The Americas to dominate the global military infrastructure and logistics market – the US to emerge as a key revenue generating region

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Military infrastructure and logistics: Key market research findings

  • Increasing infrastructural modernization programs fuels market growth
  • Military infrastructure accounts for a majority of the market’s revenue
  • Key vendors – AECOM, ANHAM, DynCorp, KBR, and Lockheed Martin

Technavio’s market research analysts predict the global military infrastructure and logistics market to grow at a CAGR of more than 1% between 2016 and 2020. The growth of this market can be attributed to the increased preference for outsourcing infrastructural modernization programs. The inclination to outsource certain functions to external service providers has become a widespread practice among modern military forces as it helps to bring down the total cost of operations. External suppliers aid army bases by providing secure wireless communication systems. During 2015, the global market was dominated by the Americas, which accounted for approximately 45% of the total market share. Increasing military spending in this region is a key factor promoting the growth of this market in the region.

The new market research report from Technavio presents a breakdown and analysis of the military infrastructure and logistics segments based on the solutions.

“The market is currently witnessing the growing adoption of NCW-based communication infrastructure. The emergence and growing acceptance of NCW-based communication infrastructure as an advanced technological trend will encourage the growth of the military infrastructure market. These infrastructures enable the military to gain a competitive advantage by establishing networking, and dissemination of information,” says Abhay Kumar Singh, Lead Analyst, Aerospace & Defense, Technavio Research.

By 2020, the military infrastructure segment will account for more than 60% of the overall market share to continue its dominance over the global military and infrastructure and logistics market. This market includes all the permanent and temporary installations that are required to support combat operations and inland command centers. These include barracks, military bases, airfields, secure communication facilities, warehousing spaces, and maintenance stations. The growth of this segment is characterized by the growing popularity of the NCW-based communication infrastructure.

The key vendors in the global military infrastructure and logistics market include AECOM, ANHAM, DynCorp, KBR, and Lockheed Martin. The industry remains cyclical in nature, and the demand for infrastructure and logistics-related services are vulnerable to the sudden economic deterioration or decline in the government defense spending. The weak economic conditions in numerous regions and countries will have a substantial impact on the growth of the market, and vendors may experience a considerable shortfall in the demand for their services.

A more detailed analysis is available in the Technavio report, Global Military Infrastructure and Logistics Market 2016-2020.

We can customize reports by other regions and specific segments upon request.

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