Market Trends of Southeast Asia, Middle-East And Africa Small Arms And Ammunition Industry
The Military Segment is Expected to Dominate the Market During the Forecast Period
The military segment currently holds a dominant position in the market and is poised to maintain this lead through the forecast period. As global military engagements rise, armed forces are increasingly turning to more potent small arms to meet combat demands. With advancements in military armor, there is a heightened emphasis on firearms that deliver cyclical impacts, inflicting greater damage on adversaries. Many nations are actively procuring and advancing their arsenals with the latest small arms. For example, at the April 2022 Indian Defense Expo, the Indonesian Police secured Turkish Semi-automatic KMR762 pistols from Kale Kalip (Turkey). Concurrently, the Indonesian Army placed orders for KNG-C5 rifles. Additionally, in March 2022, Indonesia added a semi-automatic sniper KMR 762 rifle to its arsenal. In September 2023, the Bangladeshi Police bolstered its inventory with a significant procurement, including 35 lakh shotgun bullets, 6 lakh blank cartridges, 3.22 lakh tear gas shells, 30 sniper rifles, and other essential riot control items.
The arms and ammunition manufacturing sector in the Middle East and Southeast Asia witnessed a surge in localization efforts. Governments in these regions are increasingly mandating local production and re-investment offsets in their military procurement strategies. In November 2022, Malaysia's Maruss Sdn Bhd and Indonesia's PT Pindad inked a pivotal memorandum of understanding (MoU) for arms manufacturing. This collaboration aims to delve into contract manufacturing for small arms and their components alongside ammunition supplies of varying calibers. Such initiatives are set to propel the growth of the military segment.
Saudi Arabia is Anticipated to Witness Significant Growth During the Forecast Period
During the forecast period, Saudi Arabia is poised for significant market growth, driven by the government's substantial investments in bolstering its defense capabilities and advancing to the next generation of weaponry. In 2023, the nation ranked as the world's fifth-largest defense spender, allocating a budget of USD 75.5 billion, marking a notable increase.
Given the current geopolitical landscape, Saudi Arabia's neighboring nations—such as Iraq to the north, Iran across the Persian Gulf, and Yemen to the south—present considerable threats, underscoring the nation's need to prioritize ammunition purchases. With a military force exceeding half a million, including paramilitary units, Saudi personnel predominantly rely on firearms like the FN F2000 (5.56x45 mm), Bushmaster M4-Type (5.56x45 mm), FN Five-seven (5.7x28 mm), and ORSIS T-5000 (7.62x51 mm NATO).
Despite its significant military spending, only 2% currently supports local defense firms, making Saudi Arabia the world's leading arms and ammunition importer. To reduce this reliance, as part of Vision 2030, the government aims to elevate local military equipment spending to 50% by 2030. A key initiative under Vision 2030 is the establishment of Saudi Arabian Military Industries (SAMI), a state-owned entity producing a range of ammunition not just for Saudi forces but also for other nations in the Middle East and North Africa.
Southeast Asia, Middle-East And Africa Small Arms And Ammunition Market Report Snapshots
- Southeast Asia, Middle-East And Africa Small Arms And Ammunition Market Size
- Southeast Asia, Middle-East And Africa Small Arms And Ammunition Market Share
- Southeast Asia, Middle-East And Africa Small Arms And Ammunition Market Trends
- Southeast Asia, Middle-East And Africa Small Arms And Ammunition Companies
