The global ammunition market size is expected to reach USD 16.07 billion by 2024, according to a new report by Grand View Research, Inc. It is anticipated to expand at a CAGR of 3.5% during the forecast period. Rise in terrorist activities accompanied by stacking of arms and weapons in emerging economies owing to rising defense expenditures is expected to propel market growth over the forecast period.
On the basis of end use, the market is segmented into civil and defense. The use of ammunition in civil sector is further segmented into self-defense, sports and hunting, and law enforcement. Market growth is influenced by military advancements in Russia, and increasing participation of civilians in hunting, shooting, and sports; particularly in North America and Europe.
In North America, U.S. is a pioneer in research and development (R&D) of ammunition industry. In Europe, the market is dominated by manufacturing of small arms and weapons industry. In the Asia Pacific region, the demand for ammunition is expected to be driven by the increase in cross-border issues and increase in the defense expenditure on account of rising economy. Countries such as China, India, Korea, South Africa, and Saudi Arabia are expected to boost the market growth.
Demilitarization activities by developed economies in North America and Europe, coupled with high costs associated with research and development is expected to hinder the market demand from the law enforcement and military sectors. However, these factors are expected to be offset by the significant growth in the Asia Pacific and Middle East regions.
Further key findings from the report suggest:
- In terms of revenue, the bullet segment was estimated to be the largest in the China and global market on account of various measures taken by different governments and industries to enhance manufacturing technologies. It is expected to expand at a CAGR of 3.8% from 2016 to 2024
- Asia Pacific was estimated as the largest market and is expected to register significant growth over the forecast period on account of recent rise in terrorist activities, countries such as China and India have increased their defense expenditure to restore peace and security
- The market is highly competitive, with presence of established market players and is characterized by mergers and acquisitions. In January 2012, BAE Systems and Olin Corporation’s Winchester Ammunition Division formed a joint venture to develop, operate, and maintain the Lake City Army Ammunition Plant for the U.S. army
- The global ammunition market is dominated by various key market players such as Remington Arms Company, Inc.; BAE Systems; General Dynamics Corporation; Federal Premium Ammunition; Poongsan Corporation; and Ruag Ammotec. Key players are collaborating with industry participants to sustain market competition.