Top Market Shifts Transforming the Military Infrastructure Market Landscape: Key Insights

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What Is the Expected CAGR for the Military Infrastructure Market Through 2025?
The market size of military infrastructure has seen robust growth over the past few years. It is projected to expand from $10.34 billion in 2024 to $11.24 billion in 2025, with a compound annual growth rate (CAGR) of 8.7%. The historical growth has been driven by factors like defense budgetary allocations, geopolitical crises, modernization drives, worldwide security worries, and strategic military partnerships.

What's the Projected Size of the Global Military Infrastructure Market by 2029?
The market size of military infrastructure is set to experience robust expansion in the upcoming years. The market is projected to reach $14.91 billion by 2029, expanding at a compound annual growth rate (CAGR) of 7.3%. The anticipated growth during the forecast period is associated with preparing for natural disasters, impending threats, the need for interoperability, space-based infrastructure, and adaptation to climate change. The forecast period will also witness major trends such as technological advancement, increased digitalization and connectivity, expansion of space-based infrastructure, and adapting to urban warfare.

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Top Growth Drivers in the Military Infrastructure Industry: What's Accelerating the Market?
The military infrastructure market is projected to expand due to the rising defense budget. The term defense budget, or military budget, relates to the total financial capital designated by a nation or government for its military and defense-related endeavors within a specified timeframe, typically a fiscal year. Increased military spending has resulted in the growth of military facilities, incorporating the development of new bases, airfields, naval ports, and other vital locations. The purpose is to bolster the defense potential and strategic reach of the nation. For example, the United States Air Force (USAF), a US government entity of the United States Department of the Air Force, reported in March 2023, that the Air Force's fiscal year (FY) 2024 budget proposal was approximately $215.1 billion, an increase of $9.3 billion or 4.5% over the approved fiscal year 2023 figure. Thus, the growth of the military infrastructure market is propelled by the escalating defense budget. The global rise of terrorism also fuels the advancement of the military infrastructure market. Terrorism encompasses violent deeds carried out by individuals, collectives, or nations classified as foreign terrorist organizations or countries. Military infrastructure plays a paramount role in combating terrorism by providing crucial resources, intelligence capabilities, and operational bases to prevent and respond to terrorist acts. For example, according to the global terrorism index report by the Institute for Economics and Peace (IEP), an Australian research organization that develops peace analysis metrics, deaths per terrorist attack increased by 0.4 on average in 2022. Terrorist attacks, in turn, have become more deadly, claiming an average of 1.7 lives per attack compared to 1.3 deaths per attack in 2021. Also, a total of 6,701 deaths from terrorist activities were reported in 2022. Consequently, the increasing threat of terrorism significantly drives the expansion of the military infrastructure market.

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What Trends Will Shape the Military Infrastructure Market Through 2029 and Beyond?
Primary players in the military infrastructure industry are turning their attention towards the development of innovative products aimed at military communications networks, in an effort to enhance their market profitability. A military communications network is a system that the armed forces utilize to share information, utilizing communication technologies and infrastructure. For example, BAE Systems PLC, an aerospace company from the UK, introduced its most recent deployable networking product, NetVIPR (Networked, Virtualized, Intelligent, and Protected Routing), in August 2022. This novel military communication system was designed for the present-day, multi-domain battlefield, encompassing land, sea, air, space, cyber, and electronic warfare. Comprising numerous nodes, the secure network allows for the addition, access, and transfer of data at each node, thereby facilitating intelligent and secure military communication, even under the most difficult conditions.

What Are the Main Segments in the Military Infrastructure Market?
The military infrastructure market covered in this report is segmented -

1) By Type: Harbor, Proving Ground, Range, Training Course
2) By Size: Small, Medium, Large
3) By Application: Army, Navy, Air Force

Subsegments:
1) By Harbor: Naval Bases, Docking And Ship Maintenance Facilities, Supply And Logistics Harbors
2) By Proving Ground: Testing And Evaluation Centers, Weapon And Ammunition Testing Sites, Military Vehicle Testing Grounds
3) By Range: Air Defense Ranges, Land-Based Firing Ranges, Artillery And Ballistic Ranges
4) By Training Course: Combat Training Centers, Simulated Training Environments, Specialized Skill Development Courses

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Which Top Companies are Driving Growth in the Military Infrastructure Market?
Major companies operating in the military infrastructure market report are Dell Inc., General Electric Company, Raytheon Technologies Corporation, Boeing Company, Lockheed Martin Corporation, Airbus SE, General Dynamics Corporation, Northrop Grumman Corporation, Honeywell International Inc., BAE Systems, L3Harris Technologies Inc., Safran SA, Leonardo S.p.A., Thales Group, AECOM, Textron Inc., Oshkosh Corporation, Rheinmetall AG, KBR Inc., Saab AB, General Atomics Aeronautical Systems Inc., ManTech International Corporation, Aselsan AS, Anham Fzco, Minrav Holdings Ltd., American International Contractors Inc., ArmourWorks International Ltd., Dewey Electronics Corporation, Dencrypt A/S

Which Regions Will Dominate the Military Infrastructure Market Through 2029?
North America was the largest region in the military infrastructure market in 2024. The regions covered in the military infrastructure market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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