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

The Small Caliber Ammunition Market is Segmented by End-User (Civilian and Military) and Geography (North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa). The Report Offers Market Size and Forecast for all the Above Segments in Value (USD).

Small Caliber Ammunition Market Size

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Small Caliber Ammunition Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 8.96 Billion
Market Size (2029) USD 10.20 Billion
CAGR (2024 - 2029) 2.63 %
Fastest Growing Market Europe
Largest Market North America

Major Players

Small Caliber Ammunition Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Small Caliber Ammunition Market Analysis

The Small Caliber Ammunition Market size is estimated at USD 8.96 billion in 2024, and is expected to reach USD 10.20 billion by 2029, growing at a CAGR of 2.63% during the forecast period (2024-2029).

Procurement for the training of personnel by military and law enforcement is the constant source of demand for small ammunition. At the same time, border disputes, threats from militants and terrorists, as well as mobs are the major factors driving the underlying demand for small-caliber ammunition across all nations.

The growth of the small caliber ammunition market is subjective to several associative factors, such as the allocation of funds for the procurement of new equipment. It may be adversely affected by rapid technological advances resulting in the 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.

Furthermore, the localization of the arms and ammunition manufacturing industry countries has been catching up with great interest and enthusiasm. Governments have been imposing local production and re-investment offsets as part of most mid-to-long-term military procurements.

The illegal sales of small caliber weapons and ammunition on the dark web present challenges for law enforcement agencies and governments of countries. Dark webs are those parts of obscured global networks that are frequently visited by criminals and other types of individuals to procure or sell a wide range of weapons and associated ammunition through encrypted marketplaces and vendor shops. The high level of anonymity enabled by the dark web makes the identification and linking of individuals to specific activities extremely challenging.

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.

Small Caliber Ammunition Market Trends

Military Segment To Witness Highest Growth During the Forecast Period

The growing threats due to terrorism, territorial conflicts, and geopolitical tensions have forced the countries to increase their defense spending. 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. 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 to continue their operations. This has been one of the primary growth factors for the segment. 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 US 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. For instance, In December 2021, India approved a major deal for manufacturing over 0.5 million AK-203 rifles in India. The rifles will be manufactured in India as part of the joint venture Indo-Russia Rifles Pvt Ltd (IRRPL). The Indian Army has a requirement for around 770,000 AK-203 rifles, of which 100,000 will be imported, and the rest will likely be manufactured in India, under a contract worth USD 674 million (INR 5,124 Crore). The Indian AK-203 will likely fire 7.62 x 39 mm ammunition, which is different from 7.6251 mm ammunition used by present-day AK-47 rifles of the Indian Army.

Small Caliber Ammunition Market: Military spending, in USD Billion, Global, 2018-2022

North America to Dominate Market Share During the Forecast Period

The US had around 750 bases in at least 80 countries worldwide as of July 2021. In addition to active combat, US personnel are typically deployed as part of several peacekeeping missions and military attachés or are part of the embassy, consulate security, and several other classified missions.

The enhanced capabilities of China and Russia on the battlefield forced the United States to increase its investments in advanced weapon systems and ammunition. Also, participation in NATO missions abroad generates significant demand for different types of ammunition. Such deployments have significantly contributed toward the growth of the procurement of arms and ammunition by the US armed forces. For instance, the US launched the Next Generation Squad Weapon (NGSW) program, aiming to replace the 5.56x45mm caliber M4 Carbine, M249 SAW (Squad Automatic Weapon), and 7.62x51mm caliber M240 machine guns with rifles that utilize a common 6.8mm caliber cartridge.

On the other hand, civilians in the US alone account for more than 45% of the worldwide total of civilian-held firearms. Government initiatives aimed at creating personal safety awareness programs drive the country's civilian small arms and ammunition demand. Programs like the Civilian Marksmanship Program promote firearm safety training and rifle practice for citizens, focusing on youth.

However, as gun-related violence in the country has increased over the past few years, the government has been making strict gun policies to regulate gun prefoliation. Similarly, The Canadian government announced its plan to increase its defense budget in 2022. Over the past couple of years, the defense spending in Canada has remained around USD 22 billion and has fallen short of the alliance’s target for its members to spend at least 2% of their GDP on defense.

Small Caliber Ammunition Market:  CAGR (%), By Region, 2023

Small Caliber Ammunition Industry Overview

The small caliber ammunition market is fragmented due to the presence of several local and global players in the market. Some prominent players in the small caliber ammunition market include CBC Global Ammunition, Northrop Grumman Corporation, General Dynamics Corporation, Nammo AS, and Olin Corporation.

Most countries produce small ammunition through local production capacities and minimal orders given to foreign players to meet specific caliber shortages of ammunition of purpose with military applications. For instance, the Kenya Ordnance Factories Corporation (KOFC) is the local manufacturing company in Kenya that manufactures small-caliber ammunition and related products delivered to Kenyan armed forces, security agencies, and licensed arms dealers. It exported it to allied countries in Africa. The manufacturing facility's capacity is estimated to be at least 20,000 bullets per day.

