Market Trends of Medium Caliber Ammunition Industry
This section covers the major market trends shaping the Medium Caliber Ammunition Market according to our research experts:
Lethal Segment Accounts for Largest Share in 2021
The lethal segment of the market currently dominates the market and is expected to continue its dominance over the market during the forecast period. Lethal ammunition is used by the military and law enforcement agencies. Escalating security threats and territorial disputes have compelled armed forces to stockpile their armory with weapons that use medium-caliber ammunition. The stockpiled weapons range from stationary and platform-mounted heavy machine guns (HMGs) and automatic cannons to air defense systems and C-RAM applications. The medium caliber weapons are installed on military aircraft, helicopters, main battle tanks (MBTs), infantry fighting vehicles (IFVs), and armored personnel carriers (APCs), among others. The emergence of impact-resistant armor on modern military vehicles has necessitated the induction of medium-caliber weaponry as one of the prime choices for a wide array of battlefield effectors. In 2021, Oshkosh Defense received multiple contracts worth USD 229 million from the US Army Contracting Command, Detroit Arsenal (ACC- DTA) to upgrade various batches of Stryker Brigade Combat Team (SBCT) with the 30 mm Medium Caliber Weapon System (MCWS). Under the contracts, the company would upgrade the weapon systems on 174 Stryker combat vehicles (two Stryker Brigade Combat Team (SBCT)). Under the fleet modernization plan, the US Army plans to upgrade up to six Stryker brigades with Oshkosh Defense MCWS. With military modernization programs being rolled out in most countries, like India, the United States, and the United Kingdom, among others, the market for lethal weapons and their ammunition is expected to witness accelerated growth during the forecast period.
Asia-Pacific Region is Expected to Generate the Highest Demand During the Forecast Period
The Asia-Pacific region is expected to witness rapid growth during the forecast period, primarily due to the increasing demand for medium-caliber ammunition in countries like India, China, Japan, and South Korea. Major countries in the Asia-Pacific region have increased their defense spending in the past few years, focused on strengthening their armed forces against growing geopolitical tensions and terror threats. For instance, according to the Congressional Research Service, China is expected to introduce more than four aircraft carriers, more than 39 cruisers and destroyers, and more than 38 frigates and corvettes during the period of 2020 - 2040 period. Similarly, the Indian Air Force (IAF) is planning to acquire 450 fighter aircraft for deployment on the northern and western frontiers of the country by 2035. In January 2021, India signed off an order for 83 Hindustan Aeronautics' (HAL) Tejas Mk-1A Light Combat Aircraft. The order covers 73 single-seat Tejas Mk-1As and 10 two-seat trainers. It is worth USD 6.4 billion. The production of Tejas Mark 2 is expected to begin in 2023 as the IAF approved its design in December 2021. The Tejas Mk-1 aircraft is equipped with a 23 mm twin-barrel GSh-23 cannon. Similar aircraft, armored vehicles, and naval vessels modernization plans of the armed forces is expected to boost the growth of the market during the forecast period
