Global Defense Logistics Market 2023-2030

Description

List of Tables

Title: Global Defense Logistics Market Size, Share & Trends Analysis Report by Service Type (Armament, Military Troop, Technical Support & Maintenance, Medical Aid, Fire-fighting Protection, and Others), by Application (Military Infrastructure, Military Logistics Services, and Military Foreign Military Sales (FMS)), by Transportation Mode (Roadways, Airways, Seaways, and Railways), and by End User (Army, Navy, Air Force, and Others) Forecast Period (2023-2030).

The global defense logistics market is anticipated to grow at a considerable CAGR of 2.3% during the forecast period. According to the Internation Institute of Strategic Studies, in nominal terms, global defense spending has been on a strong upward trajectory over the last five years, increasing from a nominal $1.7 trillion in 2017 to $2.0 trillion in 2022. The growth of the market is attributed to factors such as increasing defense spending, rising geopolitical tensions, and the growing demand for efficient logistics support in military operations. Further, advancements in technology, increasing demand for armament, troop support, and maintenance services, as well as the emphasis on military infrastructure development, are some of the factors anticipated to fuel the demand for defense logistics. For instance, in July 2021, the National Defense Authorization Act, which sets annual policy for the Department of Defense (DOD), has been enacted into law for 60 consecutive years. The provisions of the bill involved secured authorizations for nearly $128 million in funding for military facilities across Michigan. The bill authorizes $23 million in Alpena aircraft and maintenance facility & new testing designation and other similar provisions.

Segmental Outlook

The global defense logistics market is segmented based on its service type, application, transportation mode, and end user. Based on service type, the market is sub-segmented into armament, military troops, technical support & maintenance, medical aid, fire-fighting protection, and others. Based on application, the market is categorized into military infrastructure, military logistics services, and military FMS. Further, based on transportation mode, the market is segmented into roadways, airways, seaways, and railways. Lastly, based on end users, the market is segmented into the army, navy, air force, and others.

Technical Support & Maintenance Service Type is Anticipated to Witness Significant Growth Over the Forecast Period

Among the service type segment, the technical support and maintenance sub-segment is anticipated to witness significant growth during the forecast period. The segmental growth is attributed to the growing demand for regular maintenance and repair of defense equipment. Also, increased capacity for the production and manufacturing of defense equipment is anticipated to drive the growth of the sub-segment. For instance, in July 2022, French defense major Safran Group set up a production facility in Hyderabad to produce parts and components for advanced aircraft engines with an investment of $37.9 million, besides a big-ticket joint venture with state-run aerospace behemoth HAL. The MRO (maintenance, repair, and overhaul) facility to be established in Hyderabad through the foreign direct investment of $150 million will be for the LEAP-1A and LEAP-1B engines being used in aircraft by both Indian and foreign commercial airlines.

Regional Outlooks

The global Defense Logistics market is further segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the Rest of the World (the Middle East & Africa and Latin America). The market can be analyzed for a particular region or country level as per the requirement. Among these, North America is anticipated to hold a prominent market share in the global defense logistics market, driven by the presence of major defense manufacturers and suppliers, along with the high defense expenditure. However, the Asia-Pacific region is projected to experience considerable growth in the Defense Logistics market, owing to increasing defense budgets, modernization initiatives, and territorial disputes in the region.

The Europe Region is Anticipated to Hold a Significant Share in the Global Defense Logistics Market

Among all the regions, the Europe region is anticipated to account for a significant share of the defense logistics market during the forecast period. The growth of the defense logistics market in the region is primarily driven by factors such as growing geopolitical conflicts, coupled with increased investment in the defense sector. For instance, in June 2021, Four new contracts worth $1.9 billion have been awarded to the industry delivering crucial building maintenance and hard facilities repair services across the UK defense estate. Forming part of the first phase of the Future Defense Infrastructure Services (FDIS) program, the contracts cover 31,000 units and will support facilities at more than 400 Defense sites across the UK, including RAF. The investment will also ensure that small and medium enterprises across the UK are supported through the defense supply chain.

