In the evolving landscape of global security, the military infrastructure and logistics sector plays a pivotal role in maintaining defense readiness. This report is perfectly designed to plot your strategy in this expanding market. Worldwide trends towards improving national security have resulted in an upsurge in military expenditure, with ongoing security threats and escalating geopolitical strife leading to increased investments in existing military assets and the construction of new military bases. This growth of defense expenditure is a significant driver for the military infrastructure and logistics industry.
The need for well-coordinated military infrastructures along national borders is necessary to guard effectively against various threats. Equally essential is a robust logistics system, pivotal for the efficient management of the military supply chain, encompassing the distribution of food, weapons, and other necessities. Political displacement, increasing warfare situations, and cross-border disputes have fueled a rise in defense budgets, creating an amplified demand for enhanced military infrastructure and logistics. This report will guide you through understanding this momentum and developing strategies to capitalize on these opportunities.
The global military expenditure has experienced solid growth over the last decade to reach over USD 2 trillion in 2021 despite the COVID-19 pandemic. The defense expenditure is driven by ongoing regional and global conflicts, external and internal security threats, and the growing influence of radicalism leading to violence. Thus, several countries are investing in the construction of new military bases and the provisional upgrade and maintenance of defense assets, driving the military infrastructure and logistics sector.
The military infrastructure is driven by the need to establish well-connected strongholds across the borders of a country to effectively protect against several types of imminent and unknown threats, while the logistics segment is driven by the need to effectively manage the military supply chain for food, weapons, and other essential and non-essential requirements. Furthermore, increasing warfare situations, political disputes among neighbouring countries, and cross-border conflicts lead to growing spending on defense forces. The ongoing war between Russia and Ukraine and tensions between China and Taiwan and other conflicts creates demand for enhanced military infrastructure and logistics thus driving the growth of the market.
Military Infrastructure & Logistics Market Trends
Infrastructure Construction Segment to Witness the Highest CAGR During the Forecast PeriodThe infrastructure construction segment is projected to show remarkable growth during the forecast period. The growth is attributed to the increasing expenditure in the defense sector, rising military infrastructure projects, and expansion of military forces. Furthermore, on account of the profound changes in the international strategic landscape, the configuration of the international security system has been undermined by the growing hegemonism, unilateralism, and power politics that have fuelled several ongoing regional conflicts. The defense expenditure was directly influenced by the ongoing geopolitical rift in the region and was majorly driven by the race for achieving technological superiority over other countries. To address the evolving threats, major countries in the region are realigning their military strategies and organizational structures.
Hence, several countries are actively constructing new military bases to maximize their extent of control over a strategically viable area. For instance, in April 2022, the Naval Facilities Engineering Systems Command (NAVFAC) signed a contract worth USD 106 million to a Black Construction-Tutor Perini joint venture for the construction of a bachelor officer quarters. The project is expected to complete in 2024. Such developments are envisioned to bolster the growth prospects of the infrastructure segment during the forecast period.
North America is Expected to Lead the Market During the Forecast PeriodThe United States, one of the leading defense spenders, globally, is focusing on increasing its defense expenditure every year. The United States spend nearly USD 801 billion on the defense sector in 2021. Increasing expenditure on enhancing military capabilities and construction of advanced military bases for defense forces drive the growth of the market. In the 2022 United States defense budget, the Marine Corps proposed USD 2.4 billion in support of infrastructure funding that includes USD 1.1 billion in Military Construction (MILCON) for operational facilities, training facilities, Guam relocation, and design of other minor construction projects. In addition to that, USD 1.3 billion is requested for restoration, facilities sustainment, and modernization.
Several contracts have been awarded lately to develop an effective and efficient military infrastructure layout and logistics system. For instance, in May 2022, the United States Air Force awarded the largest military construction contract for F-35 facilities at Tyndall. The contract was worth USD 604 million for the rebuild of Tyndall Air Force Base. The rebuild includes more than 40 military construction projects at Tyndall. It will support the F-35s including a maintenance complex, hangars, a headquarters, an equipment storage facility, and a training facility. Thus, increasing investments in constructing new military bases for various platforms drive the growth of the market.
Military Infrastructure & Logistics Market Competitor AnalysisThe military infrastructure market is consolidated in nature with the presence of a few global players holding significant shares in the market. Some of the key players in the market are ANHM FZCO, DynCorp International LLC, KBR Inc., Lockheed Martin Corporation, ManTech International, and others. The stringent safety and regulatory policies in the defense sector are expected to restrict the entry of new players. Furthermore, the market is primarily influenced by the prevalent economic conditions in dominant markets like the United States. Rising expenditures from the defense forces for the military infrastructure and logistics and growing contracts with OEMs will create better opportunities in the coming years.
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Table of Contents
1.2 Scope of the Study
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5.1.1 Infrastructure Construction
5.1.2 Facilities Management
5.2.1 North America
22.214.171.124 United States
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
184.108.40.206 South Korea
220.127.116.11 Rest of Asia-Pacific
5.2.4 Latin America
18.104.22.168 Rest of Latin America
5.2.5 Middle East and Africa
22.214.171.124 Saudi Arabia
126.96.36.199 United Arab Emirates
188.8.131.52 South Africa
184.108.40.206 Rest of Middle East and Africa
6.1.1 ANHAM FZCO
6.1.2 Claxton Logistics Services
6.1.3 DynCorp International LLC
6.1.4 FedEx Corporation
6.1.5 Fluor Corporation
6.1.6 KBR Inc.
6.1.7 Klinge Corporation
6.1.8 Lockheed Martin Corporation
6.1.9 ManTech International Corporation
6.1.10 One Network Enterprises
A selection of companies mentioned in this report includes:
- ANHAM FZCO
- Claxton Logistics Services
- DynCorp International LLC
- FedEx Corporation
- Fluor Corporation
- KBR Inc.
- Klinge Corporation
- Lockheed Martin Corporation
- ManTech International Corporation
- One Network Enterprises