Market Highlights

The anticipated value of the worldwide defense logistics market in 2021 was US$ 456.3 billion. From 2022 to 2028, it is projected to increase at a compound annual growth rate (CAGR) of 5.9%, reaching US$ ~654.1 billion.
According to the Federal Register, the Defense Supply Agency was renamed the Defense Logistics Agency (DLA) in 1977, and the Under Secretary of Defense for Acquisition, Technology, and Logistics was granted command, guidance, and control over the DLA. DLA provides logistical support and aids in the acquisition of weapons and other equipment for the armed services. The Agency provides technical and logistical support to all branches of the armed forces and federal agencies. Agency supply centers purchase enough goods to meet the military services' projected needs after consolidating their demands. Among the commodities under Agency control are fuel, food, clothing, building materials, electrical items, general supplies, industrial supplies, and medical supplies.

Moving personnel, equipment, supplies, and inventories from one place to another is a part of defense logistics. It covers supply, administration of the supplies, and distribution. The defense logistics industry is a very vibrant and promising one. Providing supplies to armed personnel during a battle is part of defense logistics. It also takes into account the ability of the country's manufacturing base and transportation network to supply, equip, and maintain the armed forces, as well as their ability to replenish themselves after they have been deployed. Often times, in military engagements, the outcome of fights is heavily dependent on logistics. In order to enhance situational awareness and supply real-time information for efficient mission and resource allocation, defense logistics is actively integrated into military operations. Furthermore, as military forces continue to modernize and improve their logistics, dependable technologies are being integrated into infrastructure and logistics, which is driving the growth of the defense logistics sector.

Defense supply goes beyond just supplying armed forces with weapons when there is hostilities. It also includes the capacity to resupply the military forces upon their deployment, equip, maintain, and supply them with infrastructure and national manufacturing plants. The military forces must perform at the peak of their abilities while remaining flexible and long-lasting on the battlefield. Defense logistics thus supports the execution of maintenance and support activities, search and rescue operations, and the transportation of troops, food, ammunition, and medical supplies to challenging areas.
All military procurement, upkeep, and logistics related to the defense sector continue even while the world struggles with the COVID-19 pandemic because national security always comes first. In addition, the logistics provider is facing a liquidity problem as a result of the statewide lockdown and abnormalities in the supply chain. The first casualties of the epidemic are businesses that are situated in or rely on supply chain operations from nations that have been severely affected by the outbreak. Innovative customer support strategies and in-demand inventions are receiving more attention from technology organizations.
Recent years have seen a number of directives and investments in the sector that should expand the defense logistics market as a whole. Among them are:
• The UK MOD (Ministry of Defense) is seeking technological advancements that could significantly boost defense logistics capability in the air, land, and maritime domains. Initiatives might get up to USD$1.1 million in total, with projects presenting their inventions at a demonstration event in the UK in September 2021.
• In Europe, the first 3D-printed unmanned aerial vehicle (UAV) was sent to a combat zone, fighter jets completed test flights using only biofuel, and troops' power-generating gloves—which can keep them warm in cold climates—were put to the test. Thanks to improved technology, combat is becoming more tactical and logistical.

Market Segment Analysis

The defense logistics market may be split into segments for weapons, military personnel, technical support & maintenance, medical assistance, firefighting protection, and others based on the type of service.
The defense logistics market may be separated into segments for roads, airlines, seaways, and railroads according to the mode of transportation.
The defense logistics market may be segmented into army, navy, air force, and other segments based on the end user.
In relation to regions, There are several regional segments within the defense logistics market, such as Latin America, the Middle East, Europe, North America, and Asia-Pacific. In the defense logistics market, the North American region has been leading the way. Because of the major players in the industry, the region is expected to have a significant impact on the worldwide market throughout the course of the projected period. Due to China's and India's increased expenditure in military activities to strengthen their current military capabilities, the Asia Pacific market sector is predicted to grow at the fastest rate in the next years. Consequently, every geographic region will contribute to the defense logistics market performance over the estimated period based on the overall market viewpoint.

Key Players

Defense logistics is a very competitive industry with several well-known players fighting for market supremacy. The strict safety and regulatory standards of the defense industry are expected to make it difficult to bring in new competitors. Furthermore, powerful markets such as the US have a big influence on the defense logistics market, as do overall economic circumstances. Therefore, during a recession, contracts can be delayed or canceled, which would hinder growth and have a negative effect on market dynamics.
The defense logistics market is highly competitive. The state of the sector and government assistance have a direct impact on the companies' growth. Based on their quality and level of penetration in both target and emerging markets, these companies set themselves apart in the defense logistics industry. Additionally, a few recent large mergers and acquisitions in the sector have had a big impact on the competitive dynamics. As an illustration, in 2019 the Italian Air Force and A-ICE worked together to build the Collaborative Logistics Optimization System (CLOS), a clever software tool for making decisions that speeds up and optimizes defense logistics mission planning. It already provides options for process simplification and automation. Utilizing a potent machine-learning algorithm, it achieves real-time job management optimization benefits based on a range of customizable parameters, such as cargo, location, and capacity. Some military leaders believe it will be beneficial to modify and integrate significant, tried-and-true e-commerce technology-based solutions for military use. Future defense logistics and storage will require operational agility in near real time.
These mergers and acquisitions have had an impact on the competitive landscape as a whole. The largest companies in the defense logistics market are as follows:
Lockheed Martin Corporation; AECOM; Anham FZCO; ASELSAN A.S.; BAE Systems Plc; KBR, Inc.; DynCorp International LLC, Thales Group, Fluor Corporation, Honeywell International, Inc., Crowley Maritime Corp., General Dynamics Corp., and Northrop Grumman Corp.

Defense Logistics Market Scope:

Report Data	Defense Logistics Market
Defense Logistics Market Forecast Value 2028	654.1Billion
Defense Logistics Market CAGR 2022 - 2028	5.9%
Defense Logistics Market Forecast Period	2022 - 2028
Defense Logistics Market Base Year	2021
Regional Scope	North America, Europe, Asia Pacific, South America, and Middle East & Africa
Key Companies Profiled	Lockheed Martin Corporation; AECOM; Anham FZCO; ASELSAN A.S.; BAE Systems Plc; KBR, Inc.; DynCorp International LLC, Thales Group, Fluor Corporation, Honeywell International, Inc., Crowley Maritime Corp., General Dynamics Corp., and Northrop Grumman Corp..
Key Segments	By Transportation Mode Roadways Airways Seaways Railways By Service Types Medical aid Fire-fighting Protection Armament Military Troop Technical Support & Maintenance By End User Army Navy Air Force By Region North America Europe Asia-Pacific South America Middle-East & Africa
Report Coverage	Market Sizing, Market Forecasting, Market Dynamics, Market Trends, Market Development Analysis, Market Share Analysis, Regional Analysis, Competitive Positioning, Competitive Benchmarking, Competitive Landscape, Company Profiling, Regulation Analysis, etc.