Large Caliber Ammunition Market Size
|Study Period||2018 - 2028|
|Market Size (2023)||USD 286.34 Million|
|Market Size (2028)||USD 425.62 Million|
|CAGR (2023 - 2028)||8.25 %|
|Fastest Growing Market||Europe|
|Largest Market||North America|
*Disclaimer: Major Players sorted in no particular order
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Large Caliber Ammunition Market Analysis
The Large Caliber Ammunition Market size is estimated at USD 286.34 million in 2023, and is expected to reach USD 425.62 million by 2028, growing at a CAGR of 8.25% during the forecast period (2023-2028).
The COVID-19 pandemic had a negligible impact on the market. This is mainly attributed to the increase in defense expenditure across major world powers. The military expenditure as of 2021 was valued at USD 2.1 trillion, with the United States spending the highest, followed by China and India. Furthermore, the ongoing war between Russia and Ukraine leads to the rising use of weapons and ammunition, and growing defense expenditure from NATO countries drives market growth across Europe. Thus, the growth in geopolitical conflicts among the countries of the region played a major role in driving defense spending toward large-caliber weapons and ammunition, driving the market.
Governments across the world are making investments in weapons, such as field artillery, mortars, naval guns, etc., to strengthen the land and maritime border security, civilian protection, and lethality of armed forces. These weapons are a cost-effective option over costly missiles and rockets used for ground attack operations. These factors are driving the demand for large-caliber ammunition globally.
Significant technological advancements, such as high-speed projectile firing, laser guidance systems, and the increasing need for friend or foe identification and precision targeting technology, drive the market growth for GPS-enabled artillery and mortar shells. Due to increased political disputes, terrorism, and cross-border conflicts, the need for rapid deployment of forces has increased, simultaneously increasing the demand for firepower support on the battlefield, driving the market growth for large-caliber ammunition.
Large Caliber Ammunition Market Trends
This section covers the major market trends shaping the Large Caliber Ammunition Market according to our research experts:
Ground Forces Segment is Projected to Grow with Highest CAGR During the Forecast Period
Owing to profound changes in the international strategic landscape, the configuration of international security systems has been undermined by the growing hegemonism, unilateralism, and power politics, which have fuelled several ongoing global conflicts. Uncertainties in territorial rights, political tensions, and the quest for universal dominance among the military powerhouses are the major causes disturbing the geopolitical scenario.
In this regard, the most common reaction of the governments is to increase their military spending to improve security in their respective countries. Despite the economic impact of the COVID-19 pandemic, global defense expenditure continued to grow in 2020 and 2021. According to SIPRI, the global military expenditure in 2021 rose to USD 2113 billion, an increase of 7% from 2020. billion. Global spending in 2021 was 19% higher than in 2012. The five largest military spenders in 2021 were the United States, China, India, the United Kingdom, and Russia, which accounted for 62% of world military spending. Military powerhouses, such as the United States, United Kingdom, China, and India, have been focused on augmenting their military firepower and defensive capabilities. The colossal budgets also facilitate the R&D of new weapon and ammunition systems to engage hostile forces and neutralize threats.
Several armed forces have invested significant resources in upgrading their military firepower capabilities, including purchasing vehicle-mounted weapons, naval gun systems, mortars, and howitzers. This has been increasing the demand for related ammunition globally. For instance, in September 2021, the Estonian Defense Forces announced that it would receive large and small caliber ammunition worth EUR 80 million in the next few years. Under the procurement plan, the defense forces would receive large caliber ammunition worth EUR 30 million from eight suppliers over the next four to eight years.
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North America is Expected to Lead the Market During the Forecast Period
The United States is the largest defense spender in the world. The US defense expenditure increased by almost 2.9% in 2021 to reach USD 801 billion from USD 778.23 billion in 2020. The United States remained the largest defense-spending country in 2021 and represented 38% of global spending. For FY 2022, the Department of Defense's budget authority is approximately USD 722 billion, an increase of USD 17 billion from USD 705 billion in 2020, while the FY 2023 President's budget request was USD 773 billion for the DoD. The budget primarily aims at modernizing capabilities in the air, maritime, and land warfighting domains and on innovations to strengthen the country's competitive advantage.
