Ammunition Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 9.48 Billion |
| Market Size (2029) | USD 11.59 Billion |
| CAGR (2024 - 2029) | 4.09 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Ammunition Market Analysis
The Ammunition Market size is estimated at USD 9.48 billion in 2024, and is expected to reach USD 11.59 billion by 2029, growing at a CAGR of 4.09% during the forecast period (2024-2029).
The impact of the COVID-19 pandemic on the ammunition market revenues is deemed to be less. The growth in global defense spending and initiation of infantry support programs to develop sophisticated and deadlier weaponry and ammunition are anticipated to bolster the adoption of newer generation ammunition with better penetrating power, thereby driving the growth of the ammunition market. Also, several new weapon and ammunition development programs are underway to develop lighter but deadlier ammunition with an enhanced range. The growth in technological advancements is fostering such developments.
The demand for advanced weapons and related ammunition is primarily from countries in Europe and Asia-Pacific, as they are either replacing their aging equipment or expanding their inventory to strengthen their armed forces.
Ammunition Market Trends
This section covers the major market trends shaping the Ammunition Market according to our research experts:
The Small Caliber Ammunition Segment Accounted for the Highest Share in 2021
The small caliber ammunition segment held the largest market share in 2021. The need to maintain a sufficient inventory of ammunition with the militaries worldwide and the increasing demand for training ammunition are anticipated to have a positive impact on the military small caliber ammunition segment. In addition, several militaries have been involved in peacekeeping missions and counter-insurgency operations in foreign countries and require a continuous supply of ammunition for continuing their operations. This has been driving the growth of the segment currently. Recently, in December 2021, the Indian government placed an order for 670,000 rifles worth INR 5,124 crore (USD 681.85 million) to Russia. Initially, a lot of 70,000 AK-203 Kalashnikov assault rifles were delivered by Russia in January 2022, and the remaining 600,000 rifles are planned to be manufactured by Indo-Russia Rifles Private Limited (IRRPL), the Indo-Russian joint venture company. Militaries are increasingly moving toward higher calibers like 7.62 mm projectiles, as the existing widely used calibers like the 5.56 mm are becoming ineffective in piercing the tougher armors. Countries like the United States and India are also developing firearms based on new calibers like the 6.8 mm ammunition, which are expected to witness higher demand in the years to come. Governments are also focusing on increasing the local manufacturing capabilities of ammunition for their armed forces, which is expected to further intensify the competition between the global and local players, especially in regions like Asia-Pacific and Middle-East and Africa, during the forecast period.
The North American Region Held the Largest Market Share in 2021
The North American region held the largest market share in 2021. The United States has one of the largest armed forces in the world, with 2.26 million total military personnel, of which 1.4 million serve as active military personnel and 0.86 million serve in the reserve force. The country has the largest military spending in the world and accounts for 39% of the global spending. The US military expenditure increased by almost 4.39% in 2020 to reach USD 778.23 billion. Currently, due to the ongoing geopolitical tensions, the United States has increased its investments in advanced weapon systems and ammunition to meet the enhanced capabilities of China and Russia on the battlefield. Also, participation in NATO missions abroad generates significant demand for different types of ammunition. Currently, the US Army is planning to move away from the 5.56 mm round in its infantry weapons that have been the standard for decades. In addition to small infantry weapons, the US Army is investing in modernization of its mortar and artillery systems to keep up with the pace of technological advances for enhanced responsiveness, survivability, range, and accuracy. Such procurement plans and advanced ammunition development programs are anticipated to drive the market in the region during the forecast period.
Ammunition Industry Overview
The ammunition market is fragmented, with the presence of several global and local ammunition manufacturing companies. However, the market is majorly dominated by large international players like BAE Systems, Rheinmetall, General Dynamics, and RUAG, while the rest of the market share is controlled majorly by players in local defense industries of several countries. To cater to the future demand, companies are involved in the research and development of new and advanced munitions that will allow the users to employ fire and forget type munitions and increase the lethality of weapons and the area of impact. Some of the suppliers of munitions are also working on extending the munition range and the impact area in preparation for future weapons systems and connected warfare. The countries are robustly investing in enhancing their local ammunition manufacturing capabilities. Players are expected to benefit from early unique munition development plans and domestic production capabilities in each of the major procuring countries, as these countries are working on developing indigenous models for both domestic and international consumption and are gaining market shares slowly but steadily.
