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The Defense Logistics (DL) Market size is estimated to grow by USD 3.95 billion at a CAGR of 2.01% between 2023 and 2028. The accelerated growth of the market is due to various factors, including the increasing number of military vehicles, the adoption of multidimensional defense logistics, and the growing military ammunition globally.
Market size, historical data (2018-2022), and future projections are presented in terms of value (in USD billion) for all the segments in this report.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the market growth is the adoption of multidimensional defense logistics. Several countries have their own military base in other countries for peace-supporting and mission-accomplishing operations. In addition, to maintain their military base in other countries, they adopt this model. Moreover, in this model, the base country gets logistics support from the domestic player in the host country.
For example, the UN has its military base in Italy for peacekeeping operations. In addition, the Italian government is supporting the US in peacekeeping operations in Italy. Furthermore, the support includes transportation requirements for camp construction and infrastructure, weapon movement, leasing land for camp building, warehousing, and the usage of other infrastructures, such as airfields and roads. Hence, such factors are driving the market growth during the forecast period.
A key factor shaping the market growth is the vehicle management system for defense logistics players. The adoption of integrated vehicle health management systems has generated a positive impact on the growth of the global market. In addition, the system can access the current and future status of defense vehicles and analyze the operational requirements of vehicles.
Moreover, the system is predominantly used in rotorcraft and aircraft for monitoring the health of engines, rotors, and transmission systems, thereby ensuring continuous maintenance of individual critical components. Furthermore, the integrated vehicle health management system assists in the maintenance scheduling of vehicles to ensure the appropriate frequency of component upgrades with reduced cost. Hence, such factors are driving the market growth during the forecast period.
The reduced number of military base camps is one of the key challenges hindering market growth. There are several associated issues with constructing and maintaining temporary overseas base camps. In addition, to construct and maintain a military base camp, essential supporting activities, such as security services, community services, communication services, and transportation services, should align with the program objective.
Moreover, these activities require high costs and resources. Hence, many defense organizations are reducing their operational base camps. For instance, the British army is planning to bring its troops back, which are deployed in Germany, by 2021. This move for the cutdown in the number of military bases will reduce transportation and warehousing opportunities, such as weapon distribution, troop support equipment distribution, and food and medical requirement distribution of these players. Hence, such factors hinder the market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Amentum Services Inc: The company offers operations, engineering, maintenance, environmental, emergency preparedness, fire protection, quality assurance, radiological control, management, safety, training and procedures, transportation, waste management, and nuclear safety.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The army segment is estimated to witness significant growth during the forecast period. The army segment in the global market comprises three types of military supply chains. The first includes rapid movement of light commodities such as food, medicine, and clothing whereas the second is the transportation of major weapon systems that require repair and maintenance over an extended period. In addition, the third is the deployment chain, which requires large bodies of troops to move in a short period.
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The army segment was the largest segment and was valued at USD 16.46 billion in 2018. Moreover, the efficiency of the supply chain may be improved by digitizing inventories, using technology for better monitoring of movement, repair, and maintenance, and outsourcing supply and repair/maintenance to capitalize on the increasing market strength. In addition, more than 85% of all material goes by commercial transport. Furthermore, the technology and resources available in the civil sector must be used to minimize the large fleet of service transportation. Therefore, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
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North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the largest military spenders across the world is North America. Even though it is the highest spender, the region is anticipated to face flat growth in military spending during the forecast period as an aftereffect of the US backing out of Iraq in the year 2011.
In addition, the US GDP accounted for almost 35% of the global GDP, and the country's defense spending, which was the highest in the world, accounted for more than 40% of the global defense spending as of 2021. Moreover, the Defense Logistics Agency (DLA) takes care of all the arms deals of the US, ranging from raw materials to spare parts, fuel, and sustenance; the re-utilization of military equipment and infrastructure; and the storage and tracking of inventories and suppliers. Hence, such factors are driving the market growth in North America during the forecast period.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is a critical component of a nation's military strength and assets, supported by government defense expenditure and military modernization programs. This market is influenced by various factors, including military conflicts, geopolitical tension, and the need for sustainability and environmentally friendly practices.
Efficient transportation modes are essential in defense logistics for moving commodities and equipment. With the increasing threat of cybersecurity attacks, automation and data analytics play a crucial role in ensuring the security and efficiency of logistics operations. Real-time tracking is essential for monitoring assets and ensuring energy efficiency. The market also focuses on alternative fuels, waste reduction, and recycling practices to minimize environmental impact. Key players in this market are employing advanced technologies and strategies such as Porter's five forces analysis, market segmentation, and revenue contribution analysis to enhance their market player positioning and expand their application areas.
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Defense Logistics Market Scope |
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Report Coverage |
Details |
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Page number |
180 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 2.01% |
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Market Growth 2024-2028 |
USD 3.95 billion |
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Market structure |
Concentrated |
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YoY growth 2023-2024(%) |
1.87 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 37% |
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Key countries |
US, China, India, Russia, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Amentum Services Inc., ASELSAN AS, BAE Systems Plc, CMA CGM SA Group, Crowley Maritime Corp., DB Schenker, Fluor Corp., GEODIS, Honeywell International Inc., KBR Inc., Leonardo Spa, Lockheed Martin Corp., Northrop Grumman Corp., SEKO Logistics, and Thales Group |
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Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Solution
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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