Defense Logistics (DL)

Global Defense Logistics (DL) Market to Reach US$260.4 Billion by 2030

The global market for Defense Logistics (DL) estimated at US$215.4 Billion in the year 2024, is expected to reach US$260.4 Billion by 2030, growing at a CAGR of 3.2% over the analysis period 2024-2030. Armaments, one of the segments analyzed in the report, is expected to record a 2.9% CAGR and reach US$150.6 Billion by the end of the analysis period. Growth in the Technical Support & Maintenance segment is estimated at 4.4% CAGR over the analysis period.

The U.S. Market is Estimated at US$58.2 Billion While China is Forecast to Grow at 6.2% CAGR

The Defense Logistics (DL) market in the U.S. is estimated at US$58.2 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$53.3 Billion by the year 2030 trailing a CAGR of 6.2% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.0% and 2.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 1.6% CAGR.

Global Defense Logistics (DL) Market - Key Trends and Drivers Summarized

What Is Defense Logistics and Why Is It So Critical?

Defense logistics refers to the complex network of processes and systems involved in planning, managing, and executing the movement and maintenance of military forces and equipment. It encompasses everything from the procurement and distribution of supplies, such as food, fuel, and ammunition, to the transportation of troops and equipment, as well as the maintenance and repair of military assets. The primary goal of defense logistics is to ensure that military forces have the resources they need, when and where they need them, to carry out their missions effectively. This involves not only the physical movement of goods and personnel but also the coordination of supply chains, inventory management, and strategic planning. Defense logistics is critical because it directly impacts the operational readiness and effectiveness of military forces, influencing the outcome of military operations and, ultimately, national security.

Who Is Involved in Defense Logistics and Why Is It So Complex?

Defense logistics is a multidisciplinary field that involves a wide range of stakeholders, including military personnel, government agencies, private contractors, and international partners. The complexity of defense logistics arises from the need to coordinate these diverse actors across multiple domains, including land, air, sea, and cyber, often in highly dynamic and challenging environments. Military logisticians must anticipate and respond to the needs of troops in the field, ensuring that supplies and equipment are delivered on time and in the right quantities, while also managing the risks associated with transportation and supply chain disruptions. Private sector contractors play a significant role in defense logistics, providing specialized services such as transportation, maintenance, and supply chain management. Additionally, international partnerships and alliances, such as NATO, require coordination between multiple nations` logistics systems, adding another layer of complexity to the process. The need for real-time information, rapid decision-making, and seamless communication across all levels of the logistics chain makes defense logistics one of the most challenging aspects of military operations.

What Are the Latest Innovations and Trends in Defense Logistics?

The field of defense logistics has seen significant innovations, driven by the need to enhance efficiency, agility, and resilience in military operations. One of the most significant trends is the integration of advanced technologies such as artificial intelligence (AI), big data analytics, and the Internet of Things (IoT) into logistics processes. These technologies enable real-time monitoring and predictive analytics, allowing military logisticians to anticipate and respond to supply chain disruptions, optimize inventory levels, and improve decision-making. Another trend is the increasing use of autonomous systems, such as drones and unmanned ground vehicles, for the transportation of supplies in challenging or dangerous environments, reducing the risk to human personnel. The adoption of blockchain technology is also gaining traction, offering secure and transparent tracking of assets and transactions across the supply chain. Additionally, there is a growing focus on sustainability in defense logistics, with initiatives aimed at reducing the environmental impact of military operations through energy-efficient transportation and the use of renewable energy sources. These innovations are transforming defense logistics, making it more responsive, efficient, and resilient in the face of evolving threats.

What Are the Factors Driving the Growth of the Defense Logistics Market?

The growth in the defense logistics market is driven by several factors that reflect the increasing complexity and demands of modern military operations. A primary driver is the growing need for rapid deployment and sustainment of military forces in diverse and often remote locations, necessitating more efficient and reliable logistics systems. Technological advancements, particularly in AI, autonomous systems, and blockchain, are also propelling market growth by enhancing the capabilities and efficiency of logistics operations. The increasing frequency and intensity of military engagements, along with the need to support multinational operations and humanitarian missions, are further driving demand for advanced logistics solutions. Additionally, the push for greater sustainability in military operations is leading to investments in energy-efficient transportation and logistics practices. The expansion of military budgets in several countries, coupled with the increasing reliance on private sector contractors for logistics support, is also contributing to market growth. These factors, combined with the continuous evolution of military strategies and technologies, are fueling the expansion of the defense logistics market, making it a critical component of modern military operations.

SCOPE OF STUDY:

The report analyzes the Defense Logistics (DL) market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Commodity (Armaments, Technical Support & Maintenance, Medical Aid, Other Commodities); Transportation Mode (Roadways, Airways, Waterways, Railways); End-Use (Army End-Use, Navy End-Use, Airforce End-Use)

Geographic Regions/Countries:
World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Spain; Russia; Rest of Europe; Asia-Pacific; Australia; India; South Korea; Rest of Asia-Pacific; Latin America; Argentina; Brazil; Mexico; Rest of Latin America; Middle East; Iran; Israel; Saudi Arabia; UAE; Rest of Middle East; Africa.

Select Competitors (Total 56 Featured) -

• A.P. Moller-Maersk A/S
• Amentum Services, Inc.
• BAE Systems Plc
• CEVA Logistics
• CMA Cgm S.A
• Crowley Maritime Corporation
• DB SCHENKER
• GEODIS SA
• KBR, Inc.
• Kuehne + Nagel International AG

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

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We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

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APRIL 2025: NEGOTIATION PHASE

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JULY 2025 FINAL TARIFF RESET

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Reciprocal and Bilateral Trade & Tariff Impact Analyses:

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INDIA
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