The military shelter market is experiencing growth. This rise is mainly driven by higher global defense budgets, more frequent humanitarian and disaster relief missions, and the need for quickly deployable infrastructure in both combat and non-combat operations.
Rising global defense expenditure is one of the main factors leading to growth in the military shelter market. As countries increase their budgets, a large part of it is used on force readiness, infrastructure modernization, and rapid deployment capabilities. Higher military spending enables the armed forces to purchase advanced and easily transportable shelter systems for use in expeditionary operations, border security, and forward operating bases. The Department of Defense (DoD) of the USA has submitted a budget request of $849.8 billion for Fiscal Year (FY) 2025. The FY 2025 budget request allocates $143.2 billion to research, development, test, and evaluation (RDT&E), and it would also cover $167.5 billion for procurement.
Governments impact the development of the military shelter market through regulations that set safety, performance, and interoperability standards. The Department of Defense (DoD) directs procurement and design in the US with standards including MIL-STD, and acquisition frameworks under the Federal Acquisition Regulation (FAR), while export and technology transfer are controlled by the International Traffic in Arms Regulations (ITAR). NATO Standardization Agreements (STANAGs) in Europe ensure that shelter systems are compatible and interoperable among allied forces, along with national defense procurement codes established by defense ministries. Globally, quality and environmental compliance are associated with ISO standards, and these have a major impact on the selection of materials, requirements of product life, and sustainability. This set of rules, taken together, guarantees the reliability, safety of operation, and standardization of the use of military shelters.
These factors together make the military shelter market a key segment of the overall defense infrastructure industry, and it is anticipated that there will be a steady demand for shelters in the land, air, and joint operational forces sectors.
Rising Global Defense Expenditure
Rising global defense expenditures are a major driver of growth in the military shelter market. Governments worldwide are increasing military budgets in response to geopolitical tensions, regional conflicts, border security concerns, and evolving threat landscapes. As countries prioritize strengthening national security and operational readiness, funding is being allocated not only to advanced weapon systems but also to provide critical support infrastructure, such as deployable shelter systems.
Between 2021 and 2025, North America accounted for the largest increase in global defense spending at around $162 billion in additional funds over those five years. The vast majority of that growth came from the United States.
The top 10 defense spenders in 2025 were the United States, $860 billion; China, $245 billion; Russia, $157 billion; United Kingdom, $80.5 billion; Germany, $72.6 billion; Saudi Arabia, $72.5 billion; India, $60 billion; France, $58.7 billion; Japan, $58 billion; and Ukraine, $53 billion.
Higher defense spending enables armed forces to modernize their field infrastructure by replacing traditional tents and outdated structures with advanced, modular shelters. These include hard-wall and soft-wall systems equipped with climate control, integrated communication networks, power distribution units, and enhanced protection features such as ballistic resistance and CBRN shielding. Increased budgets also support procurement for specialized applications, including command-and-control centers, mobile medical facilities, maintenance bays, and personnel accommodation units.
Furthermore, expanding military operations, joint exercises, and overseas deployments require scalable and rapidly deployable infrastructure. As defense agencies invest in expeditionary capabilities and forward operating bases, demand rises for shelters that offer durability, mobility, and quick assembly. Consequently, sustained growth in defense expenditure directly translates into higher procurement volumes, long-term contracts, and continuous technological upgrades in the Military Shelter Market.
December 2025: AAR extended its collaboration with Collins Aerospace for the Goodrich de-icing and specialty systems line, demonstrating ongoing strategic partnerships that leverage AAR’s distribution network to serve defense as well as aviation markets.
By Type: Hard Wall Shelter
By type, the Military Shelter Market is segmented into Hard Wall Shelter and Soft Wall Shelter. In military operations, hard-wall shelters are rigid structures utilised to support operations in both the field and at established bases. Hardwall shelters are not tents or made of fabric; they are solid-framed shelter units with rigid walls built from steel, aluminium, and/or composite materials. Rigid construction provides the shelter unit with superior resistance to environmental stresses (e.g., wind, rain), providing better insulation and a longer lifespan compared to soft/fabric shelter units. Hardwall shelter units are designed to be transported and assembled where desired; however, they may also be fitted with power, ventilation, and communications systems to serve as command or operation centres, medical treatment facilities or storage facilities for equipment. Hardwall shelters are one of the primary categories of deployable shelters in the military deployable shelter inventory due to the favourable properties of hardwall shelters (i.e., they have both durability and versatility) for particular applications such as housing sensitive electronic equipment, serving as command or operations centres, or providing protection from extremes of weather and/or from difficult or rough environmental conditions.
