Global Defence Logistics Market to Expand at 6.15% CAGR as Demand for Advanced Supply Chain Management, Maintenance, and Rapid Deployment Capabilities Accelerates.
Austin, Texas, Jan. 27, 2026 (GLOBE NEWSWIRE) — Defence Logistics Market Size & Growth Analysis:
According to SNS Insider, the Defence Logistics Market size was valued at USD 198.39 billion in 2025 and is projected to reach USD 318.02 billion by 2033, expanding at a compound annual growth rate (CAGR) of 6.15% during the forecast period 2026–2033. The market is experiencing steady growth as governments worldwide increase defense expenditures and invest in modern, resilient, and technology-enabled military logistics infrastructure.
Market Size and Forecast:
- Market Size in 2025E: USD 198.39 Billion
- Market Size by 2033: USD 318.02 Billion
- CAGR: 6.15% from 2026 to 2033
- Base Year: 2025
- Forecast Period: 2026–2033
- Historical Data: 2022–2024
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The U.S. Defence Logistics Market was valued at USD 68.31 billion in 2025 and is projected to reach USD 107.02 billion by 2033, growing at a CAGR of 5.85%. Growth is supported by rising defense budgets, modernization of military infrastructure, and increasing adoption of automated logistics, real-time asset tracking, and predictive maintenance solutions. Strong government investment and the presence of leading defense contractors continue to position the United States as a key contributor to global defence logistics expansion.
Rising Global Defense Spending Drives Demand for Advanced Logistics Solutions
The global defence logistics market is gaining momentum due to increasing military expenditures, geopolitical tensions, and the need for rapid deployment and sustained operational readiness. Governments are prioritizing efficient supply chains, maintenance operations, and transportation networks to ensure uninterrupted availability of weapons, spare parts, fuel, and critical equipment. In 2025, defence logistics operations expanded significantly across land, air, and naval forces, reflecting growing reliance on integrated logistics systems.
Key growth drivers include:
- Rising global defense spending and force modernization programs
- Growing need for efficient supply chain and inventory management
- Adoption of automated, AI-enabled, and predictive logistics systems
- Increasing demand for rapid deployment and mobility solutions
- Expansion of defense alliances and international military operations
Defence logistics service revenues recorded strong growth in 2025, supported by increased outsourcing, performance-based logistics contracts, and lifecycle support for advanced military platforms.
Segment Highlights
By Commodity:
Armament dominated the market with a 50% share in 2025, reflecting high spending on weapons and ammunition. Technical Support & Maintenance is expected to register the fastest growth during 2026–2033, driven by increasing focus on equipment readiness and lifecycle management.
By Mode of Transport:
Roadways led the market with a 53% share in 2025 due to cost-effective and flexible transportation capabilities. Airways is projected to grow at the fastest rate, supported by rising demand for rapid-response and long-range logistics.
By Application:
Operational Logistics accounted for 34% of total revenue in 2025, ensuring continuous supply for large-scale operations. Tactical Logistics is expected to witness the highest growth as armed forces emphasize agility and frontline support.
By End Use:
The Army segment dominated with a 52% share in 2025, while the Air Force is expected to record the fastest growth due to increased investments in aircraft, air defense systems, and strategic mobility.
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North America Leads as Asia-Pacific Emerges as Fastest-Growing Region
North America accounted for approximately 38% of the global defence logistics market in 2025, supported by high defense spending, advanced military infrastructure, and strong presence of leading logistics and defense service providers. The United States remains the largest contributor due to continuous modernization initiatives and large-scale logistics operations.
The Asia-Pacific region is expected to grow at the fastest pace, registering a CAGR of about 7.99% during 2026–2033. Growth is driven by rising defense budgets, expanding military capabilities, and increased investments in logistics modernization across China, India, Japan, South Korea, and Southeast Asia.
Europe continues to maintain a solid market position, supported by NATO-led initiatives, cross-border defense cooperation, and modernization of logistics and sustainment capabilities.
Major Players Analysis Listed in the Defence Logistics Market Report are
- Lockheed Martin Corporation
- Northrop Grumman Corporation
- BAE Systems plc
- Raytheon Technologies Corporation
- General Dynamics Corporation
- Boeing Defense, Space & Security
- L3Harris Technologies, Inc.
- Leidos Holdings, Inc.
- KBR, Inc.
- Honeywell International Inc.
- Thales Group
- Rheinmetall AG
- Amentum Services, Inc.
- SAIC
- DynCorp International LLC
- AECOM
- Fluor Corporation
- Crowley Maritime Corporation
- GEODIS
- SEKO Logistics
Recent Developments:
- In June 2025, Lockheed Martin’s Derco Aerospace signed a performance-based logistics agreement with NIPPI Corporation to support Japan’s C-130H Hercules fleet, covering spare parts, analytics, and maintenance services.
- In February 2025, BAE Systems entered a strategic MOU with Bin Hilal Enterprises to localize sustainment and supply-chain support for Amphibious Combat Vehicles in the Middle East.
- In May 2024, Northrop Grumman secured a USD 169.7 million contract to provide logistics and sustainment support for the U.S. Navy’s MQ-4C Triton unmanned aircraft system.
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About the Report
The Defence Logistics Market Report delivers comprehensive insights, including:
- Market size and forecasts (2022–2033)
- Detailed segmentation and regional analysis
- Competitive benchmarking and company profiling
- Technology trends, opportunities, and challenges
- Strategic insights for defense stakeholders and investors
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