Military Power Solutions Market –Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Portable, Non-Portable), By Source (Batteries, Generators, Other Sources), By Platform (Air, Land, Sea), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 9.03 Billion
CAGR (2026-2031)	8.52%
Fastest Growing Segment	Batteries
Largest Market	North America
Market Size (2031)	USD 14.75 Billion

Market Overview

The Global Military Power Solutions Market will grow from USD 9.03 Billion in 2025 to USD 14.75 Billion by 2031 at a 8.52% CAGR. Global Military Power Solutions encompass the specialized energy generation, storage, and management systems designed to provide reliable electricity for mobile and stationary defense applications. The market is fundamentally driven by the escalating energy density demands of digitized soldier systems and the strategic imperative to reduce logistical fuel burdens at forward operating bases. Furthermore, the increasing electrification of tactical vehicles and unmanned platforms necessitates robust, independent power infrastructures capable of sustaining operations in contested environments without reliance on civilian grids.

Despite strong demand, the sector encounters obstacles related to acquisition efficiency. According to the National Defense Industrial Association, in 2025, 64 percent of private sector respondents identified complex and protracted procurement processes as the most pressing issue facing the defense industrial base. This administrative complexity constitutes a significant challenge to market expansion, as it delays the deployment of innovative energy technologies and complicates the integration of modern solutions with legacy military assets.

Key Market Drivers

Rising Global Defense Expenditures and Budget Allocations are the primary catalyst propelling the Global Military Power Solutions Market, as nations significantly increase funding to address escalating geopolitical threats. This surge in financial resources allows defense agencies to prioritize the procurement of advanced energy infrastructure, shifting focus from traditional logistics to resilient, high-capacity power systems capable of supporting digitized warfare. According to the Stockholm International Peace Research Institute, April 2025, in the 'Trends in World Military Expenditure, 2024' fact sheet, global military spending grew by 9.4 percent to reach an unprecedented $2.7 trillion in 2024. This expanded fiscal environment directly facilitates the large-scale acquisition of tactical microgrids, batteries, and mobile power units essential for sustaining operations in contested theaters.

Concurrently, the Modernization of Legacy Military Platforms and Equipment drives demand for durable, next-generation power sources designed to replace aging and inefficient operational energy assets. Armed forces are actively awarding contracts to upgrade the power generation capabilities of mobile command centers and forward operating bases. For instance, according to HSToday, December 2025, in the 'Department of War Contracts for December 15, 2025' report, Cummins Power Generation Inc. was awarded a $500 million contract to provide 500-kilowatt skid mobile electric power generator sets and power plants. This push for modernization is further evidenced by broader regional investments; according to NATO, April 2025, in the 'Secretary General Annual Report 2024', European Allies and Canada collectively invested $486 billion in defense, marking a 19.4 percent real-term increase to support such critical capability enhancements.

Download Free Sample Report

Key Market Challenges

Complex and protracted procurement processes fundamentally hamper the growth of the Global Military Power Solutions Market by creating a substantial lag between technological innovation and actual deployment. In the energy sector, where battery chemistry and power management software evolve rapidly, the rigid acquisition timelines of defense agencies often result in specifications becoming obsolete before contracts are finalized. This administrative friction discourages private investment in defense-specific R&D, as manufacturers face significant financial risk when attempting to bridge the gap between prototype validation and full-scale production programs. Consequently, the market suffers from a slower integration of the high-density storage and independent power infrastructures required for modern operations.

This inefficiency is inextricably linked to the unpredictability of the funding streams that underpin acquisition cycles. The inability to secure timely contracts disrupts the demand signal required for suppliers to maintain inventory and workforce readiness. According to the National Defense Industrial Association, in 2025, 61 percent of private sector respondents identified federal budget processes as a critical operational challenge facing the industrial base. When power solution providers cannot rely on a consistent schedule for contract awards, they are often compelled to reallocate resources to commercial markets, thereby shrinking the specialized industrial base available to support defense energy requirements.

Key Market Trends

Integration of Hybrid Renewable Energy Microgrids is reshaping defense infrastructure strategies by prioritizing energy independence and resilience at critical installations. This trend moves beyond simple backup generation, leveraging advanced control systems to seamlessly blend natural gas, solar, and battery storage into islandable networks capable of sustaining operations during grid failures. The push for self-sufficient energy security is exemplified by recent solicitation efforts for large-scale implementations. According to the U.S. Army Corps of Engineers, August 2025, in the 'Presolicitation Notice - Fort Stewart-Hunter Army Airfield Microgrid', the military anticipates investing between $25 million and $100 million to construct a comprehensive microgrid generation plant featuring smart switching capabilities and fiber optic communication connections.

