NATO Ammunition Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The NATO Ammunition Market Report is Segmented by Caliber Size (Small, Medium, and Large), Weapon Platform (Aerial, Terrestrial, and Naval), and Geography (United States, United Kingdom, Canada, Italy, Germany, France, and Rest of NATO Countries). The Report Offers Market Size and Forecast for all the Above Segments in Value (USD).

NATO Ammunition Market Size

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NATO Ammunition Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 8.41 Billion
Market Size (2029) USD 10.13 Billion
CAGR (2024 - 2029) 3.78 %
Market Concentration High

Major Players

NATO Ammunition Market Major Players

*Disclaimer: Major Players sorted in no particular order


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NATO Ammunition Market Analysis

The NATO Ammunition Market size is estimated at USD 8.41 billion in 2024, and is expected to reach USD 10.13 billion by 2029, growing at a CAGR of 3.78% during the forecast period (2024-2029).

The NATO member countries are committed to the collective defense principle, as mentioned in Article 5 of the NATO treaty. This means an attack on one NATO member country is considered an attack on all members. To fulfill this commitment, member nations must maintain well-equipped and well-trained armed forces, including adequate ammunition supplies. Hence, the demand for NATO ammunition is driven by political, strategic, operational, and technological factors rooted in the alliance's commitment toward collective defense and its evolving security challenges. Thus, ongoing geopolitical conflicts and tensions in various regions can lead to increased demand for ammunition by NATO forces, as NATO has been involved in counterterrorism operations worldwide. These conflicts may necessitate the deployment of NATO troops and the stockpiling of ammo in preparation for potential operations.

The market often experiences fluctuations based on geopolitical developments and shifts in military priorities. For instance, NATO member countries may rely heavily on a small number of ammunition suppliers, which can create dependencies and limit diversification. This can lead to supply shortages, vulnerabilities in conflicts, or political tensions with critical suppliers, hindering market growth.

NATO Ammunition Market Trends

The Medium Caliber Segment Will Showcase Remarkable Growth During the Forecast Period

Medium-caliber ammunition refers to ammunition with caliber sizes ranging from 20 mm to 60 mm. The market for medium-caliber ammunition is expected to grow primarily due to the armed forces' procurement and upgrade activities to counter emerging threats. Several contracts for helicopters, military aircraft, armored personnel carriers (APCs), and infantry fighting vehicles (IFVs) mounted with medium-caliber turret guns are underway, and several new contracts are expected to be dispersed over the coming years, creating parallel demand for medium-caliber ammunition.

For instance, in May 2022, Rheinmetall AG signed a contract with the Spanish armed forces to supply 40mm x 53 high explosives (HE), high explosive dual purpose (HEDP), and training ammunition with and without tracer. In May 2022, the US Army MAAWS Program Office awarded Saab AB a Carl-Gustaf M4 recoilless rifles contract to support ground troops against various threats, such as armored tanks, low-flying helicopters, and UAVs. Grenade launchers are also used to address hidden threats and infiltrate enemy strongholds.

The development of new weapon systems depends on a nation's defense spending. Major defense spenders worldwide invest considerable amounts in weapon system development and procurement. Several new military platform procurement programs and weapon and ammunition contracts will be dispersed in the forecast period, driving the prospects of the medium-caliber ammunition market in NATO countries.

NATO Ammunition Market: Combined Defense Expenditure of NATO Countries, in USD Billion, 2019-2023

The United States Will Dominate the Market During the Forecast Period

The United States is expected to dominate the market during the forecast period. The dominance is due to the high defense expenditure, rising procurement of advanced ammunition, and increasing focus on improving defense capabilities. The ongoing war between Russia and Ukraine, political disputes between NATO countries and Russia, and growing security threats have led to increased spending on the procurement of advanced weapons and munitions.

The United States has one of the most significant armed forces globally. In 2024, the number of active military personnel in the country was 1,328,000. The US government deploys military personnel in over 150 countries worldwide, with several military personnel permanently assigned outside the country and its territories, excluding Afghanistan, Iraq, and Syria.

As per the Stockholm International Peace Research Institute (SIPRI), the United States was the largest defense spender worldwide, with a defense expenditure of USD 916 billion in 2023. Furthermore, on March 9, 2023, the government submitted to US Congress a proposed FY2024 budget request of USD 842 billion for the Department of Defense (DoD), an increase of USD 26 billion over FY2023. The US DoD's budget request for FY2024 is focused on the National Defense Strategy, wherein USD 30.6 billion has been requested for ammunition, marking an increase of USD 5.8 billion over the FY2023 request. The munition procurement includes USD 5.6 billion for ammunition, USD 17.3 for tactical missiles, USD 7.3 billion for strategic missiles, and USD 0.6 billion for technology development. Thus, increasing expenditure on the procurement of arms and ammunition and a rising focus on developing advanced ammunition are driving the growth of the market across the country.

