Medium Caliber Ammunition Market Size
|Study Period:||2018 - 2028|
|Fastest Growing Market:||Asia-Pacific|
|Largest Market:||Asia Pacific|
|CAGR:||> 1.89 %|
*Disclaimer: Major Players sorted in no particular order
Need a report that reflects how COVID-19 has impacted this market and it's growth?
Medium Caliber Ammunition Market Analysis
The medium-caliber ammunition market is expected to grow from USD 1089.88 million in 2021 to USD 1299.1 million in 2027 and is expected to register a CAGR of 1.89% during the forecast period.
- The growing geopolitical issues and border tensions have led to robust growth in military spending of the countries. This is propelling the investment of armed forces into new generation land, air, and sea platforms. This is expected to drive the growth of the market in the coming years.
- The medium-caliber ammunition market is expected to grow primarily due to the procurement and upgrade activities undertaken by armed forces to counter the emerging threats. Several contracts for naval vessels, military aircraft, helicopters, infantry fighting vehicles (IFVs), and armored personnel carriers (APCs) mounted with medium caliber turret guns are currently underway, and many new contracts are anticipated to be dispersed during the forecast period, creating a parallel demand for medium caliber ammunition.
- Few countries follow a protectionist strategy to protect the domestic ammunition industry against foreign monopoly. Such laws and regulations serve as a deterrent for foreign companies trying to expand into other countries.
Medium Caliber Ammunition Industry Segmentation
Ammunition with caliber sizes in the range of 20mm to 60mm is termed medium caliber ammunition. The scope of the study includes all types of lethal and non-lethal medium caliber ammunition, and rockets, specifically the ones with caliber sizes of 20mm, 25mm, 30mm, 40mm and 60 mm. Thus, medium calibered counter-rocket, artillery, mortar (C-RAM) weapon system ammunition, small cannons, high-explosive (HE) rounds, armor-piercing (AP) rounds, illumination, smoke, anti-personnel, and training cartridges are within the purview of the study. The market is segmented based on application into 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 million).
Medium Caliber Ammunition Market Trends
This section covers the major market trends shaping the Medium Caliber Ammunition Market according to our research experts:
Lethal Segment Accounts for Largest Share in 2021
The lethal segment of the market currently dominates the market and is expected to continue its dominance over the market during the forecast period. Lethal ammunition is used by the military and law enforcement agencies. Escalating security threats and territorial disputes have compelled armed forces to stockpile their armory with weapons that use medium-caliber ammunition. The stockpiled weapons range from stationary and platform-mounted heavy machine guns (HMGs) and automatic cannons to air defense systems and C-RAM applications. The medium caliber weapons are installed on military aircraft, helicopters, main battle tanks (MBTs), infantry fighting vehicles (IFVs), and armored personnel carriers (APCs), among others. The emergence of impact-resistant armor on modern military vehicles has necessitated the induction of medium-caliber weaponry as one of the prime choices for a wide array of battlefield effectors. In 2021, Oshkosh Defense received multiple contracts worth USD 229 million from the US Army Contracting Command, Detroit Arsenal (ACC- DTA) to upgrade various batches of Stryker Brigade Combat Team (SBCT) with the 30 mm Medium Caliber Weapon System (MCWS). Under the contracts, the company would upgrade the weapon systems on 174 Stryker combat vehicles (two Stryker Brigade Combat Team (SBCT)). Under the fleet modernization plan, the US Army plans to upgrade up to six Stryker brigades with Oshkosh Defense MCWS. With military modernization programs being rolled out in most countries, like India, the United States, and the United Kingdom, among others, the market for lethal weapons and their ammunition is expected to witness accelerated growth during the forecast period.
