Defense Logistics Market See Magnified Growth Rate of 5.0% from 2023 to 2032

Growth of global defense logistics driven by factors such surge in government defense expenditure & military modernization programs, rise in military conflicts.

WILMINGTON, DE, UNITED STATES, June 18, 2025 /EINPresswire.com/ -- The global defense logistics market size was valued at $203.79 billion in 2022, and is estimated to reach $329.9 billion by 2032, growing at a CAGR of 5% from 2023 to 2032.

The growth of the global defense logistics market is driven by factors such as surge in government defense expenditure and military modernization programs, rise in military conflicts and geopolitical tension, and increase in the need for an effective and resilient supply chain for military. However, lack of infrastructure and increase in cybersecurity threats hamper the growth of the market. On the contrary, rise in the focus on sustainability and environment-friendly practices in defense logistics, and technological advancements are expected to offer remunerative opportunities for the expansion of the defense logistics market during the forecast period.

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There is an increase in the integration of technological advancements in defense logistics services for the improvement and modernization of military supply chain operations. The utilization of AI and ML in defense logistics facilitates sophisticated data analysis, predictive modeling, and the automation of decision-making processes. This results in improved accuracy in demand forecasting, optimized route planning, and the ability to make real-time adjustments to logistical plans, thereby enhancing overall efficiency and responsiveness. Moreover, advancements in technology provide solutions for real-time tracking of military assets, including vehicles, equipment, and personnel. This increased visibility enables better coordination, reduced transit times, and an enhanced overall situational awareness, contributing to more effective logistics management.

By commodity, the armament segment dominated the global market in 2022, in terms of revenue. The technical support and maintenance segment is expected to lead the market throughout the forecast period. By end-user, the army segment accounted for a major share in 2022. Based on transportation mode, the waterways segment is anticipated to witness lucrative growth over the forecast timeframe. At present, North America is the highest revenue contributor, followed by Europe.

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The airforce is a branch of military forces of a country that primarily focuses on aerial warfare and operations in the air domain. Its responsibilities encompass safeguarding airspace, executing air operations, strategic bombing, reconnaissance, and furnishing air support to ground forces. Defense logistics involves overseeing the supply chain for a diverse array of materials, including aircraft components, fuel, ammunition, and other consumables. Additionally, companies establish agreements with the defense sector and government to enhance the capabilities and preparedness of defense forces. For example, in July 2022, Parker Aerospace, a division of Parker Hannifin Corporation, forged a significant agreement with the Defense Logistics Agency (DLA) and the U.S. Air Force. The agreement involves a five-year performance-based logistics (PBL) contract, specifically covering hydraulic equipment across five key airforce platforms. Under the sustainment agreement, Parker Aerospace is expected to provide supply chain, engineering, and field service support at the Ogden Air Logistics Complex.

On the basis of region, North America held the highest market share in terms of revenue in 2022, accounting for more than one-thirds of the defense logistics market revenue, and is expected to dominate the market during the forecast period, as there is consistent upward trend in defense budgets facilitates greater investments in the development of logistics infrastructure. However, the LAMEA region is expected to witness the fastest CAGR of 7.0% from 2023 to 2032, owing to an increase in demand for effective defense logistics to facilitate military efforts against extremist groups due to the increased occurrence of counterterrorism activities in the Middle East and certain regions of Africa.