Europe Medium And Large Caliber Ammunition Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 328.76 Million |
| Market Size (2029) | USD 377.61 Million |
| CAGR (2024 - 2029) | 2.81 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Europe Medium And Large Caliber Ammunition Market Analysis
The Europe Medium and Large Caliber Ammunition Market size is estimated at USD 1.31 billion in 2023, and is expected to reach USD 1.49 billion by 2028, growing at a CAGR of 2.60% during the forecast period (2023-2028).
European countries' increased defense spending on weapon systems is driving the market's growth. Militaries in Europe are investing in weapons such as field artillery, RWS, mortars, naval guns, aircraft cannons., etc., to strengthen the lethality of the armed forces. These weapons also provide cost-effective firepower support over costly missiles and rockets during close combat operations.
The Russia-Ukraine war in 2022 is expected to aid the procurement and upgradation activities undertaken by armed forces to counter the emerging threats. Several contracts are underway for naval vessels, military aircraft, helicopters, infantry fighting vehicles (IFVs), and armored personnel carriers (APCs) mounted with large-calibre turret guns. Many new contracts are anticipated to be dispersed during the forecast period. Due to this, the demand for medium and large-caliber ammunition is expected to rise in the region.
Growth is subjective to several associative factors, such as allocating funds to procure new equipment. Rapid technological advances, resulting in the short-term effectiveness of newly developed technology, may adversely affect it.
Europe Medium And Large Caliber Ammunition Market Trends
Large Caliber Ammunition is Expected to Dominate the Market
Europe has a robust and technologically advanced defense market driven by various factors, including geopolitical concerns, modernization efforts, and defense budget allocations. The defense budgets of European countries play a crucial role in shaping the military helicopter market. Despite economic challenges, defense spending has remained a priority for many European nations due to rising security concerns. In 2022, Europe spent USD 480 billion on its military, an increase of 13% over 2021. By the end of March 2022, numerous European NATO member nations announced plans to increase military expenditures in reaction to the Russian invasion of Ukraine in February 2022, aiming to meet or exceed the NATO spending target of 2% of GDP or higher.
Large ammunition weapons are cost-effective over costly missiles and rockets used for ground attack operations. These factors are driving the demand for large-caliber ammunition in the region. For instance, in June 2023, the Norwegian Defense Materiel Agency (NDMA) awarded a contract to Nammo AS, a Norwegian/Finnish aerospace and defense group, to supply 155mm IM HE-ER mortar shells, with a range of some 40 kilometers to enhance the capabilities of the Norwegian Armed Forces.
Similarly, in January 2022, Germany’s federal armed forces announced its plans to upgrade its 120mm mortar systems and respective ammunition and awarded a contract for USD 30.62 million to Rheinmetall AG. The upgrade will include firing new-generation shells and adding obturation rings to the mortar tubes. It will be equipped with a modern propulsion system and highly intensive explosives, with an extended range of 4.9 miles and high precision. These developments are driving the segment market during the forecast period.
United Kingdom To Dominate Market Share During the Forecast Period
To confront potential threats, the UK intends to upgrade its armed forces. According to the recently released Defense Equipment Plan for 2021 to 2031, the country aims to spend USD 321 billion on the purchase and support of equipment. On this note, the UK's military budget 2023 was USD 69.29 billion.
The UK has around 192,000 active military personnel and 83,000 reserve military personnel, bringing the total military strength of the country to about 275,000. These forces are responsible for the defense of the UK, its overseas territories, and the Crown dependencies. The UK has provided millions of rounds of ammunition and advanced weapons and equipment to the Ukrainian armed forces to support their fight against Russia’s invasion. The UK government also confirmed the increase in the UK’s 155mm production capacity ahead of the NATO Summit in Vilnius, Lithuania. Such developments are expected to propel the country's market growth during the forecast period.
Europe Medium And Large Caliber Ammunition Industry Overview
Europe's medium—and large-caliber ammunition market is semi-consolidated. Some prominent players in the market are General Dynamics Corporation, BAE Systems plc, Rheinmetall AG, Northrop Grumman Corporation, and Nexter Group KNDS.
