Asia Pacific Ammunition Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Asia-Pacific Ammunition Market Report is Segmented by Type (Small Caliber, Medium Caliber, Large Caliber), End User (Civilian, Military), and Country (China, India, Japan, South Korea, Australia, and the Rest of Asia Pacific). The market sizing and forecasts have been provided for all the above segments in values in USD billion.

APAC Ammunition Market Size

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Asia-Pacific Ammunition Market Summary
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Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR > 3.00 %
Market Concentration Medium

Major Players

Asia-Pacific Ammunition Market Major Players

*Disclaimer: Major Players sorted in no particular order

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APAC Ammunition Market Analysis

The Asia-Pacific ammunition market is anticipated to grow at a CAGR of more than 3% during the forecast period.

The defense sector across the Asia-Pacific witnessed a mild impact due to the COVID-19 pandemic. South Korean government reduced its defense budget by USD 733 million in 2020 due to the pandemic. The funds were transferred to the national emergency disaster assistance plan that aims to reduce the economic impact of the pandemic.

A surge in the number of terrorist attacks in the region has triggered the procurement of weapons by regional law enforcement agencies to prevent such security lapses and the resultant loss of both lives and property. Since several weapons are configured to work with a specific caliber size, the demand for new weapons is also driving the demand for associated ammunition in this region. Furthermore, growing cross-border conflicts, political disputes among neighboring countries, and increasing terrorism across the Asia-Pacific are likely to lead to rising demands for advanced weapons and ammunition from defense forces.

Additionally, the rising demand for environment-friendly bullets to boost green ammunition and the design and development of advanced ammunition are expected to drive market growth in the coming years. The ongoing modernization of the armed forces in the region is anticipated to drive the demand for ammunition as several air, land, and naval assets feature some sort of fixed weapon station that can fire medium to large caliber bullets.

APAC Ammunition Market Trends

This section covers the major market trends shaping the APAC Ammunition Market according to our research experts:

Military Segment is Expected to Dominate the Market During the Forecast Period

The military segment is anticipated to dominate the market during the forecast period due to the increase in procurement of ammunition by the armed forces to subdue the threats arising due to terrorism, territorial conflicts, and geopolitical tensions. The countries are procuring artillery and mortar systems to safeguard their borders against illegal trespassing and several forms of trafficking, generating demand for ammunition. Increasing defense expenditure and expansion of military forces from countries such as China and India boost the growth of the market. China and India are the world's second and third largest defense spenders, with a defense budget of USD 291 billion and USD 76.6 billion, respectively.

For instance, in October 2022, Nammo AS, a Norway-based ammunition manufacturer, entered into an agreement with South Korea's Hyundai Rotem to develop new 120 mm ammunition for the K2 Black Panther main battle tank (MBT). Furthermore, the Indian Ministry of Defence (MoD) is planning to procure air-defense (AD) guns for the Indian Army. The Indian MoD issued a request for proposal (RFP) that includes the acquisition of 220 towed AD guns and nearly 142,000 rounds of ammunition. Thus, growing expenditure on the strengthening of military forces and procurement of advanced weapons drive market growth across the region.

Asia-Pacific Ammunition Market - Military Expenditure, By Country, Asia Pacific, USD Billion, 2021

India is expected to Witness the Highest Growth during the Forecast Period

India is estimated to show significant growth in the market during the forecast period. The growth is attributed to the rising defense expenditure, growing terrorism, and cross-border conflicts among neighboring countries, such as China and Pakistan. The country is focusing on the procurement of new advanced weapons with enhanced lethality, driving the demand for ammunition in India. Growing terrorist activities and increased tensions between India and China along the Line of Control (LOC) are leading to growing expenditure on the defense sector and strengthening defense capabilities.

For instance, in June 2022, the Defence Procurement Board (DPB) of India issued a Request for Information (RFI) for the procurement of 4,800 new sniper rifles with telescopic sight and 78 lakh rounds of ammunition to provide a massive boost to the Indian Army's firepower capabilities. The new .338 caliber rifles should have an effective range of not less than 1,200 meters, and it has a service life of a minimum of 10 years or 5,000 rounds. The total cost of the procurement is more than Rs 450 crore. In addition to that, India and Japan have been investing significantly in modernizing its armory to counter the growing influence of China over the South China Sea. Thus, rising investment in the procurement of next-generation rifles and ammunition drives the growth of the market across the region.