Similarly, INDUMIL, FAMAE, and Aguila Ammunition are the local manufacturers of small caliber ammunition in Colombia, Chile, and Mexico, respectively, that cater to local demand. NATO members and players in the NATO countries benefit from ammunition demand originating from other NATO members and thus have adequate market presence in the military market. Similarly, In May 2021, India's Ordnance Factory Board (OFB) dispatched 11 million rounds of 5.56x45mm (M193) caliber bullets to the US. This was the first major export order of OFB for small arms ammunition from the US.

Small Caliber Ammunition Market Leaders

  1. Northrop Grumman Corporation

  2. General Dynamics Corporation

  3. Nammo AS

  4. CBC Global Ammunition

  5. Olin Corporation

*Disclaimer: Major Players sorted in no particular order

Small Caliber Ammunition Market  Concentration
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Small Caliber Ammunition Market News

March 2023: the Finnish and Swedish Defense Forces signed an agreement with Sako Ltd. to purchase a joint range of individual firearms. The agreement will run for ten years, followed by three seven-year option periods. In the first phase, Finland will acquire assault rifles and individual protection weapons for field testing at USD 0.75 million. Under the same agreement, Sweden made procurement of assault rifles and personal protection weapons. The first agreement covers firearms worth about SEK 875 million (USD 84 million).

June 2022: The US Department of Defense awarded Winchester Ammunition a contract modification for continued production of 5.56x45mm, 7.62x51mm, and .50 caliber ammunition. Winchester was also awarded a USD 15 million cost-plus contract to design a new manufacturing facility for the Next Generation Squad Weapon (NGSW). In January 2022, the company won a contract to supply 6.8mm ammunition to the US Army with a total value of USD 20 million.

Small Caliber Ammunition Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porters 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

  5. 5. MARKET SEGMENTATION

    1. 5.1 End-Use

      1. 5.1.1 Civilian

      2. 5.1.2 Military

    2. 5.2 Geography

      1. 5.2.1 North America

        1. 5.2.1.1 United States

        2. 5.2.1.2 Canada

      2. 5.2.2 Europe

        1. 5.2.2.1 United Kingdom

        2. 5.2.2.2 France

        3. 5.2.2.3 Germany

        4. 5.2.2.4 Russia

        5. 5.2.2.5 Rest of Europe

      3. 5.2.3 Asia-Pacific

        1. 5.2.3.1 China

        2. 5.2.3.2 India

        3. 5.2.3.3 Japan

        4. 5.2.3.4 South Korea

        5. 5.2.3.5 Rest of Asia-Pacific

      4. 5.2.4 Latin America

        1. 5.2.4.1 Brazil

        2. 5.2.4.2 Mexico

        3. 5.2.4.3 Rest of Latin America

      5. 5.2.5 Middle East and Africa

        1. 5.2.5.1 Saudi Arabia

        2. 5.2.5.2 United Arab Emirates

        3. 5.2.5.3 Egypt

        4. 5.2.5.4 Rest of Middle East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share**

    2. 6.2 Company Profiles*

      1. 6.2.1 Northrop Grumman Corporation

      2. 6.2.2 General Dynamics Corporation

      3. 6.2.3 BAE Systems plc

      4. 6.2.4 Denel SOC Ltd

      5. 6.2.5 Remington Ammunition

      6. 6.2.6 CBC Global Ammunition

      7. 6.2.7 RUAG International Holding Ltd.

      8. 6.2.8 MESKO S.A.

      9. 6.2.9 Nammo AS

      10. 6.2.10 Olin Corporation

      11. 6.2.11 CCI Ammunition

      12. 6.2.12 Elbit Systems Ltd.

      13. 6.2.13 PT Pindad

      14. 6.2.14 Advanced Weapons and Equipment India Limited (AWEIL)

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
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Small Caliber Ammunition Industry Segmentation

The small caliber 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 small caliber ammunition market is segmented by end-user and geography. By end-user, the market is segmented into civilian and military. The report also covers the market sizes and forecasts for the small caliber ammunition market in major countries across different regions. For each segment, the market size is provided in terms of value (USD).

End-Use
Civilian
Military
Geography
North America
United States
Canada
Europe
United Kingdom
France
Germany
Russia
Rest of Europe
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
Latin America
Brazil
Mexico
Rest of Latin America
Middle East and Africa
Saudi Arabia
United Arab Emirates
Egypt
Rest of Middle East and Africa
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Small Caliber Ammunition Market Research FAQs

The Small Caliber Ammunition Market size is expected to reach USD 8.96 billion in 2024 and grow at a CAGR of 2.63% to reach USD 10.20 billion by 2029.

In 2024, the Small Caliber Ammunition Market size is expected to reach USD 8.96 billion.

Northrop Grumman Corporation, General Dynamics Corporation, Nammo AS, CBC Global Ammunition and Olin Corporation are the major companies operating in the Small Caliber Ammunition Market.

Europe is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Small Caliber Ammunition Market.

In 2023, the Small Caliber Ammunition Market size was estimated at USD 8.72 billion. The report covers the Small Caliber Ammunition Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Small Caliber Ammunition Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Small Caliber Bullets Industry Report

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

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