Asia-Pacific Ammunition Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 2.57 Billion |
| Market Size (2029) | USD 3.26 Billion |
| CAGR (2024 - 2029) | 4.83 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Asia-Pacific Ammunition Market Analysis
The Asia-Pacific Ammunition Market size is estimated at USD 2.57 billion in 2024, and is expected to reach USD 3.26 billion by 2029, growing at a CAGR of 4.83% during the forecast period (2024-2029).
In recent years, defense expenditures in Asian countries such as China, India, South Korea, and Japan have significantly grown. Increasing political disputes among neighboring countries, rising cross-border conflicts between China, India, and Pakistan, and increasing terrorist activities lead to a growing focus on strengthening defense capabilities, which in turn creates the demand for weapons and ammunition.
An increased demand for advanced weapons and ammunition helps improve defense capabilities and soldiers’ security. Small-caliber ammunition is widely used for civilian applications such as hunting, sports shooting, and personal protection, while medium-and large-caliber ammunition is used for defense applications.
Asian countries are highly investing in modernizing their armed forces and upgrading their weaponry and ammunition. As military technology evolves, there is a need for compatible ammunition that can be used with advanced weapon systems. The allocation of defense budgets by various Asian countries directly impacts ammunition procurement. Higher defense budgets can lead to increased ammunition purchases to maintain and enhance military capabilities. On the other hand, technological limitations for production and stringent government regulations hampers market growth.
Asia-Pacific Ammunition Market Trends
Military Segment is Expected to Dominate the Market During the Forecast Period
- The military segment dominates the Asia-Pacific ammunition market. The dominance is due to the increased procurement of ammunition by the armed forces to subdue the threats arising from terrorism, territorial conflicts, and geopolitical tensions. The countries are procuring artillery and mortar systems to safeguard their borders against illegal trespassing and several forms of trafficking, generating demand for ammunition. Increasing defense expenditure and expanding military forces from countries such as India, Japan, and China boost the market's growth. In 2022, China and India were the world's second and fourth-largest defense spenders, with a defense budget of USD 292 billion and USD 81.4 billion, respectively.
- For instance, in October 2022, Nammo AS, a Norway-based ammunition manufacturer, agreed with South Korea's Hyundai Rotem to develop new 120-mm ammunition for the K2 Black Panther main battle tank (MBT). Furthermore, in January 2023, the Indian Army requested to indigenously source 5,000 9×19-mm machine pistols as an emergency procurement via the Fast Track Procedure (FTP) of the Defense Acquisition Procedure for an estimated USD 6 million. Thus, growing expenditure on strengthening military forces and procuring advanced weapons drive market growth across the region.
India to Showcase Highest Growth During the Forecast Period
- India is estimated to show significant growth in the market during the forecast period. The growth may attributed to the rising defense expenditure, growing terrorism, and cross-border conflicts among neighboring countries, such as China and Pakistan. The government is focusing on procuring new advanced weapons with enhanced lethality, driving the demand for ammunition in India. Growing terrorist activities and increased tensions between India and China along the Line of Control (LOC) are leading to increasing expenditure on the defense sector and strengthening defense capabilities.
- The country has a large group of domestic and international suppliers that compete intensely to supply arms and ammunition to the government. Major global companies like Lockheed Martin Corporation and BAE Systems and domestic suppliers like Kalyani Group, Tata Advanced Systems Limited, and Mahindra Defense Systems Ltd are prominent players in the Indian defense market. The government-owned Defense Research Development Organization (DRDO) is the largest supplier of weapon systems operating in the government sector of the country. For instance, in November 2023, India announced its plans to procure 200 new mounted howitzers equipped with 105-mm guns to boost its mobile firepower in high-altitude border areas like the Line of Actual Control with China. Thus, rising investment in procuring next-generation rifles and ammunition drives the market's growth across the region.
Asia-Pacific Ammunition Industry Overview
The Asia-Pacific ammunition market is semi-consolidated, with several local and global players holding significant shares in the market. Some of the major players in the market are Rheinmetall AG, BAE Systems PLC, Poongson Corporation, Singapore Technologies Engineering Ltd, and General Dynamics Corporation.
