Defense Logistics Market Size Is Estimated To Garner $329.9 Billion By 2032 With a 5.0% CAGR

Surge in government defense expenditure, military modernization programs, rise in military conflicts & geopolitical tension & supply chain for military.

WILMINGTON, DE, UNITED STATES, September 23, 2025 /EINPresswire.com/ -- Defense logistics market size was valued at $203.79 billion in 2022, and is estimated to reach $329.9 billion by 2032, growing with a CAGR of 5% from 2023 to 2032.

Leading Market Players: -

Lockheed Martin Corporation
Colak Group
Crowley
BAE Systems
Northrop Grumman
Raytheon Technologies
General Dynamics Corporation
L3Harris Technologies, Inc.
SEKO Logistics
Leonardo S.p.A.

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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.

In addition, there is a surge in the incorporation of The Internet of Things (IoT) for the interconnection of devices for data communication. In defense logistics, IoT applications include smart sensors on equipment, RFID tags on shipments, and other connected devices. The deployment of advanced analytics tools helps defense logistics operators to extract valuable insights from extensive datasets. The utilization of data-driven decision-making enables accurate resource distribution, enhanced risk evaluation, and the recognition of optimization potential within the supply chain.

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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.

Defense logistics manages the flow of goods, equipment, and supplies from manufacturers to military units in the field. In the army, defense logistics is responsible for the movement of equipment, and supplies through various modes of transportation, including land, air, and sea. The integration of advanced technologies, such as real-time tracking, automation, and data analytics, has enhanced the efficiency of defense logistics in the army, which is expected to propel the growth of the defense logistics industry.

𝐄𝐧𝐪𝐮𝐢𝐫𝐲 𝐁𝐞𝐟𝐨𝐫𝐞 𝐁𝐮𝐲𝐢𝐧𝐠: https://www.alliedmarketresearch.com/purchase-enquiry/A09615

The navy is a branch of the armed forces of a country that primarily operates at sea. It is responsible for securing maritime interests, defending coastlines, projecting power through naval presence, and conducting operations at sea. Naval forces typically consist of warships, submarines, and specialized units trained for maritime warfare. The navy holds a vital position in national defense, safeguarding maritime borders, upholding freedom of navigation, and bolstering a nation's security. Sustaining naval operations demands a continuous and dependable provision of fuel, spare parts, ammunition, and various consumables. Defense logistics manages the supply chain to ensure that naval assets are well-equipped and operational.

Moreover, military branches, including the navy, focus on their core operational activities (such as training, missions, and strategic planning) while outsourcing logistics to specialized companies. capabilities and readiness of the defense forces. For instance, in June 2023, Amentum secured an eight-year, $475 million contract to provide maintenance and logistics support for F-16 aircraft fleet of the U.S. Navy. In this contract, Amentum is expected to collaborate with the Naval Air Warfare Center Aircraft Division (NAWCAD) to maintain F-16A/B/C/D variants across organizational, intermediate, and depot levels.

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