Global military infrastructure and logistics market is likely to grow tremendously in the year 2017 and is expected to be worth US$37.8 billion, and will grow at a CAGR of 3.21%, to worth US$51.8 billion by 2027. The cumulative global expenditure on military infrastructure and logistics over the forecast period is estimated to be US$484.4 billion.

The demand for infrastructure and logistics is likely to be driven by the need to build infrastructure to strengthen the border areas in view of various regional and territorial conflicts as well as to contain the cross border crimes and infiltration of terrorists. The logistics modernization initiatives undertaken by several of world’s armed forces are also expected to be one of the key drivers for the growth of the market.

The market is expected to be dominated by the infrastructure construction segment, which will account for 47.1% of the market, followed by facilities management, and central logistics with shares of 31.8%, 21.1% respectively. The Asia Pacific region is forecast to dominate the sector with a share of 33.4%, followed by North America and Europe, with shares of 23.5% and 22.0% respectively.

Asia Pacific region is expected to account for the highest spending on military infrastructure and logistics globally, accounting for 33.4% of the market, followed by North America, which will account for 23.5%. China’s growing assertiveness in territorial disputes with its neighbors, and ongoing regional rivalries among Asian countries, and strong economic growth are the primary drivers of the region’s military infrastructure and logistics market, which is forecast to grow at a CAGR of 2.71%, to reach US$16.4 Billion by 2027.

The demand for infrastructure and logistics is expected to be driven by the need to build infrastructure to fortify the border areas in view of various regional and territorial conflicts as well as to contain the cross border crimes and infiltration of terrorists.

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, developing economies in the Middle East and South Asian regions are witnessing increasing defense expenditure and are therefore expected to present global military infrastructure & logistics providers with greater opportunities in the coming period.

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 severely in border infrastructure across its high altitude borders with China and Pakistan, for battle inclination as well as preventing the terrorist penetrations, which have led to large scale construction of roads, bridges and also railway tracks, and also construction of high tech fencing systems.

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