Market Trends of Ammunition Storage Industry
Metal Ammunition Storage to Exhibit the Highest Growth Rate During the Forecast Period
Metal ammunition boxes or crates are used to transport and store ammunition of various calibers safely and securely. They are typically made of steel and have a rubber gasket around the lid to protect the ammunition from moisture and air. The primary benefit of steel ammo boxes is that they are made for military use as they are solid and sturdy. The demand for the metal ammunition storage material segment is driven by rising defense expenditures by various global powers annually, as governments worldwide are putting significant resources towards bolstering their defense capabilities, which include acquiring ammunition and enhancing their ammunition storage facilities and systems.
On this note, in 2023, the global military expenditure reached USD 2,443 billion; this was a growth of 6.8% from the year 2021. Additionally, to cater to the demand driven by metal-type ammunition storage boxes, various OEMs are developing metal ammunition storage boxes to use ammunition efficiently. For instance, one of the significant ammunition storage OEMs in the US, Mauser Packaging Solutions, has been developing the highest-quality rustproof and leakproof metal boxes designed for military uses, including storing ammunition, mortars, grenades, and flares. The company also produces various stronghold boxes that are available in multiple sizes for storing and transporting ammunition that meets the international requirements of the US DoD, and each box or can is individually tested for air and watertightness. Overall, such developments are anticipated to drive the market segment's growth in focus during the forecast period.
North America to Dominate the Market During the Forecast Period
In North America, the US is one of the leading nations in terms of technological superiority and has a plethora of firearms and other weapons at its disposal to effectively neutralize and subdue hostile forces. For instance, during 2018-2022 nearly 40% of the global arms export was dominated by the US. The US is also an avid buyer of new weapons and ammunition, and this factor drives the demand for ammunition storage market in the region. For instance, in 2022, the country spent USD 2.27 billion on the procurement of ammunition for the US Army. Out of the total procurement, the country procured small-caliber and medium-caliber ammunition at a cost of USD 320 million, while USD 150 million was allocated for the procurement of mortar ammunition and USD 204 million for tank ammunition.
Additionally, the US military has deployed its soldiers in more than 150 countries around the world, with several of the military personnel permanently assigned outside the country and its territories, excluding Afghanistan, Iraq, and Syria. To support peacekeeping efforts and address geopolitical risks, the US consistently acquires ammunition, which necessitates the use of different types of secure ammunition storage solutions. Overall, the enhanced capabilities of China and Russia on the battlefield forced the US to increase its investments in advanced weapon systems and ammunition. This in turn creates the demand for the ammunition storage systems in the region.
