Small Caliber Ammunition Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2031)

Market Overview

The small caliber ammunition market is anticipated to register a CAGR of over 5% during the forecast period (2022 - 2031).

The COVID-19 pandemic has a very low impact on the small caliber ammunition market as the procurement programs of armed forces for new generation military arms and ammunition have remained unaffected.

The growth of the small caliber ammunition market is subjective to several associative factors, such as allocation of funds for procurement of new equipment, and maybe adversely affected due to the rapid technological advances resulting in a short-effective life of newly developed technology.

Increasing investments in defense for military modernization programs to procure better equipment to replace its existing arsenal is also acting as one of the key market drivers of the small caliber ammunition market.

The stringent laws on gun ownership act as a key restrain for the growth of the small caliber ammunition market during the forecast period. The growing emphasis on gun control measures to reduce accidental gun deaths and injuries, domestic violence-related deaths, homicides, and suicides may even make the licensed rifle purchasing processes difficult during the upcoming period. This is expected to deter the growth of the market during the forecast period.

Scope of the Report

The study includes the range of ammunition in production and deployment that are below .50 caliber (12.7 mm), including 5.56 mm, 7.62 mm, 9 mm, 10- and 12-gauge, .22 caliber, .30 caliber, .38 caliber, .45 caliber, and .300 Winchester Magnum (WinMag). The report also includes ammunition used by military personnel and civilians. The military segment includes procurements by the military (army, navy, and air force), homeland security, local law enforcement agencies, border security forces, and special forces.

The report provides market size and forecasts for all major countries in North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa. The report also provides the profiles of major players in the market and their market shares. The market size and forecast are provided by value (USD billion).

Report scope can be customized per your requirements. Click here.

Key Market Trends

The Military Segment Accounted for a Major Market Share in 2021

The growing threats due to terrorism, territorial conflicts, and geopolitical tensions have forced the countries to increase their defense spending. According to the Stockholm International Peace Research Institute (SIPRI), the total global military expenditure increased to USD 1,981 billion in 2020, representing an increase of 2.8% from 2019. The growing defense budgets have facilitated the increasing investments in military modernization programs aimed at procuring better weapons to supplement or replace the existing weapons arsenal. The impact of military modernization on the ammunition market is being witnessed in countries like Germany, France, India, China, and Russia, which are spending significantly on enhancing the capabilities of their ground forces by inducting state-of-the-art small arms. For instance, from June 2020, United States Air Force’s combat arms units began the introduction of M18 semi-automatic pistols from Sig Sauer. The Small Arms Program Office of the Air Force Life Cycle Management Center acquired about 125,000 M18 handguns (worth USD 22.1 million), which began to replace the Beretta M9 pistols in service since 1985. The need to maintain a sufficient ammunition inventory with the militaries worldwide and the increasing demand for training ammunition is also anticipated to impact the small military caliber ammunition segment positively. Also, several militaries have been involved in peacekeeping missions and counter-insurgency operations in foreign countries and require a continuous supply of ammunition for continuing their operations. This has been one of the primary growth factors for the segment. However, as the US-led troops moved out of the conflict zones, such as Afghanistan, Iraq, and Somalia in 2021, the market for small military caliber ammunition is expected to register lower growth in the years to come, compared to the growth observed in the last decade. Militaries are increasingly moving towards higher calibers like 7.62 mm projectiles, as the existing widely used calibers like the 5.56 mm are becoming ineffective in piercing the tougher armors. Countries like the United States and India are also developing firearms based on new calibers like the 6.8 mm ammunition, which are expected to witness higher demand in the years to come.

To understand key trends, Download Sample Report