Utilization of AI-Driven Intelligent Energy Management represents a critical pivot towards optimizing consumption and reducing the substantial fiscal burden of garrison operations. By deploying digital twin technologies and automated monitoring systems, defense agencies can dynamically adjust heating, cooling, and power distribution to match real-time requirements, thereby minimizing waste. This focus on demand reduction is financially motivated, as the Department of Defense seeks to mitigate massive utility expenditures. According to the Defense Innovation Unit, December 2024, in the press release 'DIU Awards Heat Pump Contracts to Increase Installation Resilience', the agency awarded contracts specifically targeting the reduction of the approximately $4 billion spent annually on facility energy costs through the deployment of novel efficiency technologies.

Segmental Insights

The Batteries segment represents the fastest-growing category in the Global Military Power Solutions Market, driven by the intensifying demand for portable and efficient energy storage in modern combat scenarios. This surge is largely attributed to extensive soldier modernization initiatives which necessitate high-density power for wearable electronics, communication systems, and situational awareness tools. Additionally, the rapid deployment of unmanned aerial and ground vehicles further amplifies the need for advanced battery technologies. Institutions like the U.S. Department of Defense are actively prioritizing the development of lighter, longer-lasting power sources to ensure mission endurance and operational agility in remote environments.

Regional Insights

North America maintains a dominant position in the global military power solutions market, driven primarily by substantial defense allocations in the United States. The United States Department of Defense actively prioritizes the modernization of field equipment, necessitating reliable energy storage and management systems for operational efficiency. This leadership is further strengthened by the concentration of major defense manufacturers in the region that focus on developing portable and renewable energy technologies. Additionally, ongoing government initiatives to reduce logistical burdens and enhance soldier sustainability in remote environments consistently fuel the demand for specialized power solutions across the continent.

Recent Developments

• In October 2024, Galvion announced that it had received additional orders from the U.S. Department of Defense for its advanced power management solutions. The orders included the MAX-8 Mission Adaptive Charging Station and the Squad Power Manager, which were selected as part of a modernization program for chemical, biological, radiological, and nuclear defense kits. These systems enable troops to harvest, manage, and distribute energy from multiple sources, such as solar panels and vehicles, to power mission-critical equipment. The delivery of these units was scheduled to commence in late 2024 to support National Guard and Army requirements.
• In August 2024, Epsilor Electric Fuel Ltd. unveiled a new High Voltage Military Battery System based on its standard NATO 6T battery modules. The company launched this innovative solution to address the increasing power demands of deployable defense systems, forward operating bases, and hybrid or electric military vehicles. The system enables multiple batteries to be connected in series to achieve high voltage and in parallel to increase capacity, managed by a central high-voltage battery management system. This launch introduced a scalable, air-transportable energy storage option designed to perform reliably in extreme military environments.
• In April 2024, Honeywell announced that it had won a contract to develop a hydrogen fuel cell power system intended for U.S. Army soldiers. The project focuses on creating a portable power source capable of charging batteries and powering electronic devices while on the move, effectively addressing the energy needs of dismounted troops. Designed to weigh approximately half as much as standard batteries while delivering equivalent energy, the system aims to reduce the logistical burden on soldiers. This development aligns with the military's broader initiative to integrate lighter, more efficient power generation technologies into field operations.
• In January 2024, Leonardo DRS, Inc. announced that it had been awarded contracts valued at over $3 billion to supply integrated electric propulsion system products for the U.S. Navy’s Columbia-class submarines. This significant agreement solidified the company's role in providing the primary propulsion system components, including the permanent magnet main propulsion electric motor, drives, switchgear, and controls. These technologies form the core of the electric drive propulsion system for the new fleet of ballistic missile submarines, which are designed to replace the aging Ohio-class vessels. The award highlighted the company's critical contribution to next-generation naval power and propulsion capabilities.

Key Market Players

• EH Europe GmbH
• Arotech Corporation
• SFC Energy AG
• RTX Corporation
• Saft Groupe SAS
• EaglePicher Technologies, LLC
• Denchi Group Ltd
• Concorde Battery Corporation
• Cummins Inc.
• Eniquest

By Type	By Source	By Platform	By Region
Portable Non-Portable	Batteries Generators Other Sources	Air Land Sea	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Military Power Solutions Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Military Power Solutions Market, By Type:

• Portable
• Non-Portable

• Military Power Solutions Market, By Source:

• Batteries
• Generators
• Other Sources

• Military Power Solutions Market, By Platform:

• Air
• Land
• Sea

• Military Power Solutions Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE