Ammunition Market

Global Ammunition Market Size (2023 to 2028)

The global ammunition market size is expected to be worth USD 23.40 Billion in 2023. It is expected to grow at a CAGR of 3.60% during the forecast period and reach a value of USD 27.93 Billion by 2028.

Ammunition is a material that is fired, dispersed, launched, or exploded by any weapon. Ammunition is both consumable weapons (e.g., bombs, missiles, grenades, landmines) and components of other weapons that create an effect on a target (e.g., bullets and warheads). Almost all mechanical weapons require some type of ammunition to function. The term ammunition dates back to the middle of the 17th century. The word comes from French ammunition, for the material used for war.

The high purchase of small caliber ammunition by the Department of Homeland Security and Civilians due to its lower lethality compared to other ammunition is expected to drive the overall market growth. In addition to this, the emergence of an online sales channel for small-caliber ammunition is also predicted to drive the demand for ammunition in the coming years.

Military applications currently dominate the studied market and are expected to continue to dominate in terms of market share during the forecast period. This is due to the increased acquisition of ammunition by the armed forces, local law enforcement agencies, and border security forces to dominate threats derived from terrorism, territorial conflicts, and geopolitical tensions. The use of armaments, such as 54 Mk-45 Mod 1/2, 62 Mk-45 Mod 4, Phalanx CIWS, and M242 Bushmaster, among others, in destroyers; GAU-22 / A rotary cannon with four cannons, Gryazev-Shipunov GSh-30-1 automatic cannon and Mauser BK-27 revolver cannon, among others in airplanes; The 12.7mm MG turret, 40mm L / 70 automatic cannon, 30mm automatic grenade launcher and PKT coaxial machine gun, among others in armored land vehicles, can require huge inventories of different types of ammunition. Therefore, the acquisition of these vehicles is supposed to generate a humungous demand for ammunition. In addition, investments by countries to manufacture high-impact, deadlier, higher precision, and low-weight munitions that do not produce flares or contrails are driving growth in this segment.

The demand for ammunition is directly dependent on growing concerns about safety, increased arms sales, and augmented modernization programs. Increased defense spending is likely to raise the demand for ammunition needed for various weapons and other military systems, thus stimulating the growth of the global ammunition market.

Impact of COVID-19 on the global ammunition market:

Coronavirus has affected the growth of the ammunition market to some extent, and this varies from country to country. Industry experts believe that the pandemic has not affected the demand for ammunition in defense applications. However, due to the continued lockdown and social distancing measures, there has been a decrease in demand for ammunition in both civilian and commercial applications. For example, hunting and sporting activities (which are an important determining factor for civil and commercial applications) have been greatly reduced. With the relaxation of lockdown conditions, the market is supposed to recuperate slowly in the following years.

REPORT COVERAGE:

This research report on the global ammunition market has been segmented and sub-segmented into the following categories.

Global Ammunition Market – By Type:

• Full Metal Jacket (FMJ) Ammunition
• Tracer Ammunition
• Incendiary Ammunition
• Armor Piercing Ammunition
• Others

By type, the Full Metal Casing (FMJ) ammunition segment is expected to consistently garner the largest market share between 2018 and 2026. The growing demand for Full Metal Casing (FMJ) ammunition for military applications is the main reason for its dominance throughout the predictions. Period. The all-metal sheath provides several benefits, such as high precision, high-volume firing, and less metal deposition due to the sheath on the core. It is also cheaper and more resistant to damage, thus increasing its demand in various industries. Furthermore, the segment of tracer munitions is estimated to grow at a significant CAGR of 3.6% due to the increase in military applications, as they are visible to the naked eye during the day and are very bright during firing at night.

Global Ammunition Market – By Calibre:

• Small Ammunition
• Medium Ammunition
• Mortar Ammunition
• Artillery Ammunition
• Shotgun Shells

By caliber, small ammunition accounted for the largest share in 2018 and is expected to dominate the global ammunition market further during the outlook period due to growing demand for premium and combat projectiles. The small-caliber ammunition segment is also predicted to represent 35.3% of the overall ammunition market in 2026.

Global Ammunition Market – By Application:

• Commercial
• Military
• Law Enforcement

By application, the military segment accounted for the largest market share in 2018. With the increase in military activities and the evolution of their function, modern military troops are increasing the demand for ammunition for different applications. In addition, increasing defense spending in order to strengthen the military force, modernize the armed forces, and firmly safeguard national sovereignty, security, and development interests is responsible for its important role among all applications.

Global Ammunition Market – By Region:

• North America
• Europe
• APAC
• Latin America
• Middle East and Africa

North America dominated the global ammunition market in 2017, with the United States contributing the majority of the revenue. Market dominance in the region is attributed to the presence of a large number of business players. The European market is foreseen to grow significantly during the forecast period due to increasing demand for ammunition from Russia. Russia is rapidly investing in the munitions market because of the terrorist activities. The market in Asia-Pacific is supposed to grow at the highest CAGR during the conjecture period due to increased military spending and increased demand for ammunition from countries such as China, India, and Pakistan. China accumulated the largest market share in 2017 due to growing investment in arms development and purchase. The ammunition market in China is determined to grow at the highest rate of 5.4% during the projection period. In addition to China, countries such as India, South Korea, and Japan are also expected to make significant contributions to the Asia-Pacific ammunition market.

KEY MARKET PLAYERS:

The main players in the global ammunition market are Companhia Brasileira de Cartuchos, BAE Systems, Fiocchi Munizioni, General Dynamics Corporation, Hornady Manufacturing Company, Inc., Nammo AS, Nexter Group, Orbital ATK, Inc., Prvi Partizan AD, Rheinmetall AG, and RUAG Grupo, among others. The companies are focused on expanding their businesses through strategic acquisitions and partnerships with other players.

RECENT HAPPENINGS IN THE MARKET:

• In January 2019, Black Hills Ammunition introduced sharp ammunition for pistols for personal use. Increased ownership of weapons by individuals to ensure security will boost segment penetration. In addition, the increase in personal conflicts and political tensions will increase the size of the industry.
• In July 2019, the UK Ministry of Defense (MoD) signed an agreement with Rheinmetall for infantry ammunition.
• In November 2016, Federal Premium Ammunition announced that it would spend more than $ 30 million to expand and improve Anoka's facilities.
• In December 2016, the Indian Ministry of Defense (MoD) announced that it would encourage the private sector to manufacture ammunition as part of the Make in India initiative. The organization issued an RFI to participate in the $ 400 million programs to manufacture ammunition for the T-72 and T-90 tanks, the Strella air defense system, grenade launchers, rocket launchers, armored vehicles, and howitzers.