
Study Period | 2024 - 2030 |
Market Size (2025) | USD 4.65 Billion |
Market Size (2030) | USD 5.92 Billion |
CAGR (2025 - 2030) | 4.95 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Market Concentration | Medium |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Artillery Ammunition Market Analysis
The Artillery Ammunition Market size is estimated at USD 4.65 billion in 2025, and is expected to reach USD 5.92 billion by 2030, at a CAGR of 4.95% during the forecast period (2025-2030).
The global artillery ammunition landscape is experiencing significant transformation amid evolving geopolitical dynamics and military modernization initiatives. According to the Stockholm International Peace Research Institute, global military expenditure reached unprecedented levels in 2022, with the United States leading at USD 877 billion, followed by China at USD 292 billion and Russia at USD 86.4 billion. This surge in defense spending has catalyzed extensive modernization of artillery systems worldwide, with nations focusing on developing and acquiring advanced ammunition systems with enhanced range, precision, and lethality capabilities.
The industry is witnessing a substantial shift toward increased production capacity and technological advancement in ammunition manufacturing. In October 2023, the United States awarded contracts worth USD 1.5 billion to nine companies across the United States, Canada, India, and Poland to boost global production of 155 mm artillery shells. The initiative aims to achieve an international production goal of 80,000 monthly projectiles by the fourth quarter of fiscal 2025, representing a significant scaling up of manufacturing capabilities to meet growing global demand.
International cooperation and strategic partnerships have become increasingly prevalent in the artillery ammunition sector. In August 2023, Diehl Defence/Nammo AS secured a framework agreement with the Federal Office of Bundeswehr Equipment for the long-term supply of high-performance 155 mm artillery shells to German defense forces. Similarly, seven European Union member states have placed orders through the European Defense Agency's fast-track joint procurement scheme, demonstrating a coordinated approach to ammunition acquisition and production.
Technological innovation is driving the evolution of artillery ammunition, with manufacturers focusing on developing advanced guidance systems and extended-range capabilities. In August 2023, Israel announced a USD 60 million procurement of 155 mm artillery shells from Elbit Systems Ltd, emphasizing the growing demand for sophisticated ammunition solutions. The industry is witnessing a transition toward precision-guided munitions, with companies like Northrop Grumman surpassing production milestones of precision guidance kits for artillery projectiles, enabling enhanced accuracy and reduced collateral damage in modern warfare scenarios. The focus on precision-guided munitions is indicative of a broader trend towards minimizing collateral damage and increasing the effectiveness of military ordnance.
Artillery Ammunition Market Trends
Rising Defense Expenditure Driving Procurement
The global defense landscape has witnessed substantial increases in military expenditure, driving significant procurement activities in artillery munitions. According to the Stockholm International Peace Research Institute, in 2022, the United States maintained its position as the highest defense spender at USD 877 billion, followed by China (USD 292 billion), Russia (USD 86.4 billion), India (USD 81.4 billion), and Saudi Arabia (USD 75 billion). This increased spending has directly translated into major procurement initiatives, exemplified by the United States' October 2023 announcement of USD 1.5 billion in contracts awarded to nine companies across the United States, Canada, India, and Poland to boost global production of 155 mm artillery rounds.
The surge in defense budgets has catalyzed numerous procurement activities worldwide throughout 2023. In October 2023, seven European Union member states initiated orders through the European Defense Agency's fast-track joint procurement scheme for acquiring 155 mm artillery shells. Similarly, in September 2023, the Indian Army proposed a USD 60 million initiative to acquire next-generation guns from domestic companies, with plans to procure 400 advanced 155 mm/52 caliber guns. Additionally, Israel announced in August 2023 a USD 60 million procurement of 155 mm artillery shells, signing an agreement with Elbit Systems Ltd for delivery in 2024, demonstrating the global trend of increased artillery munitions acquisition driven by rising defense budgets.
Enhanced Production Rate and Indigenous Manufacturing Initiatives
Global defense manufacturers have significantly ramped up their production capabilities while simultaneously pursuing indigenous manufacturing initiatives to meet growing demand. In November 2023, South Korea announced its ambition to position itself among the top four ammunition suppliers globally, following the United States, Russia, and France, achieved through increased localization in manufacturing 155 mm artillery rounds. This trend is further evidenced by France's October 2023 announcement of plans to boost the production of self-propelled guns, artillery shells, fighter jets, and anti-air missiles indigenously, with aims to increase ammunition production to deliver 3,000 155 mm rounds monthly from January 2024.
