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Study Period | 2019 - 2030 |
Market Size (2025) | USD 33.00 Billion |
Market Size (2030) | USD 40.25 Billion |
CAGR (2025 - 2030) | 4.05 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Market Concentration | Low |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Ammunition Market Analysis
The Ammunition Market size is estimated at USD 33.00 billion in 2025, and is expected to reach USD 40.25 billion by 2030, at a CAGR of 4.05% during the forecast period (2025-2030).
The ammunition industry is witnessing a significant transformation driven by technological advancements and changing warfare requirements. Major defense contractors are focusing on developing sophisticated ammunition with enhanced precision, range, and lethality while reducing collateral damage. For instance, in March 2023, the Israel Defense Force and Elbit Systems unveiled the "Iron Sting," a precise laser and GPS-guided mortar munition system, demonstrating the industry's shift towards smart ammunition. The integration of advanced guidance systems has improved target accuracy by 50-60% in the first round, providing a substantial tactical advantage on the battlefield.
The industry is experiencing a strong push towards domestic manufacturing capabilities, particularly in emerging economies. Countries are establishing local production facilities through strategic partnerships and technology transfer agreements to reduce import dependencies. In November 2023, BAE Systems signed a significant contract worth USD 3.2 billion with the UK Ministry of Defence to manufacture 39 different types of munitions domestically, showcasing this shift towards local production. This trend is further supported by increasing investments in research and development of advanced ammunition technologies.
A notable trend in the ammunition sector is the growing emphasis on developing programmable and multi-purpose ammunition. Manufacturers are investing in ammunition that can be programmed for different functions, including airburst, point detonation, and delayed detonation capabilities. The development of the 120 Shard by Nexter Munitions, scheduled for mass production by the end of 2024, exemplifies this trend, offering next-generation tank ammunition with multiple operational modes and enhanced performance characteristics.
The industry is also witnessing an increased focus on environmental considerations and sustainable ammunition solutions. Manufacturers are developing lead-free ammunition and exploring eco-friendly alternatives for training and practice rounds. This shift is accompanied by the development of advanced simulation and training systems that reduce the need for live ammunition in training scenarios. In February 2024, Rheinmetall Denel Munition formalized a ten-year agreement with Northrop Grumman to develop sustainable ammunition technology solutions, focusing on precision-guided enhanced range artillery ammunition that minimizes environmental impact while maintaining operational effectiveness.
Ammunition Market Trends
Geopolitical Tensions Bolstering Military Upgrade Programs
The profound changes in the international strategic landscape have led to growing hegemonism, unilateralism, and power politics that continue to fuel several ongoing global conflicts. Territorial disputes between nations, such as tensions at various international borders and regional conflicts, have prompted governments to increase their military spending to enhance security measures. This heightened focus on military preparedness has resulted in significant defense budget allocations, with global military expenditure reaching USD 1981 billion in 2020, representing a 2.6% increase from the previous year. The United States, China, India, Russia, and the United Kingdom emerged as the top military spenders, collectively accounting for 62% of global expenditure.
Military powerhouses have been intensively focused on augmenting their firepower and defensive capabilities through various weapon procurement programs. These programs aim to upgrade the capabilities of regional armed forces to effectively respond to security threats and accomplish urgent, critical, and dangerous strategic missions. For instance, in December 2021, India placed a significant order for 670,000 rifles worth USD 681.85 million from Russia, demonstrating the ongoing commitment to military modernization. The trend of increasing defense spending is particularly evident in major powers like the United States, which allocated USD 778 billion to defense in 2020, representing nearly 39% of global military expenditure. This substantial investment in military capabilities has created a sustained demand for various types of ammunition and related technologies within the ammunition market.
Technological Advancements Fostering the Development of Advanced Weapon and Ammunition Systems
While ammunition technology has historically progressed at a relatively slower pace compared to other military platforms and guided missile systems, recent years have witnessed significant advancements in artillery weapons subsystems. One of the most notable improvements has been in accuracy rates, with modern guidance systems helping users increase the probability of neutralizing targets by 50-60% in the first round, providing a substantial tactical advantage on the battlefield. This enhancement has been achieved through the development of precision guidance kits (PGK) that convert traditional munitions to precision munitions, representing a significant leap in ammunition development.
