Ammunition Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 31.72 Billion |
| Market Size (2029) | USD 38.68 Billion |
| CAGR (2024 - 2029) | 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 31.72 billion in 2024, and is expected to reach USD 38.68 billion by 2029, at a CAGR of 4.05% during the forecast period (2024-2029).
Defense expenditures in key nations like the US, China, India, Russia, and France have grown significantly in recent years. This surge is fueled by escalating political tensions, heightened cross-border conflicts, and a rise in terrorist activities. Consequently, nations increasingly prioritize bolstering their defense capabilities, creating a heightened demand for weapons and ammunition. This uptick in demand, especially for advanced weaponry, enhances defense capabilities and ensures greater security for soldiers.
While small-caliber ammunition finds broad civilian applications in activities like hunting, sports shooting, and personal protection, medium and large-caliber ammunition predominantly serves defense purposes. Nations are actively modernizing their armed forces, upgrading weaponry, and adapting to the evolving landscape of military technology. This evolution necessitates ammunition that is compatible with these advanced weapon systems. Moreover, nations are keen on replacing their aging ammunition with newer variants that boast extended lifespans and enhanced storage and handling features, a significant driver for the market.
However, technological constraints and stringent government regulations governing firearm usage tempered the market's growth.
Ammunition Market Trends
Small Caliber Ammunition to Dominate Market Share During the Forecast Period
Small ammunition remains a staple in military and law enforcement training procurement. Globally, the demand for small-caliber ammunition is further fueled by border disputes, militant threats, terrorism, and civil unrest. The market's trajectory hinges on various factors, including budget allocations for new equipment. However, this growth could be hampered by the swift obsolescence of emerging technologies.
As nations bolster their defense with increased investments, particularly in modernizing military programs, the demand for small-caliber ammunition sees a significant upswing. Notably, countries increasingly emphasize local production in the arms and ammunition sector, with many governments mandating local production and reinvestment offsets in their military procurement strategies. These trends collectively point to a promising forecast for the small-caliber ammunition market.
North America to Dominate Market Share During the Forecast Period
The evolving landscape of warfare is a crucial driver behind the rising defense expenditures of the US Department of Defense (DoD). Extensive testing is conducted on weapons to ensure operational reliability and gauge the performance enhancements of new integrated designs. In 2023, the US held its position as the world's top defense spender, allocating a staggering USD 916 billion to its defense budget. Specifically, the US earmarked USD 4.7 billion for weapons procurement.
Highlighting the nation's strategic focus, a December 2023 notice revealed that the US Special Operations Command is actively engaged in market research for an "Extreme Long Range-Sniper Rifle" (ELR-SR). This rifle is designed to deliver precise fire at distances of up to 2,500 meters (2,730 yards), emphasizing the US's intent to maintain a technological edge, especially against nations like China and Russia. Geopolitical tensions have spurred the US to bolster its investments in advanced weapon systems and ammunition, aligning its capabilities with its adversaries.
Furthermore, the US's active involvement in NATO missions abroad has increased demand for a diverse range of ammunition. Beyond infantry weapons, the US Army is channeling resources into modernizing its mortar and artillery systems. This modernization drive aims to enhance these systems' responsiveness, survivability, range, an accuracy, ensuring they remain at the forefront of technological advancements. With such robust procurement strategies and a focus on advanced ammunition development, the region's defense market is poised for significant growth in the coming years.
Ammunition Industry Overview
The ammunition market is fragmented, with several global and local ammunition manufacturing companies. However, it is dominated by large international players like KNDS N.V., BAE Systems plc, Rheinmetall AG, General Dynamics Corporation, and RUAG Group. At the same time, the rest of the market share is controlled mainly by players in local defense industries of several countries.
Companies ramp up their research and development efforts to meet future demand, focusing on creating advanced munitions. These munitions are designed for 'fire and forget' capabilities, enhancing weapon lethality and expanding their impact radius. In tandem, munition suppliers are pushing boundaries, extending the range, and broadening the potential impact zones to align with future weapon systems and modern warfare needs. Recognizing the strategic importance, nations are significantly bolstering their local ammunition manufacturing capabilities. With major procurement nations pivoting towards developing indigenous models for both domestic and international markets, players stand to gain from early investments in unique munition designs and bolstered domestic production.
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
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
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
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
5.2 Application
5.2.1 Non-lethal
5.2.2 Lethal
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
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.
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).
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| Application | |
| Non-lethal | |
| Lethal |
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Ammunition Market Research FAQs
How big is the Ammunition Market?
The Ammunition Market size is expected to reach USD 31.72 billion in 2024 and grow at a CAGR of 4.05% to reach USD 38.68 billion by 2029.
What is the current Ammunition Market size?
In 2024, the Ammunition Market size is expected to reach USD 31.72 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 (2024-2029).
Which region has the biggest share in Ammunition Market?
In 2024, 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 2023?
In 2023, the Ammunition Market size was estimated at USD 30.44 billion. The report covers the Ammunition Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Ammunition Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key challenges in the Ammunition Industry?
The key challenges in the Ammunition Industry are a) Concerns about proliferation and misuse of ammunition can lead to stricter regulations, impacting manufacturers b) Shifting political climates and international relations can affect ammunition trade and export controls
What are the key challenges in the Ammunition Industry?
The key challenges in the Ammunition Industry are a) Concerns about proliferation and misuse of ammunition can lead to stricter regulations, impacting manufacturers b) Shifting political climates and international relations can affect ammunition trade and export controls
Ammunition Industry Report
The global ammunition market is experiencing significant growth, driven by increased defense spending and the need for modern military and law enforcement equipment. This expansion is fueled by geopolitical tensions, regional conflicts, and terrorism, which necessitate advanced warfare equipment and ammunition for national security. The industry's growth is further propelled by the changing nature of warfare, police militarization, and armed forces modernization, boosting both defense and civil segments.
The small caliber ammunition segment is witnessing rapid growth due to its use in homeland security, military, sporting, and hunting applications. Additionally, the trend of stockpiling ammunition in military and civilian sectors to maintain war reserves is notable, despite civilian disarmament efforts and international ammunition control measures. The Asia Pacific region is emerging as a key market, influenced by increasing cross-border conflicts and terrorism.
Technological advancements are reshaping the industry, introducing new ammunition types that offer better performance, accuracy, and lethality. This opens avenues for market growth and innovation. The report provides a comprehensive market overview, highlighting market size, market share, and market growth. It also includes a detailed market analysis, market forecast, and market trends.
The report covers global industry information, industry analysis, and industry outlook, providing insights into industry size, industry statistics, and industry trends. It also includes industry reports, industry research, and industry sales data. The report highlights market leaders, market segmentation, and market value, offering a market review and market predictions.
For detailed insights, the report example and report PDF are available for download. The research companies involved have provided in-depth market data and industry research, ensuring a thorough understanding of the market dynamics. The market outlook and growth rate are comprehensively covered, offering a clear picture of the industry's future trajectory.
Ammunition Market Report Snapshots