NATO Ammunition Market: Military Expenditure, in USD Billion, United States, 2019-2023

NATO Ammunition Industry Overview

The NATO ammunition market is consolidated, with a few global players holding the most significant shares. Some of the major players in the market are Rheinmetall AG, General Dynamics Corporation, BAE Systems PLC, Northrop Grumman Corporation, and Olin Corporation.

Key OEMs in the market are investing heavily in R&D and introducing advanced ammunition for defense forces. The OEMs focus on long-term contracts, agreements, and partnerships with defense forces to expand their businesses. For instance, in April 2024, Rheinmetall received a contract to supply a European member of NATO with multiple rocket launcher ammunition. The delivery will take place from 2024 to 2027. The contract was valued at around EUR 300 million. Rheinmetall Expal Munitions of Spain will manufacture and deliver the rockets with a maximum range of 300 km.

NATO Ammunition Market Leaders

  1. Rheinmetall AG

  2. Olin Corporation

  3. General Dynamics Corporation

  4. Northrop Grumman Corporation

  5. BAE Systems plc

*Disclaimer: Major Players sorted in no particular order

NATO Ammunition Market Concentration
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NATO Ammunition Market News

July 2023: The UK government signed a contract worth GBP 280 million (USD 361.7 million) with BAE Systems PLC to replenish the British Army's frontline munitions. Under the agreement, the company will deliver vital defense stocks for the service, including 5.56-millimeter ammunition, 155-millimeter artillery shells, and 30-millimeter medium caliber rounds.

February 2023: Winchester, the small caliber ammunition manufacturer for the US military, announced that the US Army had awarded the company a contract to manufacture, test, and deliver 5 million 6.8mm Next Generation Squad Weapon (NGSW) cartridges.

NATO Ammunition Market Report - Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    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 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry


    1. 5.1 By Caliber Size

      1. 5.1.1 Small

      2. 5.1.2 Medium

      3. 5.1.3 Large

    2. 5.2 By Weapon Platform

      1. 5.2.1 Aerial

      2. 5.2.2 Terrestrial

      3. 5.2.3 Naval

    3. 5.3 By Geography

      1. 5.3.1 United States

      2. 5.3.2 United Kingdom

      3. 5.3.3 Canada

      4. 5.3.4 Italy

      5. 5.3.5 Germany

      6. 5.3.6 France

      7. 5.3.7 Rest of NATO Countries


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Olin Corporation

      2. 6.2.2 RUAG International Holding AG

      3. 6.2.3 Northrop Grumman Corporation

      4. 6.2.4 Global Ordnance LLC

      5. 6.2.5 CBC Global Ammunition

      6. 6.2.6 MESKO SA

      7. 6.2.7 Nammo AS

      8. 6.2.8 BAE Systems PLC

      9. 6.2.9 Rheinmetall AG

      10. 6.2.10 Nexter Groupe KNDS

      11. 6.2.11 General Dynamics Corporation


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NATO Ammunition Industry Segmentation

Ammunition is a complete cartridge with components consisting of bullets or projectiles, cartridge cases, primers/caps, and propellants used in any small arm or light weapon. It is the material fired, scattered, dropped, or detonated from any weapon or weapon system. Different types of small, medium, and large ammunition are used based on the application.

The NATO ammunition market is segmented based on caliber size, weapon platform, and geography. By caliber size, the market is divided into small caliber, medium caliber, and large caliber. By weapon platform, it is classified into aerial, terrestrial, and naval. The report also offers the market sizes and forecasts for key NATO member nations. For each segment, the market sizing and forecasts have been done based on value (USD).

By Caliber Size
By Weapon Platform
By Geography
United States
United Kingdom
Rest of NATO Countries
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NATO Ammunition Market Research FAQs

The NATO Ammunition Market size is expected to reach USD 8.41 billion in 2024 and grow at a CAGR of 3.78% to reach USD 10.13 billion by 2029.

In 2024, the NATO Ammunition Market size is expected to reach USD 8.41 billion.

Rheinmetall AG, Olin Corporation, General Dynamics Corporation, Northrop Grumman Corporation and BAE Systems plc are the major companies operating in the NATO Ammunition Market.

In 2023, the NATO Ammunition Market size was estimated at USD 8.09 billion. The report covers the NATO Ammunition Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the NATO Ammunition Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

NATO Ammunition Industry Report

Statistics for the 2024 NATO Ammunition market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. NATO Ammunition analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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NATO Ammunition Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)