The global defense logistics market size was estimated at USD 165.2 million in 2023 and is expected to register a CAGR of 6.1% from 2024 to 2030. The global demand for defense logistics services is experiencing significant growth, driven by a complex interplay of geopolitical factors, military modernization efforts, operational efficiency imperatives, security considerations, and international cooperation initiatives.
Geopolitical tensions across various regions have heightened the need for robust defense logistics capabilities. Nations are increasingly focused on securing supply chains and ensuring swift deployment of military resources in response to evolving threats and conflicts. This necessitates efficient transportation, supply chain management, and maintenance support to sustain military operations effectively.
In addition, many countries are investing in military modernization programs to upgrade their defense capabilities. These programs involve the acquisition of advanced equipment, technology, and infrastructure. As a result, there is a growing need for efficient defense logistics to ensure the timely delivery and maintenance of these modernized assets. Moreover, efficient defense logistics are essential not only for the initial delivery of equipment but also for ongoing support and maintenance throughout the lifecycle of these assets. This includes logistics services such as inventory management, spare parts distribution, technical support, and repair services, all of which are crucial for sustaining operational readiness and maximizing the lifespan of military equipment.
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Key Defense Logistics Company Insights
Some of the key companies operating in the Defense logistics market include FedEX, Deutsche Post AG, among others.
• FedEx is one of the global leaders in transportation, logistics, warehousing & order fulfillment, and courier delivery services. The company’s operations and activities are categorized under four reportable business segments, namely FedEx Freight, FedEx Express, FedEx Services, and FedEx Ground. FedEx Express utilizes a vast air cargo network to ensure fast and timely deliveries across the globe to more than 220 countries. The company’s global network provides air-ground express service and is time-sensitive through more than 650 airports worldwide, transporting an average volume of 5.3 million packages daily.
• Deutsche Post AG provides a wide range of services, including letter & parcel dispatch, freight transport, express delivery, e-commerce, and supply chain management solutions. The company has organized its business into five operating divisions, namely Post & Parcel Germany; Global Forwarding, Freight; Express; Supply Chain; and eCommerce Solutions. Deutsche Post AG’s Post & Parcel Germany division is engaged in providing various products and services ranging from physical & hybrid letters to merchandise for both private and business customers. The Express division transports urgent goods and documents door-to-door. The Global Forwarding Freight division provides air, land, and ocean freight forwarding services, including multimodal and sector-specific solutions.
Recent Developments
• In May 2024, A.P. Moller-Maersk announced the opening of a new air freight in-transit gateway in Miami, Florida, to enhance connectivity between Asia, Latin America, and the U.S., providing a strategic node in its global air freight network. The 90,000-square-foot facility, fully staffed by Maersk professionals, aims to support transshipping European and Asian cargo to Latin America, improving transit times, connectivity, and reliability for customers.
• In May 2022, FedEx. and Aurora Innovation, Inc. jointly announced the extension of their pilot program aimed at autonomously transporting FedEx shipments. The extension involved the inclusion of an additional commercial lane in Texas, marking a strategic advancement in their collaborative efforts toward autonomous shipping solutions.
Global Defense Logistics Market Segmentation
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global defense logistics market report based on commodity, mode of transport, end use, and region.
Commodity Outlook (Revenue, USD Billion, 2017 - 2030)
• Armament
• Technical Support & Maintenance
• Medical Aid
• Others
Mode of Transport Outlook (Revenue, USD Billion, 2017 - 2030)
• Roadways
• Waterways
• Airways
• Railways
End Use Outlook (Revenue, USD Billion, 2017 - 2030)
• Army
• Navy
• Air Force
Regional Outlook (Revenue, USD Billion, 2017 - 2030)
• North America
o U.S.
o Canada
o Mexico
• Europe
o UK
o Germany
o France
• Asia Pacific
o China
o Japan
o India
o South Korea
o Australia
• Latin America
o Brazil
• Middle East and Africa (MEA)
o KSA
o UAE
o South Africa
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