The companies are currently focusing on designing and developing advanced ammunition for defense forces. In August 2022, the Indian Navy received the first-ever fully made-in-India 30-mm ammunition. Economic Explosives Ltd developed the ammunition expected to be used in the AK-630 guns fitted on warships. Countries like China, India, South Korea, Singapore, and Indonesia support local players to facilitate the requirements of their armed forces and law enforcement agencies, driving the market's growth.
Asia-Pacific Ammunition Market Leaders
Rheinmetall AG
BAE Systems plc
Poongson Corporation
General Dynamics Corporation
Singapore Technologies Engineering Ltd.
*Disclaimer: Major Players sorted in no particular order
Asia-Pacific Ammunition Market News
- February 2024: China showcased its newly developed ASN-301 loitering munition in Saudi Arabia. Designed to infiltrate adversary airspace, the ASN-301's main function is to loiter until it picks up a radar signal. Upon detection, the ASN-301 targets the signal and precisely strikes. Equipped with a warhead containing 7,000 fragments, the munition is activated by a proximity laser fuse, ensuring a lethal radius of 20 meters.
- February 2023: The Indian Ministry of Defence (MoD) selected five domestic ammunition manufacturers to supply 2,000 155mm terminally guided munitions (TGMs) for the existing 155-mm artillery guns.
APAC 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
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
5.1 By Type
5.1.1 Small Caliber
5.1.2 Medium Caliber
5.1.3 Large Caliber
5.2 By End User
5.2.1 Civilian and Law Enforcement
5.2.2 Military
5.3 By Country
5.3.1 China
5.3.2 India
5.3.3 Japan
5.3.4 South Korea
5.3.5 Australia
5.3.6 Rest of Asia-Pacific
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Rheinmetall AG
6.2.2 Poongson Corporation
6.2.3 Hanwha Corporation
6.2.4 BAE Systems PLC
6.2.5 KNDS NV
6.2.6 General Dynamics Corporation
6.2.7 Winchester Ammunition (Olin Corporation)
6.2.8 CBC Global Ammunition
6.2.9 Remington Arms Company LLC (Vista Outdoor Inc.)
6.2.10 Singapore Technologies Engineering Ltd
6.2.11 Munitions India Limited
6.2.12 Yantra India Limited
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Asia-Pacific Ammunition Industry Segmentation
Ammunition is the projectile with the primers, fuses, and propelling charges fired from the gun. The ammunition is used for various civilian and military applications.
The Asia-Pacific ammunition market is segmented by type, end user, and country. By type, the market is segmented into small-caliber, medium-caliber, and large-caliber. By end user, the market is segmented into civilian and law enforcement and military. The military segment comprises the Army, Navy, and Air Force. The civilian segment encompasses homeland security, local law enforcement agencies, and licensed civilian users. By country, the market is segmented into China, India, Japan, South Korea, Australia, and Rest of Asia-Pacific. The report offers the market size and forecasts for major countries across the region. For each segment, the market sizing and forecasts were made based on value (USD).
| By Type | |
| Small Caliber | |
| Medium Caliber | |
| Large Caliber |
| By End User | |
| Civilian and Law Enforcement | |
| Military |
| By Country | |
| China | |
| India | |
| Japan | |
| South Korea | |
| Australia | |
| Rest of Asia-Pacific |
APAC Ammunition Market Research FAQs
How big is the Asia-Pacific Ammunition Market?
The Asia-Pacific Ammunition Market size is expected to reach USD 2.57 billion in 2024 and grow at a CAGR of 4.83% to reach USD 3.26 billion by 2029.
What is the current Asia-Pacific Ammunition Market size?
In 2024, the Asia-Pacific Ammunition Market size is expected to reach USD 2.57 billion.
Who are the key players in Asia-Pacific Ammunition Market?
Rheinmetall AG, BAE Systems plc, Poongson Corporation, General Dynamics Corporation and Singapore Technologies Engineering Ltd. are the major companies operating in the Asia-Pacific Ammunition Market.
What years does this Asia-Pacific Ammunition Market cover, and what was the market size in 2023?
In 2023, the Asia-Pacific Ammunition Market size was estimated at USD 2.45 billion. The report covers the Asia-Pacific Ammunition Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Asia-Pacific Ammunition Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
APAC Ammunition Industry Report
Statistics for the 2024 APAC Ammunition market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. APAC Ammunition analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