Market Players Outlook

The major companies serving the global Defense Logistics market include: 3Lockheed Martin Corporation, BAE Systems plc, General Dynamics Corp., Northrop Grumman Corp., Raytheon Technologies Corp., Honeywell International Inc., and others. These market players are considerably contributing to the market growth by adopting various strategies, including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in Apr 2023, BAE Systems and Microsoft signed a strategic agreement aiming to support faster and easier development, deployment, and management of digital defense capabilities in an increasingly data-centric world. The collaboration brings together BAE Systems' knowledge of building complex digital systems for militaries and governments with Microsoft's approach to developing applications using its Azure Cloud platform.

The Report Covers:

Market value data analysis of 2022 and forecast to 2030.
Annualized market revenues ($ million) for each market segment.
Country-wise analysis of major geographical regions.
Key companies operating in the global defense logistics market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
Analysis of market-entry and market expansion strategies.
Competitive strategies by identifying 'who-stands-where' in the market.

Product Code: OMR2027441

1. Report Summary

Current Industry Analysis and Growth Potential Outlook
1.1. Research Methods and Tools
1.2. Market Breakdown
- 1.2.1. By Segments
- 1.2.2. By Region

2. Market Overview and Insights

2.1. Scope of the Report
2.2. Analyst Insight & Current Market Trends
- 2.2.1. Key Findings
- 2.2.2. Recommendations
- 2.2.3. Conclusion

3. Competitive Landscape

3.1. Key Company Analysis
3.2. BAE Systems plc
- 3.2.1. Overview
- 3.2.2. Financial Analysis
- 3.2.3. SWOT Analysis
- 3.2.4. Recent Developments
3.3. Dyncorp International FZ-LLC
- 3.3.1. Overview
- 3.3.2. Financial Analysis
- 3.3.3. SWOT Analysis
- 3.3.4. Recent Developments
3.4. Fluor Corp.
- 3.4.1. Overview
- 3.4.2. Financial Analysis
- 3.4.3. SWOT Analysis
- 3.4.4. Recent Developments
3.5. Key Strategy Analysis

4. Market Segmentation

4.1. Global Global Defense Logistics Market by Service Type
- 4.1.1. Armament
- 4.1.2. Military Troop
- 4.1.3. Technical Support & Maintenance
- 4.1.4. Medical Aid
- 4.1.5. Fire-fighting Protection
- 4.1.6. Others
4.2. Global Global Defense Logistics Market by Application
- 4.2.1. Military Infrastructure
- 4.2.2. Military Logistics Services
- 4.2.3. Military Foreign Military Sales (FMS)
4.3. Global Global Defense Logistics Market by Transportation Mode
- 4.3.1. Roadways
- 4.3.2. Airways
- 4.3.3. Seaways and Railways
4.4. Global Global Defense Logistics Market by End User
- 4.4.1. Army
- 4.4.2. Navy
- 4.4.3. Air Force
- 4.4.4. Others

5. Regional Analysis

5.1. North America
- 5.1.1. United States
- 5.1.2. Canada
5.2. Europe
- 5.2.1. UK
- 5.2.2. Germany
- 5.2.3. Italy
- 5.2.4. Spain
- 5.2.5. France
- 5.2.6. Rest of Europe
5.3. Asia-Pacific
- 5.3.1. China
- 5.3.2. India
- 5.3.3. Japan
- 5.3.4. South Korea
- 5.3.5. Rest of Asia-Pacific
5.4. Rest of the World

6. Company Profiles

6.1. AECOM
6.2. ANHAM FZCO
6.3. Booz Allen Hamilton Inc.
6.4. Crowley Maritime
6.5. General Dynamics
6.6. Honeywell International Inc.
6.7. Huntington Ingalls Industries, Inc.
6.8. Jacobs Engineering Group Inc.
6.9. KBR, Inc.
6.10. L3Harris Technologies, Inc.
6.11. Leonardo S.p.A.
6.12. Lockheed Martin Corp.
6.13. Northrop Grumman Corp.
6.14. PAE Incorporated
6.15. Raytheon Technologies Corp.
6.16. Rheinmetall AG
6.17. Safran S.A.
6.18. Serco Group plc
6.19. Thales Group