 337

Categories: Aerospace and Defense

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Summary TOC Segmentation Methodology

Defence Logistics Market Synopsis

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 the planning, coordination, and execution of activities related to the procurement, storage, transportation, maintenance, and distribution of military resources. This includes personnel, equipment, and supplies essential for military operations, ensuring readiness, sustainability, and operational effectiveness. Defense logistics aims to optimize resource allocation, minimize costs, and enhance responsiveness to support military missions and strategic objectives. It encompasses complex supply chains, logistical networks, and strategic planning to ensure timely delivery and support across various operational environments, ranging from combat zones to peacetime activities.

  • The defense logistics market encompasses the management, distribution, and maintenance of military supplies, equipment, and personnel globally. It plays a critical role in supporting military operations by ensuring timely delivery of resources to operational theaters, maintenance of equipment readiness, and sustainment of military forces. Key components include transportation, warehousing, inventory management, and supply chain optimization.
  • Recent trends in defense logistics emphasize technological integration, such as advanced tracking systems and real-time data analytics, to enhance efficiency and reduce operational costs. Outsourcing of logistics services to private contractors is also common, allowing military organizations to focus on core missions while leveraging specialized expertise.
  • Geopolitical tensions and increasing defense budgets globally drive growth in the defense logistics sector, with North America, Europe, and Asia-Pacific being prominent markets. The market's evolution includes a shift towards more agile and responsive logistics networks capable of adapting to diverse operational environments and emerging threats.
  • Overall, the defense logistics market continues to evolve with advancements in technology, strategic alliances, and a focus on enhancing operational capabilities to meet the dynamic needs of modern military forces worldwide.

Top Key Players:

AECOM (USA), Anham FZCO (United Arab Emirates), ASELSAN A.S. (Turkey), BAE Systems Plc (United Kingdom), KBR, Inc. (USA), Lockheed Martin Corporation (USA), DynCorp International LLC (USA), Fluor Corporation (USA), Honeywell International, Inc. (USA), Thales Group (France), Crowley Maritime Corp. (USA), General Dynamics Corp. (USA), Northrop Grumman Corp. (USA), and Other Active Players.

Defence Logistics Market Trend Analysis

Increasing Defence Spending

  • Increasing defense spending significantly driven due to the higher budgets allocated to defense enables governments to procure advanced military equipment, vehicles, and technology, necessitating efficient logistics to support their deployment, maintenance, and operation. This demand extends to logistics services such as transportation, warehousing, and supply chain management, crucial for maintaining readiness and operational effectiveness.
  • Moreover, rising defense expenditures often coincide with strategic expansions and modernization efforts, requiring robust logistical infrastructure to handle complex global supply chains and ensure timely delivery of equipment and supplies to military forces worldwide. Additionally, advancements in defense logistics technologies, including AI, IoT, and blockchain, are increasingly integrated to enhance operational efficiency, security, and real-time visibility across logistics networks.
  • Furthermore, geopolitical tensions and global security threats further strengthen the need for responsive and resilient defense logistics capabilities. Thus, as defense budgets grow, so does the demand for innovative logistical solutions capable of meeting the evolving challenges and requirements of modern military operations.

Integration of IoT, AI, and automation in logistics operations

  • IoT facilitates real-time tracking and monitoring of military assets, enhancing supply chain visibility and efficiency. Sensors embedded in equipment and vehicles provide data on location, condition, and performance, enabling proactive maintenance and minimizing downtime. This capability is crucial for military readiness and operational effectiveness, ensuring that resources are deployed optimally and logistics operations are streamlined.
  • AI plays a crucial role by analyzing vast amounts of data generated by IoT sensors to optimize logistical processes. Machine learning algorithms predict maintenance needs, optimize route planning, and forecast demand, thereby reducing costs and improving responsiveness. Automation complements these technologies by automating routine tasks such as inventory management, warehousing operations, and even autonomous transportation of goods and supplies.
  • These technologies enhance the agility, reliability, and scalability of defense logistics operations. They enable faster decision-making, better resource allocation, and greater resilience in the face of dynamic operational environments and emerging threats. As defense agencies increasingly adopt these innovations, the Defense Logistics Market benefits from improved efficiency, reduced operational risks, and enhanced mission readiness capabilities.

Defence Logistics Market Segment Analysis:

Defence Logistics Market Segmented based on Service Type, Transportation Mode Type, and End-User.

By Service Type, Armament and Military Troop Movement segment is expected to dominate the market during the forecast period

  • Armament logistics involve the complex and critical supply chain management of weapons, ammunition, and related equipment, essential for military operations. This segment requires specialized handling due to the sensitive nature of these materials and the stringent security protocols involved.
  • The military troop movement logistics play a pivotal role in deploying and sustaining forces across various operational theaters. This involves planning and executing the transportation of personnel, vehicles, and supplies to ensure readiness and operational effectiveness. The logistics associated with troop movements require advanced coordination, strategic planning, and often rapid response capabilities to support dynamic military engagements. These segments constitute a significant portion of defense logistics expenditure globally, driven by ongoing military modernization efforts, geopolitical tensions, and the need for enhanced operational efficiency. The demand for specialized logistics services tailored to armament and troop movement highlights their dominance in shaping the defense logistics market landscape.

