Artillery Ammunition Market Size
| Study Period | 2024 - 2029 |
| Market Size (2024) | USD 4.43 Billion |
| Market Size (2029) | USD 5.64 Billion |
| CAGR (2024 - 2029) | 4.95 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Artillery Ammunition Market Analysis
The Artillery Ammunition Market size is estimated at USD 4.43 billion in 2024, and is expected to reach USD 5.64 billion by 2029, at a CAGR of 4.95% during the forecast period (2024-2029).
Artillery ammunition represents a significant advancement in military technology, allowing for precise target engagement and a marked reduction in collateral damage. As warfare evolves, the emphasis on precision and the need to minimize civilian harm have become paramount, driving the demand for this advanced ammunition.
The global market landscape is dynamic and influenced by several key trends. One notable trend is the heightened emphasis on integrating advanced targeting systems and enhancing network-centric warfare capabilities. In addition, the industry's growth is driven by a surging demand for munitions tailored for asymmetric warfare environments, marking a shift away from traditional large-scale military operations.
The increase in the military spending of various countries supports the various military initiatives to update military weapons and ammunition, which is expected to generate demand for artillery ammunition. The development of new and advanced artillery ammunition by the ammunition manufacturing companies with extended range, increased lethality, and integrated sensors to increase accuracy is anticipated to attract the armies of various countries for their future procurement, thereby leading the market to witness significant growth during the forecast period.
Regulatory challenges constrain market growth, especially concerning international arms treaties and export controls. The complexities of developing and transferring advanced military technologies frequently lead to elevated costs and extended development timelines. Additionally, in contrast to traditional unguided artillery, the steep price of precision-guided munitions may dissuade certain nations, especially those with a constrained defense budget.
Artillery Ammunition Market Trends
120mm & Above Segment Anticipated to Witness Highest Growth During the Forecast Period
The segment for artillery ammunition of 120mm and above is poised for substantial growth during the forecast period. Key drivers of this expansion include heightened defense spending by multiple nations, a push for more advanced artillery capabilities, and a global trend toward bolstering defense mechanisms. Furthermore, the integration of cutting-edge technology in ammunition development promises to enhance artillery systems' range, lethality, and precision in the foreseeable future.
Major players in the market are heavily investing in R&D for advanced artillery ammunition, signaling a robust focus on the 120 mm and above segment. As a testament to this trend, in April 2023, Switzerland unveiled its intent to bolster its artillery capabilities. They announced the acquisition of an additional batch of 120mm mortar systems, specifically tailored for the General Dynamics European Land Systems Piranha IV 8x8 armored vehicle. Further solidifying this commitment, the Swiss Federal Office for Armaments inked a deal with GDELS-Mowag, securing 16 more Mörser 16 120mm mortar systems units.
In July 2024, Elbit Systems Ltd. secured a USD 220 million contract from the Israel Ministry of Defense for its "Iron Sting" precision-guided mortar munitions. Designed for 120mm mortars, these munitions utilize advanced GPS and laser guidance technologies, achieving high-precision targeting capabilities up to 10 kilometers. The Iron Sting is equipped with a sophisticated multi-mode fuze system, featuring Point Detonation (PD), Point Detonation Delay (PDD), and Proximity Sensor (PRX) functionalities. This two-year upgrade aims to bolster the ground combat effectiveness and accuracy of the Israeli Defense Forces. In February 2023, Ukraine's state arms company announced a joint production of artillery shells with a NATO member from Central Europe, signaling intentions to collaborate on developing and producing other arms and military hardware. Additionally, as tensions escalated in the Russia-Ukraine conflict, Ukroboronprom commenced production of 120-mm mortar rounds in Ukraine.
Thus, the advancements in terms of research and development and production of advanced 120mm and above artillery ammunition by various key players in the market will lead to the 120mm and above segment witnessing significant growth in the market during the forecast period.
Asia-Pacific to Witness Highest Growth During the Forecast Period
Regional security threats, including territorial disputes and geopolitical tensions, are escalating in Asia. In response, nations are intensifying their focus on bolstering defense capabilities, leading to a surge in demand for artillery ammunition. Countries like China, India, and South Korea are channeling investments into advanced artillery systems, viewing them as deterrents against potential threats. This urgency to uphold a formidable defense posture is driving the acquisition of high-caliber artillery munitions, a trend poised to sustain the region's artillery ammunition market growth.
