Military Logistics Market Strategic Insights and Updates by 2031
The military logistics market size is projected to reach US$ 725.62 billion by 2031 from US$ 462.71 billion in 2023. The market is expected to register a CAGR of 5.8% during 2023–2031. The rising implementation of automation and intelligence in logistics operations is likely to remain a key trend in the market.
Military Logistics Market Analysis
The buyers continue to enjoy a high bargaining power in the market owing to customer centric forces such as presence of large number of market players, favorable policies, regulation, guidelines, and significantly large purchasing power of the military forces. Moreover, the sensitive nature of military components, systems and other critical assets due to their security clearance and confidential nature has resulted in significantly large number of logistics policies, regulations and guidelines for the market players. Thus, the overall bargaining power of the buyers in high and is expected to remain high during the coming years.
Military Logistics Market Overview
Currently, the military logistics market comprsises of large and established market players with substantial customer base. Moreover, the large entry barriers along with government’s inclination towards rewarding pervious long business engagement has also attributed in the low threat from new entrants into the military logistics market. However, the recent budget cuts as well as surge in demand for superior logistics planning, management, and operation is anticipated to ease the barriers for selected logistics offering. For instance, opportunities for enhanced logistics related services such as consultancy, optimization, and integration & support of advanced technologies along with its logistics support is expected to provide moderate entry barriers during the coming years.
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Military Logistics Market: Strategic Insights
Market Size Value in US$ 339.56 Billion in 2018 Market Size Value by US$ 526.50 Billion by 2027 Growth rate CAGR of 5.2% from 2019-2027 Forecast Period 2019-2027 Base Year 2019
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Military Logistics Market: Strategic Insights
| Market Size Value in | US$ 339.56 Billion in 2018 |
| Market Size Value by | US$ 526.50 Billion by 2027 |
| Growth rate | CAGR of 5.2% from 2019-2027 |
| Forecast Period | 2019-2027 |
| Base Year | 2019 |
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Military Logistics Market Drivers and Opportunities
Increasing Need for Effective and Immediate Disaster Relief
Military plays a vital role in supporting humanitarian relief efforts. The growing involvement of the military in disaster relief is driving the demand for effective military logistics services. The military provides services such as material resources for infrastructure projects, logistical support, security for relief workers, and others. The military logistics provider must be quick and effective to transport required resources to the disaster-prone location. With the increasing involvement of the military and the demand for quick services at disaster sites, the military logistics market is expected to witness significant growth during the forecast period.
Integration of Real-Time Tracking System for Live Tracking and Visibility of Logistics
The vendors of military logistics are integrating smart solutions for real-time tracking and visibility of goods. The real-time tracking system includes GIS, RFID, and other solutions. Military logistics have to coordinate the movement of multiple military vehicles, equipment, freight, and others. With the integration of GIS technology, it generates detailed maps to identify optimal routes, road & weather conditions, and other information. It also tracks vehicles in real-time with the exact content of the shipment. It also provides emergency response capabilities. To ensure the secure and safe movement of freight, vendors are highly focused on the implementation of these technologies. It is expected that the demand for real-time tracking system and other advanced security solutions will increase during the forecast period along with other logistics services and will be a huge opportunity for vendors operating in military logistics market.
Military Logistics Market Report Segmentation Analysis
Key segments that contributed to the derivation of the military logistics market analysis are type and mode of transportation.
- Based on type, the military logistics market is segmented into logistics & distribution, facility management, and services. The logistics & distribution segment held a larger market share in 2023.
- Based on mode of transportation, the military logistics market is segmented into roadways, railways, airways, and waterways. The roadways segment held a larger market share in 2023.
Military Logistics Market Share Analysis by Geography
The geographic scope of the military logistics market report is mainly divided into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and South America.
Asia Pacific has dominated the market in 2023 followed by Europe and North America regions. Further, Asia Pacific is also likely to witness highest CAGR in the coming years. China dominated the Asia Pacific military logistics market in 2023. Further, the ongoing war in Europe and Middle East regions have also been impacting the demand for military logistics across such regions. The war between Russia-Ukraine, Israel-Palestine, and involvement of other countries in such wars is pushing the demand for military logistics as there as a lot of troops being deployed across multiple locations across the Europe and Middle Eastern countries. Such factors have been driving the growth of military logistics market across different regions.
Military Logistics Market Report Scope
Military Logistics Market News and Recent Developments
The military logistics market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the military logistics market are listed below:
- The Ministry of Defence has announced today that it intends to sign a 13-year logistics programme contract with Leidos following successful negotiations. (Source: Leidos, Press Release, March 2015)
- A logistics system critical to UK Armed Forces operations around the world will be supported under a new five-year, £460 million contract with Boeing Defence UK. (Source: UK MOD, Press Release, Jan 2021)
Military Logistics Market Report Coverage and Deliverables
The “Military Logistics Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Military logistics market market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Military logistics market market trends as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed porter’s five forces analysis
- Military logistics market market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the military logistics market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type and Mode of Transportation
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina
Frequently Asked Questions
The military logistics market is likely to register of 5.8% during 2023-2031.
The estimated value of the military logistics market by 2031 would be around US$ 725.62 billion.
The rising implementation of automation and intelligence in logistics operations is one of the major trends of the market.
AECOM, ANHAM, ASELSAN AŞ, Claxton Logistics, Dyncorp International LLC, Fluor Corporation, Honeywell International Inc, KBR Inc, Klinge Corporation, Lockheed Martin Corporation, ManTech International Corporation, Oboronlogistics LLC, One Network Enterprises, SCM Globe, and Thales Group are some of the key players profiled under the report.
Increasing need for effective and immediate disaster relief and increasing deployment of military troops in war prone regions are some of the factors driving the growth for military logistics market.
Asia Pacific region dominated the military logistics market in 2023.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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