Military Infrastructure Global Market Report 2024

The military infrastructure market size has grown strongly in recent years. It will grow from $9.5 billion in 2023 to $10.34 billion in 2024 at a compound annual growth rate (CAGR) of 8.9%. The growth observed in the historical period can be attributed to various factors, including defense budget allocations, heightened geopolitical tensions, initiatives aimed at modernizing military capabilities, growing global security concerns, and the formation of strategic military alliances. These elements have played a crucial role in shaping and influencing the development and expansion of military infrastructure during the specified period.

The military infrastructure market size is expected to see strong growth in the next few years. It will grow to $13.91 billion in 2028 at a compound annual growth rate (CAGR) of 7.7%. The anticipated growth in the forecast period can be attributed to several factors, including increased focus on natural disaster preparedness, the emergence of new threats, requirements for interoperability among military systems, the expansion of space-based infrastructure, and efforts to adapt military capabilities to address the impacts of climate change. Major trends expected in the forecast period include continuous technological advancements in military infrastructure, the increasing role of digitalization and connectivity, the expansion of space-based infrastructure, and a greater emphasis on adapting military capabilities to address challenges associated with urban warfare.

The anticipated rise in defense expenditure is poised to drive the expansion of the military infrastructure market in the future. Defense expenditure, also known as military expenditure, denotes the total financial resources allocated by a government or nation to support its military and defense-related activities within a specific period, typically a fiscal year. Increased defense spending leads to the enlargement of military facilities, encompassing the construction of new bases, airfields, naval ports, and other strategic installations. The primary objective is to enhance the nation's defense capabilities and strategic outreach. For example, in March 2023, as reported by the United States Air Force (USAF), an agency under the United States Department of the Air Force, the Air Force's fiscal year (FY) 2024 budget request stood at approximately $215.1 billion, representing a $9.3 billion or 4.5% increase compared to the approved figure for fiscal year 2023. Consequently, the escalating defense expenditure is a key driver for the military infrastructure market.

The increasing threat of terrorism is expected to foster the growth of the military infrastructure market in the foreseeable future. Terrorism involves violent acts perpetrated by individuals, groups, or nations classified as foreign terrorist organizations or countries. Military infrastructure plays a crucial role in countering terrorism by providing strategic resources, intelligence capabilities, and operational bases to prevent and respond to terrorist activities. As an illustration, in March 2022, the Institute for Economics and Peace (IEP), an institute based in Australia, reported a 17% increase in terrorist attacks in Australia, rising from 4,458 in 2020 to 5,226 in 2021. Hence, the escalating risk of terrorism serves as a catalyst for the growth of the military infrastructure market.

The high costs constitute the primary impediment to the growth of the military infrastructure market during the forecast period. The escalation in costs within the defense budget has the potential to restrict resources available for other critical defense needs, including personnel, equipment, and research and development. This situation necessitates additional investment in cutting-edge technology. For example, as of April 2022, the United States Department of Defense reported a total defense cost of $38,000, comprising $5,030 in expenses and $33,000 in labor costs. Consequently, the high costs pose a significant hindrance to the expansion of the military infrastructure market.

Leading companies operating in the military infrastructure market are concentrating on the development of innovative products for military communications networks to enhance their market profitability. A military communications network encompasses a system of communication technologies and infrastructure utilized by armed forces to transmit information. As an illustration, in August 2022, BAE Systems PLC, a UK-based aerospace company, introduced its latest deployable networking product, NetVIPR (Networked, Virtualized, Intelligent, and Protected Routing). This advanced military communications system is designed for the contemporary, multi-domain battlefield, covering land, sea, air, space, cyber, and electronic warfare. The secure network comprises multiple nodes, allowing each node to add, access, and move data, facilitating intelligent and secure military communication in even the most challenging conditions.

In May 2022, Mobilitie LLC, a US-based wireless infrastructure provider, completed the acquisition of Signal Point Systems for an undisclosed sum. This strategic acquisition brings together telecommunications experts under a unified ownership structure, with the aim of accelerating the development of 5G and internet connections for base residents and employees in the armed forces. Signal Point Systems, based in the US, specializes in the development and supply of telecommunications infrastructure at American military sites.

Major companies operating in the military infrastructure market report are Dell Inc., General Electric Company, Raytheon Technologies Corporation, Boeing Company, Lockheed Martin Corporation, Airbus SE, General Dynamics Corporation, Northrop Grumman Corporation, Honeywell International Inc., BAE Systems, L3Harris Technologies Inc., Safran SA, Leonardo S.p.A., Thales Group, AECOM, Textron Inc., Oshkosh Corporation, Rheinmetall AG, KBR Inc., Saab AB, General Atomics Aeronautical Systems Inc., ManTech International Corporation, Aselsan AS, Anham Fzco, Minrav Holdings Ltd., American International Contractors Inc., ArmourWorks International Ltd., Dewey Electronics Corporation, Dencrypt A/S.

North America was the largest region in the military infrastructure market in 2023. The regions covered in the military infrastructure market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the military infrastructure market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Military infrastructure encompasses the physical and organizational structures, facilities, and systems that provide essential support for the operations and activities of a nation's armed forces. These structures play a vital role in facilitating logistics, communication, intelligence, training, deployment, and overall readiness of the country's military.

The primary types of military infrastructure include harbors, proving grounds, ranges, and training courses. Harbors are defined as areas of the sea near the shore, partially enclosed by land or solid barriers, allowing vessels to anchor safely. Harbors come in various sizes, ranging from small to medium and large, and serve diverse applications, including use by the army, navy, and air force.

The military infrastructure market research report is one of a series of new reports that provides military infrastructure market statistics, including the military infrastructure industry global market size, regional shares, competitors with military infrastructure market share, detailed military infrastructure market segments, market trends and opportunities, and any further data you may need to thrive in the military infrastructure industry. This military infrastructure market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The military infrastructure market includes revenues earned by entities by providing services such as communication and information services, security and defense services, and maintenance and repair services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The military infrastructure market consists of sales of products such as security fencing, environmental protection systems, communications infrastructure, and airfield lighting systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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