Ammunition Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2030)

The Ammunition Market has been segmented by Type (Small Caliber Ammunition, Medium Caliber Ammunition, and Large Caliber Ammunition), Application (Non-lethal, and Lethal), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa). The report offers market size and forecast for all the above segments in value (USD billion).

Market Snapshot

Ammunition Market Overview
Study Period: 2018 -2030
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 4.01 %

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Market Overview

The ammunition market was valued at USD 7.95 billion in 2020 and is poised to reach USD 11.85 billion by 2030, witnessing a CAGR of 4.01% during the period 2021-2030.

The impact of the COVID-19 pandemic on the ammunition market revenues is deemed to be less. The pandemic might have a slight impact on the demand side dynamics of the market, as some countries might opt for budget cuts, affecting weapon and ammunition procurement programs. However, these procurement delays are expected over a short duration and drastic fluctuations in demand due to the pandemic are not anticipated.

The growth in global defense spending and initiation of infantry support programs to develop sophisticated and deadlier weaponry and ammunition is anticipated to bolster the adoption of newer generation ammunition with better penetrating power, thereby driving the growth of the ammunition market. Also, several new weapon and ammunition development programs are underway to develop lighter but deadlier ammunition with an enhanced range. The growth in technological advancements is fostering such developments.

The demand for advanced weapons and related ammunition is primarily from countries in Europe and Asia-Pacific, either replacing their aging equipment or expanding their inventory to strengthen their armed forces.

Scope of the Report

The scope of the ammunition market includes the procurement of various types of ammunition from the military, homeland security, local law enforcement agencies, border security forces, and special forces. The scope of the study excludes ammunition procurement for commercial applications. The market is segmented based on type into small-caliber ammunition, medium-caliber ammunition, and large-caliber ammunition. The small-caliber ammunition includes a range of ammunition below 20mm, including .50 caliber (12.7 mm), including 5.56 mm, 7.62 mm, 9 mm, 10- and 12-gauge, .22 caliber, .30 caliber, .38 caliber, .45 caliber, and .300 Winchester Magnum (WinMag). The medium-caliber ammunition ranges between 20mm and 40mm. The large-caliber ammunition includes ammunition ranging more than 40mm. The large-caliber is further segmented into mortar ammunition (60mm to 120mm) and artillery ammunition (more than 120mm). The market is also segmented by application in lethal and non-lethal. The report also covers the market sizes and forecasts for the market in major countries across different regions. The market sizing and forecasts have been provided in value (USD billion). 

Type
Small Caliber Ammunition
Medium Caliber Ammunition
Large Caliber Ammunition
Mortar Ammunition
Arrtillery Ammunition
Application
Non-lethal
Lethal
Geography
North America
United States
Canada
Europe
United Kingdom
France
Germany
Russia
Rest of Europe
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
Latin America
Brazil
Rest of Latin America
Middle East & Africa
Saudi Arabia
United Arab Emirates
Turkey
Rest of Middle-East and Africa

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Key Market Trends

The Small Caliber Ammunition Segment Accounted for the Highest Share in 2020

The small caliber ammunition segment held the largest market share in 2020. The need to maintain a sufficient inventory of ammunition with the militaries worldwide and the increasing demand for training ammunition is also anticipated to have a positive impact on the military small caliber ammunition segment. In addition, several militaries have been involved in peacekeeping missions and counter-insurgency operations in foreign countries and require a continuous supply of ammunition for continuing their operations. This has been driving the growth of the segment currently. Recently, the Indian government approved the acquisition of the second batch of around 72,500 Sig Sauer assault rifles from America under fast-track procedures for the Army. The first batch was ordered in 2019 and received in 2020. The first lot of these assault rifles was provided to the troops deployed in the counter-terrorist operations in Jammu and Kashmir. Militaries are increasingly moving towards higher calibers like 7.62 mm projectiles, as the existing widely used calibers like the 5.56 mm are becoming ineffective in piercing the tougher armors. Countries, like the United States and India, are also developing firearms based on new calibers like the 6.8 mm ammunition, which are expected to witness higher demand in the years to come. Governments are also focusing on increasing the local manufacturing capabilities of ammunition for their armed forces, which is expected to further intensify the competition between the global and local players, especially in the regions like the Asia-Pacific and Middle-East and Africa, during the forecast period.

ammunition market segmentation

North America Region Held the Largest Market Share in 2020

The North America region held the largest market share in 2020. The United States has one of the largest armed forces in the world, with 2.26 million total military personnel, of which 1.4 million serve as active military personnel and 0.86 million serve in the reserve force. The country has the largest military spending in the world. In addition to active combat, US personnel are typically deployed as part of several peacekeeping missions, military attachés, or are part of embassies, consulate securities, and several other classified missions. Such deployments have significantly contributed toward the growth of procurement of arms and ammunition by the US armed forces. The US military expenditure increased by almost 4.39% in 2020 to reach USD 778.23 billion. The United States remained the largest defense spending country in 2020 and represented 39% of global spending. The enhanced capabilities of China and Russia on the battlefield forced the United States to increase its investments into advanced weapon systems and ammunition. Also, participation in NATO missions abroad generates significant demand for different types of ammunition. Currently, the US Army is planning to move away from the 5.56 mm round in its infantry weapons that have been the standard for decades. On this note, in September 2019, the US Army selected three firms to advance to the next phase of testing to select the service's Next Generation Squad Weapon. The Army chose General Dynamics-OTS Inc., AAI Corporation Textron Systems, and Sig Sauer Inc. to deliver prototypes of both the automatic rifle and rifle versions of the NGSW, as well as hundreds of thousands of rounds of special 6.8 mm ammunition common to both weapons. Such procurement plans and advanced ammunition development programs are anticipated to drive the market studied in the region during the forecast period.