To understand key trends, Download Sample Report
Asia-Pacific Region is Expected to Generate the Highest Demand During the Forecast Period
The Asia-Pacific region is expected to witness rapid growth during the forecast period, primarily due to the increasing demand for medium-caliber ammunition in countries like India, China, Japan, and South Korea. Major countries in the Asia-Pacific region have increased their defense spending in the past few years, focused on strengthening their armed forces against growing geopolitical tensions and terror threats. For instance, according to the Congressional Research Service, China is expected to introduce more than four aircraft carriers, more than 39 cruisers and destroyers, and more than 38 frigates and corvettes during the period of 2020 – 2040 period. Similarly, the Indian Air Force (IAF) is planning to acquire 450 fighter aircraft for deployment on the northern and western frontiers of the country by 2035. In January 2021, India signed off an order for 83 Hindustan Aeronautics’ (HAL) Tejas Mk-1A Light Combat Aircraft. The order covers 73 single-seat Tejas Mk-1As and 10 two-seat trainers. It is worth USD 6.4 billion. The production of Tejas Mark 2 is expected to begin in 2023 as the IAF approved its design in December 2021. The Tejas Mk-1 aircraft is equipped with a 23 mm twin-barrel GSh-23 cannon. Similar aircraft, armored vehicles, and naval vessels modernization plans of the armed forces is expected to boost the growth of the market during the forecast period
To understand geography trends, Download Sample Report
Medium Caliber Ammunition Industry Overview
The market is dominated by global defense systems and technology providers, such as General Dynamics Corporation, BAE Systems PLC, Rheinmetall AG, Northrop Grumman Corporation, and Nexter Systems KNDS. The majority of the geographic regions have local players who are equally strong, providing smaller sub-systems of a larger network/project in partnership with the global leaders. Over the years, the local players have mastered technology and product design, and they are expected to become threats to the existing large players who have been demanding monopoly-style prices for their products and services in exchange for brand value, reliability, and quality. Local players in North America, the Middle-East, and Asia regions are particularly threatening the global leaders as they aim to provide an all-around solution at a fraction of the cost quoted by these global leaders without compromising on quality or reliability. Furthermore, keeping in view the sanctions made by the United States against Russia and China, countries in the region are aggressively producing medium-caliber ammunition to meet their needs without the support of international manufacturers to avoid the situation of Russia and China, in the future.
Medium Caliber Ammunition Market Leaders
General Dynamics Corporation
BAE Systems plc
Northrop Grumman Corporation
Nexter Systems KNDS
*Disclaimer: Major Players sorted in no particular order
Medium Caliber Ammunition Market News
In June 2022, Adani Defence & Aerospace announced its plan for the construction of a new integrated ammunition manufacturing complex in Uttar Pradesh, India. The new plant is expected to be in an area of more than 250 acres and will be capable of manufacturing small and medium caliber ammunition, along with short-range air defense missiles.
In May 2022, Rheinmetall Group signed a framework contract with the Spanish armed forces for the supply of 40mm x 53 high explosives (HE), high explosive dual purpose (HEDP) as well as training ammunition with and without tracer. The delivery of the ammunition is scheduled to begin in 2022.
Medium Caliber Ammunition Market Report - Table of Contents
1.1 Study Assumptions & Market Definition
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
5.2.1 North America
22.214.171.124 United States
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
184.108.40.206 South Korea
220.127.116.11 Rest of Asia-Pacific
5.2.4 Latin America
18.104.22.168 Rest of Latin America
5.2.5 Middle East & Africa
22.214.171.124 United Arab Emirates
126.96.36.199 Saudi Arabia
188.8.131.52 South Africa
184.108.40.206 Rest of Middle East & 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 Northrop Grumman Corporation
6.2.5 Nammo AS
6.2.6 Denel SOC Ltd
6.2.7 Nexter Systems KNDS
6.2.9 CBC Global Ammunition
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Medium Caliber Ammunition Market Research FAQs
What is the study period of this market?
The Medium Caliber Ammunition Market is studied from 2018 - 2028.
What is the growth rate of Medium Caliber Ammunition Market?
The Medium Caliber Ammunition Market is growing at a CAGR of >1.89% over the next 5 years.
What is Medium Caliber Ammunition Market size in 2018?
The Medium Caliber Ammunition Market is valued at 1089 Million USD in 2018.
What is Medium Caliber Ammunition Market size in 2028?
The Medium Caliber Ammunition Market is valued at 1299 Million USD in 2028.
Which region has highest growth rate in Medium Caliber Ammunition Market?
Asia-Pacific is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in Medium Caliber Ammunition Market?
Asia Pacific holds highest share in 2021.
Who are the key players in Medium Caliber Ammunition Market?
General Dynamics Corporation, BAE Systems plc, Rheinmetall AG, Northrop Grumman Corporation, Nexter Systems KNDS are the major companies operating in Medium Caliber Ammunition Market.
Medium Caliber Ammunition Industry Report
Statistics for the 2023 Medium Caliber Ammunition market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Medium Caliber 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.