Market Trends of Small Arms Industry
The Military Segment Expected to Continue its Dominance During the Forecast Period
The military segment is poised for significant growth in the coming years. Global defense spending, on a consistent rise, is a key driver for the heightened demand for small arms. Rising threats from terrorism, territorial disputes, and geopolitical tensions are compelling nations to bolster their defense budgets. Consequently, there is a notable surge in investments, particularly in military modernization programs, aimed at acquiring advanced weaponry to either supplement or replace existing arsenals. This trend is prominently visible in countries like Germany, France, India, China, and Russia, all actively bolstering their ground forces with cutting-edge small arms. Moreover, as armies worldwide strive to maintain ample ammunition reserves and witness a rising demand for training ammunition, the small military arms segment is set to benefit.
As military armor advances and becomes more resilient, armies pivot toward firearms designed for enhanced impact, inflicting more significant damage on adversaries. Many nations are now prioritizing the acquisition of the latest small arms for their forces. For instance, in January 2022, India and Russia inked a deal to produce AK-203 assault rifles in India. This collaboration established a joint venture, Indo-Russia Rifles Private Ltd, between OFB-Rosoboronexport and Kalashnikov. The new rifles are slated for induction into the Indian Armed Forces by 2024.
North America to Dominate Market Share During the Forecast Period
North America, spearheaded by the United States and Canada, is poised to dominate the small arms market during the forecast period. With its robust defense spending, the United States is prioritizing the procurement of advanced small arms and bolstering its armed forces' capabilities. This move is partly in response to the adoption of cutting-edge weaponry by nations like Russia and China, which are traditional political rivals. Moreover, beyond combat scenarios, US military personnel are extensively involved in peacekeeping missions, embassy security, and other classified operations, all of which have fueled the demand for small arms.
The US military relies on diverse infantry weapons, from suppressing enemy positions to neutralizing vehicles and fortified structures. There is a heightened emphasis on acquiring the next-generation squad weapon for its infantry.
Conversely, civilians in the United States possess over 45% of the world's civilian-held firearms. The nation's emphasis on personal safety is evident in initiatives promoting firearm safety, with programs like the Civilian Marksmanship Program explicitly targeting youth and advocating firearm safety training and rifle practice.