Numerous nations in the Asia Pacific are modernizing their military forces. They're phasing out older artillery systems in favor of advanced models, which demand compatible ammunition. This modernization effort addresses aging equipment and aims to integrate cutting-edge technology for enhanced combat effectiveness. As nations pivot towards sophisticated artillery solutions—like self-propelled howitzers and rocket-assisted projectiles—the demand for specialized ammunition rises, fueling market expansion.
Multinational defense exercises and alliances in the Asia Pacific cultivate a collaborative military training environment. These joint exercises often spotlight artillery's pivotal role in achieving tactical goals, amplifying the demand for artillery ammunition. Participating nations are thus motivated to bolster their artillery ammunition reserves, ensuring they're well-equipped for both training and operational demands, further propelling market growth.
Across the Asia Pacific, defense budgets are witnessing significant boosts, acting as a primary catalyst for the artillery ammunition market. Governments are channeling these funds into defense equipment acquisitions, artillery ammunition included, as part of their national security strategies. This financial commitment not only facilitates direct ammunition purchases but also champions domestic production, nurturing a vibrant defense industrial base in the region.
In January 2023, the Ethiopia government purchased 32 SH-15 (PCL-181) self-propelled howitzers from China. The PCL-181 is a truck-mounted, 155mm self-propelled howitzer used by China’s People’s Liberation Army (PLA) Ground Force. These howitzers are light enough to be airlifted by most medium transport aircraft, including C-295, C-130, and Y-9, making it a more flexible option for Ethiopia’s rapid reaction units. PCL-181) self-propelled howitzers are compatible with all standard 155mm NATO ammunition and indigenous ammunition developed by China North Industries Corporation (NORINCO).
Artillery Ammunition Industry Overview
The artillery ammunition market exhibits a semi-consolidated structure, with several players commanding notable market shares. Key players include General Dynamics Corporation, Rheinmetall AG, BAE Systems plc, THALES, and Saab AB.
Market leaders prioritize developing cutting-edge artillery ammunition systems for global defense personnel. Increased investments in R&D for these advanced systems signal promising opportunities ahead. Furthermore, manufacturers are adopting technologies such as extended-range cannon artillery platforms, bolstering the market's growth prospects during the forecast period.
In August 2023, Rheinmetall AG unveiled a next-gen 120mm KE ammunition tailored to counter modern protection technologies. In September 2023, General Dynamics Ordnance and Tactical Systems clinched a USD 218 million contract from the US Army to boost production of the 155 mm M1128 artillery shells. This contract is a segment of a larger multiyear agreement, totaling USD 974 million, underscoring the focus on enhancing artillery capabilities.
Artillery Ammunition Market Leaders
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Rheinmetall AG
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Saab AB
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THALES
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General Dynamics Corporation
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BAE Systems plc
*Disclaimer: Major Players sorted in no particular order
Artillery Ammunition Market News
- July 2024: In collaboration with Nammo AS, Diehl Defense was contracted to supply 155mm artillery projectiles to the German Armed Forces and their allied partners. This contract underscores the strategic partnership between the companies and highlights their capabilities in providing advanced munitions suitable for modern artillery systems.
- June 2024: ST Engineering has secured contracts exceeding USD 100 million to provide NATO-standard 155mm ammunition to European nations.
- June 2024: KNDS France secured a contract from the French procurement agency Direction générale de l'armement (DGA) to aid in the development of the KATANA high-precision guided ammunition. Set to be available for purchase within the next two years, this 155mm ammunition boasts cutting-edge guidance technology, ensuring pinpoint accuracy within a few meters.
Artillery 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 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers/Consumers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Caliber
5.1.1 Below 120mm
5.1.2 120mm & Above
5.2 Geography
5.2.1 North America
5.2.1.1 United States
5.2.1.2 Canada
5.2.2 Europe
5.2.2.1 United Kingdom
5.2.2.2 France
5.2.2.3 Germany
5.2.2.4 Rest of Europe
5.2.3 Asia-Pacific
5.2.3.1 China
5.2.3.2 Japan
5.2.3.3 India
5.2.3.4 South Korea
5.2.3.5 Rest of Asia-Pacific
5.2.4 Latin America
5.2.4.1 Brazil
5.2.4.2 Mexico
5.2.4.3 Rest of Latin America
5.2.5 Middle East and Africa
5.2.5.1 United Arab Emirates
5.2.5.2 Saudi Arabia
5.2.5.3 South Africa
5.2.5.4 Israel
5.2.5.5 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 General Dynamics Corporation
6.2.2 Rheinmetall AG
6.2.3 BAE Systems plc
6.2.4 Saab AB
6.2.5 Nammo AS
6.2.6 MESKO S.A.
6.2.7 THALES
6.2.8 The Indian Ordnance Factories
6.2.9 Singapore Technologies Engineering Ltd.
6.2.10 MSM Group
6.2.11 Elbit Systems Ltd.
6.2.12 KNDS N.V.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Artillery Ammunition Industry Segmentation
Artillery ammunition refers to the type of ammunition that is designed to be fired from artillery canons which have an effect over long distances. There are many different types of artillery ammunition, but these ammunition are usually high-explosive and designed to shatter into fragments on impact to maximize damage. Common types of artillery ammunition include high explosives, smoke, illumination, and practice rounds. Some artillery rounds are designed as cluster munitions.
