The global ammunition market size is projected to grow from USD 24.3 billion in 2021 to USD 29.1 billion by 2026, at a CAGR of 3.7% from 2021 to 2026. Factors such as the changing nature of warfare, the militarization of police forces, the increasing incidence of drug trafficking, and terrorist activities, and the modernization of armed forces are driving factors assisting the growth of the ammunition market.
The ammunition market includes major players Lockheed Martin (US), General Dynamics Corporation (US), BAE Systems (UK), Elbit Systems (Israel), CBC Global Ammunition (Brazil), and Nammo AS (France), among others. These players have spread their business across various countries includes North America, Europe, Asia Pacific, Middle East, Africa, and Latin America. COVID-19 has affected the ammunition market growth 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 continuous lockdown and social distancing measures, there has been a decrease in the need for ammunition in civil and commercial applications.
“Small: The fastest-growing segment of the ammunition market, by the caliber “
Based on caliber, the ammunition market has been segmented into small, medium, large, and others. The small caliber segment is projected to grow at the highest CAGR during the forecast period. The growth of this segment can be attributed to increased use of small caliber ammunition by military and homeland security personnel, owing to less lethality of this ammunition.
“Bullets: The fastest-growing segment of the ammunition market, by product “
The bullets segment is projected to grow at the highest CAGR. In recent years, an increasing focus has been observed to upgrade land forces and airforce inventory across the globe due to multiple reasons such as geopolitical tensions and air force applications. For instance, the US has ongoing F-35 fighter aircraft programs. Whereas the Indian air force is looking for multi-role aircraft to strengthen their armed forces, and hence new aircraft procurements will lead to an increased demand for related ammunition in the coming years.
“Defense: The fastest-growing segment of the ammunition market, by application “
The defense segment of the ammunition market has been classified into military and homeland security. The growth of the defense segment of the ammunition market can be attributed to the increased spending of countries on military modernization programs, as well as the rise in terrorist activities and civil disturbances in several parts of the world.
“North America: The largest contributing region in the ammunition market.”
The ammunition market in the North American region has been studied for the US and Canada. Major factors that are expected to drive the growth of the market in the region include rising instances of terrorism, which have led to increased use of ammunition by armed forces and a growing number of drug cartels in Central America. North American countries are awarding a number of contracts to major players of the ammunition market for the delivery of ammunition, thus driving the growth of the ammunition market in the region. For instance, In July 2020, Northrop Grumman Corporation secured a contract from the US Army to deliver the next-generation airburst cartridge for the 30mm XM813 Bushmaster Chain Gun. The Bushmaster Chain Gun will be installed on the Stryker Infantry Carrier Vehicle (ICV). Also, the company has secured a contract worth USD 93 million from the US Army for the manufacture of multipurpose munition technology for destroying targets such as lightly armored and infantry fighting vehicles.
The break-up of the profile of primary participants in the ammunition market:
- By Company Type: Tier 1 – 35%, Tier 2 – 45%, and Tier 3 – 20%
- By Designation: C Level – 35%, Director Level – 25%, and Others – 40%
- By Region: North America – 20%, Europe – 5%, Asia Pacific – 45%, and Middle East & Africa – 30%
Major companies profiled in the report include Northrop Grumman Corporation (US), General Dynamics Corporation (US), CBC Global Ammunition (Brazil), Olin Corporation (US), Ruag Ammotec (Switzerland), BAE Systems (UK), Thales Group (France), Rheinmetall AG (Germany), Nexter KNDS group (France), Elbit Systems (Israel), Nammo AS (Norway), and ST Engineering (Singapore) among others. (28 Companies)
This research report categorizes the ammunition market basis of applications (defense, civil & commercial), caliber (small, medium, large, others), product(bullets, aerial bombs, grenades, artillery shells, mortars), component(fuzes & primers, propellants, bases, projectiles and warheads, others), guidance mechanism (guided, non-guided), lethality(lethal, less-lethal) in these segments have been mapped across major regions, namely, North America, Europe, Asia Pacific, Middle East, Latin America, and Africa. The scope of the report covers detailed information regarding the major factors, such as drivers, restraints, challenges, and opportunities, influencing the growth of the ammunition market. A detailed analysis of the key industry players has been done to provide insights into their business overviews; solutions and services; key strategies; new product launches; mergers; and partnerships, agreements, associated with the ammunition market.
Reasons To buy this report:
The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall ammunition market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and to plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
The report provides insights on the following pointers:
- Market Penetration: Comprehensive information on ammunition offered by the top players in the market
- Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product launches in the ammunition market
- Market Development: Comprehensive information about lucrative markets – the report analyzes the ammunition market across varied regions
- Market Diversification: Exhaustive information about new products, untapped geographies, recent developments, and investments in the ammunition market
- Competitive Assessment: In-depth assessment of market shares, growth strategies, products, and manufacturing capabilities of leading players in the ammunition market