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Military Logistics Market Registering an Attractive CAGR Growth Rate of 5.2% | Leading Players Claxton Logistics, Dyncorp International, Klinge, Oboronlogistics, One Network Enterprises, SCM Globe, and Thales Group

07-10-2019 12:37 PM CET | Logistics & Transport

Press release from: The Insight Partners

Military Logistics Market

Military Logistics Market

According to the new research report published by The Insight Partners, titled “Military Logistics Market - Global Analysis and Forecast to 2027”, The Global Military Logistics Market is expected to account for US$ 339.56 Bn in 2018 and is expected to reach US$ 526.50 Bn by 2027 thereby, registering an attractive CAGR growth rate of 5.2% from 2019 to 2027.

In 2018, Asia Pacific accounted for the largest market share, growing at a CAGR of 6.2%

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The key players operating in the Military Logistics market are AECOM, ANHAM, ASELSAN A.?., 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 among other.

The economies in the Asia Pacific region are experiencing a noteworthy growth in their military spending. For instance, countries, including Japan and India, boosted their military spending owing to rising tensions with China, as per global arms spending report published by SIPRI. In 2017, the Indian defense spending increased by 5.5% to approximately US$ 63.9 Bn, resulting in ranking India as one of the top five military spenders worldwide. Also, India is anticipated to witness the second highest CAGR in the Asia Pacific military logistics market, after China. The report further states that the Government of India is planning to modernize, expand, and improve the operational capability of defense, partially owing to rising tension with Pakistan and China.

Military Logistics market is segmented on the basis of the type and mode of transportation. The military logistics is primarily dominated by the logistics & distribution segment owing to notable demand for ensuring the existing supply of various components, devices, gears, food & medical supplies, and equipment among other logistical and operational support. However, the rise in emphasis towards achieving superior operational efficiencies along with reduced military budgets has propelled the demand for various optimization, executive management, and consulting related services.

Currently, the global military logistics market is dominated by some prominent market players with notable experience in meeting the military logistics requirement through years of engagement with the military of different countries. The market players present in military logistics market are mainly focused on maintaining long-term relations with the governments.

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Key findings of the study:
The APAC region comprises of developing countries that are witnessing an increase in their military spending. As per SIPRI, the region’s military spending increased by 52% over the last decade, accounting for US$ 392 Bn in 2018. Factors such as territorial disputes, economic growth, and long-sought military modernizations are propelling the increase in military spending. China is the key country in the APAC region, responsible for more than 60% of military spending. Also, after the U.S., China is the second largest country globally in terms of the defense budget. Also, as per the World Bank, Singapore dedicated 3.3% of its GDP towards defense. Also, India was ranked amongst the top five military spenders in 2018. The military logistics market is APC region is highly propelled by the steps taken by the U.S. to keep a check on China. The U.S. is accelerating its “freedom of navigation” naval operations in disputed waters in the Taiwan Strait and the South China Sea.

The recent surge in budget cuts along with the rise in fluctuations of the number of military personnel along with growing demand for deployment as well as the integration of military technologies across the country’s vast military assets is also anticipated to attribute towards the growing demand for logistics support for the military. North America, Europe, and Asia-Pacific collectively accounted for almost fourth-fifth of the total market share in 2018 and is further expected to continue to account for nearly 85% of the overall market size by 2027. Factors such as significantly large military budgets, a vast number of defense troops and military assets are attributed in their large market share and subsequently is expected to continue to drive the market during the forecast period.

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The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We are a specialist in Technology, Semiconductors, Healthcare, Manufacturing, Automotive and Defense.

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