The industry is witnessing a shift toward more sophisticated ammunition types, with militaries increasingly focusing on developing new calibers and smart ammunition systems. For example, the US DARPA has demonstrated .50-caliber bullets that can act like mini homing missiles, while Russia is working on "smart bullet" weapons designed to hit targets up to 10 kilometers away. The development of programmable ammunition has also gained momentum, with companies like Rheinmetall Denel Munition partnering with Northrop Grumman to develop enhanced range artillery ammunition solutions by fitting 155mm artillery rounds with integrated M1156 precision guidance kits. These technological innovations extend beyond traditional ammunition, encompassing developments in airburst cartridges, precision-guided mortar bombs, and networked precision fire systems, all designed to enable high-value target engagement with minimal collateral damage. These advancements are indicative of the evolving military ammunition market and ammunition price trends.
Segment Analysis: Type
Small Caliber Segment in Ammunition Market
The small caliber ammunition segment dominates the global ammunition market, accounting for approximately 65% of the total market share in 2024. This significant market position is driven by the extensive use of small caliber ammunition in military modernization programs worldwide, particularly in countries like Germany, France, India, China, and Russia, which are investing substantially in enhancing their ground forces' capabilities through the induction of state-of-the-art small arms. The segment's dominance is further reinforced by the continuous demand for training ammunition and the need to maintain sufficient inventory levels within militaries globally. Additionally, the involvement of several militaries in peacekeeping missions and counter-insurgency operations in foreign countries necessitates a constant supply of small caliber ammunition, contributing to the segment's market leadership. The ammunition handling systems market plays a crucial role in ensuring the efficient management and distribution of these resources.
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Large Caliber Segment in Ammunition Market
The large caliber ammunition segment is projected to experience the fastest growth in the ammunition market between 2024 and 2029. This growth is primarily driven by increasing investments in artillery systems and the rising demand for advanced mortar systems across various defense forces. The segment's expansion is supported by technological advancements in precision-guided munitions and the development of sophisticated fire control systems. Military forces worldwide are increasingly focusing on enhancing their long-range firing capabilities through the procurement of new howitzers and modernization of existing artillery systems. The integration of smart technologies in large caliber ammunition, such as GPS guidance and programmable fuzes, is expected to further accelerate segment growth during the forecast period. The smart bullets market is a key area of innovation within this segment, offering enhanced precision and effectiveness.
Remaining Segments in Type
The medium caliber ammunition segment plays a crucial role in the overall ammunition market, serving as a vital component for various weapon systems, including aircraft-mounted guns, naval weapons, and infantry fighting vehicles. This segment is particularly important in modern warfare scenarios where medium caliber weapons provide a balance between firepower and mobility. The segment's development is closely tied to the procurement and upgrade activities of armed forces worldwide, especially in the context of infantry fighting vehicles and naval vessel armaments. The increasing adoption of programmable ammunition and air-burst munitions in medium caliber weapons is shaping the segment's evolution and its strategic importance in military operations. The ammunition size chart for medium caliber rounds highlights the diverse applications and specifications required by different military platforms.
Segment Analysis: Application
Lethal Segment in Ammunition Market
The lethal ammunition segment dominates the global ammunition market, accounting for approximately 80% of the total market share in 2024. This significant market share is driven by the increasing defense spending across major military powers and the ongoing modernization of armed forces worldwide. The segment encompasses various ammunition types, including small arms ammunition, artillery shells, and precision-guided munitions. The demand is particularly strong from countries focusing on strengthening their military capabilities, with substantial orders coming from regions like North America, Europe, and Asia-Pacific. The segment's dominance is further reinforced by the increasing adoption of advanced weapon systems that require sophisticated ammunition, along with the growing emphasis on maintaining strategic deterrence capabilities by major military powers. The role of market bullets in this segment is crucial for understanding the specific needs and trends driving demand.
Non-lethal Segment in Ammunition Market
The non-lethal ammunition segment is experiencing rapid growth in the ammunition market, driven by increasing adoption by law enforcement agencies and military forces for crowd control and peacekeeping operations. This segment includes various types of ammunition, such as rubber bullets, bean bag rounds, tear gas canisters, and other riot control munitions. The growth is particularly notable in urban areas where there is a growing need for crowd control solutions that minimize casualties. The segment is witnessing significant technological advancements, with manufacturers developing new non-lethal ammunition types that offer improved accuracy and reduced risk of serious injury. The increasing focus on human rights and the need for proportional force in law enforcement operations is expected to further drive the growth of this segment through 2029. The weapons and ammunition market is closely monitoring these trends to adapt and innovate accordingly.
