Asia-Pacific Medium And Large Caliber Ammunition Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 461.84 Million |
| Market Size (2029) | USD 539.84 Million |
| CAGR (2024 - 2029) | 3.17 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Asia-Pacific Medium And Large Caliber Ammunition Market Analysis
The Asia-Pacific Medium And Large Caliber Ammunition Market size is estimated at USD 461.84 million in 2024, and is expected to reach USD 539.84 million by 2029, growing at a CAGR of 3.17% during the forecast period (2024-2029).
The increasing geopolitical conflicts and border tensions of neighboring countries in the region are fueling the rise in military expenditures of various countries. This increase in military spending is propelling investments into the procurement of new land, air, and sea platforms, which in turn is generating demand for medium- and large-caliber ammunition markets.
The medium and large caliber ammunition market is expected to grow primarily due to the armed forces' procurement and upgrade activities to counter emerging threats. Several contracts for naval vessels, military aircraft, helicopters, infantry fighting vehicles (IFVs), and armored personnel carriers (APCs) mounted with medium caliber turret guns are currently underway, and many new contracts are anticipated to be dispersed during the forecast period, creating a parallel demand for medium caliber ammunition.
High procurement costs and issues like arms trafficking might hinder the market potential. The cost of new technologies, especially new concepts, is expected to be high and economically infeasible unless the mass adoption of such technologies occurs.
Programmable ammunition and loitering munitions are some of the emerging technologies with the potential to change the market dynamics radically in the future.
Asia-Pacific Medium And Large Caliber Ammunition Market Trends
Large Caliber Segment is Expected Witness Highest Growth During the Forecast Period
In 2022, Asia-Pacific spent USD 569 billion on military expenditure. Over the past few years, terrorist operations have increased in nations like Afghanistan, Pakistan, India, and the Philippines. As a result, more anti-terrorism funding is being made available to combat terrorism at the domestic and international levels.
The large caliber segment of the market is expected to witness growth primarily due to the procurement of howitzers, artilleries, etc., which in turn is propelling governments' investments in procuring large caliber ammunition. Countries in the Asia-Pacific region have collaborated with significant ammunition manufacturers to support their indigenous defense capabilities. In June 2022, Thales Australia entered into a collaboration agreement with EXPAL Systems S.A. The new agreement aims to establish solutions in Australia for large caliber Naval munitions and fuzes supporting the Australian defense force. Such developments and procurements of advanced systems are anticipated to boost the segment's growth during the forecast period.
China to Continue Market Dominance During the Forecast Period
China currently dominates the market and is expected to continue its dominance during the forecast period. This is mainly due to growing military spending and subsequent investments into the development and procurement of advanced armaments. The country plans to complete military modernization by 2035 and emerge as a supreme military power by the second centenary goal of 2049.
China has multiple state-owned and home-grown defense manufacturers that cater to the country’s defense needs. Aviation Industry Corporation of China (AVIC), China Electronics Technology Group Corporation (CETC), China North Industries Group Corporation (NORINCO), and China South Industries Group Corporation (CSGC) are some of the major domestic defense companies that provide China with the weapons and munitions required to carry out the country’s military activities.
China has been prioritizing its military and economic interests, which has recently led to multiple security expansions. As part of these expansions, the country is venturing into geographical areas that are causing international unrest and leading to military conflicts. China recently announced that Taiwan needs to be part of mainland China and has launched some fighter jets near the separately governed Taiwan. China is also expanding its military security to tackle the border conflict with India. These moves sparked a significant conflict between the Asian-Pacific countries. Such tensions and deployment of advanced weaponry are expected to accelerate the growth of the country in the coming years.
Asia-Pacific Medium And Large Caliber Ammunition Industry Overview
The Asia-Pacific medium- and large-caliber ammunition market is highly fragmented, with many regional players supporting various armed forces. Some prominent market players are Munitions India Limited, Poongsan Corporation, Rheinmetall AG, Saab AB, and Singapore Technologies Engineering Ltd.
The international players in the market are forming partnerships with governments, constructing new production facilities, and increasing their presence in the region. The growth is subjective to several associative factors, such as allocating funds to procure new equipment. It may be adversely affected by the rapid technological advances resulting in the effective life of a newly developed technology.