ammunition market geography

Competitive Landscape

The ammunition market is fragmented with the presence of several global and local ammunition manufacturing companies. However, the market is majorly dominated by large international players like BAE Systems, Rheinmetall, General Dynamics, and RUAG while the rest of the market share is controlled majorly by the players in local defense industries of several countries. All the ammunition manufacturers suffered a decline in their revenues in 2020 due to COVID19 related restrictions and market uncertainty. Although most countries have officially declared plans to increase their defense expenditure, the increase has not been directly visible in revenues for ammunition manufacturers. To cater to the future demand, companies are involved in the research and development of new and advanced munitions that will allow the users to employ fire and forget type munitions and increase the lethality of weapons and increase the area of impact. Some of the suppliers of munitions are also working on extending the munition range as well as the impact area, in preparation for future weapons systems and connected warfare. Players are expected to benefit from early unique munition development plans as well as domestic production capability in each of the major procuring countries, as these countries are working on developing indigenous models for both domestic and international consumption and are gaining market share slowly but steadily.

Recent Developments

  • In May 2021, India’s Ordnance Factory Board (OFB) announced that it has dispatched 11 million rounds of 5.56x45mm (M193) caliber bullets to the United States. This was the first major export order bagged by OFB for small arms’ ammunition from the United States.
  • In February 2021, Rheinmetall Denel Munition has formalized a ten-year agreement with Northrop Grumman to develop ammunition technology for future artillery operations. The agreement focuses on precision-guided enhanced range artillery ammunition solutions by fitting 155mm artillery rounds with an integrated M1156 precision guidance kit (PGK).
  • In November 2020, BAE Systems was awarded a 15-year contract for the supply of munitions to the UK Ministry of Defence (MOD). The contract is worth GBP 2.4 billion (USD 3.2 billion) and will include the delivery of 39 different munitions, including small-caliber ammunition, mortars, tank shells, medium-caliber gun rounds, and heavy artillery. The contract is scheduled to begin by the end of 2022.
  • In September 2020, the Poland Minister of National Defense signed three contracts worth USD 60.73 million (PLN 222.5 million) with MESKO SA for the procurement and deployment of a variety of ammunition. The first contract includes the procurement of 11 thousand rounds for 152 mm self-propelled gun-howitzer DANA (planned to be delivered during the 2020-2022 period). The second contract includes the procurement of 174 thousand of 30 mm MK44 Bushmaster ammunition and 23 mm anti-aircraft training ammunition (scheduled to be delivered during the 2020-2023 period). Under the third contract, the company will deliver 8 thousand rounds for 122 mm self-propelled howitzer 2S1 Goździk.
  • In July 2020, the French procurement authority, DGA, awarded a 45-month contract to Hirtenberger Defense Systems to provide 120 M6 C-640 Mk1 command mortars and 18,000 cartridges of 60mm ammunition. The order includes a supply of 6,500 cartridges 60 MM Cdo HE (explosive), 4,700 60 MM Cdo PRACTICE (exercise cartridge), 2,500 60 MM Cdo SMK-RP (fog, red phosphor), 2,300 cartridges, 60 MM Cdo ILL-IR (luminous, infrared), and 2,000 cartridges 60 MM Cdo ILL-VIS (luminous, visible).

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Buyers/Consumers

      2. 4.4.2 Bargaining Power of Suppliers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size by Value - USD billion)

    1. 5.1 Type

      1. 5.1.1 Small Caliber Ammunition

      2. 5.1.2 Medium Caliber Ammunition

      3. 5.1.3 Large Caliber Ammunition

        1. 5.1.3.1 Mortar Ammunition

        2. 5.1.3.2 Arrtillery Ammunition

    2. 5.2 Application

      1. 5.2.1 Non-lethal

      2. 5.2.2 Lethal

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

      2. 5.3.2 Europe

        1. 5.3.2.1 United Kingdom

        2. 5.3.2.2 France

        3. 5.3.2.3 Germany

        4. 5.3.2.4 Russia

        5. 5.3.2.5 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 India

        3. 5.3.3.3 Japan

        4. 5.3.3.4 South Korea

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 Latin America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Rest of Latin America

      5. 5.3.5 Middle East & Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 United Arab Emirates

        3. 5.3.5.3 Turkey

        4. 5.3.5.4 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 BAE Systems PLC

      2. 6.2.2 Rheinmetall AG

      3. 6.2.3 Elbit Systems Ltd

      4. 6.2.4 Nexter Group

      5. 6.2.5 General Dynamics Corporation

      6. 6.2.6 Nammo AS

      7. 6.2.7 RUAG Group

      8. 6.2.8 Singapore Technologies Engineering Ltd

      9. 6.2.9 Denel SOC Ltd

      10. 6.2.10 Northrop Grumman Corporation

      11. 6.2.11 MESKO SA

      12. 6.2.12 CBC Global Ammunition

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Ammunition Market market is studied from 2018 - 2030.

The Ammunition Market is growing at a CAGR of 4.01% over the next 5 years.

The Ammunition Market is valued at 7 Billion USD in 2018.

The Ammunition Market is valued at 11 Billion USD in 2030.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

BAE Systems PLC, Rheinmetall AG, General Dynamics Corporation, Nexter Group, RUAG Group are the major companies operating in Ammunition Market.

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