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What key factors are powering the surge in the Military Infrastructure market right now?

In the past few years, there has been a robust growth in the size of the military infrastructure market. The growth is expected to propel from $10.34 billion in 2024 to reach $11.24 billion in 2025, corresponding to a compound annual growth rate (CAGR) of 8.7%. The expansion during the historic phase was driven by factors such as allocation of defense budgets, geopolitical conflicts, modernisation drives, worldwide security issues, and strategic military partnerships.

How fast Is the military infrastructure market expected to grow, and what’s its future value?

Expectations are set for the military infrastructure market size to experience solid expansion over the next several years, with its value predicted to increase to $14.91 billion by 2029 at a compound annual growth rate (CAGR) of 7.3%. Factors such as preparedness for natural disasters, the emergence of new threats, interoperability necessities, space-based infrastructure, and adaptation to climate change are driving this expected growth. Over the forecast period, major trends such as technological advancements, increased digitalization and connectivity, the expansion of space-based infrastructure and the adaptation to urban warfare are anticipated to emerge.

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What are the leading drivers of growth in the military infrastructure market?

The anticipated growth of the military infrastructure market is largely driven by the rise in defense spending. Such expenditures, typically allocated on an annual basis, are financial resources dedicated towards military and defense-related endeavors by a government or nation. An upward trend in defense expenditure contributes significantly to the expansion of military establishments, facilitating the development of new bases, airfields, naval ports, and strategic installations with the aim of augmenting the nation’s defense capabilities and strategic influence. As an example, the United States Air Force (USAF) reported in March 2023 that the Air Force’s budget request for fiscal year (FY) 2024 stood at approximately $215.1 billion. This represents a $9.3 billion or 4.5% increase from the approved figure for FY 2023. Consequently, the military infrastructure market is buoyed by growing defense expenditure.

Military Infrastructure Market Driver: The Escalating Threat of Global Terrorism Is Fuelling Growth in the Military Infrastructure Market

What are the key segments defining the military infrastructure market?

The military infrastructure market covered in this report is segmented –

1) By Type: Harbor, Proving Ground, Range, Training Course

2) By Size: Small, Medium, Large

3) By Application: Army, Navy, Air Force

Subsegments:

1) By Harbor: Naval Bases, Docking And Ship Maintenance Facilities, Supply And Logistics Harbors

2) By Proving Ground: Testing And Evaluation Centers, Weapon And Ammunition Testing Sites, Military Vehicle Testing Grounds

3) By Range: Air Defense Ranges, Land-Based Firing Ranges, Artillery And Ballistic Ranges

4) By Training Course: Combat Training Centers, Simulated Training Environments, Specialized Skill Development Courses

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Who are the key players steering the development of the military infrastructure market?

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

What emerging trends are influencing the growth of the military infrastructure market?

Companies that have a significant presence in the military infrastructure market are concentrating on the creation of groundbreaking products for military communications networks as a way to enhance their profitability. A military communications network is a collection of communication mechanisms and systems utilized by the military for relaying of information. BAE Systems PLC, a leading aerospace company located in the UK, unveiled NetVIPR (Networked, Virtualized, Intelligent, and Protected Routing), its most recent field-deployable networking product, in August 2022. This modern military communications system, designed for modern multi-domestic warfare including land, sea, air, space, cyber, and electronic warfare, is innovative. The network is designed with numerous nodes and every node in this secure network has the capability to augment, access, and transmit data. This makes for intelligent, secure military communication capable of operating in even the harshest circumstances.

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Which regions are most influential in expanding the military infrastructure market?

North America was the largest region in the military infrastructure market in 2024. The regions covered in the military infrastructure market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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