By Transportation Mode Type, Roadways and Airways segment held the largest share of 56.7% in 2023

  • The dominance of roads and Airways in the Defence Logistics Market stems from their strategic advantages in flexibility, speed, and accessibility. Road transport offers the ability to reach diverse terrains and remote areas, crucial for military operations and logistics supply chains. Its adaptability allows for efficient movement of personnel, equipment, and supplies, often enabling rapid response and deployment in emergencies or conflict zones.
  • Air transport, provides unparalleled speed and global reach. Military aircraft can swiftly transport troops, equipment, and humanitarian aid across vast distances, overcoming geographical barriers that ground transport cannot. Airways facilitate rapid deployment of forces to any part of the world, supporting international military cooperation and response to crises.
  • Both modes benefit from continuous advancements in technology, enhancing their reliability, safety, and operational efficiency. They play essential roles in modern defense logistics, ensuring readiness, agility, and the ability to project military power globally. Their combined dominance reflects the evolving needs of defense forces to maintain strategic mobility and operational effectiveness in an increasingly complex geopolitical landscape.

Defence Logistics Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast period

  • The North American area has some of the highest defense budgets worldwide, and the United States consistently holds the top position in global defense spending. This financial dedication enables substantial investments in logistics infrastructure, technology, and staff training to ensure effective supply chain management and preparation.
  • North America benefits from a robust industrial base, encompassing a wide array of defense contractors, suppliers, and logistics providers. This industrial capacity supports the timely procurement, maintenance, and distribution of defense equipment and supplies across various military branches.
  • Furthermore, the geopolitical landscape, including alliances such as NATO, enhances North America's strategic positioning in defense logistics. Collaborative efforts and interoperability among allied nations streamline logistics operations and enable effective responses to global security challenges.
  • The region's advanced research and development capabilities adaptive innovation in logistics solutions, from advanced tracking systems to sophisticated transport technologies, maintaining North America's edge in defense logistics efficiency and effectiveness on a global scale.

Active Key Players in the Defence Logistics Market

  • 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)
  • Honeywell International, Inc. (USA)
  • Anham FZCO (United Arab Emirates)
  • ASELSAN A.S. (Turkey)
  • BAE Systems Plc (United Kingdom)
  • KBR, Inc. (USA)
  • Thales Group (France), and Other Active Players.

Key Industry Developments in the Defence Logistics Market:

  • 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.

Global Defence Logistics Market

Base Year:

2023

Forecast Period:

2024-2032

Historical Data:

2017 to 2023

Market Size in 2023:

USD 213.99 Bn.

Forecast Period 2024-32 CAGR:

5.04%

Market Size in 2032:

USD 333.11 Bn.

Segments Covered:

By Service Type

  • Armament, Military Troop Movement
  • Technical Support & Maintenance
  • Medical Aid
  • Fire-fighting Protection

By Transportation Mode Type

  • Roadways
  • Airways
  • Seaways
  • Railways

By End-User

  • Army
  • Navy
  • Air Force

By Region

  • 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, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New-Zealand, Rest of APAC)
  • Middle East & Africa (Turkey, Bahrain, Kuwait, Saudi Arabia, Qatar, UAE, Israel, South Africa)
  • South America (Brazil, Argentina, Rest of SA)

Frequently Asked Questions

What would be the forecast period in the Defence Logistics Market research report?

The forecast period in the Defence Logistics Market research report is 2023-2030.

Who are the key players in the Defence Logistics Market?

AECOM (USA), Anham FZCO (United Arab Emirates), ASELSAN A.S. (Turkey), BAE Systems Plc (United Kingdom), KBR, Inc. (USA), Lockheed Martin Corporation (USA), DynCorp International LLC (USA), Fluor Corporation (USA), Honeywell International, Inc. (USA), Thales Group (France), Crowley Maritime Corp. (USA), General Dynamics Corp. (USA), Northrop Grumman Corp. (USA), and Other Major Players.

What are the segments of the Defence Logistics Market?

The Defence Logistics 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.).

What is the Defence Logistics Market?

Defense logistics involves the planning, coordination, and execution of activities related to the procurement, storage, transportation, maintenance, and distribution of military resources. This includes personnel, equipment, and supplies essential for military operations, ensuring readiness, sustainability, and operational effectiveness. Defense logistics aims to optimize resource allocation, minimize costs, and enhance responsiveness to support military missions and strategic objectives. It encompasses complex supply chains, logistical networks, and strategic planning to ensure timely delivery and support across various operational environments, ranging from combat zones to peacetime activities.

How big is the Defence Logistics Market?

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.

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