The military segment currently dominates the market studied, and it is expected to continue its domination, in terms of market share, over the forecast period. This is due to the increase in the procurement of ammunition by the armed forces, local enforcement agencies, and border security forces to subdue the threats arising due to terrorism, territorial conflicts, and geopolitical tensions. For instance, to modernize its infantry, the Defense Ministry of India placed an order worth USD 100 million for 72,400 assault rifles to the US firm Sig Sauer. This order was placed in February 2019 to replace the INSAS rifles. Such procurements are expected to generate demand for small caliber ammunition during the forecast period.

The Asia-Pacific region currently has the highest market share and is anticipated to have the highest growth during the forecast period. The current political tensions between countries, like China, India, Japan, and Pakistan, along with the shortage of military personnel in Japan and India, are some of the major drivers that are propelling the growth of the small caliber ammunition market over the forecast period. For instance, as of July 2018, the Indian Army had a shortage of over 7,000 officers, and the Indian Air Force had a lack of approximately 200 officers; as of October 2018, the Indian Navy had a shortage of about 1,500 officers. The plans to recruit new military personnel may generate demand for arms and ammunition, which, in turn, may generate demand in the small caliber ammunition market during the forecast period.