The Deployable Military Shelters Market was valued at USD 926.33 million in 2020 and is projected to grow to about USD 989.07 million in 2026 with a CAGR of 1.16% during the forecast period (2021-2026).
COVID-19 did not have a significant impact on the deployable military shelters market. However, in certain countries military deployed temporary shelters to be used as temporary COVID-19 medical centers.
The evolving battlefield requirements have necessitated an increase in military units' deployment in far-away warzones and various diverse terrains both for training and strategic operational purposes. Unrest across the borders with neighboring countries is generating the need for deployment of thousands of soldiers, which generates the need for portable military shelters.
Significant investments are directed towards developing shelters with a smaller number of component parts, less weight, and enhanced ease of fabrication and assembly. Advancements in designs and material technologies have resulted in the development of military shelters that are easy to transport and deploy, which is further expected to accelerate the growth of the market in the coming years.
Key Market Trends
Other Types Segment Accounted for a Major Market Share in 2020
The other types segment currently has the highest market share and is expected to continue its dominance during the forecast period. The segment includes relocatable storage units, deployable hangars, and custom-built temporary military housing units. Deployable hangars are fully demountable and relocatable. Therefore, they are designed to have the shortest assembly time. In most cases, all the materials can be reused, both structure and envelope, in the next assembly of the building. VALDEMAN is one of the leading suppliers of deployable hangars for the United Nations, NATO, US Air Force, Royal Australian Air Force, Belgian Air Force, Canadian Air Force, Chilean Air Force, Indian Air Force, etc. Besides being a prime supplier of deployable hangars, the company also offers full accessory packages, including aircraft and personnel doors, lights, ventilation, and HVAC systems. In August 2020, the NATO Support and Procurement Agency (NSPA) announced providing deployable infrastructure to house the new C-295 aircraft of the Spanish Air Force "Marfil Detachment" in Senegal. The construction of a deployable hangar and a corporate building for the deployed personnel was completed in December 2020. Such developments are expected to propel the growth of the segment during the forecast period.
Europe Region is Expected to Witness the Highest Growth During Forecast Period
The European region is expected to grow with the highest CAGR during the forecast period. European forces are strategically deployed by NATO partner countries in different peacekeeping missions around the world. Temporary shelters are used by the defense forces to set up medical camps and assist the wounded in war zones or affected areas during a pandemic. The COVID-19 outbreak has triggered a multifold increase in demand for deployable military shelters. For instance, in March 2020, a military field hospital was set up by the French Army to relieve the pressure on the ICU of the main hospital in the eastern French city of Mulhouse. The field hospital could admit up to 30 patients in intensive care. Similarly, the UK military planners were working on establishing 10 new field hospitals in the UK as part of its effort to support the public services tackling the COVID-19 crisis, notably the NHS. Several field hospitals have cropped up in Russia as the infection rate increased in the country. For instance, in May 2020, the Russian military opened a field hospital with a 100-bed capacity to treat COVID-19 patients in the North Caucasus region of Dagestan. A similar facility was also set up in the Murmansk region.
The military deployable shelter market is highly fragmented and is highly competitive with competition from military fabric manufacturers, military equipment manufacturers, sports gear manufacturers as well as extreme weather shelter manufacturing companies. UTS Systems, General Dynamics Corporation, AAR CORP., Saab AB, and HDT Global are some of the market's major players. The smaller players that have risen due to the spike in demand in 2020 are expected to remain in the market for another 3-4 years with only about 50% of these players surviving beyond the 5-year period when profits start to decline, and costs start to catch-up. Major players planning to expand their presence globally should wait out these next 2-3 years to acquire small domestic firms or form JVs and partnerships with these companies to reduce risks and costs by taking the dominant role in the business. The manufacturers of deployable military shelters are continually looking for ways to develop shelters that can withstand a wide range of harsh weather conditions, keeping in mind the various defense authorities' certification requirements across the world. This will help the manufacturers to gain new contracts from the militaries and expand their market share during the forecast period.
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