Ammunition Market Leaders
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BAE Systems PLC
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Rheinmetall AG
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General Dynamics Corporation
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Nexter Group
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RUAG Group
*Disclaimer: Major Players sorted in no particular order
Ammunition Market News
- In January 2022, the German Bundeswehr signed an agreement with Rheinmetall to deliver 120 mm mortar ammunition and modernize its mortar systems. Booked under the 2021 order, the contract was placed under a gross volume worth approximately EUR 27 million. The modernization is expected to be completed by 2023.
- In December 2021, the Indian government announced an Expression of Interest to purchase 1,966 rounds of 155 mm Terminally Guided Munitions for the Indian Army to enhance the capabilities of the artillery guns in its inventory.
- In April 2021, Polish Armaments Group received two contracts worth more than PLN 350 million from the Polish Armed Forces to deliver 122 mm Feniks FHD rockets and 120 mm RAK-HE-1 mortar ammunition to enhance the capabilities of the artillery forces.
- In February 2021, Nammo entered a partnership with MAC LLC to develop polymer-cased ammunition for military and defense applications.
Ammunition Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
- 1.3 Currency Conversion Rates for USD
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
- 3.1 Market Size and Forecast, Global, 2018 - 2031
- 3.2 Market Share by Type, 2021
- 3.3 Market Share by Application, 2021
- 3.4 Market Share by Geography, 2021
- 3.5 Structure of the Market and Key Participants
4. MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
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4.4 Industry Attractiveness - Porter's Five Forces Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size and Forecast by Value - USD billion, 2018 - 2031)
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5.1 Type
- 5.1.1 Small Caliber Ammunition
- 5.1.2 Medium Caliber Ammunition
- 5.1.3 Large Caliber Ammunition
- 5.1.3.1 Mortar Ammunition
- 5.1.3.2 Artillery Ammunition
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5.2 Application
- 5.2.1 Non-lethal
- 5.2.2 Lethal
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5.3 Geography
- 5.3.1 North America
- 5.3.1.1 United States
- 5.3.1.1.1 Type
- 5.3.1.2 Canada
- 5.3.1.2.1 Type
- 5.3.2 Europe
- 5.3.2.1 United Kingdom
- 5.3.2.1.1 Type
- 5.3.2.2 France
- 5.3.2.2.1 Type
- 5.3.2.3 Germany
- 5.3.2.3.1 Type
- 5.3.2.4 Russia
- 5.3.2.4.1 Type
- 5.3.2.5 Rest of Europe
- 5.3.2.5.1 Type
- 5.3.3 Asia-Pacific
- 5.3.3.1 China
- 5.3.3.1.1 Type
- 5.3.3.2 India
- 5.3.3.2.1 Type
- 5.3.3.3 Japan
- 5.3.3.3.1 Type
- 5.3.3.4 South Korea
- 5.3.3.4.1 Type
- 5.3.3.5 Rest of Asia-Pacific
- 5.3.3.5.1 Type
- 5.3.4 Latin America
- 5.3.4.1 Brazil
- 5.3.4.1.1 Type
- 5.3.4.2 Rest of Latin America
- 5.3.4.2.1 Type
- 5.3.5 Middle-East and Africa
- 5.3.5.1 Saudi Arabia
- 5.3.5.1.1 Type
- 5.3.5.2 United Arab Emirates
- 5.3.5.2.1 Type
- 5.3.5.3 Turkey
- 5.3.5.3.1 Type
- 5.3.5.4 Rest of Middle-East and Africa
- 5.3.5.4.1 Type
6. COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
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6.2 Company Profiles
- 6.2.1 BAE Systems PLC
- 6.2.2 Rheinmetall AG
- 6.2.3 Elbit Systems Ltd
- 6.2.4 Nexter Group
- 6.2.5 General Dynamics Corporation
- 6.2.6 Nammo AS
- 6.2.7 RUAG Group
- 6.2.8 Singapore Technologies Engineering Ltd
- 6.2.9 Denel SOC Ltd
- 6.2.10 Northrop Grumman Corporation
- 6.2.11 MESKO SA
- 6.2.12 CBC Global Ammunition
- 6.2.13 Indian Ordnance Factories
- 6.2.14 Saab AB
- 6.2.15 Hanwha Corporation
- 6.2.16 ARSENAL JSCo.
