Market Trends of Asia-Pacific Medium And Large Caliber Ammunition Industry
Large Caliber Segment is Expected Witness Highest Growth During the Forecast Period
In 2022, Asia-Pacific spent USD 569 billion on military expenditure. Over the past few years, terrorist operations have increased in nations like Afghanistan, Pakistan, India, and the Philippines. As a result, more anti-terrorism funding is being made available to combat terrorism at the domestic and international levels.
The large caliber segment of the market is expected to witness growth primarily due to the procurement of howitzers, artilleries, etc., which in turn is propelling governments' investments in procuring large caliber ammunition. Countries in the Asia-Pacific region have collaborated with significant ammunition manufacturers to support their indigenous defense capabilities. In June 2022, Thales Australia entered into a collaboration agreement with EXPAL Systems S.A. The new agreement aims to establish solutions in Australia for large caliber Naval munitions and fuzes supporting the Australian defense force. Such developments and procurements of advanced systems are anticipated to boost the segment's growth during the forecast period.
China to Continue Market Dominance During the Forecast Period
China currently dominates the market and is expected to continue its dominance during the forecast period. This is mainly due to growing military spending and subsequent investments into the development and procurement of advanced armaments. The country plans to complete military modernization by 2035 and emerge as a supreme military power by the second centenary goal of 2049.
China has multiple state-owned and home-grown defense manufacturers that cater to the country’s defense needs. Aviation Industry Corporation of China (AVIC), China Electronics Technology Group Corporation (CETC), China North Industries Group Corporation (NORINCO), and China South Industries Group Corporation (CSGC) are some of the major domestic defense companies that provide China with the weapons and munitions required to carry out the country’s military activities.
China has been prioritizing its military and economic interests, which has recently led to multiple security expansions. As part of these expansions, the country is venturing into geographical areas that are causing international unrest and leading to military conflicts. China recently announced that Taiwan needs to be part of mainland China and has launched some fighter jets near the separately governed Taiwan. China is also expanding its military security to tackle the border conflict with India. These moves sparked a significant conflict between the Asian-Pacific countries. Such tensions and deployment of advanced weaponry are expected to accelerate the growth of the country in the coming years.