Europe has some of the largest ammunition manufacturers in the world, and they are well-known globally for their brand value, reliability, and quality. However, several countries in the region have developed their local ammunition manufacturing, resulting in the advent of local players who are equally strong, providing smaller sub-systems of a larger network/projects in partnership with the global leaders. Over the years, the regional players have mastered technology and product design, and they are offering similar quality ammunition at a relatively lower price, posing a threat to the growth of the established players in Europe, who have been demanding monopoly-style prices for their products and services. This is expected to further intensify the competition in the market during the forecast period.
Europe Medium And Large Caliber Ammunition Market Leaders
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General Dynamics Corporation
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Rheinmetall AG
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Northrop Grumman Corporation
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KNDS N.V.
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BAE Systems plc
*Disclaimer: Major Players sorted in no particular order
Europe Medium And Large Caliber Ammunition Market News
In July 2023, the German military awarded Rheinmetall AG a EUR 1.2 billion (USD 1.35 billion) contract for the supply of 155mm artillery ammunition. The delivery is scheduled for 2024 to be completed by 2029.
In March 2022, the Hungarian Ministry of Defense contracted Rheinmetall AG to supply an extensive package of ammunition worth several hundred million euros. The order includes 120mm tank ammunition and 155mm artillery shells, as well as propelling charges and fuzes.
Europe 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 and Services
- 4.4.5 Degree of Competition
5. MARKET SEGMENTATION
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5.1 Caliber Type
- 5.1.1 Medium
- 5.1.2 Large
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5.2 Country
- 5.2.1 United Kingdom
- 5.2.2 France
- 5.2.3 Germany
- 5.2.4 Italy
- 5.2.5 Russia
- 5.2.6 Rest of Europe
6. COMPETITIVE LANDSCAPE
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6.1 Company Profiles
- 6.1.1 General Dynamics Corporation
- 6.1.2 BAE Systems plc
- 6.1.3 Rheinmetall AG
- 6.1.4 Northrop Grumman Corporation
- 6.1.5 KNDS N.V.
- 6.1.6 Nammo AS
- 6.1.7 Denel SOC Ltd.
- 6.1.8 Mesko
- 6.1.9 Saab AB
- 6.1.10 Diehl Stiftung & Co. KG
- 6.1.11 Leonardo S.p.A.
- 6.1.12 RTX Corporation
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityEurope Medium And Large Caliber Ammunition Industry Segmentation
The 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 more significant 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, the market is segmented into medium and large. The report also offers the market size and forecasts for six countries across the region. For each segment, the market sizing and forecasts have been done based on value (USD).
| Caliber Type | Medium |
| Large | |
| Country | United Kingdom |
| France | |
| Germany | |
| Italy | |
| Russia | |
| Rest of Europe |
Europe Medium And Large Caliber Ammunition Market Research FAQs
How big is the Europe Medium And Large Caliber Ammunition Market?
The Europe Medium And Large Caliber Ammunition Market size is expected to reach USD 328.76 million in 2024 and grow at a CAGR of 2.81% to reach USD 377.61 million by 2029.
What is the current Europe Medium And Large Caliber Ammunition Market size?
In 2024, the Europe Medium And Large Caliber Ammunition Market size is expected to reach USD 328.76 million.
Who are the key players in Europe Medium And Large Caliber Ammunition Market?
General Dynamics Corporation, Rheinmetall AG, Northrop Grumman Corporation, KNDS N.V. and BAE Systems plc are the major companies operating in the Europe Medium And Large Caliber Ammunition Market.
What years does this Europe Medium And Large Caliber Ammunition Market cover, and what was the market size in 2023?
In 2023, the Europe Medium And Large Caliber Ammunition Market size was estimated at USD 319.52 million. The report covers the Europe Medium And Large Caliber Ammunition Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe Medium And Large Caliber Ammunition Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Medium And Large Caliber Ammunition Industry Report
Statistics for the 2024 Europe Medium And Large Caliber Ammunition market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe 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.