The increase in AAR Corp.’s net sales from USD 2,318.9 million in 2024 to USD 2,780.5 million in 2025 strengthens its financial capacity to support defence infrastructure programs, including the design, supply, and lifecycle services of hard-wall military shelter systems used for command, logistics, and operational facilities. The steady increase in AAR Corp.’s net sales from 2024 to 2025 reflects the company’s expanding role in defence logistics, aviation support, and government services. This financial growth is relevant to the hard-wall military shelter segment because AAR operates as a key integrator and service provider for defence infrastructure programs. Higher revenues improve AAR’s ability to invest in large-scale, long-term defence contracts that involve transport, installation, maintenance, and lifecycle support for rigid shelter systems. Strong corporate sales also signal higher procurement capacity, enabling participation in complex base support projects where hard-wall shelters are used for command centres, storage units, and operational facilities.
The United States military shelter market is primarily driven by sustained and substantial defense spending. The U.S. Department of Defense (DoD) operates with one of the largest defense budgets globally, which was worth USD 916 billion in 2023, enabling continuous investment in tactical infrastructure and deployable support systems.
Beyond weapons and combat platforms, funding is increasingly directed toward modern field infrastructure, including modular and rapidly deployable shelters that support operational readiness. This strong financial backing ensures steady procurement cycles and long-term modernization programs.
Another key driver is the U.S. military’s emphasis on expeditionary warfare and rapid deployment capabilities. U.S. forces are structured to respond quickly to global crises, requiring lightweight, mobile, and easily assembled shelter systems. These shelters are essential for establishing forward operating bases, mobile command centers, maintenance facilities, and temporary accommodation in remote or hostile environments. As military strategy shifts toward multi-domain operations and flexible force posture, demand for adaptable shelter systems continues to grow.
The modernization of aging infrastructure also contributes significantly to market expansion. Global demand for infrastructure (of all types) is expected to grow between 2010 and 2030 to reach more than $53 trillion. The U.S. Department of Commerce, through its International Trade Administration (ITA), is working to ensure U.S. industry successfully bids on more international procurements worldwide.
The U.S. military is progressively replacing traditional canvas tents and legacy structures with advanced hard-wall and soft-wall shelters that offer enhanced durability, climate control, ballistic protection, and integration with power and communication systems. These upgrades are aligned with broader defense transformation initiatives aimed at improving troop safety, operational efficiency, and mission sustainability.
Additionally, the U.S. military's expanding role in humanitarian assistance and disaster response strengthens demand for deployable shelters. Military shelter systems are frequently used during domestic emergencies such as hurricanes, wildfires, and public health crises, as well as in international relief operations. Their versatility and rapid deployment capabilities make them valuable assets beyond combat scenarios, further supporting steady growth in the United States military shelter market.
List of Companies
Alaska Structures, Inc.
Rubb Buildings Ltd.
General Dynamics Mission Systems, Inc.
Gichner Systems Group, Inc.
AAR Corp.
Weatherhaven Global Resources Ltd.
J & J Carter Limited
HDT Global
CAMSS SHELTERS
RÖDER Group
DEW Engineering and Development ULC
The military shelter market comprises major players like Alaska Structures, Weatherhaven, and HDT Global, known for their deployable shelters in extreme and expeditionary environments. Rubb Buildings, RÖDER Group, and Gichner Systems Group are players in modular and large-span shelter solutions, while General Dynamics Mission Systems focuses on mission-critical and integrated shelter systems.
CAMSS Shelters, J & J Carter, AAR Corp, and DEW Engineering and Development ULC are also focusing heavily on lightweight, mobile, and engineered shelters in their offerings, thus creating a highly competitive global market.
AAR Corp. is a U.S.-based aerospace and defence services company with a strong presence in government and military support operations. Within the military shelter market, AAR operates through its Mobility Systems and logistics divisions, supplying deployable, hard-sided, and expandable shelter solutions used for command centres, secure workspaces, and field operations. The company supports the full lifecycle of shelter systems, including design, integration, transportation, installation, and maintenance.
AAR’s role as a defence contractor positions it as a key integrator rather than only a manufacturer, enabling armed forces to deploy rigid infrastructure rapidly in remote or high-risk environments.