Global Defence Logistics Market was valued at US $ 203.8 billion in 2023 and is expected to reach US $ 329.9 billion by 2032 growing at a CAGR of 5.0% during the forecast period 2024 – 2032

This study was based on quality information coupled with professional viewpoint and analysis as well as critical independent views. In addition, a reliable approach is recommended with a view to satisfying stakeholders’ demand for an impartial look at world market and help them take appropriate decisions about their largest growth aspirations.

Over three thousand and seven hundred material sources were examined in order to increase understanding of the market. These sources included product literature, annual reports, industry statements, among many others from main industry participants.

In particular, some of these players include Lockheed Martin Corporation, Colac Group, Crowley, BAES Systems, Northrop Grumman, Raytheon Technologies, General Dynamic Corporation, L3Harris Technologies, Inc., SEKO Logistics and Leonardo Monitoring, tracking of important strategies employed by market participants such as contracts, tactics, etc.

Defence logistics are items that support or build up the army and can perform their functions under the most severe conditions. Logistics facilitates the movement of varied resources such as equipment, ammunition vehicles etc. among different locations within a military, enabling it to maintain continuous deployments or tackle unexpected issues. The processes, resources, and infrastructure required by defense logistics include production, shipment, storage, repair, as well as reassignment/ redeployment of defense materiel. A country performs that function is directly associated with its own military power. The implementation of these procedures successfully contributes not only to a national strategic adaptivity but as well can lead towards determination superiority.

However, there are several reasons why the defense logistics market is growing, like increased military modernisation programs and governmental spending, escalated military conflicts and tensions, and higher demand for a flexible and reliable army supply chain system. However, inadequate infrastructure and an upsurge of cybersecurity issues restrict the market advancement. Further, due to technological developments and increasing focus towards environmentally friendly and green practices in defence logistics, this presents exceptional growth prospects for participants in the defense logistics industry.

The defence logistics market is segmented by end-user, transportation type, commodity, and region. Based on the final user, it can be classified as the army, navy, or airforce respectively. The market is categorized according to modes of transportation: railways, airways, waterways, and roadways. Depending on the commodity, it is divided into technical support and maintenance, medical assistance, and armament sectors. Market segmentation has been done based on region that include North America, Europe, Asia-Pacific, and LAMEA.

Some of these companies include Lockheed Martin Corporation, Colak Group, Crowley, BAE systems, Northrop Grammar, Raytheon technologies, General dynamics corporation, L3harris technologies, Inc., seko logistics and leonardo S.p.a. Businesses have entered into contracts, as well as adopted other approaches such as improving their market position.

The Defense Logistics Trend Analysis

Market expansion is being driven by increased geopolitical instability.

Military logistics has been caused by high geopolitical tension in the warring states. These kinds of battles require the army to be well equipped with modern day weapons, transport network, and artilleries. Thus, these mentioned variables intensify diversity in movement of soldiers and promote the use of multiplicity guns. As a result, it has positive implications for the defense supply chain in the world market. Another key aspect contributing to the Military Logistics Market’s CAGR is the building of new military bases for border security and updating facilities. Another major issue relates with increasing demand for use of military to take on humanitarian tasks like delivering health services during disasters.

Moreover, the growing technology trends in defence will create new profitable opportunities for the military logistics market to move forward rapidly. Diversified connected technologies involving advancement in technology will be combined with different kinds of artificial intelligence which will eventually present numerous opportunities for growth in the market. For instance, some scenarios involve using drones also referred to as unmanned aerial vehicles such as military logistics. More opportunities are foreseeable in line with the increasing tendency to boost situational awareness and fresh real-time data, thus leading into enhanced military logistics.

The RTT comprises of GIS, RFID, and other systems used for detailed mapping of ways and road networks as well as the identification of weather conditions. Therefore, the market has many prospects of growth. Nevertheless, they include challenges e.g. building of military bases is very costly while supply chain is complex thus posing risks. However, these might impact upon the growth of military logistics market revenues.

Segmentation Analysis of the Defense Logistics Market

Government’s increased defense spending and military modernisation efforts.

Governments have increased their expenditure on defense and military modernization around the globe. There are many contributing elements including changing global politics, heightened security issues, and technological developments in warfare. The world’s governments realize that it is necessary to improve the defense forces in order to protect the state’s security and world interests. For instance, the proposed budget for FY 2024 for the DoD budget by the Biden-Harris Administration was US$842 billion. This is a 26 billion increase from the previous fiscal year, 2023, and a 100 billion increment compared to that of FY 2022.

In 2022, the US designated $167 billions’ worth of appropriation for military expenditure on personnel; $264 billions’ worth of appropriations for research and development and procurement; and $295 billions’ worth of appropriation It is also worth mentioning that the total expenditure on defense for those nations in Asia and Oceania added up to $575 billion in 2021, representing a 2.7 percent increase over 2021 and almost half (45%) more than Modernisation of newly acquired defence equipment creates a need for defence logistics that allows smooth flow of these items into the theatre of operations where they are intended to be used by service men and women. Therefore, this will act as a catalyst towards growth of the market.

The military conflict and geopolitical tension reach a peak level.

Armed conflicts, as well as political and strategic rivalry among nations, have greatly escalated over time. For instance, the geopolitical tension worsened in 2022 with the Russia-Ukraine conflict that saw these two countries and their respective allies strengthening up their defense capabilities Military confrontations, geopolitical disputes, and diplomatic strains have increased significantly around the world. The term military conflicts encompasses both armed conflicts, as well as increased demonstration of combat readiness. In addition, geopolitics tensions and interstate influence competitions are on the upswing.

This is exemplified by the escalation of their military posts on line of actual control (LOC) which depict their borders of rivalry, between India and china, for instance, they did it in March 2023. The escalation of armed confrontation between these two countries increases the threat level in accordance with the Annual Threat Assessment of the U.S. Intelligence Community. Since there is an increasing geopolitical tension, countries must urgently prepare for such emergency. Uncertainty regarding the world politics has an effect on the defense priorization and thus, calls for a reshuffle in military preparedness. Therefore, these above-mentioned issues greatly support the demand of defense logistics solutions and services.

The demands of military supply chains for effectiveness and resiliency are rising.

Resilience of the supply chain is crucial when it comes to supplies such as provisions, ammunition, and equipment, which enable the continuation of the military activities in case of disasters or war time. The performance of the supply chain influences military forces’ responsiveness and readiness for action. Timely and efficient logistics are important because they enable military forces to be deployed quickly enough so that threat-emerging problems can be faced in good time.

Establishing an efficient pipeline for distribution including varying landscapes as well as meteorological issues is important so that there are no delays in delivering material to the allocated points. Well organised and planned supply chains require a great deal of coordination and collaboration effort. Logistical suppliers for defense purposes are very important as they provide strategic planning services which make sure that the resources needed in fulfilment of military purposes are deployed and distributed properly. They play a crucial role because military supplies cannot move without them. Therefore, logistics becomes necessary because of a strong supply chain that supports military operation.

Lack of infrastructure

One major problem that hinders the development of a strong defense logistic industry is that there are no adequate facilities for storage and transportation. Military logistics suffers reduced efficiencies and effectiveness when deployed in areas with underdeveloped facilities for storage, transportation, and communications systems. Movement of troops across the regions that do not have well established transport infrastructure, for instance, presents difficulties, because there are delays of equipment and movement obstacles. This is expected to hamper the growth of the defence logistics market across the forecast period owed to poor infrastructure.

The proliferation of cybersecurity hazards

Increased dependency of modern defense logistic on digital systems and interrelated technologies makes it more vulnerable to cyber threats. Such threats target on data related issues especially with its intention of causing a disruption within the visibility of the supply chain. Logistic’s data, privacy and reliability are threatened when faced with breach of cybersecurity which in turn affect resource allocation and management decisions. Military logistics cannot do without secure communication networks in order to undertake real time coordination and information sharing.

This is due to the high rate of cyber-attacks which may disrupt critical information and communication channels through which logistics planning will greatly rely. Cyberattacks on defense logistics could disrupt supply chains that might delay in delivering crucial equipment and supplies. It is necessary to prioritize establishing strong cyber defense systems during such processes like this where military operation is ongoing and must not cease or there will be no supply chain. Therefore, an expected hindrance for the market growth arising from new security threats in cyberspace.

Environmental stewardship and sustainability enhancement within defense logistics.

Although it took the military organizations time to realize the need to include green procurement in the supply chain management the practice has significantly gained momentum over the past years. The sustainability issues should be built into the whole process from purchasing through transportation, storage and waste disposal and management. One vital element in sustainable supply chain management of the logistics in environment friendly defense systems is designing and choosing environment-friendly transportation techniques. Such areas include; investigations on other fuel options, planning of routes aimed at reducing fuel consumptions and allocating resources towards fuel efficiency cars and technologies.

Conventional defense logistics operations emit carbon and therefore it is important that the present attention toward sustainability includes strategies to reduce such impact. This entails use of cleaner energy sources, implementation of emission reduction techniques, and application of environmentally sound technologies. Sustainability in the field of defense logistics comprises waste reduction efforts and also promotion of recycling practices. This is expected to provide good opportunities for expanding the market.

Regional Analysis of the Defense Logistics Market

The North American region consists of Mexico, United States and Canada. Regional escalation of the national defence budget often has a significant impact on the defense logistics industry. It is a common practice for the US to provide substantial monetary investments towards its efforts in North American defense as well as operational logistics. Increased budget for defense translates into increases toward upgrade of logistics infrastructure, technological improvements, as well as support services. In this sphere, North America stands out as the leading player in technology evolution especially in the defence logistics sphere. There has been a need for better implementation of modern technology in logistics, such as use of data analytics, monitoring processes, and automation.

These include the European countries such as UK, Germany, Russia, and France. The defense logistic market in the region is poised to expand at an increased rate as a result of an expected hike in defense spending during the forecast period. The EU has spent large amounts of money towards improving military operations and supply chain operations in Europe for a long time. Expanding on military budgets in Europe allows for distribution toward important areas such as supply operations, modern technology applications and supporting networks. Also, countries have opted to develop treaties that enable cooperation in the aspect of joint military logistics.

For instance, Japan and Germany declared in November 2022 that they will have a joint defence pact. Such a pact has come up in view of increased global security issues such as the Russian war over Ukraine and the rise of Chinese capacity and power. The pact should have terms covering barters of strategic assets like foods, petroleums, and transport during a common course of action. Therefore, these improvements or innovations in the ways and means of transferring defence equipment and weapons are expected to drive the growth of this region’s market.

Top Key Players Covered Defense Logistics Market

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

Key Industry Developments in the Defense Logistics Market

• In September 2023, the Defense Logistics Agency (DLA) awarded a contract to L3Harris Technologies for replacement and repair components for VSAT transmission systems. The order is valued at up to USD 125.13 million and it’s IDIQ type contract. According to this contract GDIT is required to provide logistical support to enable movement of resources/equipment/supplies within stipulated time frames for purposes of supporting the coalition/US forces.
• For example, in March 2021, US Air Force issued several contracts worth of $696 million to General Dynamics through its subsidiary company Gulfstream Aerospace. These contracts relate to providing contractor logistics support and engineering services for the Air Force. Gulfstream has been awarded a contract to support C-20 and C-37 programs assigned by the Air Force Life Cycle Management Center.
• The company Lockheed Martin won a big contract worth US$2.01 billion in September 2021. The main purpose of this pact is to provide crucial logistic support for the F-35 air assets. It involved fulfilling the needs of civilian and overseas customers.