Ammunition Market Geography Segment Analysis
Ammunition Market in North America
The North American global ammunition market size is characterized by significant defense spending and ongoing military modernization programs. The United States and Canada are the key markets in this region, with both countries focusing on enhancing their military capabilities through advanced weapon systems and ammunition. The region benefits from the presence of major ammunition manufacturers and robust defense infrastructure. Both countries maintain substantial active and reserve military personnel strength, driving consistent demand for various types of ammunition, including small caliber, medium caliber, and large caliber variants.
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Ammunition Market in United States
The United States dominates the North American military ammunition market size, holding approximately 90% market share in 2024. The country maintains one of the largest armed forces globally, with over 2.26 million total military personnel. The US military's deployment across more than 150 countries necessitates a continuous ammunition supply for various operations. The country's ammunition demand is driven by multiple factors, including military modernization programs, training requirements, and participation in NATO missions. The Lake City Army Ammunition Plant, the single largest producer of small-arms munitions within the US Department of Defense, plays a crucial role in meeting domestic ammunition requirements with its significant production capacity.
Growth Dynamics in North American Ammunition Market
The United States is projected to be the fastest-growing market in North America, with an expected growth rate of approximately 4% during 2024-2029. This growth is primarily driven by the country's ongoing initiatives to improve mortar systems, the development of next-generation ammunition, and an increasing focus on precision-guided munitions. The US Army's push for new weapon systems, including the Next Generation Squad Weapon program and various modernization efforts across different military branches, continues to drive innovation in ammunition technology. The country's emphasis on maintaining technological superiority in defense capabilities ensures sustained investment in advanced ammunition development.
Ammunition Market in Europe
The European ammunition market is characterized by significant defense modernization initiatives across major military powers. Key countries, including Russia, Germany, the United Kingdom, and France, are actively investing in advanced ammunition technologies and manufacturing capabilities. The region's ammunition industry benefits from strong domestic manufacturing capabilities and ongoing military modernization programs. The market is driven by increasing defense budgets, NATO commitments, and the need to maintain strategic deterrence capabilities.
Ammunition Market in Russia
Russia leads the European ammunition market with approximately 27% market share in 2024. The country maintains one of the largest military forces globally, with over 1 million active personnel and 2 million in reserve. Russia's ammunition industry is characterized by strong domestic manufacturing capabilities and a focus on self-reliance in defense production. The country's ammunition sector benefits from significant investment in research and development, particularly in areas such as precision-guided munitions and advanced artillery systems.
Growth Dynamics in European Ammunition Market
The United Kingdom is positioned as the fastest-growing market in Europe, with a projected growth rate of approximately 3% during 2024-2029. The UK's growth is driven by significant investments in defense modernization and the government's commitment to enhancing military capabilities. The country's ammunition sector benefits from strong domestic manufacturing capabilities and strategic partnerships with global defense contractors. The UK's focus on developing advanced ammunition technologies and maintaining a robust defense industrial base continues to drive market growth.
Ammunition Market in Asia-Pacific
The Asia-Pacific ammunition market is experiencing significant growth driven by increasing defense budgets and military modernization programs across major economies. The region encompasses key markets, including China, India, Japan, and South Korea, each with distinct military requirements and domestic manufacturing capabilities. Regional geopolitical tensions and the need to maintain strategic deterrence have led to an increased focus on ammunition stockpiling and indigenous production capabilities. The market is characterized by growing investments in advanced ammunition technologies and efforts to achieve self-reliance in defense manufacturing.
Ammunition Market in China
China dominates the Asia-Pacific ammunition market, leveraging its extensive military infrastructure and domestic manufacturing capabilities. The country's ammunition sector benefits from significant government support and investment in defense modernization. China's focus on military modernization encompasses various ammunition types, from small arms to artillery shells, with particular emphasis on developing advanced precision-guided munitions. The country's large military force and strategic requirements drive consistent demand for ammunition across all caliber ranges.
Growth Dynamics in Asia-Pacific Ammunition Market
India emerges as the fastest-growing market in the Asia-Pacific region, driven by ambitious military modernization programs and an increasing focus on indigenous ammunition production. The country's growth is supported by various initiatives to enhance domestic manufacturing capabilities and reduce dependence on imports. India's ammunition sector is witnessing significant developments in terms of new manufacturing facilities and technological partnerships with global players. The country's strategic requirements and ongoing military modernization efforts continue to drive market expansion.
