Defence Logistics Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2024-2032

Description

The Global Defence Logistics Market was valued at USD 184.2 billion in 2023 and is projected to grow at a CAGR of over 5.3% from 2024 to 2032. Geopolitical tensions and rising defence budgets are propelling this growth. In response to geopolitical conflicts and regional instabilities, countries are bolstering their military capabilities, resulting in increased defence spending. This spending is directed towards modernizing military assets, strengthening infrastructure, and enhancing logistics networks to ensure operational readiness and a strategic edge. As nations deepen their investments in defence, there's a heightened demand for advanced logistics solutions. These solutions are crucial for the deployment, maintenance, and supply of sophisticated weaponry and equipment. Such a reliance on efficient logistics services not only manages these advanced assets but also drives market growth, spurring innovations and broadening opportunities in the sector.

The overall defence logistics industry is classified based on the service, mode of transportation, commodity, end-user, and region.

Segmented by transportation mode, the market includes railways, roadways, waterways, and airways. In 2023, roadways captured over 40% of the market share and is projected to surpass USD 120 billion by 2032. Roadways dominate the defence logistics market due to their reliability and adaptability in transporting military assets. Road transport is vital for relocating heavy military equipment, like tanks and artillery, across terrains where air or sea transport might falter. It guarantees last-mile connectivity, ensuring supplies reach even the most secluded areas. Road transport's flexibility in route planning and its ability to operate in varied weather conditions further solidify its importance in military operations.

Divided by commodity, the market encompasses armament, medical aid, and other categories. In 2023, the armament segment commanded a market share of approximately 49%. The armament segment's dominance in the defence logistics market underscores its pivotal role in military operations. Spanning weapons, armaments, ammunition, explosives, and missiles, are vital for combat readiness and executing defence strategies. The persistent need for modernization and replenishment, especially in regions with heightened military activity or security concerns, fuels this demand.

In 2023, North America held a market share exceeding 37% and is projected to surpass USD 110 billion by 2032. North America's dominance, especially that of the United States, in the defence logistics market is evident. This leadership stems from the U.S.'s vast defence budget, its global military footprint, and its sophisticated logistical capabilities. The region's commitment to military readiness, swift deployment, and the ongoing modernization of defence systems propels market growth.

Product Code: 10957

Table of Content

Chapter 1 Methodology and Scope

1.1 Research design
- 1.1.1 Research approach
- 1.1.2 Data collection methods
1.2 Base estimates and calculations
- 1.2.1 Base year calculation
- 1.2.2 Key trends for market estimates
1.3 Forecast model
1.4 Primary research and validation
- 1.4.1 Primary sources
- 1.4.2 Data mining sources
1.5 Market definitions

Chapter 2 Executive Summary

2.1 Industry 360° synopsis, 2021 - 2032

Chapter 3 Industry Insights

3.1 Industry ecosystem analysis
3.2 Supplier landscape
- 3.2.1 Prime contractors
- 3.2.2 Subcontractors
- 3.2.3 Logistics providers
- 3.2.4 Government agencies
- 3.2.5 Support services
3.3 Profit margin analysis
3.4 Defence contracts statistics
3.5 Technology and innovation landscape
3.6 Patent analysis
3.7 Key news and initiatives
3.8 Regulatory landscape
3.9 Impact forces
- 3.9.1 Growth drivers
  - 3.9.1.1 Rising geopolitical tensions and increased defence spending
  - 3.9.1.2 Growing modernization of military equipment
  - 3.9.1.3 Advancements in AI, IoT, drone and blockchain technology
  - 3.9.1.4 Focus on rapid response capabilities
- 3.9.2 Industry pitfalls and challenges
  - 3.9.2.1 Complex and dynamic environment
  - 3.9.2.2 Stringent security regulations, export controls, and compliance
3.10 Growth potential analysis
3.11 Porter's analysis
3.12 PESTEL analysis

Chapter 4 Competitive Landscape, 2023

4.1 Introduction
4.2 Company market share analysis
4.3 Competitive positioning matrix
4.4 Strategic outlook matrix

Chapter 5 Market Estimates and Forecast, By Service, 2021 - 2032 ($Bn, 000' tons)

5.1 Key trends
5.2 Transportation and distribution
5.3 Warehousing and inventory management
5.4 Procurement and sourcing
5.5 Maintenance, repair, and overhaul (MRO)

Chapter 6 Market Estimates and Forecast, By Mode of Transportation, 2021 - 2032 ($Bn, 000' tons)

6.1 Key trends
6.2 Roadways
6.3 Railways
6.4 Waterways
6.5 Airways

Chapter 7 Market Estimates and Forecast, By Commodity, 2021 - 2032 ($Bn, 000' tons)

7.1 Key trends
7.2 Armament
7.3 Medical aid
7.4 Others

Chapter 8 Market Estimates and Forecast, By End-User, 2021 - 2032 ($Bn, 000' tons)

8.1 Key trends
8.2 Army
8.3 Navy
8.4 Air force

Chapter 9 Market Estimates and Forecast, By Region, 2021 - 2032 ($Bn, 000' tons)

9.1 Key trends
9.2 North America
- 9.2.1 U.S.
- 9.2.2 Canada
9.3 Europe
- 9.3.1 UK
- 9.3.2 Germany
- 9.3.3 France
- 9.3.4 Spain
- 9.3.5 Italy
- 9.3.6 Russia
- 9.3.7 Nordics
- 9.3.8 Rest of Europe
9.4 Asia Pacific
- 9.4.1 China
- 9.4.2 India
- 9.4.3 Japan
- 9.4.4 South Korea
- 9.4.5 ANZ
- 9.4.6 Southeast Asia
- 9.4.7 Rest of Asia Pacific
9.5 Latin America
- 9.5.1 Brazil
- 9.5.2 Mexico
- 9.5.3 Argentina
- 9.5.4 Rest of Latin America
9.6 MEA
- 9.6.1 UAE
- 9.6.2 South Africa
- 9.6.3 Saudi Arabia
- 9.6.4 Rest of MEA

Chapter 10 Company Profiles

10.1 Lockheed Martin Corporation
10.2 Raytheon Technologies Corporation
10.3 Northrop Grumman Corporation
10.4 BAE Systems plc
10.5 Boeing Defence, Space and Security (BDS)
10.6 General Dynamics Corporation
10.7 L3Harris Technologies, Inc.
10.8 Thales Group
10.9 Leonardo S.p.A.
10.10 Airbus Defence and Space
10.11 Saab AB
10.12 Rheinmetall AG
10.13 Honeywell International Inc.
10.14 KBR, Inc.
10.15 CACI International Inc.
10.16 Serco Group plc
10.17 AAR Corporation
10.18 FLIR Systems, Inc.
10.19 Textron Inc.
10.20 Oshkosh Defence, LLC