Military Shelter Market Size, Share and COVID-19 Impact Analysis, By Type (Expandable, Personnel, Vehicle Mounted, Command Post, and Container), By Material (Composites, and Others), By Application (Military and Homeland Security), and Regional Forecast, 2021-2028

The global military shelter market size was USD 879.0 million in 2020. The global impact of COVID-19 has been unprecedented and staggering, with military shelters witnessing a negative impact on the demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of -1.85% in 2020. The market is projected to grow from USD 887.8 million in 2021 to USD 1,015.8 million in 2028 at a CAGR of 1.94% in the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s demand and growth rate, returning to pre-pandemic levels once the pandemic is over.

Military shelters are structures used to protect soldiers, and military equipment across the world. Various types of shelters include personnel, expandable, vehicle-mounted, command posting, and others. In addition to that, these shelters include hangars, field shelters, medical shelters, and containers for military vehicles. The rising demand for temporary shelters for critical missions in an unfavorable situation is expected to drive the market growth.

COVID-19 Pandemic Drained National Budgets and Severely Impacted Market

The coronavirus outbreak has had an adverse effect on major businesses across the world. Several OEMs are facing major supply issues, and this, thus affects the defense industry. The slowdown in the global economy, declining defense budgets, and disruptions in supply chains hamper market growth.

• The Indian Military Affairs (IMA) asked all of its defense forces to grasp their capital attainments owing to the budget reduction as a consequence of the COVID-19 impact. In May 2020, Indian Defense Ministry abolished 9,300 posts in Military Engineering Service (MES).


• Due to COVID-19 pandemic, South Korea declined USD 245 million from the nation’s defense financial plan. Consequently, deteriorating defense spending and production standstill from prime players owing to lockdown created unparalleled difficulties for the defense sector.

LATEST TRENDS

Development of Next Generation Composite Military Shelters Enhance Operational Efficiency

The development of next-generation mobile shelters for defense forces is the latest trend in the market. Composite material is used to manufacture shelters that provide stiffness, lightweight, and stronger than other shelters. For instance, in May 2019, Bristol Company launched an all-composite Joint Warfighter Shelter of the Future (JWSOF). It is a next-generation rigid wall surgical shelter with an exterior of a 20-foot ISO shipping container that expands with lightweight composite roofs, expanding walls, and floors. The composite system includes fire retardant resin and carbon fiber fabric. It is 41% larger and 25% lighter as compared to the conventional aluminum-built shelters.

DRIVING FACTORS

Growing Defense Expenditure Across Globe Will Aid Growth

Rising defense expenditure from most of the countries across the globe drives the deployable military shelters market growth. According to the Stockholm International Peace Research Institute (SIPRI), total global military spending rose to USD 1.98 trillion in 2020, representing an increase of 2.6% compared to 2019. The five biggest defense spenders in 2020, which accounted for approximately 62% of global defense expenditure, were the U.S., China, India, Russia, and the U.K. Thus, rising defense spending and rapid expansion of military forces to drive the military shelter market growth.

Increasing Warfare Activities and Procurement of Advanced Military Structures to Boost Market Growth

Rising warfare situations, cross-border conflicts, political unrest among neighboring countries drive the market growth. In May 2020, Indian and Chinese military troops engaged in a stand-off along the Line of Actual Control (LAC) in Eastern Ladakh. Thus, the Indian Army established upgraded shelters for soldiers deployed in Ladakh.

Furthermore, procurement of next-generation hangars, aircraft shelters, medical support networks, and others propels the market growth. In December 2018, Marshall signed a five-year contract worth USD 128 million with the Dutch Ministry of Defense to supply military containers to Dutch Armed Forces. Under the agreement, the company will provide 1,400 military containers by 2023.

RESTRAINING FACTORS

Maintenance Issues, and High Cost of Military Shelters Hamper Market Growth

Aircraft hangars are built with wood, metal, and concrete and are permanent structures at military bases where fighter jets are stored and undergo routine maintenance. These hangars are difficult to maintain due to their open-ended structure and expansive interior. There are other issues related to durability and efficiency that hinders market growth. Furthermore, the high cost associated with the development of advanced military structures hampers the market's growth.

SEGMENTATION

By Type Analysis

Expandable Segment Gain Momentum during 2021-2028 Due to its Features Such as Enhanced Mobility and Speed

Based on type, the market is segmented into expandable, personnel, command post, vehicle-mounted, and container.

The command post segment held the highest shares in 2020. An increasing number of command centers and briefing rooms drive the segmental growth. The command centers consist of many built-in boots and connectors. The central military command shelter interconnects with different shelters, thus improving communication among troops.

The expandable segment is expected to witness remarkable growth, as it contains variable geometry. Its dimensions can be changed as per the requirement. Thus, it provides a safe and efficient operational environment for military equipment and personnel. In addition to that, it provides enhanced mobility, improved speed, and agility for dispersed combat operations, thus driving market growth. Personnel and command post segment will witness significant growth owing to rapid expansion of military forces and growing concerns about soldiers’ security.

