Market Trends of North America Ammunition Industry
This section covers the major market trends shaping the North America Ammunition Market according to our research experts:
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.
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.