Asia-Pacific Ammunition Market  - Military Expenditure, India, USD Billion, 2016-2021

APAC Ammunition Industry Overview

The Asia-Pacific ammunition market is moderately fragmented, with several players with significant market shares in the region. Some of the major players in the market are Rheinmetall AG, BAE Systems PLC, Nexter Group, Poongson Corporation, and Hanwha Corporation. The companies are currently focusing on designing and developing advanced ammunition for defense forces. In August 2022, the Indian Navy received the first-ever fully made-in-India 30 mm ammunition. Economic Explosives Ltd developed the ammunition, which is expected to be used in the AK-630 guns fitted on warships. Also, countries like China, India, South Korea, Singapore, and Indonesia are supporting local manufacturing companies to facilitate the need of their respective armed forces and law enforcement agencies, driving the growth of the market studied.

APAC Ammunition Market Leaders

  1. Rheinmetall AG

  2. BAE Systems plc

  3. Nexter Group

  4. Poongson Corporation

  5. Hanwha Corporation

*Disclaimer: Major Players sorted in no particular order

Asia-Pacific Ammunition Market Concentration
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APAC Ammunition Market News

In November 2022, Navratna defense PSU Bharat Electronics Ltd (BEL) signed a memorandum of understanding (MoU) with Yantra India Limited (YIL) for cooperation in the areas of military-grade components and ammunition hardware to jointly address the requirements of Indian defense and export markets.

In June 2022, Thales Australia signed a collaboration agreement with EXPAL Systems SA (EXPAL). The new deal aimed to develop sovereign capability solutions in Australia for large-caliber naval munitions and fuses to support the Australian Defence Forces.

APAC Ammunition Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Small Caliber

      2. 5.1.2 Medium Caliber

      3. 5.1.3 Large Caliber

    2. 5.2 End User

      1. 5.2.1 Civilian

      2. 5.2.2 Military

    3. 5.3 Country

      1. 5.3.1 China

      2. 5.3.2 India

      3. 5.3.3 Japan

      4. 5.3.4 South Korea

      5. 5.3.5 Australia

      6. 5.3.6 Rest of Asia-Pacific

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Rheinmetall AG

      2. 6.2.2 Poongson Corporation

      3. 6.2.3 Hanwha Corporation

      4. 6.2.4 BAE Systems PLC

      5. 6.2.5 Nexter Group

      6. 6.2.6 General Dynamics Corporation

      7. 6.2.7 MAGTECH

      8. 6.2.8 Winchester Ammunition (Olin Corporation)

      9. 6.2.9 CBC Global Ammunition

      10. 6.2.10 Remington Arms Company LLC

      11. 6.2.11 Singapore Technologies Engineering Ltd

      12. 6.2.12 Indian Ordnance Factory

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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APAC Ammunition Industry Segmentation

Ammunition is the projectile with the primers, fuses, and propelling charges fired from the gun. The ammunition is used for various civilian and military applications. The Asia-Pacific ammunition market is segmented by type, end-user, and country. By type, the market is segmented into small-caliber, medium-caliber, and large-caliber. By end user, the market is segmented into civilian and military. The military segment comprises the army, navy, and air force. The civilian segment encompasses homeland security, local law enforcement agencies, and licensed civilian users. By country, the market is segmented into China, India, Japan, South Korea, Australia, and the Rest of Asia-Pacific. The values of market sizing and forecasts have been provided in USD billion.

Type
Small Caliber
Medium Caliber
Large Caliber
End User
Civilian
Military
Country
China
India
Japan
South Korea
Australia
Rest of Asia-Pacific
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APAC Ammunition Market Research FAQs

The Asia-Pacific Ammunition Market is projected to register a CAGR of greater than 3% during the forecast period (2024-2029)

Rheinmetall AG, BAE Systems plc, Nexter Group, Poongson Corporation and Hanwha Corporation are the major companies operating in the Asia-Pacific Ammunition Market.

The report covers the Asia-Pacific Ammunition Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Asia-Pacific Ammunition Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

APAC Ammunition Industry Report

Statistics for the 2024 APAC Ammunition market share, size and revenue growth rate, created by Mordor Intelligenceā„¢ Industry Reports. APAC Ammunition analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Asia Pacific Ammunition Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)