By Material Analysis

Composite Segment Will Witness Strong Growth During Forecast Period Owing to Its Enhanced Performance in Extreme Weather Conditions

By material, the market is divided into composites and others.

The composite segment is expected to witness the fastest growth during 2021-2028. This growth is attributed to the rising demand for deployable military shelters. It provides a lightweight structure, high durability, cost-effectiveness, and withstands extreme weather conditions such as desert sand storms, hurricanes, and blizzards.

The others segment held the highest shares in 2020. This growth is due to the growing use of aluminum and steel shelters that protect military personnel and onboard military equipment against the dangers on the battlefield.

By Application Analysis

Military Segment Dominated the Market in 2020 Due to Rapid Expansion of Defense Forces Worldwide

Based on the application, the market is classified into military and homeland security. The military segment held the highest shares in the market in 2020 and continued its domination during the forecast period. The rapid expansion of military forces, procurement of next-generation military tents, and growing defense spending drive the market growth. The homeland security segment will witness significant growth owing to the increasing demand for shelters and tents for migrants. For instance, in March 2020, the U.S. Department of Homeland Security directed the Federal Emergency Management Agency (FEMA) to shelter unaccompanied migrant children.

REGIONAL INSIGHTS

The military shelter market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

North America dominated the market in 2020. Its market size stood at USD 309.9 million in 2020. The dominance of North America is due to the highest defense expenditure from the U.S. Growing procurement contracts, rising spending on military forces, and adopting next-generation shelters boosts the market growth. In June 2019, The U.S. Army signed a contract worth USD 44 million with General Dynamics Corporation to deliver modified extended rigid wall shelters one-side expandable and two-side expandable shelters to the U.S. Army.

Asia Pacific will witness the highest growth during the forecast period. The growth is due to the growing defense budget from China and India. Rising procurement of next-generation shelters and rapid expansion of military forces drive the market growth. Additionally, cross-border issues between India-China, India-Pakistan, political unrest, and growing terrorism propel market growth across the region. In May 2020, Galwan Valley in Ladakh had witnessed a violent clash between Indian and Chinese soldiers.

The market in Europe will showcase significant growth during 2021-2028. The growth is attributed to the rising military modernization programs from the U.K, Germany, France, and other European countries. In June 2019, Cegelec Defense signed a contract with the French Air Force for next-generation deployable command and control shelters.

The Middle East & Africa will witness moderate growth during the forecast period. This growth is owing to the rising defense spending from Saudi Arabia, the UAE, Turkey, Israel, and others. In April 2020, the U.S. Army signed a contract worth USD 91 million with CDM Smith to construct eight hardened aircraft shelters, infrastructure, and support facilities in Israel. Latin America is projected to show moderate growth owing to rising military spending by Brazil and Argentina. The Brazilian government allocated a defense budget of USD 25.10 billion in 2020.

KEY INDUSTRY PLAYERS

Key Players Are Focusing on Development of Next Generation Shelters Through Research and Development

The market is fragmented as several players are involved in the development of shelters. Thermal shelters, composite shelters, and solar panel shelters are the latest trends. A diversified product portfolio coupled with research & development activity is the prominent factor responsible for the dominance of these key market players. In 2020, the Army Engineering University of the Chinese People's Liberation Army (PLA) developed thermal shelters which can function in temperatures at -55 C and an altitude of 5,500 meters. For instance, in February 2021, Sonam Wangchuk, a Ladakh-based engineer in India, developed a solar-powered military tent for the Indian Army.

LIST OF KEY COMPANIES PROFILED:

• AAR (U.S.)


• Alaska Structures, Inc. (U.S.)


• Big Top Manufacturing (U.S.)


• DEW Engineering and Development ULC (Canada)


• General Dynamics Corporation (U.S.)


• J & J. Carter Limited (U.K.)


• Marshall Aerospace and Defence Group (U.K.)


• HDT Global (U.S.)


• Utilitis SAS (France)


• VELDEMAN (Belgium)


• Weatherhaven Global Resources Ltd. (Canada) 

KEY INDUSTRY DEVELOPMENTS:

• May 2021 – Western Metal Supply Co. Inc. signed a contract worth USD 9.39 million with the U.S. Army to design and build F-35A aircraft shelters. The agreement provides for the design, manufacture, and installation of F-35A aircraft shelters.


• November 2019 – UTS Systems signed a four-year contract with the Defense Logistics Agency (DLA) to supply commercial shelters to four U.S. military branches. The value of the contract was USD 200 million.

REPORT COVERAGE

The global military shelter market research report provides a detailed analysis of the market. It focuses on key aspects such as leading companies, different types, materials used, and applications of military shelters. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the developed market over recent years.

Report Scope & Segmentation