The emphasis on indigenous manufacturing capabilities has been particularly pronounced in major defense markets. The United States announced plans in August 2023 to increase its 155 mm manufacturing rate locally to 85,000 artillery shells per month by 2025, implementing new computer-assisted manufacturing techniques and rotary machines to streamline production processes. India has also made significant strides in this direction, announcing in February 2023 its strategic initiative to become the primary manufacturing hub for advanced 155 mm artillery munitions, capable of serving over 75 armies worldwide. The Indian Ministry of Defense has selected domestic ammunition manufacturers to supply approximately 2,000 155 mm terminally guided munitions for the Army's in-service guns, demonstrating the global shift toward localized production capabilities.
Lower Production Rate and Constraint for Quick Capacity Gain
Despite ambitious production targets, the artillery rounds industry faces significant challenges in rapidly scaling up manufacturing capacity. The primary constraint lies in the availability of specialized manufacturing equipment, particularly the expensive machinery required for shell production. This limitation has impacted various countries' ability to meet their production targets, as exemplified by the United States' challenges in March 2023, where the lack of machine tools constrained their ability to increase ammunition production within desired timelines. The situation is further complicated by the extended timeframes and substantial costs associated with acquiring and setting up such specialized manufacturing equipment.
The industry also faces considerable challenges related to procurement delays and component shortages. In April 2023, France experienced delays in purchasing 155 mm ammunition due to their reluctance to engage with markets outside the European Union. Similarly, European manufacturers have encountered significant obstacles in increasing ammunition production due to component shortages, affecting their ability to meet growing demand. These constraints are further exacerbated by heightened concerns about sharp increases in demand for defense enterprise products, potentially leading to price escalations that could impede market accessibility for some underdeveloped countries unable to acquire such ammunition at elevated costs.
Artillery Ammunition Market Geography Segment Analysis
155 MM Ammunition Market in North America
The North American 155 MM ammunition market maintains a dominant position globally, commanding approximately 25% of the market share in 2024. This significant market presence is primarily driven by the United States' substantial defense budget and ongoing military modernization initiatives. The region's market dynamics are characterized by extensive research and development activities in advanced artillery systems, particularly focusing on precision-guided munitions and extended-range capabilities. The United States' commitment to increasing its ammunition production capacity, coupled with strategic partnerships with international manufacturers, has strengthened the regional market's foundation. The presence of major defense contractors and their robust manufacturing capabilities has enabled consistent innovation in ammunition technology. Furthermore, the region's emphasis on maintaining strategic stockpiles and supporting allied nations has created a stable demand environment. The market also benefits from strong government support for domestic ammunition production and ongoing efforts to enhance manufacturing efficiency through advanced manufacturing techniques.

155 MM Ammunition Market in Europe
The European 155 MM ammunition market has demonstrated remarkable growth, expanding by approximately 27% during the period 2019-2024. The market's evolution is characterized by increased defense cooperation among European Union member states and significant investments in artillery systems modernization programs. European manufacturers have established themselves as global leaders in producing advanced artillery ammunition, with a particular focus on developing sophisticated precision-guided munitions. The region's market is distinguished by strong cross-border collaboration in research and development, leading to technological innovations in ammunition design and manufacturing. European countries have also prioritized the enhancement of domestic production capabilities, implementing various initiatives to strengthen the regional supply chain. The market benefits from coordinated procurement programs among NATO members, fostering standardization and interoperability. Additionally, the presence of established defense manufacturers and their extensive experience in developing advanced ammunition systems has reinforced Europe's position as a key player in the global market.
155 MM Ammunition Market in Asia-Pacific
The Asia-Pacific 155 MM ammunition market is poised for substantial growth, with projections indicating an expansion of approximately 16% from 2024 to 2029. The region's market is characterized by increasing defense modernization initiatives and growing domestic manufacturing capabilities. Countries across the Asia-Pacific region are actively investing in advanced artillery systems and associated ammunition, driven by evolving security dynamics and the need for enhanced military capabilities. The market landscape is marked by significant developments in indigenous production capabilities, particularly in countries like India, South Korea, and Japan. Strategic partnerships between regional manufacturers and international defense companies have facilitated technology transfer and local manufacturing expertise. The region's market is also witnessing increased focus on developing precision-guided ammunition and extended-range artillery projectiles. Furthermore, the emphasis on self-reliance in defense manufacturing has led to the establishment of new production facilities and the enhancement of existing capabilities.
155 MM Ammunition Market in Latin America
The Latin American 155 MM ammunition market is experiencing steady development, driven by military modernization programs and efforts to enhance domestic production capabilities. The region's market is characterized by an increasing focus on improving artillery capabilities and developing indigenous manufacturing expertise. Countries in the region are actively pursuing partnerships with international manufacturers to establish local production facilities and enhance technical capabilities. The market dynamics are influenced by regional security requirements and the need to maintain modern artillery systems. Latin American nations are increasingly investing in advanced ammunition technologies, particularly in precision-guided systems. The development of local manufacturing capabilities has become a priority for major regional players, aiming to reduce dependence on imports. Additionally, strategic partnerships with global ammunition manufacturers have facilitated technology transfer and skill development in the region.
