Market Overview

The defence logistics market—frequently referenced interchangeably with the military logistics market—represents the backbone of military capability by enabling movement, supply and sustainment of forces across theatres. According to MRFR, the global military logistics market was worth USD 43.1 billion in 2022, and is expected to grow to USD 60.64 billion by 2030 (CAGR of roughly 5.0 %).
As nations emphasize rapid deployment, agile support and supply-chain resilience, logistics operations become a strategic differentiator.

Segmentation & Key Trends

Key segmentation insights:

  • By Type: Logistics & Distribution is dominating; facility management and services segments are expanding as military bases modernize and outsource logistics functions.

  • By Transportation Mode: Roadways are currently dominant; airways are increasingly important with large transport aircraft and rapid deployment missions; waterways and railways remain relevant for bulk and heavy cargo.

  • Regional Trends: North America holds largest share; Europe has strong R&D investment; Asia-Pacific is fastest growing—driven by China and India’s military modernization.

Growth Drivers & Opportunities

Important drivers in the defence logistics market:

  • Surge in troop deployments and new military bases globally.

  • Adoption of advanced technologies—IoT, AI, real-time tracking, automated warehousing—for logistics efficiency.

  • Growing focus on disaster relief and non-combat logistics support elevates logistics spend in military budgets.

  • Supply-chain complexity and the need for resilience open room for innovative logistics service providers.

Forecast Insights & Future Outlook

MRFR projects that from 2024 to 2035, the Military Logistics Market will grow at around 4.78 % CAGR and reach USD 77.4 billion by 2035.
Given this trajectory:

  • Defence logistics providers should focus on digital transformation and automation.

  • Sustainability in logistics (e.g., low-emission transport, eco-warehousing) will gain importance.

  • Asia-Pacific presents high growth potential for both equipment and services in military logistics.