Defense Logistics Market Report 2026

The defense logistics market size has grown strongly in recent years. It will grow from $415.46 billion in 2025 to $455.22 billion in 2026 at a compound annual growth rate (CAGR) of 9.6%. The growth in the historic period can be attributed to increasing military operations driving demand for comprehensive logistics planning and coordination, expansion of warehousing and depot maintenance services to support large defense inventories, rising use of armored transport vehicles and mobile storage units for secure field operations, development of reverse logistics processes to manage equipment repair and return flows, adoption of tactical supply kits and fuel distribution systems to enhance mission readiness.

The defense logistics market size is expected to see strong growth in the next few years. It will grow to $648.4 billion in 2030 at a compound annual growth rate (CAGR) of 9.2%. The growth in the forecast period can be attributed to growing integration of automation and AI-driven tools to optimize defense supply chain operations, rising demand for real-time logistics tracking and in-theater support capabilities, expansion of interoperable logistics platforms to support joint and coalition missions, increasing use of advanced inventory devices and digital twins for predictive maintenance and resource planning, development of resilient and flexible logistics networks to counter emerging geopolitical and supply chain risks. Major trends in the forecast period include increasing demand for in-theater supply chain automation, growth of armored transport and tactical mobility solutions, rising need for depot-level maintenance support, expansion of reverse logistics operations, higher investment in logistics training and simulation.

The rising number of military vehicles is expected to drive growth in the defense logistics market going forward. Military vehicles include land-based transport and combat platforms such as armored personnel carriers, infantry fighting vehicles, main battle tanks, tactical trucks, and reconnaissance vehicles, all designed for defense purposes. This increase is driven by growing global security concerns, prompting nations to prioritize defense readiness against emerging threats. Defense logistics plays a crucial role by ensuring timely supply, maintenance, and operational readiness of military vehicles through coordinating the delivery of spare parts, fuel, and technical support. For example, in September 2024, Veterans Affairs Canada reported that the Canadian industry produced 1.7 million small arms, 40,000 field, naval, and anti-aircraft guns, 50,000 tanks, and over 800,000 military transport vehicles. Additionally, in November 2023, Defense Express, a Ukraine-based defense sector company, stated that 210 new tanks were delivered to the Russian army in 2023, compared to 30 tanks in 2022. Thus, the increasing deployment of military vehicles is driving growth in the defense logistics market.

Leading companies in the defense logistics market are focusing on innovative advancements like AI-based logistics platforms to improve efficiency, flexibility, and resilience in defense logistics operations. AI-based logistics platforms use artificial intelligence and machine learning algorithms to analyze, predict, and optimize logistics workflows, enhancing efficiency, responsiveness, and decision-making across supply chains. For instance, in May 2024, Tagup Inc., a U.S.-based software firm, launched Manifest, a next-generation defense logistics solution. Manifest offers real-time asset tracking, AI-driven predictive maintenance, and automated decision support systems to boost operational readiness and minimize downtime. The platform also integrates smoothly with legacy defense systems, providing scalability and interoperability. With built-in cybersecurity and compliance features, Manifest supports mission-critical logistics across air, land, and sea domains, enabling defense agencies to make faster, data-informed decisions in dynamic situations.

In May 2023, ASRC Federal, a U.S.-based federal contractor specializing in mission support services, acquired the logistics and supply chain management business of Science Applications International Corporation (SAIC) for an undisclosed amount. This acquisition aims to enhance ASRC Federal’s position as a leading provider of secure, technology-driven defense logistics by expanding base operations support, strengthening global supply chain capabilities, and ensuring continuous mission readiness for the military. SAIC is a U.S.-based company that offers defense logistics services.

Major companies operating in the defense logistics market are DHL Group, FedEx Corporation, A.P. Møller - Mærsk A/S, RTX Corporation, The Boeing Company, Lockheed Martin Corporation, Airbus SE, Kuehne + Nagel International AG, General Dynamics Corporation, Northrop Grumman Corporation, Honeywell International Inc., BAE Systems plc, Thales Group, CEVA Logistics AG, L3Harris Technologies Inc., Leonardo S.p.A., Fluor Corporation, Huntington Ingalls Industries Inc., KBR Inc., Elbit Systems Ltd.

North America was the largest region in the defense logistics market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the defense logistics market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on metals, transport equipment, and electronic components have increased costs for defense logistics systems, disrupting supply chains across North America and Europe where reliance on imported materials is significant. These impacts slow equipment procurement for military missions but encourage domestic manufacturing and regional supplier development, reducing long-term import dependence.

The defense logistics market research report is one of a series of new reports that provides defense logistics market statistics, including defense logistics industry global market size, regional shares, competitors with a defense logistics market share, detailed defense logistics market segments, market trends and opportunities, and any further data you may need to thrive in the defense logistics industry. This defense logistics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Defense logistics involves the planning, coordination, and management of military resources, such as transportation, supply chains, maintenance, and the distribution of equipment and personnel. These functions ensure that armed forces receive the necessary support and materials to operate effectively during peacetime, training exercises, and combat missions.

The primary logistics categories within defense logistics include transportation and storage, inventory management, distribution, sourcing, and procurement. Transportation and storage focus on the organized movement and secure warehousing of military equipment, supplies, and personnel to guarantee timely availability and operational readiness across different locations. Key technologies employed in this domain include automated systems, data analytics, cloud computing, blockchain, and the Internet of Things (IoT). Modes of transportation include land, air, maritime, and intermodal transport, applied across military operations, training, and emergency response scenarios. The main end-users of these logistics services are military organizations, government agencies, and commercial entities.

The countries covered in the defense logistics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The defense logistics market consists of revenues earned by entities by providing services such as logistics planning and coordination, reverse logistics operations, customs and compliance management, in-theater supply chain support, warehousing and depot maintenance, and logistics training services. The market value includes the value of related goods sold by the service provider or included within the service offering. The defense logistics market also includes sales of products such as armored transport vehicles, field communication equipment, mobile storage units, tactical supply kits, fuel distribution systems, portable loading ramps, and automated inventory devices. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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