Over the years, the local players have mastered technology and product design, and they are offering similar quality ammunition at a relatively lower price. This threatens the growth of the established players in the region and is expected to further intensify the competition in the market during the forecast period.
Asia-Pacific Medium And Large Caliber Ammunition Market Leaders
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Poongsan Corporation
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Saab AB
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Rheinmetall AG
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Munitions India Limited
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Singapore Technologies Engineering Ltd.
*Disclaimer: Major Players sorted in no particular order
Asia-Pacific Medium And Large Caliber Ammunition Market News
In October 2023, the Australian government announced that it would inject USD 139.9 billion into state-owned munitions manufacturing facilities at Mulwala, in New South Wales, and Benalla, in Victoria. Infrastructure redevelopments at both sites will enhance industrial capacity to support future munitions like 155 mm artillery demand.
In November 2022, Hanwha Aerospace was awarded a contract to supply 155mm artillery bi-modular charge systems to BAE Systems plc. The contract, worth around USD 130 million, provides critical components of the artillery operation.
Asia-Pacific Medium And Large Caliber Ammunition Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
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4.4 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
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5.1 Caliber Type
- 5.1.1 Medium Caliber
- 5.1.2 Large Caliber
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5.2 Geography
- 5.2.1 Asia-Pacific
- 5.2.1.1 China
- 5.2.1.2 India
- 5.2.1.3 Japan
- 5.2.1.4 South Korea
- 5.2.1.5 Rest of Asia-Pacific
6. COMPETITIVE LANDSCAPE
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6.1 Company Profiles
- 6.1.1 Munitions India Limited
- 6.1.2 Kalyani Strategic Systems Limited
- 6.1.3 Poongsan Corporation
- 6.1.4 Rheinmetall AG
- 6.1.5 Saab AB
- 6.1.6 Rostec State Corporation
- 6.1.7 China South Industries Group Co.,Ltd.
- 6.1.8 Hanwha Group
- 6.1.9 Singapore Technologies Engineering Ltd.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Asia-Pacific Medium And Large Caliber Ammunition Industry Segmentation
Medium-caliber ammunition includes 40mm, 30mm, 25mm, and 20mm high-explosive (HE), armor-piercing (AP), anti-personnel, and training cartridges that can defeat light armor, material, and personnel targets. On the other hand, ammunition with a caliber greater than 40mm, including mortar and artillery ammunition, is included under large-caliber ammunition.
The market is segmented by caliber type and geography. By caliber type, it is divided into medium caliber and large caliber. The report also offers market size and forecasts for four countries across the region. For each segment, the market size and forecasts have been based on value (USD).
| Caliber Type | Medium Caliber | |
| Large Caliber | ||
| Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Rest of Asia-Pacific |
Asia-Pacific Medium And Large Caliber Ammunition Market Research FAQs
How big is the Asia-Pacific Medium And Large Caliber Ammunition Market?
The Asia-Pacific Medium And Large Caliber Ammunition Market size is expected to reach USD 461.84 million in 2024 and grow at a CAGR of 3.17% to reach USD 539.84 million by 2029.
What is the current Asia-Pacific Medium And Large Caliber Ammunition Market size?
In 2024, the Asia-Pacific Medium And Large Caliber Ammunition Market size is expected to reach USD 461.84 million.
Who are the key players in Asia-Pacific Medium And Large Caliber Ammunition Market?
Poongsan Corporation, Saab AB, Rheinmetall AG, Munitions India Limited and Singapore Technologies Engineering Ltd. are the major companies operating in the Asia-Pacific Medium And Large Caliber Ammunition Market.
What years does this Asia-Pacific Medium And Large Caliber Ammunition Market cover, and what was the market size in 2023?
In 2023, the Asia-Pacific Medium And Large Caliber Ammunition Market size was estimated at USD 447.20 million. The report covers the Asia-Pacific Medium And Large Caliber Ammunition Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Asia-Pacific Medium And Large Caliber Ammunition Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Asia-Pacific Medium And Large Caliber Ammunition Industry Report
Statistics for the 2024 Asia-Pacific Medium And Large Caliber Ammunition market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Asia-Pacific Medium And Large Caliber Ammunition analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