Table of Contents

1. Introduction Of Global Defense Logistics Market
   1. Overview of the Market
   2. Scope of Report
   3. Assumptions
2. Executive Summary
3. Research Methodology
   1. Data Mining
   2. Validation
   3. Primary Interviews
   4. List of Data Sources
4. Global Defense Logistics Market Outlook
   1. Overview
   2. Market Dynamics
      1. Drivers
      2. Restraints
      3. Opportunities
   3. Porters Five Force Model
      1. Bargaining Power of Suppliers
      2. Threat of New Entrants
      3. Threat of Substitutes
      4. Competitive Rivalry
      5. Bargaining Power among Buyers
   4. Value Chain Analysis
5. Global Defense Logistics Market, By Commodity
   1. Overview
   2. Armament
   3. Technical support and maintenance
   4. Medical aid
   5. Others
6. Global Defense Logistics Market, By End-user
   1. Overview
      1. Army
      2. Navy
      3. Airforce
7. Global Defense Logistics Market, By Transportation mode
   1. Overview
   2. Roadways
   3. Airways
   4. Waterways
   5. Railways
8. Global Defense Logistics Market By Region
   1. North America
      1. U.S.
      2. Canada
   2. Europe
      1. Germany
      2. U.K.
      3. France
      4. Rest of Europe
   3. Asia Pacific
      1. China
      2. Japan
      3. India
      4. South Korea
      5. Singapore
      6. Malaysia
      7. Australia
      8. Thailand
      9. Indonesia
      10. Philippines
      11. Rest of Asia Pacific
   4. Others
      1. Saudi Arabia
      2. U.A.E.
      3. South Africa
      4. Egypt
      5. Israel
      6. Rest of Middle East and Africa (MEA)
      7. Brazil
      8. Argentina
      9. Mexico
      10. Rest of South America
9. Company Profiles
   1. AECOM
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
   2. Fluor Corporation
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
   3. Thales Group
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
   4. BAE Systems Plc
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
   5. DynCorp International LLC
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
   6. Honeywell International Inc.
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
   7. Lockheed Martin Corporation
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
   8. ASELSAN A.S.
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
   9. Anham FZCO
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
   10. Elbit Systems Ltd. (Israel)
       1. Company Overview
       2. Key Executives
       3. Operating Business Segments
       4. Product Portfolio
       5. Financial Performance (As per availability)
       6. Key News
   11. Honeywell International Inc. (U.S.)
       1. Company Overview
       2. Key Executives
       3. Operating Business Segments
       4. Product Portfolio
       5. Financial Performance (As per availability)
       6. Key News
   12. II-VI Inc. (U.S.)
       1. Company Overview
       2. Key Executives
       3. Operating Business Segments
       4. Product Portfolio
       5. Financial Performance (As per availability)
       6. Key News
   13. BAE Systems Plc (U.K.)
       1. Company Overview
       2. Key Executives
       3. Operating Business Segments
       4. Product Portfolio
       5. Financial Performance (As per availability)
       6. Key News
   14. Kord Technologies (U.S.)
       1. Company Overview
       2. Key Executives
       3. Operating Business Segments
       4. Product Portfolio
       5. Financial Performance (As per availability)
       6. Key News
   15. L3Harris Technologies Inc. (U.S.)
       1. Company Overview
       2. Key Executives
       3. Operating Business Segments
       4. Product Portfolio
       5. Financial Performance (As per availability)
       6. Key News
   16. Leonardo S.p.A. (Italy)
       1. Company Overview
       2. Key Executives
       3. Operating Business Segments
       4. Product Portfolio
       5. Financial Performance (As per availability)
       6. Key News
   17. Lockheed Martin Corporation (U.S.)
       1. Company Overview
       2. Key Executives
       3. Operating Business Segments
       4. Product Portfolio
       5. Financial Performance (As per availability)
       6. Key News
   18. Northrop Grumman Corporation (U.S.)
       1. Company Overview
       2. Key Executives
       3. Operating Business Segments
       4. Product Portfolio
       5. Financial Performance (As per availability)
       6. Key News
   19. Rafael Advanced Defense Systems Ltd. (Israel)
       1. Company Overview
       2. Key Executives
       3. Operating Business Segments
       4. Product Portfolio
       5. Financial Performance (As per availability)
       6. Key News
   20. Raytheon Technologies Corporation (U.S.)
       1. Company Overview
       2. Key Executives
       3. Operating Business Segments
       4. Product Portfolio
       5. Financial Performance (As per availability)
       6. Key News
   21. Rheinmetall AG (Germany)
       1. Company Overview
       2. Key Executives
       3. Operating Business Segments
       4. Product Portfolio
       5. Financial Performance (As per availability)
       6. Key News
   22. Thales Group (France)
       1. Company Overview
       2. Key Executives
       3. Operating Business Segments
       4. Product Portfolio
       5. Financial Performance (As per availability)
       6. Key News
   23. The Boeing Company (U.S.)
       1. Company Overview
       2. Key Executives
       3. Operating Business Segments
       4. Product Portfolio
       5. Financial Performance (As per availability)
       6. Key News

Global Defence Logistics Market Segmentation

Defence Logistics by Commodity: Market Size & Forecast 2024-2032

• Armament
• Technical support and maintenance
• Medical aid
• Others

Defence Logistics by End-user: Market Size & Forecast 2024-2032

• Army
• Navy
• Airforce

Defence Logistics by Transportation mode: Market Size & Forecast 2024-2032

• Roadways
• Airways
• Waterways
• Railways

Defence Logistics by Geography: Market Size & Forecast 2024-2032

• North America (USA, Canada, Mexico)
• Europe (Germany, UK, France, Russia, Italy, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Southeast Asia, Rest of Asia-Pacific)
• South America (Brazil, Argentina, Columbia, Rest of South America)
• Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria, South Africa, Rest of MEA)

Major Players:

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