155 MM Ammunition Market in Middle East & Africa
The Middle East & Africa 155 MM ammunition market demonstrates strong growth potential, driven by ongoing regional security challenges and military modernization initiatives. The market is characterized by significant investments in advanced artillery systems and ammunition capabilities across multiple countries. Regional defense forces are increasingly focusing on acquiring modern artillery systems and associated ammunition to enhance their operational capabilities. The market benefits from strong relationships with international manufacturers and a growing emphasis on developing local production capabilities. Countries in the region are actively pursuing partnerships to establish domestic manufacturing facilities and enhance technical expertise. The market is also witnessing increased interest in precision-guided ammunition and extended-range artillery projectiles. Furthermore, the emphasis on military modernization and self-reliance has led to the development of regional manufacturing capabilities and strategic partnerships with global ammunition manufacturers.
Artillery Ammunition Industry Overview
Top Companies in Artillery Ammunition Market
The artillery ammunition market features prominent players like BAE Systems, Northrop Grumman, Rheinmetall AG, and KNDS NV leading the competitive landscape. These companies are increasingly focusing on developing advanced guided ammunition technologies, particularly in GPS-enabled and precision-guided munitions capabilities, to meet evolving battlefield requirements. Strategic partnerships and collaborations with defense organizations have become crucial for maintaining market position and securing long-term contracts. Companies are expanding their manufacturing capabilities across multiple regions to ensure supply chain resilience and meet growing demand. Research and development investments are primarily directed towards improving the accuracy, range, and effectiveness of 155mm ammunition, while also addressing environmental concerns through sustainable manufacturing processes. The industry is witnessing a shift towards modular charge systems and smart artillery shells solutions, reflecting the broader trend of defense modernization programs worldwide.
Consolidated Market with High Entry Barriers
The artillery ammunition market is characterized by a high degree of consolidation, dominated by established defense contractors with significant technological expertise and manufacturing capabilities. These major players typically operate as part of larger defense conglomerates, leveraging their extensive resources, established relationships with military organizations, and comprehensive research and development infrastructure. The market exhibits strong regional preferences, with companies often maintaining close ties to their domestic defense forces while pursuing international expansion through strategic partnerships and local manufacturing facilities.
The industry's high entry barriers stem from stringent regulatory requirements, substantial capital investments, and the need for specialized technical expertise. Mergers and acquisitions activity is primarily focused on expanding technological capabilities and geographic reach, with larger companies acquiring specialized ammunition manufacturers to enhance their product portfolios. The market structure favors incumbents who have demonstrated track records in quality, reliability, and compliance with military specifications, making it challenging for new entrants to establish a significant presence without strategic partnerships or government support.
Innovation and Adaptability Drive Market Success
Success in the artillery ammunition market increasingly depends on companies' ability to innovate while maintaining cost competitiveness and operational efficiency. Incumbent players must focus on developing next-generation ammunition technologies, particularly in guided systems and smart artillery shells, while optimizing their production processes to maintain competitive pricing. Building strong relationships with defense procurement agencies and maintaining high-quality standards are crucial for securing long-term contracts and maintaining market share. Companies must also demonstrate flexibility in adapting to changing military requirements and geopolitical situations.
The market's future trajectory is significantly influenced by end-user concentration in government defense agencies, creating a complex dynamic where political relationships and national security considerations play crucial roles. Companies must navigate potential regulatory changes, particularly regarding environmental impact and safety standards, while maintaining their competitive edge. The threat of substitution from alternative weapon systems and emerging technologies necessitates continuous innovation and adaptation of product offerings. Success for contenders lies in identifying niche market segments, developing specialized capabilities, and establishing strategic partnerships with established players or government agencies to gain market entry and build credibility. Additionally, advancements in artillery fuze technology and artillery ordnance are pivotal for staying ahead in this competitive landscape.
Artillery Ammunition Market Leaders
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Rheinmetall AG
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Saab AB
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THALES
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General Dynamics Corporation
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BAE Systems plc
- *Disclaimer: Major Players sorted in no particular order

Artillery Ammunition Market News
- July 2024: In collaboration with Nammo AS, Diehl Defense was contracted to supply 155mm artillery projectiles to the German Armed Forces and their allied partners. This contract underscores the strategic partnership between the companies and highlights their capabilities in providing advanced munitions suitable for modern artillery systems.
- June 2024: ST Engineering has secured contracts exceeding USD 100 million to provide NATO-standard 155mm ammunition to European nations.
- June 2024: KNDS France secured a contract from the French procurement agency Direction générale de l'armement (DGA) to aid in the development of the KATANA high-precision guided ammunition. Set to be available for purchase within the next two years, this 155mm ammunition boasts cutting-edge guidance technology, ensuring pinpoint accuracy within a few meters.
