Market Size of Latin America Ammunition Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 2.00 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Latin America Ammunition Market Analysis
The Latin American ammunition market is projected to record a CAGR of more than 2% during the forecast period.
Although the COVID-19 pandemic affected the economy of the region, it did not diminish the sales of ammunition in the region during and after 2020. In fact, in the year 2020, when COVID-19 was at its peak, Mexico's military expenditure was USD 8.68 billion, a 7.91% increase from 2020. From 2021, as the supply chain also began to reach its maximum recovery, the ammunition market further began to showcase its growth.
In Latin America, there is a constant supply, availability, and proliferation of ammunition to civilians, law enforcement, and the military. This may be one of the major driving factors for the ammunition market in Latin America during the forecast period. The countries in Latin America, like Mexico, Brazil, Peru, Argentina, Bolivia, and Colombia, are involved in the production and exporting of ammunition. This growth of ammunition trade in Latin America is another propelling factor for the growth of the market in the region. The changing laws and regulations pertaining to the use of arms and ammunition by civilians in this region are expected to open up opportunities for the market during the forecast period.
Latin America Ammunition Industry Segmentation
Ammunition refers to any explosive material that is fired or detonated from a weapon or weapon system. Common ammunition that is used in civil and military sectors are bullets, bombs, land mines, etc.
The Latin American ammunition market is segmented based on type and end user. Based on type the market is segmented into small caliber, medium caliber, large caliber, mortar, and artillery Ammunition. Based on the end user the market is segmented into civilian and military. The scope of the Latin American ammunition market includes the manufacturing and procurement of ammunition by local law enforcement agencies and police officials in Latin America only. Law enforcement is included in the military segment of the market.
| Ammunition Type | |
| Small Caliber | |
| Medium Caliber | |
| Large Caliber | |
| Mortar and Artillery Ammunition |
| End User | |
| Civilian | |
| Military |
| Country | |
| Mexico | |
| Brazil | |
| Argentina | |
| Chile | |
| Rest of Latin America |
Latin America Ammunition Market Size Summary
The Latin American ammunition market is anticipated to experience steady growth over the forecast period, driven by a consistent supply and availability of ammunition to civilians, law enforcement, and military sectors. Despite the economic challenges posed by the COVID-19 pandemic, the market demonstrated resilience, with military expenditures in countries like Mexico witnessing significant increases. The region's involvement in ammunition production and exportation, particularly in countries such as Brazil, Mexico, and Argentina, further propels market growth. Additionally, evolving laws and regulations regarding civilian arms and ammunition use are expected to create new opportunities for market expansion. The military segment is projected to lead in growth, supported by increased military spending and procurement of advanced defense systems, alongside ongoing border security concerns and drug-related conflicts.
Brazil is poised to dominate the Latin American ammunition market, bolstered by its status as the largest defense spender and a major ammunition exporter in the region. The relaxation of gun laws in Brazil has facilitated a surge in legal firearm sales, enhancing the market's appeal to both local and international players. The market is moderately fragmented, with several local and state-owned companies like CBC, FAMAE, and IMBEL holding significant shares. While global players may leverage their brand value to penetrate the market, existing contracts with local entities present challenges for foreign entrants. Recent product launches and technological advancements by regional players underscore the dynamic nature of the market, which continues to evolve in response to both domestic and international demands.
Latin America Ammunition Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Porter's Five Forces Analysis
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1.4.1 Threat of New Entrants
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Bargaining Power of Suppliers
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Ammunition Type
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2.1.1 Small Caliber
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2.1.2 Medium Caliber
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2.1.3 Large Caliber
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2.1.4 Mortar and Artillery Ammunition
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2.2 End User
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2.2.1 Civilian
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2.2.2 Military
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2.3 Country
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2.3.1 Mexico
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2.3.2 Brazil
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2.3.3 Argentina
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2.3.4 Chile
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2.3.5 Rest of Latin America
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Latin America Ammunition Market Size FAQs
What is the current Latin America Ammunition Market size?
The Latin America Ammunition Market is projected to register a CAGR of greater than 2% during the forecast period (2024-2029)
Who are the key players in Latin America Ammunition Market?
FAMAE, CBC Defense, Aguila Ammunition, IMBEL and EMGEPRON are the major companies operating in the Latin America Ammunition Market.
