Market Trends of Automatic Weapons Industry
Land Segment to Witness Highest Growth During the Forecast Period
Growing land-based border issues and the increasing focus on close combat systems are the main reasons for the growth of the land segment. With the increase in military engagements globally, the armed forces are upgrading to more powerful, automated cartridges to deal with combat requirements. Additionally, with the armor being worn by the militaries becoming tougher to penetrate, the armies are focusing on firearms that cause cyclical impacts, causing more damage to the enemies.
Moreover, countries are increasing the size of their troops due to the rise in cross-border conflicts. In January 2023, Poland raised its defense spending to 4% of GDP from 2.4%. The country plans to grow to 250,000 professional military personnel.
Modernization is also a driver for the demand for automatic weapons. On this note, in April 2022, SIG Sauer Inc. won a 10-year production contract from the US Army to supply two new soldier rifles: XM5 and OMC250. For soldiers involved in close-quarters combat, the XM5 will replace the M4/M4A1 carbine rifle, and the XM250 will replace the M249 Squad Automatic Weapon. Additionally, both new rifles will use the new 6.8 mm common cartridge family of ammunition as well as a new fire control system. The value of the initial delivery order on the contract was USD 20.4 million for weapons and ammunition. The contract includes accessories, spares, and contractor support. Similarly, in May 2023, Singapore's Ministry of Defence (MINDEF) selected the Colt Infantry Automatic Rifle (Colt IAR) as its next standard-issue automatic weapon for the Singapore Army. The Colt IAR will replace the ST Engineering Land Systems' Ultimax 100, which was in service with Singapore's military since 1982 in its Mk.2 and Mk.3 subvariants.
North America to Dominate Market Share During the Forecast Period
Countries in North America, such as the US, are investing large sums in the soldier modernization programs, through which they are also procuring new automatic firearms for the armed forces. The US Army's 2023 fiscal year budget request calls for the service to acquire 1,704 automatic rifles, 17,164 fire control modules, and 16,348 rifles. The US military maintains stocks of various foreign-made arms for use by special operations forces (SOF) in training exercises to arm those replicating the enemy or local partner forces and also for different research and development and test and evaluation purposes.
Moreover, in November 2022, the US Army planned to purchase Russian-made 5.45x39mm AK-74 assault rifles or copies made in other countries. The Army Contracting Command-New Jersey (CCNJ) issued a notice for the US Government's interest in AK-74-type Kalashnikov assault rifles and support parts suppliers. The notice included the list of standard arrays of accessories to go along with the refile: a Shoulder sling, four magazines, a cleaning kit, an oil bottle, and a user manual.