- 6.2.17 ASELSAN AS
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Ammunition Industry Segmentation
The scope of the ammunition market includes the procurement of various types of ammunition from the military, homeland security, local law enforcement agencies, border security forces, and special forces. The scope of the study excludes ammunition procurement for commercial applications. The market is segmented based on type into small caliber ammunition, medium caliber ammunition, and large caliber ammunition. The small-caliber ammunition includes a range of ammunition below 20 mm, including .50 caliber (12.7 mm), 5.56 mm, 7.62 mm, 9 mm, 10- and 12-gauge, .22 caliber, .30 caliber, .38 caliber, .45 caliber, and .300 Winchester Magnum (WinMag). The medium-caliber ammunition ranges between 20 mm and 40 mm. The large-caliber ammunition includes ammunition ranging more than 40 mm. The large-caliber is further segmented into mortar ammunition (60 mm to 120 mm) and artillery ammunition (more than 120 mm). The market is also segmented by application in lethal and non-lethal. The report also covers the market sizes and forecasts for the market in major countries across different regions. The market sizing and forecasts have been provided in value (USD billion).
| Type | Small Caliber Ammunition | ||
| Medium Caliber Ammunition | |||
| Large Caliber Ammunition | Mortar Ammunition | ||
| Artillery Ammunition | |||
| Application | Non-lethal | ||
| Lethal | |||
| Geography | North America | United States | Type |
| Geography | North America | Canada | Type |
| Geography | Europe | United Kingdom | Type |
| Geography | Europe | France | Type |
| Geography | Europe | Germany | Type |
| Geography | Europe | Russia | Type |
| Geography | Europe | Rest of Europe | Type |
| Geography | Asia-Pacific | China | Type |
| Geography | Asia-Pacific | India | Type |
| Geography | Asia-Pacific | Japan | Type |
| Geography | Asia-Pacific | South Korea | Type |
| Geography | Asia-Pacific | Rest of Asia-Pacific | Type |
| Geography | Latin America | Brazil | Type |
| Geography | Latin America | Rest of Latin America | Type |
| Geography | Middle-East and Africa | Saudi Arabia | Type |
| Geography | Middle-East and Africa | United Arab Emirates | Type |
| Geography | Middle-East and Africa | Turkey | Type |
| Geography | Middle-East and Africa | Rest of Middle-East and Africa | Type |
Ammunition Market Research FAQs
How big is the Ammunition Market?
The Ammunition Market size is expected to reach USD 9.48 billion in 2024 and grow at a CAGR of 4.09% to reach USD 11.59 billion by 2029.
What is the current Ammunition Market size?
In 2024, the Ammunition Market size is expected to reach USD 9.48 billion.
Who are the key players in Ammunition Market?
BAE Systems PLC, Rheinmetall AG, General Dynamics Corporation, Nexter Group and RUAG Group are the major companies operating in the Ammunition Market.
Which is the fastest growing region in Ammunition Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Ammunition Market?
In 2024, the North America accounts for the largest market share in Ammunition Market.
What years does this Ammunition Market cover, and what was the market size in 2023?
In 2023, the Ammunition Market size was estimated at USD 9.11 billion. The report covers the Ammunition Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Ammunition Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key challenges in the Ammunition Industry?
The key challenges in the Ammunition Industry are a) Concerns about proliferation and misuse of ammunition can lead to stricter regulations, impacting manufacturers b) Shifting political climates and international relations can affect ammunition trade and export controls
Ammunition Industry Report
The ammunition industry is witnessing significant growth, fueled by increased defense spending and the need for modern military and law enforcement equipment modernization. This surge is driven by geopolitical tensions, regional conflicts, and terrorism, necessitating advanced warfare equipment and ammunition for national security. The industry's expansion is further propelled by the changing nature of warfare, police militarization, and armed forces modernization, boosting both defense and civil segments. Particularly, the small caliber segment is seeing rapid growth due to its use in homeland security, military, sporting, and hunting applications. Additionally, the trend of stockpiling ammunition in military and civilian sectors to maintain war reserves is notable, despite civilian disarmament efforts and international ammunition control measures. The Asia Pacific region is emerging as a key market, influenced by increasing cross-border conflicts and terrorism. Technological advancements are reshaping the industry, introducing new ammunition types that offer better performance, accuracy, and lethality, opening avenues for market growth and innovation. For detailed insights, Mordor Intelligence™ provides an in-depth analysis, including market share, size, revenue growth rate, and a forecast outlook in a free report PDF download.
