Market Trends of Mortar Ammunition Industry
The Heavy Caliber Segment is Expected to Witness the Highest Growth During the Forecast Period
The heavy-caliber segment of the market is expected to witness the highest growth during the forecast period. Mortar ammunition caliber sizes of 100 mm and above are classified as heavy-caliber mortars. Conventional heavy-caliber mortars range from 7,200 m to 9,500 m and can carry an explosive payload of 1.2 kg to 4.2 kg, depending on the size of the mortar. Heavy mortars are generally used to level enemy strongholds and decommission armored vehicles. Several nations across the globe have procurement programs underway as part of their extensive weaponry modernization program.
There has been a growing demand for advanced arms and ammunition to cope with the ever-changing battlefield. Moreover, the increase in the defense budget, border unrest, and the growing need for upgrading defense capabilities will also drive the growth of ammunition in the future. For instance, in September 2022, the US Army granted Elbit Systems a USD 49 million contract to acquire 120 mm Mortar Systems.
Similarly, in January 2022, the German Bundeswehr contracted Rheinmetall to supply 120 mm mortar ammunition and improve its existing mortar systems. The total value of the contract amounts to approximately EUR 27 million. Such developments and procurement orders of advanced munitions are expected to accelerate the growth of this segment during the forecast period.
Asia-Pacific to Dominate the Market Share During the Forecast Period
In recent years, Asian countries like China, India, South Korea, and Japan have invested heavily in defense. Increasing focus on enhancing defense capabilities due to political disputes, cross-border conflicts, and rising terrorism across the region leads to growing demand for advanced defense equipment and ammunition.
According to the Stockholm International Peace Research Institute (SIPRI) report published in 2022, China was the second largest defense spender in the world and most significant in Asia-Pacific, with a defense budget of USD 292 billion, while India was the fourth largest defense spender in the world, with a defense expenditure of USD 81.4 billion.
With such a growth in defense expenditure, these countries have invested in developing and procuring newer-generation mortar systems and related ammunition. Along with procuring advanced mortar systems, countries are acquiring advanced ammunition for the mortar systems. In January 2023, South Korea's Defense Acquisition Program Administration (DAPA) announced its strategic plan to deploy 120 mm self-propelled mortars (SPMs) within the Republic of Korea (RoK) Army by 2025. The country primarily operates K-181 60 mm mortars and KM30 107 mm mortars. Apart from these, the government, in recent years, has placed orders for mortars to defend its borders. Such investments and procurement of advanced precision-guided mortar ammunition are anticipated to boost the market's growth in Asia-Pacific during the forecast period.