In the 2022 report of the Under Secretary of Defense, the United States military has requested a budget of USD 24.7 Billion in FY 2023 for missiles and munitions with a prime objective to increase the overall lethality of the force by procuring at high rates of production, fully utilizing the available industrial capacity for high demand weapons and munitions that are essential for the high-end combat. Furthermore, in FY 2023, 9% of the defense budget is requested to allocate toward missiles and munitions. The ammunition portfolio includes bullets, cartridges, mortars, explosives, and artillery projectiles needed mostly by ground forces. Such procurement plans for defense platforms and related ammunition are anticipated to drive the market studied in North America during the forecast period. For instance, the United States plans to buy 100,000 rounds of 155mm howitzer ammunition from South Korean arms manufacturers to provide to Ukraine.
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Large Caliber Ammunition Industry Overview
The market for large-caliber ammunition is moderately consolidated with few established players and local manufacturers of the ammunition supplied to various armed forces. Some prominent market players are General Dynamics, BAE Systems, Northrop Grumman, Rheinmetall AG, and Nexter group KNDS. Innovations in design, materials, lethality, etc., drive the market. Several companies are focusing on strengthening their local private and government-owned ammunition companies. Countries like Saudi Arabia, the United Arab Emirates, China, and India, are encouraging local manufacturing companies to cater to the need of their respective armed forces, thereby helping the local companies to increase their share in the market studied.
For instance, in May 2022, the United States army announced two contracts to procure 120 mm tank training ammunition. The Army awarded a contract worth USD 66.7 million to Northrop Grumman for 120 mm M1002 multi-purpose tank training rounds, 120 mm M865A1 new production kinetic energy rounds, and M1002 ammunition. Also, the US Army awarded another contract worth USD 50.8 million to General Dynamics Corporation for 120mm M865A1 new production kinetic energy rounds and 120 mm M1002 new production multi-purpose tank training rounds.
Large Caliber Ammunition Market Leaders
General Dynamics Corporation
BAE Systems PLC
*Disclaimer: Major Players sorted in no particular order
Large Caliber Ammunition Market News
- In April 2022, the Armed Forces of Senegal signed a contract with Nexter to supply 8 105 LG guns and 105 mm ammunition. The 105LG is a 105 mm towed artillery gun known for its reliability and unmatched lightness (1,650 kg) and can be used in extreme climates and difficult terrains.
- In March 2022, the Hungarian Ministry of Defense contracted with Rheinmetall to supply an extensive package of ammunition worth several hundred million euros. The order includes 120 mm tank ammunition and 155 mm artillery shells, including propelling charges and fuses.
Large Caliber Ammunition Market Report - Table of Contents
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 Caliber Type
5.1.1 40-60 mm
5.1.2 Above 60 mm
5.2 By End User
5.2.1 Naval Forces
5.2.2 Ground Forces (Air Force, Army, Special Forces, Border Security, Federal Agencies, etc.)
5.3.1 North America
220.127.116.11 United States
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
126.96.36.199 South Korea
188.8.131.52 Rest of Asia-Pacific
5.3.4 Latin America
184.108.40.206 Rest of Latin America
5.3.5 Middle East and Africa
220.127.116.11 United Arab Emirates
18.104.22.168 Saudi Arabia
22.214.171.124 South Africa
126.96.36.199 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 General Dynamics Corporation
6.2.2 BAE Systems PLC
6.2.3 Rheinmetall AG
6.2.4 Nexter group KNDS
6.2.5 Northrop Grumman
6.2.6 ST Engineering
6.2.7 Saab AB
6.2.9 Denel SOC Ltd
6.2.10 Nammo AS
6.2.11 Global Ordnance
6.2.12 Diehl Stiftung & Co. KG
6.2.13 Leonardo SpA
6.2.14 Raytheon Technologies Corporation
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Large Caliber Ammunition Market Research FAQs
How big is the Large Caliber Ammunition Market?
The Large Caliber Ammunition Market size is expected to reach USD 286.34 million in 2023 and grow at a CAGR of 8.25% to reach USD 425.62 million by 2028.
What is the current Large Caliber Ammunition Market size?
In 2023, the Large Caliber Ammunition Market size is expected to reach USD 286.34 million.
Who are the key players in Large Caliber Ammunition Market?
General Dynamics Corporation, Rheinmetall AG, BAE Systems PLC, Nexter Group and Northrop Grumman are the major companies operating in the Large Caliber Ammunition Market.
Which is the fastest growing region in Large Caliber Ammunition Market?
Europe is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in Large Caliber Ammunition Market?
In 2023, the North America accounts for the largest market share in the Large Caliber Ammunition Market.
Large Caliber Military Ammunition Industry Report
Statistics for the 2023 Large Caliber Military Ammunition market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Large Caliber Military Ammunition analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.