Asia-Pacific Medium And Large Caliber Ammunition Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.34 Billion |
| Market Size (2029) | USD 1.69 Billion |
| CAGR (2024 - 2029) | 4.79 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Asia-Pacific Medium And Large Caliber Ammunition Market Analysis
The Asia-Pacific Medium And Large Caliber Ammunition Market size is estimated at USD 1.34 billion in 2024, and is expected to reach USD 1.69 billion by 2029, at a CAGR of 4.79% during the forecast period (2024-2029).
Geopolitical conflicts and border tensions among neighboring countries drive regional military expenditures. This surge in military spending leads to investments in new land, air, and sea platforms, subsequently boosting demand in the medium- and large-caliber ammunition markets.
The medium and large caliber ammunition market is poised for growth, primarily fueled by armed forces' procurement and upgrade activities to counter emerging threats. Several contracts are underway for naval vessels, military aircraft, helicopters, infantry fighting vehicles (IFVs), and armored personnel carriers (APCs) equipped with medium caliber turret guns. Furthermore, many new contracts will be awarded during the forecast period, creating a parallel demand for medium-caliber ammunition.
However, challenges such as high procurement costs and concerns like arms trafficking could dampen the market's potential. New technologies, particularly innovative concepts, come with steep costs, making them economically unfeasible without widespread adoption. Emerging technologies like programmable ammunition and loitering munitions hold the promise of radically shifting market dynamics.
Asia-Pacific Medium And Large Caliber Ammunition Market Trends
Large Caliber Segment is Expected Witness Highest Growth During the Forecast Period
The study focuses on ammunition ranging from 40mm to 155mm calibers. This encompasses all lethal and non-lethal types, including artillery and rockets, calibrated explicitly at 40mm, 52mm, 60mm, 80mm, 120mm, 130mm, and 150mm, and extending up to 155mm.
Political tensions, territorial disputes, and the ambition for global dominance among military powers are reshaping the geopolitical landscape. In response, governments typically ramp up military spending to bolster national security. Driven by the procurement of howitzers and artillery, the large caliber segment is seeing a surge in government investments. Meanwhile, Asia-Pacific nations are partnering with leading ammunition manufacturers to enhance their domestic defense capabilities.
Due to increased military activity along the Indo-Chinese and Indo-Pakistan borders, India has been deploying artillery and mortar weapons. In line with this, in November 2023, a tender under the 'Make in India' initiative was announced, seeking 200 new mounted howitzers with 105 mm caliber guns from Indian firms. Furthermore, in June 2022, Thales Australia and EXPAL Systems S.A. inked a deal to develop large-caliber naval munitions and fuses, bolstering support for the Australian defense force.
Japan, embroiled in long-standing island disputes with China and South Korea, is enhancing its naval capabilities. In January 2024, Japan secured a contract for 200 Block IV Tomahawks, 200 Block V Tomahawks, and 14 Tactical Tomahawk Weapon Control Systems, including training, maintenance, and ancillary services. These advancements and system procurements will drive segment growth in the coming years.
China To Dominate the Market Share During the Forecast Period
Growing military spending, fueled by geopolitical tensions and border disputes between China and its neighboring countries, drives investments into procuring various defense equipment, including ammunition. According to the data provided by the Stockholm International Peace Research Institute (SIPRI), China was the second-largest spender on its military in 2023, spending USD 296.4 billion.
China is the second-largest global military spender on arms and munitions and the largest spender in Asia-Pacific. The country has multiple state-owned and home-grown defense manufacturers that cater to the country's defense needs. Aviation Industry Corporation of China (AVIC), China Electronics Technology Group Corporation (CETC), China North Industries Group Corporation (NORINCO), and China South Industries Group Corporation (CSGC) are some of the significant domestic defense companies that provide China with the weapons and munitions that are required to carry out the country's military activities. China has prioritized its military and economic interests, recently leading to multiple security expansions. As part of these expansions, the country is venturing into geographical areas, causing international unrest and leading to military conflicts.
In addition, the country is expanding its military security to tackle the border conflict with India starting in 2020. Therefore, the government of China is investing in developing its military strength to tackle any adversary military actions. For instance, in February 2024, China showcased its newly developed ASN-301 loitering munition in Saudi Arabia. Designed to infiltrate adversary airspace, the ASN-301's primary function is to loiter until it picks up a radar signal. Upon detection, the ASN-301 targets the signal and precisely strikes. Equipped with a warhead containing 7,000 fragments, the munition is activated by a proximity laser fuse, ensuring a lethal radius of 20 meters.
Given these developments and the deployment of sophisticated weaponry, China's trajectory appears set for accelerated growth in the foreseeable future.
