Report: Global military infrastructure and logistics market to witness stable growth
The global military infrastructure and logistics market is anticipated to reach $51.8bn by 2027, marking a compound annual growth rate (CAGR) of 3.21%, according to a report by Strategic Defence Intelligence (SDI).
Titled ‘The Global Military Infrastructure and Logistics Market 2017-2027’, the report estimates the cumulative global expenditure on military infrastructure and logistics over the forecast period to be $484.4bn.
Valued at $37.8bn in 2017, the military infrastructure and logistics market is dominated by the Asia Pacific region with a share of 33.4%, followed by North America and Europe with 23.5% and 22%, respectively.
The market is categorised into infrastructure construction, facilities management, and central logistics segments. The first of these accounts for 47.1% of the market, while the latter two have shares of 31.8% and 21.1% respectively.
The industry is expected to be driven by military logistics modernisation initiatives undertaken by the US, China, India, Brazil, Chile, Venezuela and Colombia, as well as efforts against cross-border crimes and widespread narco-terrorism.
Territorial disputes, regional rivalries and growing terrorist attacks are the major factors that stimulate the investment in military infrastructure and logistics industry globally, according to the report.