Artillery 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 Bargaining Power of Buyers/Consumers
- 4.4.2 Bargaining Power of Suppliers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Caliber
- 5.1.1 Below 120mm
- 5.1.2 120mm & Above
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5.2 Geography
- 5.2.1 North America
- 5.2.1.1 United States
- 5.2.1.2 Canada
- 5.2.2 Europe
- 5.2.2.1 United Kingdom
- 5.2.2.2 France
- 5.2.2.3 Germany
- 5.2.2.4 Rest of Europe
- 5.2.3 Asia-Pacific
- 5.2.3.1 China
- 5.2.3.2 Japan
- 5.2.3.3 India
- 5.2.3.4 South Korea
- 5.2.3.5 Rest of Asia-Pacific
- 5.2.4 Latin America
- 5.2.4.1 Brazil
- 5.2.4.2 Mexico
- 5.2.4.3 Rest of Latin America
- 5.2.5 Middle East and Africa
- 5.2.5.1 United Arab Emirates
- 5.2.5.2 Saudi Arabia
- 5.2.5.3 South Africa
- 5.2.5.4 Israel
- 5.2.5.5 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
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6.2 Company Profiles
- 6.2.1 General Dynamics Corporation
- 6.2.2 Rheinmetall AG
- 6.2.3 BAE Systems plc
- 6.2.4 Saab AB
- 6.2.5 Nammo AS
- 6.2.6 MESKO S.A.
- 6.2.7 THALES
- 6.2.8 The Indian Ordnance Factories
- 6.2.9 Singapore Technologies Engineering Ltd.
- 6.2.10 MSM Group
- 6.2.11 Elbit Systems Ltd.
- 6.2.12 KNDS N.V.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Artillery Ammunition Industry Segmentation
Artillery ammunition refers to the type of ammunition that is designed to be fired from artillery canons which have an effect over long distances. There are many different types of artillery ammunition, but these ammunition are usually high-explosive and designed to shatter into fragments on impact to maximize damage. Common types of artillery ammunition include high explosives, smoke, illumination, and practice rounds. Some artillery rounds are designed as cluster munitions.
The artillery ammunition market is segmented based on caliber and geography. By caliber, the market is segmented into below 120mm and 120mm and above. The report also covers the market sizes and forecasts for the artillery ammunition market in major countries across different regions. For each segment, the market size is provided in terms of value (USD).
Caliber | Below 120mm | ||
120mm & Above | |||
Geography | North America | United States | |
Canada | |||
Europe | United Kingdom | ||
France | |||
Germany | |||
Rest of Europe | |||
Asia-Pacific | China | ||
Japan | |||
India | |||
South Korea | |||
Rest of Asia-Pacific | |||
Latin America | Brazil | ||
Mexico | |||
Rest of Latin America | |||
Middle East and Africa | United Arab Emirates | ||
Saudi Arabia | |||
South Africa | |||
Israel | |||
Rest of Middle East and Africa |
Artillery Ammunition Market Research FAQs
How big is the Artillery Ammunition Market?
The Artillery Ammunition Market size is expected to reach USD 4.65 billion in 2025 and grow at a CAGR of 4.95% to reach USD 5.92 billion by 2030.
What is the current Artillery Ammunition Market size?
In 2025, the Artillery Ammunition Market size is expected to reach USD 4.65 billion.
Who are the key players in Artillery Ammunition Market?
Rheinmetall AG, Saab AB, THALES, General Dynamics Corporation and BAE Systems plc are the major companies operating in the Artillery Ammunition Market.
Which is the fastest growing region in Artillery Ammunition Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Artillery Ammunition Market?
In 2025, the North America accounts for the largest market share in Artillery Ammunition Market.
What years does this Artillery Ammunition Market cover, and what was the market size in 2024?
In 2024, the Artillery Ammunition Market size was estimated at USD 4.42 billion. The report covers the Artillery Ammunition Market historical market size for years: 2024. The report also forecasts the Artillery Ammunition Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Artillery Ammunition Market Research
Mordor Intelligence provides a comprehensive analysis of the artillery ammunition sector. With decades of expertise in military ordnance and defense ammunition research, we cover the complete spectrum of field artillery technologies. This includes artillery systems and their components, such as artillery shells, artillery rounds, and artillery projectiles. The report offers detailed insights into advancements in precision guided munitions and smart artillery shells, alongside traditional artillery ordnance systems.
Stakeholders in the artillery systems industry benefit from our thorough analysis of military explosives and artillery propellant technologies. We provide technical specifications of artillery fuze mechanisms. The report, available as an easy-to-download PDF, delivers actionable intelligence on the evolving market for precision guided munitions and emerging trends in the artillery systems market. Our research methodology combines primary data with expert analysis. This ensures stakeholders receive accurate, current, and comprehensive insights for informed decision-making in this critical defense sector.