Ammunition Market in Latin America
The Latin American ammunition market is characterized by modernization efforts across military and law enforcement sectors. Brazil emerges as both the largest and fastest-growing market in the region, supported by its domestic manufacturing capabilities and ongoing military modernization programs. The region's ammunition demand is driven by internal security requirements, border protection needs, and military modernization initiatives. Countries in the region are increasingly focusing on developing indigenous ammunition manufacturing capabilities while maintaining strategic partnerships with global suppliers.
Ammunition Market in Middle East & Africa
The Middle East & Africa ammunition market is driven by ongoing regional conflicts, military modernization programs, and increasing defense budgets. Saudi Arabia represents the largest market in the region, while Turkey shows the fastest growth potential. The region's ammunition demand is characterized by significant investments in advanced weapon systems and related ammunition. Countries in the region are actively pursuing partnerships with global manufacturers while simultaneously developing domestic production capabilities to enhance self-reliance in ammunition manufacturing.
Ammunition Industry Overview
Top Companies in Ammunition Market
The ammunition industry features several established players focusing on continuous innovation and strategic expansion. Companies are investing heavily in research and development to create advanced ammunition solutions, including precision-guided munitions, programmable rounds, and enhanced penetration capabilities. Operational agility is demonstrated through the modernization of manufacturing facilities and the adoption of new technologies like automation and digitalization. Strategic partnerships and collaborations, particularly between ammunition manufacturers and defense contractors, have become increasingly common to develop integrated weapon systems. Market leaders are expanding their global footprint through local production facilities and offset agreements, while simultaneously strengthening their positions in domestic markets through long-term supply contracts with defense forces.
Consolidated Market with Strong Defense Ties
The military ammunition industry is characterized by a mix of large defense conglomerates and specialized ammunition manufacturers, with global players dominating the international market while regional players maintain strong positions in their domestic markets. Major defense contractors like BAE Systems, General Dynamics, and Rheinmetall leverage their diverse defense portfolios and established relationships with military customers to maintain market leadership. The industry demonstrates high barriers to entry due to stringent regulatory requirements, substantial capital investments, and the need for specialized manufacturing capabilities and technical expertise.
The market shows moderate consolidation with ongoing merger and acquisition activities aimed at expanding product portfolios and geographical reach. Companies are increasingly pursuing vertical integration strategies to secure supply chains and enhance operational efficiency. Joint ventures and strategic partnerships have become common, particularly in emerging markets where local production requirements and offset obligations drive collaboration between international and domestic players. Government ownership and control remain significant factors in many regions, influencing market dynamics and competitive strategies.
Innovation and Adaptability Drive Market Success
Success in the ammunition market increasingly depends on companies' ability to innovate and adapt to evolving military requirements while maintaining cost competitiveness. Incumbent players must focus on developing next-generation ammunition technologies, including smart munitions and environmentally friendly solutions, while optimizing production processes to maintain competitive pricing. Building strong relationships with defense customers through reliable delivery, quality assurance, and after-sales support remains crucial for maintaining market position. Companies must also invest in digital technologies and advanced manufacturing capabilities to improve operational efficiency and product performance.
For contenders seeking to gain ammunition market share, specialization in niche segments and focus on emerging military requirements offer viable entry strategies. The concentrated nature of defense customers necessitates long-term relationship building and demonstrated technical capabilities. While substitution risk remains low due to the specialized nature of ammunition products, regulatory compliance and export controls significantly impact market access and growth opportunities. Success also depends on companies' ability to navigate offset requirements and establish a local manufacturing presence in key markets while maintaining profitability through efficient operations and strategic partnerships.
Ammunition Market Leaders
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Rheinmetall AG
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General Dynamics Corporation
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RUAG Group
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KNDS N.V.
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BAE Systems plc
- *Disclaimer: Major Players sorted in no particular order
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Ammunition Market News
- January 2023: The police chiefs of some states in India approached the commerce ministry's Government e-marketplace (GeM) to permit the sale of small arms so that states can procure them at competitive prices from the public procurement platform. Currently, GeM is not authorized to allow the sale of small caliber or any type of weapons from its platform.
- January 2023: The Indian Army requested to indigenously source 5,000 9×19 mm machine pistols as an ‘Emergency Procurement’ via the Fast Track Procedure (FTP) of the Defense Acquisition Procedure for an estimated USD 6 million.
