Military Logistics - Research Advances and Future Trends
The global military logistics market accounted 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.
The Asia Pacific was the leading geographic market, and it is anticipated to be the highest revenue contributor throughout the forecast period. The economies in the Asia Pacific region are experiencing remarkable 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.
Rising deployment of military troops in war-prone regions to contribute to the military logistics market growth
Growing geopolitical instabilities amongst the warring nations of the world have thrust the countries to adopt a powerful military approach to safeguard national and international interests. On this fact, these forces are strengthening their abilities with advanced technologies in terms of ammunition, artilleries, and transportation facilities. This factor drives the demand for the supply of various war equipment and is positively impacting on the military logistics market.
Integration of real-time tracking system for live tracking and visibility of logistics acts as a lucrative opportunity for the military logistics market
The vendors of military logistics are integrating smart solutions for real-time monitoring and visibility of goods. The real-time tracking system includes GIS, RFID, and other solutions. Military logistics have to coordinate the movement of multiple military vehicles, equipment, freight, and others. With the integration of GIS technology, it generates detailed maps to identify optimal routes, road & weather conditions, and other information. Integration of such technologies is anticipated to offer a prospective opportunity to the players operating in the military logistics market.
Logistics & distribution segment led the global military logistics market by type. The growth of logistics & distribution segment is attributed 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 services segment of the military logistics market is expected to grow at the highest CAGR during the forecast period from 2019 – 2027.
Based on Geography, Asia Pacific dominates the military logistics market throughout the forecast period. 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 one of the key countries in the APAC region, with high military spending.