Defense Logistics Market Outlook – 2027
Defense logistics involves planning, treatment, and the physical flow of essential goods cost-effectively, from the source to military bases or from military bases to military bases. The supply of defence is not just about supplying military supplies of equipment in war times. It also includes the capacity to equip, support, and supply the Armed Forces with national infrastructure and production facilities, and the capacity to mobilize the forces to be deployed and resupply that force after deployment. It is necessary that the military forces maintain mobility and sustainability, and demonstrate their ultimate performance with an external load on the battlefield. Defence logistics, therefore, helps transport troops, ammunition,medical and food supplies to inaccessible locations, along with performing search and rescue operations, support and maintenance operation,etc.
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COVID-19 Scenario Analysis:
- Even while the world is tackling COVID-19 pandemic, still all the military procurement and maintenance and logistics related to the defense sector is continuing in almost every country, because national safety comes first.
- In addition, the logistics provider are themselves facing a liquidity crisis due to the nation-wide lockdown and supply chain discrepancies. The immediate victims of the pandemic are businesses that are based in countries badly affected by the pandemic or those reliant on supply chain operations based in the affected countries.
- Tech firms are stepping up their emphasis on high-demand innovations and finding new ways to support their consumers. However, collaborative approaches adopted by various militaries along with logistics providers to solve the supply chain-related issues would be helping to overcome the issue in procurement and transfer of military equipment.
Top impacting factors: market scenario analysis, trends, drivers and impact analysis
The deployment of troops in humanitarian missions aims to boost global demand for advanced cargo and weapons transport systems during the forecast period. Military infrastructure is a mission-critical aspect of operations and is becoming a high priority for all defence agencies worldwide with increased global tension, preparation, execution, and contingency. Also, the successful use of defence logistics in military operations is motivated by increasing situational awareness and providing real-time information on the effective distribution of tasks and resources. Furthermore, the continued development and modernization of logistics between the defence forces are also driving the growth of the defence logistics industry, leading to the introduction of advanced technology into infrastructure and logistics. Although rising military spending will offer huge opportunities for growth, risks due to the complexities of the supply chain will threaten market participants’ growth.
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The global defense logistics market trends are as follows:
New product launches to flourish the Defense logistics market
A-ICE’s Collaborative Logistics Optimization System (CLOS) developed in 2019 in association with the Italian Air force, is a smart decision-making software tool to speed up and optimize military logistics mission planning.It already provides solutions to streamline and automatically schedule aspects and uses a robust machine-learning algorithm to achieve the advantages of task management optimization in real-time, based on various customizable variables such as capacity, cargo, and location. Some military decision-makers believe that adapting and integrating key, existing, and proven solutions for military use based on e-commerce technology will be beneficial. For military logistics and storage of the future, operational agility in near-real-time is needed.
Integration of third-party logistics technologies into the military to be key defense logistics market trends
In 2020, military transport and logistics are facing changes that are necessary, as the U.S. looks forward to build a streamlined approach, for the future of warfare and battlefield strategy. In future battlefields, the centralized procurement and transportation are likely to be fragmented, complicated, and widespread, and the procurement of multi-domain troops would need a future-proof solution that maintains the inevitable increase in the communication data flow and preserve it. The U.S. military departments are also seeking ways to access modern commercial logistics technologies through third-party logistics solutions providers in a move towards multi-location, smaller consignments from conventional single depot storage, and transport. The versatility, speed, and precision required for modern military logistics can be accomplished by offering solutions from a third party to meet growing demands for enforcement and to control rising costs.
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Key benefits of the report:
- This study presents the analytical depiction of the global defense logistics market industry along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with a detailed analysis of the global defense logistics market share.
- The current market is quantitatively analyzed from 2020 to 2027 to highlight the global market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed global market analysis based on competitive intensity and how the competition will take shape in the coming years.
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