The artillery ammunition market is segmented based on caliber and geography. By caliber, the market is segmented into below 120mm and 120mm and above. The report also covers the market sizes and forecasts for the artillery 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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| Below 120mm | |
| 120mm & Above |
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Artillery Ammunition Market Research FAQs
How big is the Artillery Ammunition Market?
The Artillery Ammunition Market size is expected to reach USD 4.43 billion in 2024 and grow at a CAGR of 4.95% to reach USD 5.64 billion by 2029.
What is the current Artillery Ammunition Market size?
In 2024, the Artillery Ammunition Market size is expected to reach USD 4.43 billion.
Who are the key players in Artillery Ammunition Market?
Rheinmetall AG, Saab AB, THALES, General Dynamics Corporation and BAE Systems plc are the major companies operating in the Artillery Ammunition Market.
Which is the fastest growing region in Artillery 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 Artillery Ammunition Market?
In 2024, the North America accounts for the largest market share in Artillery Ammunition Market.
What years does this Artillery Ammunition Market cover, and what was the market size in 2023?
In 2023, the Artillery Ammunition Market size was estimated at USD 4.21 billion. The report covers the Artillery Ammunition Market historical market size for years: . The report also forecasts the Artillery Ammunition Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What future trends are expected to influence the Artillery Ammunition Market?
Future trends that are expected to influence the Artillery Ammunition Market are a) Use of AI and machine learning in targeting systems b) Development of hypersonic projectiles c) Focus on sustainability and reduced environmental impact in munitions manufacturing
What are the challenges faced by the Artillery Ammunition Market?
Major challenges faced by the Artillery Ammunition Industry are a) Regulatory restrictions b) High cost of advanced ammunition c) Need for continuous R&D to keep pace with evolving military requirements
What future trends are expected to influence the Artillery Ammunition Market?
Future trends that are expected to influence the Artillery Ammunition Market are a) Use of AI and machine learning in targeting systems b) Development of hypersonic projectiles c) Focus on sustainability and reduced environmental impact in munitions manufacturing
Artillery Ammunition Industry Report
The global artillery ammunition market is experiencing notable expansion, driven by the increasing demand for advanced military weaponry for defense applications globally. This market, segmented by caliber size, encompasses various regions including North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. The market size is growing as a result of continuous research and development efforts by artillery ammunition manufacturers aiming to enhance shell range, lethality, and accuracy. These advancements have led to increased artillery shell production by country, particularly in the USA, where manufacturers are integrating cutting-edge technologies to align with evolving defense strategies.
The competitive landscape highlights a strategic focus on innovation among artillery shell manufacturers in the USA and worldwide, as they strive for market dominance. This market analysis reveals that the industry is poised for further growth, presenting lucrative opportunities for manufacturers to develop advanced systems. The market report from Mordor Intelligence™ provides a comprehensive analysis, including market share, market trends, and market growth, offering valuable insights into the industry's future.
Industry research indicates a promising market outlook, with market leaders concentrating on new technological advancements to stay ahead. The industry analysis suggests that the market forecast is positive, with significant growth rate expectations. For those seeking detailed industry information, the report example from Mordor Intelligence™ includes an industry overview, market segmentation, and market value assessments, available as a report PDF download.
The artillery ammunition market review underlines the importance of market data and market predictions in shaping future industry trends. As the industry continues to evolve, the focus on market growth and market segmentation will be crucial for companies aiming to maintain their competitive edge. The market overview provided in the report offers a thorough understanding of the market dynamics, ensuring that stakeholders are well-informed about the industry's direction.
In summary, the artillery ammunition market is set for substantial growth, driven by technological advancements and strategic innovations. The market forecast and market outlook are optimistic, with industry reports highlighting the potential for increased market value and industry sales. The detailed market research and industry statistics available in the report will be invaluable for companies looking to capitalize on emerging opportunities within this dynamic market.