Ammunition Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
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4.4 Industry Attractiveness - Porter's Five Forces Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Type
- 5.1.1 Small Caliber
- 5.1.2 Medium Caliber
- 5.1.3 Large Caliber
- 5.1.3.1 Mortar
- 5.1.3.2 Artillery
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5.2 Application
- 5.2.1 Non-lethal
- 5.2.2 Lethal
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5.3 Geography
- 5.3.1 North America
- 5.3.1.1 United States
- 5.3.1.2 Canada
- 5.3.2 Europe
- 5.3.2.1 United Kingdom
- 5.3.2.2 France
- 5.3.2.3 Germany
- 5.3.2.4 Russia
- 5.3.2.5 Rest of Europe
- 5.3.3 Asia-Pacific
- 5.3.3.1 China
- 5.3.3.2 India
- 5.3.3.3 Japan
- 5.3.3.4 South Korea
- 5.3.3.5 Rest of Asia-Pacific
- 5.3.4 Latin America
- 5.3.4.1 Brazil
- 5.3.4.2 Rest of Latin America
- 5.3.5 Middle East and Africa
- 5.3.5.1 Saudi Arabia
- 5.3.5.2 United Arab Emirates
- 5.3.5.3 Turkey
- 5.3.5.4 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
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6.2 Company Profiles
- 6.2.1 BAE Systems plc
- 6.2.2 Rheinmetall AG
- 6.2.3 Elbit Systems Ltd.
- 6.2.4 KNDS N.V.
- 6.2.5 General Dynamics Corporation
- 6.2.6 Nammo AS
- 6.2.7 RUAG Group
- 6.2.8 Singapore Technologies Engineering Ltd.
- 6.2.9 Denel SOC Ltd.
- 6.2.10 Northrop Grumman Corporation
- 6.2.11 MESKO SA
- 6.2.12 CBC Global Ammunition
- 6.2.13 Indian Ordnance Factories
- 6.2.14 Saab AB
- 6.2.15 Hanwha Corporation
- 6.2.16 ARSENAL JSCo.
- 6.2.17 ASELSAN A.S.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Ammunition Industry Segmentation
The ammunition market encompasses the acquisition of various ammunition types by the military, homeland security, local law enforcement, border security forces, and special forces. The study specifically excludes ammunition procurement for commercial purposes.
The market is segmented by type, application, and geography. By type, the market is segmented into small caliber, medium caliber, and large caliber ammunition. By application, the market is segmented into lethal and non-lethal. The report also covers the market sizes and forecasts for the ammunition market in major countries across different regions. For each segment, the market size is provided in terms of value (USD).
Type | Small Caliber | ||
Medium Caliber | |||
Large Caliber | Mortar | ||
Artillery | |||
Application | Non-lethal | ||
Lethal | |||
Geography | North America | United States | |
Canada | |||
Europe | United Kingdom | ||
France | |||
Germany | |||
Russia | |||
Rest of Europe | |||
Asia-Pacific | China | ||
India | |||
Japan | |||
South Korea | |||
Rest of Asia-Pacific | |||
Latin America | Brazil | ||
Rest of Latin America | |||
Middle East and Africa | Saudi Arabia | ||
United Arab Emirates | |||
Turkey | |||
Rest of Middle East and Africa |
Ammunition Market Research FAQs
How big is the Ammunition Market?
The Ammunition Market size is expected to reach USD 33.00 billion in 2025 and grow at a CAGR of 4.05% to reach USD 40.25 billion by 2030.
What is the current Ammunition Market size?
In 2025, the Ammunition Market size is expected to reach USD 33.00 billion.
Who are the key players in Ammunition Market?
Rheinmetall AG, General Dynamics Corporation, RUAG Group, KNDS N.V. and BAE Systems plc are the major companies operating in the Ammunition Market.
Which is the fastest growing region in Ammunition Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Ammunition Market?
In 2025, the North America accounts for the largest market share in Ammunition Market.
What years does this Ammunition Market cover, and what was the market size in 2024?
In 2024, the Ammunition Market size was estimated at USD 31.66 billion. The report covers the Ammunition Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Ammunition Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Ammunition Market Research
Mordor Intelligence provides a comprehensive analysis of the ammunition market, drawing on decades of expertise in tracking ammunition industry dynamics. Our research covers everything from military ammunition to civilian ammunition sectors. It offers detailed insights into the ammunition market size and growth patterns. The report includes an in-depth analysis of various segments, such as global artillery systems, naval ammunition, and small caliber ammunition. Special attention is given to technical specifications, including 30 mm medium caliber rounds and tank ammunition 120mm & 125mm.
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