Asia-Pacific Medium And Large Caliber Ammunition Industry Overview
The Asia-Pacific medium- and large-caliber ammunition market is fragmented, with many regional players supporting various armed forces. Some prominent market players are Bharat Electronics Limited (BEL), Poongsan Corporation, Rheinmetall AG, Saab AB, and Singapore Technologies Engineering Ltd.
The international players in the market are forming partnerships with governments, constructing new production facilities, and increasing their presence in the region. The growth is subjective to several associative factors, such as allocating funds to procure new equipment. It may be adversely affected by the rapid technological advances resulting in the effective life of a newly developed technology. Local players have honed their technology and product design skills over the years, enabling them to offer ammunition of comparable quality at more competitive prices. This development challenges the growth of established regional players and is anticipated to heighten market competition during the forecast period.
Asia-Pacific Medium And Large Caliber Ammunition Market Leaders
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Poongsan Corporation
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Saab AB
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Rheinmetall AG
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Singapore Technologies Engineering Ltd.
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Bharat Electronics Limited (BEL)
*Disclaimer: Major Players sorted in no particular order
Asia-Pacific Medium And Large Caliber Ammunition Market News
- February 2024: Munitions India Limited partnered with the Indian Institute of Technology Madras (IIT Madras) to create India's inaugural indigenously designed 155 Smart Ammunition. This collaboration aims to bolster indigenization efforts in a pivotal segment of the defense sector.
- February 2024: Poongsan Corporation announced the commencement of mass production for extended-range 155 mm artillery shells for the Hanwha Land Systems K9 Thunder self-propelled howitzers (SPHs). DAPA placed an order for 2,000 extended-range 155 mm shells in 2023, with production and delivery expected to be finalized by the end of 2024.
Asia-Pacific Medium And Large Caliber 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 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 Caliber
5.1.1 Medium Caliber
5.1.2 Large Caliber
5.2 Geography
5.2.1 Asia-Pacific
5.2.1.1 China
5.2.1.2 India
5.2.1.3 Japan
5.2.1.4 South Korea
5.2.1.5 Rest of Asia-Pacific
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Munitions India Limited
6.2.2 Kalyani Strategic Systems Limited
6.2.3 Poongsan Corporation
6.2.4 Rheinmetall AG
6.2.5 Saab AB
6.2.6 Rostec State Corporation
6.2.7 Bharat Electronics Ltd.
6.2.8 Hanwha Corporation
6.2.9 Singapore Technologies Engineering Ltd.
6.2.10 General Dynamics Corporation
6.2.11 KNDS N.V.
6.2.12 The Indian Ordnance Factories
6.2.13 THALES
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Asia-Pacific Medium And Large Caliber Ammunition Industry Segmentation
Medium-caliber ammunition encompasses 40mm, 30mm, 25mm, and 20mm cartridges, including high-explosive (HE), armor-piercing (AP), anti-personnel, and training variants. These cartridges are designed to engage light armor, materials, and personnel targets effectively. Conversely, any ammunition exceeding a caliber of 40mm, such as mortar and artillery rounds, falls under large-caliber ammunition.
The market is segmented by caliber and geography. By caliber, the market is divided into medium caliber and large caliber. The report also covers the market sizes and forecasts for the Asia-Pacific medium and large caliber ammunition market in major countries across the region. For each segment, the market size is provided in terms of value (USD).
| Caliber | |
| Medium Caliber | |
| Large Caliber |
| Geography | |||||||
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Asia-Pacific Medium And Large Caliber Ammunition Market Research Faqs
How big is the Asia-Pacific Medium And Large Caliber Ammunition Market?
The Asia-Pacific Medium And Large Caliber Ammunition Market size is expected to reach USD 1.34 billion in 2024 and grow at a CAGR of 4.79% to reach USD 1.69 billion by 2029.
What is the current Asia-Pacific Medium And Large Caliber Ammunition Market size?
In 2024, the Asia-Pacific Medium And Large Caliber Ammunition Market size is expected to reach USD 1.34 billion.
Who are the key players in Asia-Pacific Medium And Large Caliber Ammunition Market?
Poongsan Corporation, Saab AB, Rheinmetall AG, Singapore Technologies Engineering Ltd. and Bharat Electronics Limited (BEL) are the major companies operating in the Asia-Pacific Medium And Large Caliber Ammunition Market.
What years does this Asia-Pacific Medium And Large Caliber Ammunition Market cover, and what was the market size in 2023?
In 2023, the Asia-Pacific Medium And Large Caliber Ammunition Market size was estimated at USD 1.28 billion. The report covers the Asia-Pacific Medium And Large Caliber Ammunition Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Asia-Pacific Medium And Large Caliber Ammunition Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Asia-Pacific Medium And Large Caliber Ammunition Industry Report
Statistics for the 2024 Asia-Pacific Medium And Large Caliber Ammunition market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Asia-Pacific Medium And Large Caliber Ammunition analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
