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With the global geopolitical situation changing rapidly, most countries are concentrating on modernizing their military infrastructure, including the construction of military bases, barracks, upgrading the logistics channels. Additionally, emerging economies in the Middle East and South Asian regions are witnessing increasing defense expenditure and are therefore likely to present global military infrastructure & logistics providers with greater opportunities in the coming decade
Growing territorial conflicts, terrorist attacks and cross border crimes has necessitated construction and maintenance of advanced border infrastructure and military bases, which is expected to boost the spending on military infrastructure & logistics. For example India has been investing heavily in border infrastructure across its high altitude borders with China and Pakistan, for battle readiness as well as preventing the terrorist infiltrations, which has led to large scale construction of roads, bridges and also railway tracks, and also construction of high tech fencing systems.
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The global military infrastructure & logistics market is estimated to value US$37.8 billion in 2017, and is expected to grow at a CAGR of 3.21% to value US$51.8 billion by 2027.In terms of segments, Infrastructure Construction is expected to account for 47.1% of the military infrastructure & logistics market, followed by facilities management and central logistics, with share of 31.8% and 21.1% respectively.
North America and Asia Pacific are emerging as top military infrastructure and logistics market with a cumulative market share of more than 40%. Emerging nations such as Brazil, India, and China are placing military infrastructure and logistics on top of their priority list. Cross border terrorism and security threats among different nations have increased the requirement of better military infrastructure and logistics services.
Technological innovation, modernization of military infrastructure and logistics, security threats, increasing support to military personnel are the major drivers of the Global Military Infrastructure and Logistics Market.
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