Market Trends of Weapons And Ammunition Industry
The Small Caliber Segment Held the Highest Share in the Market
Countries like India, China, and the United States are significantly boosting their ground forces by introducing cutting-edge small arms, reflecting the impact of military modernization on the ammunition market. Military and law enforcement training needs consistently fuel the demand for small ammunition. Additionally, factors such as border disputes, threats from militants and terrorists, and civil unrest are bolstering the global market for small-caliber ammunition.
While the growth of the small-caliber ammunition market hinges on factors like fund allocation for new equipment, the rapid obsolescence of technology could pose challenges. Furthermore, as nations ramp up defense investments for modernization, there's a heightened demand for small-caliber ammunition to replace and upgrade existing arsenals. The introduction of technologically advanced handguns further drives the market. For instance, in August 2023, India unveiled its Prabal, a long-range revolver with a firing range of 50 meters, surpassing its counterparts. Similarly, in February 2023, CARACAL, the biggest small arms manufacturer in the Middle East, announced that it expects its business to witness significant growth in the next five years, and the company is also looking to boost its exports to the global market.
However, despite these growth drivers, increasing emphasis on gun control measures aimed at curbing accidents, domestic violence, and suicides might pose hurdles, potentially hindering the market's growth during the forecast period.
North America is Projected to Show Remarkable Growth During the Forecast Period
North America maintains its market dominance, driven by rising defense spending and heightened procurement of advanced weaponry by the United States and Canada. In 2023, the United States earmarked a substantial USD 4.7 billion for weapon acquisitions. Notably, the United States leads in light weaponry, solidifying its military supremacy with a consistent uptick in advanced system procurements. In April 2022, the US Army signed a decade-long deal with Sig Sauer Inc. commissioning the production and delivery of two Next Generation Squad Weapon variants, the XM250 Automatic Rifle and the XM5 Rifle, alongside the 6.8 Common Cartridge Family of Ammunition.
The evolving face of warfare propels the US Department of Defense (DoD) to bolster its armed forces with superior armaments. Rigorous testing ensures operational reliability and gauges performance enhancements from new integrated designs. For instance, in February 2023, the United States sealed a USD 522 million deal with Northrop Grumman Corporation and Global Military Products, focusing on artillery ammunition for Ukraine. Additionally, in September 2022, the US Army awarded a USD 114 million five-year contract for supplying 5.56 mm NATO training ammo, specifically the AA40 5.56 mm NATO frangible rounds utilized in training by various US military branches. Such developments are expected to drive the market's growth in the region.
