| Study Period | 2020 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | 2020 - 2023 |
| CAGR | 4.00 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
North America Ammunition Market Analysis
The North America Ammunition Market is expected to register a CAGR of 4% during the forecast period.
Although the COVID-19 pandemic affected the economy of the region, it did not diminish the sales of ammunition in the region during and after 2020. In fact, in the year 2020, when COVID-19 was at its peak, the United States military expenditure was USD 778.2 billion, a 5.98% increase from the previous year. From 2021, as the supply chain also began to reach its maximum recovery, the ammunition market further began to showcase its growth.
The rapid growth in military spending, with the increase in procurement of advanced land, sea, and air vehicles, and the development of technologically advanced systems are expected to drive the market during the forecast period. Also, the increasing investments in R&D for military modernization programs, for the procurement of the latest equipment to replace and upgrade the existing ammunition assets, is one of the major factors driving the market.
North America Ammunition Market Trends
Military Segment to Dominate the Market
The military segment currently dominates the market, and it is expected to continue its domination, in terms of market share, over the forecast period.
This can be attributed mainly to the increase in the procurement of ammunition by the armed forces, local enforcement agencies, and border security forces to subdue the threats arising due to terrorism, territorial conflicts, and geopolitical tensions. The countries in this region are procuring ammunition systems to protect their borders, which is generating demand in the market. For instance, in August 2022, Rheinmetall secured an order from a NATO customer for the supply of 155mm Assegai ammunition system, including fuses, various projectile types such as high-explosive service rounds, and Assegai artillery propelling charges. The Assegai family of artillery ammunition can be fired from any NATO STANAG-compatible artillery system, including the PzH 2000 self-propelled howitzer. The increased military expenditure is also a key factor behind the growth of the military segment of the North America Ammunition market. According to SIPRI, in 2021, the US military spending amounted to USD 801 billion whereas the Canada military expenditure was USD 26.5 billion. Such factors are leading to the growth of the military segment.
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Increased Procurement is Driving the Ammunition Market Share of the United States
The ammunition market in the US is expected to continue its growth at a constant rate during the forecast period, primarily due to the massive military spending in this region. Also, newer technological developments are being carried out by the US Army to re-supply the pinned down troops with ammunition, during a firefight. Currently, the US Army is making use of a GPS guided mortar shell, known as Ammunition Resupply Projectile (ARP), which possesses the capability of resupplying 5.56 mm rounds to the troops during a firefight, by making use of parasails during the landing process. The advancements in technology in ammunitions are driving the market in the US. For instance, in June 2022, Rheinmetall AG received a contract worth USD 14.3 million under a U.S. Navy transaction agreement (OTA) to prototype a low-cost engagement capability that boosts the effectiveness of existing and future Naval gun weapon systems against air and surface threats. The prototype system is expected to an Initial Operating Capability for the 30mm x 173 MK 340 MOD 0 Kinetic Energy Electronically Timed (KEET) airburst munition. Again, in September 2022, Rheinmetall AG announced that the company will supply the L58 extended range charge technology, its latest artillery propellant charge technology to the U.S. Army. Such developments are anticipated to drive the North American ammunition market during the forecast period.
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North America Ammunition Industry Overview
The prominent players of the market are BAE Systems PLC, General Dynamics Corporation, Northrop Grumman Corporation, Rheinmetall AG, and Nexter Group KNDS. The increasing need for arms and ammunition is strengthening their local and government-owned ammunition companies. Companies are currently focusing on the design and manufacture of more lethal ammunition to increase their market shares. Rheinmetall AG is one of the major players in the market that is providing artillery ammunition through multiple joint ventures in various regions. For instance, in February 2021, Rheinmentall AG and Northrop Grumman signed a ten year according to which both the companies will develop ammunition technology for future artillery operations. In May 2021, U.S. Department of Defense offered a contract to General Dynamics Ordnance and Tactical Systems, which is a part of General Dynamics, of worth USD 49,3 million, for procurement of 105mm tank ammunition. Countries in this region are supporting local manufacturing companies to facilitate the needs of their respective armed forces and law enforcement agencies, thereby, helping the local companies to have a significant share in the market.
North America Ammunition Market Leaders
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BAE Systems plc
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General Dynamics Corporation
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Nexter Group KNDS
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Northrop Grumman Corporation
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Rheinmetall AG
- *Disclaimer: Major Players sorted in no particular order
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North America Ammunition Market News
In December 2022, BAE Systems PLC received an order of supplying a large stock of the Bofors 57mm 3P advanced ammunition, that holds a total worth USD 18 million. In the same time period, Finland ordered considerable stock of rounds of the ammunition of worth USD 14 million.
In December 2022, Rheinmetall AG secured an order worth EUR 576 million, to supply 600,000 rounds of 30mm ammunition for Puma infantry fighting vehicle.
In June 2021, Rheinmetall AG launched the Spectac, which is a rectangular smartphone like design stun grenade, specially designed for the military and law enforcement special operators.
North America Ammunition Industry Segmentation
Ammunition refers to any explosive material that is fired or denonated from a weapon or weapon system. Common ammunition that are used in civil and military sectors are bullets, bombs, land mines etc.
The North America Ammunition market is segmented based on type and end user. Based on type the market is segmented into Small Caliber, Medium Caliber, and Large Caliber. Based on end user the market is segmented into Civilian and Military. The civilian segment encompasses homeland security, local law enforcement agencies, and licensed civilian users, while the military segment includes the army, navy, and air force.
The scope of the report is exclusive of non-lethal ammunition, such as rubber bullets, wax bullets, plastic bullets, bean bag rounds, and sponge grenades.
| Type | Small Caliber | ||
| Medium Caliber | |||
| Large Caliber | |||
| End User | Civilian | ||
| Military | |||
| Geography | North America | United States | |
| Canada | |||
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North America Ammunition Market Research FAQs
What is the current North America Ammunition Market size?
The North America Ammunition Market is projected to register a CAGR of 4% during the forecast period (2025-2030)
Who are the key players in North America Ammunition Market?
BAE Systems plc, General Dynamics Corporation, Nexter Group KNDS, Northrop Grumman Corporation and Rheinmetall AG are the major companies operating in the North America Ammunition Market.
What years does this North America Ammunition Market cover?
The report covers the North America Ammunition Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the North America Ammunition Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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North America Ammunition Industry Report
Statistics for the 2025 North America Ammunition market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Ammunition analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
